Automotive Wire Market Trend, Share, Growth, Size and Forecast 2030

Automotive Wire Industry Prospective:

The global automotive wire market size was worth around USD 5.15 billion in 2022 and is predicted to grow to around USD 9.85 billion by 2030 with a compound annual growth rate (CAGR) of roughly 8.44% between 2023 and 2030.

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Automotive Wire Market: Overview

An automotive wire is a flexible wire specifically designed to be used in automobiles including heavy-duty trucks and lighter passenger cars. These wires consist of stranded conductors that have several low-voltage automotive applications. In most cases, the conductor material used for the manufacturing of automotive wires is aluminum or copper and the choice of the material depends on the brand producing these wires. At present, there are several types of automotive wires available in the market with each wire showing specific advantages and applications. Selecting and using the wrong wires can have a direct impact on the performance of the automotive vehicle. The most common wire used in automobiles is primary wire or general-purpose thermoplastic (GPT) wire. As indicated by its name, it is used for all general purposes and applications. GPT wires are typically rated to 80°C. Another preferred wire variant is called the hook-up wire or motor wire. The primary differentiating factor between motor and GPT wires is that the former consists of finer wire strands and has the ability to handle higher voltages. Battery cable, trailer wire, speaker wire, and standard cross-linked auto electrical cable (SXL) are other commonly traded automotive wires.

Key Insights:

• As per the analysis shared by our research analyst, the global automotive wire market is estimated to grow annually at a CAGR of around 8.44% over the forecast period (2023-2030)
• In terms of revenue, the global automotive wire market size was valued at around USD 5.15 billion in 2022 and is projected to reach USD 9.85 billion, by 2030.
• The automotive wire market is projected to grow at a significant rate due to the increasing demand for superior and safer automobiles
• Based on vehicle type segmentation, electric vehicles was predicted to show maximum market share in the year 2022
• Based on application segmentation, chassis & safety was the leading segment in 2022
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022

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Automotive Wire Market: Growth Drivers

Increasing demand for superior and safer automobiles to drive market growth

The global automotive wire market is expected to grow owing to the increasing demand for safer and superior-performance automobiles including passenger vehicles and heavier trucks or buses. The changing environment in which automobiles operate including higher traffic jams, increased speed, complex road networks, and a rising number of road accidents of fatalities has resulted in a greater focus on improving the safety features of all automobiles across the board. Some of the most prominent safety features include rear view cameras, driver monitoring technologies, adaptive headlights, quickly responding brake systems, collision prevention & avoidance systems, advanced driver assistance technologies (ADAS), and innovation in airbag designs or performance. For instance, in January 2023, MG Motor India launched the next-generation Hector with improved driving comfort, intuitive features, and novel technologies. Apart from new exterior and interior designs, the company has focused on elevated safety features including Traffic Jam Assist (TJA) and ADAS along with auto turn indicators.

Stricter monitoring of wire quality to push for a higher growth rate

Since automotive wires play a crucial role in ensuring the high performance of a vehicle, the companies manufacturing these wires are subject to critical and highly stringent quality regulations ensuring the use of only high-grade wires. Currently, there are 3 main organizations regulating automotive wire rating systems. These agencies are the Society of Automotive Engineers (SAE), the International Organization for Standardization (ISO), and the Underwriters Laboratories (UL). SAE is the most dominant out of all the three agencies. The most common SAE wiring standards under application are SAE J1171 which covers marine ignition protection, SAE J1128 which is responsible for guidelines over low voltage primary cable, and SAE J1127 for battery cable specifications. The increase in consumer awareness and improved implementation policies have resulted in higher demand for good-quality automotive wires.

Automotive Wire Market: Restraints

Unregulated supply of poor-grade automotive wires may restrict market growth

The global automotive wire market growth is expected to be restricted owing to the growing segment dealing with the use of unregulated and poor-grade automotive wires. Several local and unregistered auto repair shops are operational across the globe, especially in countries with weak regulatory enforcement dealing with the quality of products used in automotive repair shops. Furthermore, the online space is filled with multiple sellers offering automotive wires at discounted prices. They are often made of cheap material and have the ability to impact vehicle performance in the long run. Low-grade wires are fragile and can lead to frequent vehicle defaults or breakdowns.

Automotive Wire Market: Opportunities

Increasing focus on development of light-weight wires may create growth opportunities

During the forecast period, research indicates that the demand for lightweight wiring systems is expected to surge to new levels, thereby driving automotive wire industry expansion. This is mainly because consumers are shifting toward lightweight vehicles that showcase exceptional performance. The reduction in weight of automotive wires directly influences fuel efficiency and light-weight wires are known to improve fuel consumption rate. Moreover, regional governments and standardizing international authorities are working toward encouraging more automakers to choose automotive parts that help reduce fuel consumption without compromising on vehicle performance. In addition to this, the increasing emphasis on curbing the emission of harmful gasses by the global automobile industry is expected to further create a higher consumption pattern for lightweight automotive wires. The players operating in the global market are working on using fiber optic cables for improved wire performance, data transmission, and automobile connectivity.

Surging global partnerships between buyers and wire manufacturers to generate expansion possibilities

The automotive wire industry is projected to benefit from the increasing cross-border and domestic-level partnerships between automakers and wire manufacturers. Such collaborative and innovative measures are expected to open doors for new entrants on a global scale. For instance, in June 2023, Dhoot Transmission, a wire solution provider to the automotive industry announced that it will soon make its entry in the growing 2-wheeler and 3-wheeler markets by tying up with new automotive companies producing motorbikes and other 3-wheelers.

Automotive Wire Market: Challenges

Short wire lifecycle and lack of disposal process to challenge market expansion

Automotive wires, although designed to have a longer lifespan, tend to degrade with time and a severe external environment can accelerate the degradation process. Additionally, there is a general lack of appropriate disposal processes for used wires leading to an increasing rate of environmental pollution. More efficient measures are needed to recycle and reuse old automotive wires to create an effective circular economy in this market segment.

Automotive Wire Market: Segmentation

The global automotive wire market is segmented based on vehicle type, material type, application, and region.

Based on vehicle type, the global market segments are electric vehicles, conventional fuel vehicles, and hybrid vehicles. In 2022, the highest growth was observed in the electric vehicles (EVs) segment, and during the forecast period, the same trend is expected as per research and analysis. In 2022, the total revenue for plug-in hybrid electric vehicles and battery electric vehicles (BEVs) totaled 10 million as per the International Energy Agency (IEA). Increased government policies encouraging buyers to opt for EVs including subsidies and grants along with surging fuel prices were the main reasons for higher segmental growth.

Based on material type, the automotive wire industry segments are aluminum, copper, and others.

Based on application, the global market divisions are heating, ventilation, & air-conditioning, body, and chassis & safety. In 2022, the highest demand was for chassis & safety applications. The increasing investments toward multifunctional automotive wires exhibiting light-weight and exceptional performance were a crucial reason for segmental expansion. Growing focus on manufacturing or autonomous vehicles and increased emphasis on passenger and driver safety are expected to drive segmental growth during the projection period. As per official data, around 2% of all car accidents are caused due to mechanical failures.

Automotive Wire Market: Report Scope

Automotive Wire Market: Regional Analysis

Asia-Pacific to dominate total revenue during the forecast period

The global automotive wire market will be driven by Asia-Pacific by 2030. As of 2022, China controlled more than 8.9% of the total regional share and the increased production of electric vehicles was a major growth propeller. China is investing heavily in developing affordable and high-performance electric vehicles. The region is targeting international markets driving the demand for exceptionally functional automotive wires that can keep up with the fast-paced technological innovations in the regional automotive industry. As per reports published by the General Administration of Customs, China exported more than 3.32 million vehicles in 2022. On the other hand, Asian countries have an extensive number of automotive wire producers and suppliers. Japan is one of the leading countries in terms of the global automotive industry and has high domestic demand for light-weight automotive wires. In North America, the US is expected to dominate the regional growth trend. The rising rate of wire-related innovations and growing sales of EVs could result in work in favor of higher regional revenue.

Automotive Wire Market: Competitive Analysis

The global automotive wire market is led by players like:

• LEONI AG
• Yazaki Corporation
• Nexans S.A.
• Furukawa Electric Co. Ltd.
• Lapp Group
• Sumitomo Electric Industries Ltd.
• Belden Inc.
• Lear Corporation
• General Cable Technologies
• Southwire Company LLC
• Delphi Technologies
• Molex LLC
• Draka Holdings
• Hitachi Metals Ltd.
• TE Connectivity Ltd.

The global automotive wire market is segmented as follows:

By Vehicle Type

• Electric Vehicles
• Conventional Fuel Vehicles
• Hybrid Vehicles

By Material Type

• Aluminum
• Copper
• Others

By Application

• Heating, Ventilation, & Air-Conditioning
• Body
• Chassis & Safety

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa