The global automotive cable market is expected to grow at a CAGR of 7% during the forecast period of 2023 to 2030. Two of the most important factors that influenced the development of the automotive cable market were the rise in the number of electronic components installed in automobiles and the desire for more advanced vehicle safety systems. It is anticipated that demand for automobile cables would expand throughout the projection period as a result of the growing use of electrical components in the engine and gearbox compartments over the course of the previous several decades. The installation of the multicore cables is quite quick, and the cables themselves are incredibly flexible, in addition to being simple to use and manage. Therefore, the majority of car manufacturers currently choose the use of multicore cables for a variety of applications.
The automobile sector has been completely disrupted as a result of developments in manufacturing and management systems, which has resulted in the creation of new prospects for the automotive wire and cable materials industry. It is anticipated that the market would expand because it is utilized in a variety of applications including the engine, the lighting, the braking, the air conditioners, the seat heaters, and the dashboard. It is projected that there will be an increase in demand for automotive wire and cable materials since electric vehicles (EVs) use a greater number of electronic components than conventional automobiles do. It is projected that businesses will spend on research and development in order to develop automotive wire and cable materials that are resistant to high temperatures and heat. As a result, manufacturers ought to capitalize on prospects in innovative automotive cable materials in order to diversify their revenue streams and adapt to forthcoming technological improvements.
Increase in Number of Vehicles to Boost the Market Revenues
The introduction of brand-new models of automobiles and the meteoric rise in the total number of vehicles on the road have been the primary factors driving the expansion of the market. However, regulatory rules for anti-lock braking systems for passenger and commercial cars are highlighted as the key growth variables for the industry. Gains are primarily driven by an increase in the demand for automotive vehicles. This scenario will play out especially in developing countries like India, China, and Brazil, amongst others. It will also play out in other countries. The landscape of automotive control cables is undergoing a fundamental transformation as a direct result of the beginning of the widespread adoption of electric vehicles.
Increase in the Demand for Electric Vehicles
In order to achieve the national climate goals, set forth in international agreements such as the Kyoto Accord and the Paris Accord, to achieve energy independence, and to reduce the health risks caused by local emissions, a number of nations have proposed that the sale of passenger vehicles powered by fossil fuels in the future be prohibited. This is being done in order to: As a result, it is anticipated that there will be a rise in the number of sales of hybrid electric vehicles (HEV) in the not-too-distant future.
As more people switch to electric cars (EVs), the demand for automotive cable materials that can withstand high temperatures is likely to increase. This is because EVs use a significantly higher proportion of electronic components than conventional automobiles. As the electronic environment for electric cars (EVs) continues to evolve, there has been a corresponding rise in the importance of wire and cable systems in these vehicles. This dependence has increased as a direct result of technological advancements in the automotive sector. Because of this, the demand for automotive wire and cable materials is expected to expand in the hybrid EV and EV segments. This is due to the fact that new specifications of wire and processes are required.
Increase in the Application of State-of-the-Art Features in Motor Vehicles
The importance of technology to the expansion of the automotive industry cannot be overstated. The incorporation of technological advances makes automobiles safer, and more user-friendly and permits the introduction of a number of features that improve the value and usefulness of automobiles for their respective owners. The development of digital technology is making it possible for the automotive industry to deploy autonomous driving and take measures to reduce the risk of accidents. The prediction capacities of vehicles in the automotive industry have been significantly improved as a result of considerable advancements in machine learning and predictive technologies. The utilization of an augmented reality dashboard has made it possible to use the windshield as a screen to display information to the person operating the vehicle. The driver will be able to check for unseen items that are normally impossible to see from the driver's seat thanks to the usage of micro cameras that have been placed all over the car. Tire pressure sensors, lane change sensors, and collision control sensors avoid accidents. The availability of an anti-lock braking system as well as traction control assists drivers in maintaining command of their vehicles at all times while they are behind the wheel. Therefore, all of these characteristics and technological improvements create a considerable need for automotive wire and cables, which in turn drives the demand for materials used in the automotive wire and cable production.
Increase in Consumer Demand for Electric and Hybrid vehicles:
In an effort to broaden their customer base, automotive manufacturers from around the world are releasing new models of electric cars equipped with cutting-edge technologies. As a result of the growing preference among consumers for environmentally friendly electric cars over conventional gasoline automobiles, the expansion of the market is anticipated to be driven by this trend throughout the forecast period. In addition, hybrid vehicles offer advantages that are not available with traditional or electric vehicles. Due to the inclusion of an electrical system, it actually provides superior fuel efficiency to conventional gasoline-powered vehicles. Inverters and electric motors are connected in hybrid vehicles via AC and DC wiring harnesses. These components make up the hybrid vehicle. Because of this, it is anticipated that there will be a rise in the use of electric and hybrid cars, which will, in turn, fuel the growth of the market throughout the forecast period.
Increased Application of Automotive Ethernet by OEMs to Limit the Market Growth
The most important original equipment manufacturers (OEMs) on the market are progressively utilizing automotive Ethernet in both the internal and exterior communication of electronic devices in vehicles. The majority of high-end and premium vehicles are the ones that make use of automotive Ethernet. The existing trajectory indicates that automakers are likely to switch to Ethernet for the production of additional vehicles in the near future. Ethernet is gradually gaining ground, as seen by Hyundai's decision to implement automotive Ethernet for infotainment systems in its forthcoming vehicles and Volkswagen's deployment of automotive Ethernet for drive-assistance systems. The incorporation of Ethernet in the automotive industry is going to make the adoption of wires more difficult since it simplifies the complex wiring system. This, in turn, is anticipated to slow the expansion of the market.
Increasing Government Support and Initiatives to Encourage EV and Hybrid Vehicles to Open New Opportunities
In an effort to boost the market share of electric and hybrid vehicles, the governments of a number of countries have implemented aggressive policies, such as tax breaks and subsidies, among other measures. For example, up to the year 2013, the federal government of the United States offered qualified purchasers a tax credit of $7,500. The amount was given back to owners of electric automobiles who had paid their taxes on a consistent basis throughout the year. The government made the announcement in 2014 that they will raise the maximum tax credit to $10,000 USD, which would be made at the time of purchase. IEE Whitepaper predicts that electric vehicles will account for 40% of the overall automobile market in the United States by the year 2035.
Segmentation by Operations: Multi-Core Cables Dominated the Market
Multi-core cables dominated the market revenues in 2021. Because multi-core cables require a high voltage carrying capability, they are frequently employed in the automobile industry as well as in all forms of road vehicles. This is because multi-core cables are used to regulate electrical instruments as well as the engine. The installation of the multicore cables is quite quick, and the cables themselves are incredibly flexible, in addition to being simple to use and manage. Therefore, the majority of car manufacturers currently choose the use of multicore cables for a variety of applications. The increasing electronic or electrical content in vehicles is one of the primary forces behind the expansion of the automotive cable market around the world. To create highly effective, streamlined, and individualized cables and cable connections, manufacturers use components that are lightweight and of a smaller size while maintaining a consistent level of performance.
Segmentation by Coating: PVC was a Clear Market Leader
PVC automobile wire insulation retained approximately 58% of the revenue share in the year 2021. Through 2030, it is anticipated to expand at a compound annual growth rate of 6.7%. The polymerization of vinyl with chloride results in the creation of the thermoplastic substance known as polyvinyl chloride, or PVC for short. Because of its exceptionally robust insulation and resistance to oil, grease, and acids, it is ideally suited for use in the automotive, truck, trailer, marine, construction, and a wide variety of other electrical connections.
The increasing preference for using polyethylene shield automotive wire in transmissions, engines, brakes, doors, and other automotive components is what is driving demand in this market segment. This preference is due to polyethylene shield automotive wire's high resistance to corrosive inorganic materials, flexibility, and low cost. Additionally, this preference is driving demand. Their fore polyethylene coating is expected to be the fastest growing market during the forecast period of 2023 to 2030.
Segmentation By Vehicle Type: Passenger Vehicles Took Over More Than 75% Of Revenue Share
The global market for automotive wire and cable materials may be broken down into three distinct submarkets: passenger cars, light commercial vehicles, and heavy commercial vehicles. Passenger Vehicles held the largest share of the global market for automotive wire and cable materials in 2021, accounting for 78% of the total value of the market. This was followed by Light Commercial Vehicles and Heavy Commercial Vehicles, in order.
OEMs to Dominate Over the Forecast Period
The original Equipment Manufacturer segment is expected to hold the most significant share of the global revenue during the forecast period of 2023 to 2030. Sales of automotive control cables are growing as a result of an increase in the production of electric vehicles as well as an increase in the incorporation of car battery cables that are more dependable and long-lasting for the purpose of charging these vehicles. Due to their short life cycles, routine replacement of new brake, clutch, transmission, and other cables is supporting the growth in the aftermarket industry. This is because of the frequent need to service the cables.
Cables to Engines and Gearbox Compartments to Expand Significantly During the Forecast Period
Two of the most important factors that influenced the development of the automotive cable market were the rise in the number of electronic components installed in automobiles and the desire for more advanced vehicle safety systems. It is anticipated that demand for automobile cables would expand throughout the projection period as a result of the growing use of electrical components in the engine and gearbox compartments during the forecast period. This is especially common in commercial vehicles, which have a disproportionately high number of electronic parts and are undergoing rapid technological advancement.
APAC Remains as the Global Leader
Because of the significant amount of automotive production in the region, APAC continues to be the most dominating market for automotive cable with a revenue contribution of over 60% in 2021. China will continue to be the most important market in the APAC region for the sale of automotive cables despite the impact of Covid-19. The demand profile for vehicle sales in China is anticipated to be promising in the medium to long term, and it is anticipated that the country will continue to be the largest car market in the world in the coming future, which will directly increase the growth of the Asia-Automotive Pacific's cable market. Automotive original equipment manufacturers (OEMs) need to adjust their manufacturing and customer base footprints, supply chains, and product offerings to accommodate growing patterns of supply and demand across geographic regions and market segments. Additionally, the developing after-sales market in China presents new opportunities for business expansion. North America and Europe collectively accounted for a 30% share of the global automotive cable market in 2021.
Highly Fragmented Market Posing Cut-Throat Competition
The global market for automotive wire and cable materials is highly fragmented, with a significant number of small- and medium-scale manufacturers controlling the majority of the market share. Quite a few companies are making sizeable investments in extensive research and development operations, the primary goal of which is to develop products that are more favorable to the environment. A prominent strategy that key players have adopted is mergers and acquisitions, in addition to diversifying their product portfolios. In the Automotive Cable Market, some of the prominent players include Acitome, Sumitomo Electric, Furukawa Electric, Delphi Automotive, Yazaki, and others (Thai Steel Cable Public Co., Ltd., the Minda Corporation Limited, the Kongsberg Automotive ASA., the Suprajit Engineering Ltd., the Ficosa International SA, etc). There is a substantial amount of competition in the global market for automotive cables; nevertheless, a few manufacturers occupy key shares of the market.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Automotive Cable market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Cable Protection
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Coating Material
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Vehicle
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Application
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Sales Channel
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
