The automotive wire and cable material market is poised for significant growth, with a forecasted valuation of USD 5,149 million by 2023. Over the next decade, from 2023 to 2033, the market is expected to witness a strong Compound Annual Growth Rate (CAGR) of 6.9%. By 2033, it is anticipated to reach a remarkable USD 12,020.1 million
According to historical data from FMI, the global automotive wire & cable materials market maintained a steady CAGR of 3.4% between 2014 and 2021. In comparison with current estimates, the market is projected to reach US 4,830.3 million in 2022. FMI predicts that by 2032, the market will grow by 1.8 times compared to its 2022 valuation.
The automotive wire & cable market is expected to experience phenomenal growth, driven by the increasing production of passenger cars and commercial vehicles globally, particularly in North America and Asia. The India Brand Equity Foundation (IBEF) reports that by 2030, approximately 10 million electric vehicles could be sold annually, with 4 million projected sales by 2025.
Detailed Market Study: Full Report and Analysis
Key Takeaways
- Global automotive production is majorly being driven by rising disposable income and enhanced economic conditions of various countries. Furthermore, increasing concerns over heightened greenhouse gas emissions have been raised due to increasing vehicle fleets and growing carbon emissions from the roadways sector, which has made automotive manufacturers shift towards green mobility.
- Digitalization in vehicles has been immensely enhanced due to increased development in modern technologies which is resulting in creating multiple opportunities for manufacturers of electrical system components and wires & cables for the automotive sector. This surging enhancement is further propelling the electrification of vehicles that have managed to create high growth opportunities for companies in the global wire & cable materials market.
- In addition to that, the introduction of hybrid & flex-fuel vehicles and connected cars would drive the global automotive wire & cable materials market during the assessment period. Digital technologies are massively being employed in enhancing automotive, replacement of copper with aluminum in battery cables, and the development of bio-based plasticizers to produce PVC are some of the other latest trends in the automotive wire & cable materials market.
- The demand for automotive wire & cable materials is rising owing to diverse factors including rising vehicle production, increasing electrification of vehicles, and surging development of electric systems in vehicles, especially in developing economies such as India and China.
- In addition to that, a reasonable increase in the number of emissions and safety regulations implemented by government bodies are pushing the demand for effective harness systems in the automotive sector, thereby creating new growth opportunities for automotive wire & cable material market players.
Competitive Landscape
With the presence of various big, medium, and small-scale manufacturers, the global automotive wire & cable materials market is gaining momentum. Prominent players in the market are focusing on collaborating and partnering with vehicle manufacturers for gaining better market opportunities.
Several other key players in the market are engaging in mergers & acquisitions and new product developments to come up with innovative materials to meet the unmet demand from a wide range of industries.
Key Companies Profiled
- Sumitomo Electric Industries, Ltd.
- Allied Wire & Cable Inc.
- Delphi Automotive PLC
- Coroplast Fritz Muller GmbH & Co. KG
- Draka Holdings B.V.
- Yazaki Corporation
- Leoni AG
- Coficab Group
- Lear Corporation
More Insights into the Automotive Wire & Cable Materials Market
The U.S. is expected to account for more than1/10th of the global automotive wire & cable materials market in 2022. Owing to several regulations implemented by the U.S. government along with efforts made by private organizations have led to the reduction of carbon emissions from vehicles which is a major factor pushing sales in the country. In addition to that, the presence of a well-developed infrastructure and ongoing development in the automotive sector in the U.S. is driving the wire & cable materials market.
China is anticipated to excel at an impressive CAGR of 6.7% in 2022, opines FMI. China is considered to be the hub for global vehicle manufacturers. Apart from that, the country is a leading exporter of wire & cable materials and one of the prime producers of electric & hybrid vehicles. Thus, mass production of electric and hybrid vehicles in the country is projected to drive the demand for wire & cable materials in the Chinese market.
Key Segments Covered in Automotive Wire & Cable Materials Market Analysis
By Material Type:
- PVC
- PP
- XLPE
- TPU
- PPE
- Others
By Vehicle Type:
- Passenger Vehicles
- LCV
- HCV
By Region:
- North America
- Latin America
- Europe
- East Asia
- South Asia Pacific
- Middle East & Africa