Automotive Wire And Cable Materials Market - Forecast(2024 - 2030)
Automotive Wire and Cable Materials Market Overview
Automotive wire
and cable materials market size is forecast to reach US$3.1 billion by 2027,
after growing at a CAGR of 4.0% during 2022-2027. Wires and cables are the most
important components in the automotive industry. A wire is used to carry
electricity, to bear the mechanical loads, to transmit telecommunication
signals, for heating jewelry, clothing, automotive, or any industrially
manufactured parts like pins, bulbs, and needles. A cable is used for power
transmission, telecommunication signals, or carrying electricity. The
automotive wire and cable materials could be segregated into Polyvinyl chloride
(PVC), Cross-linked polyethylene cable (XLPE), Thermoplastic polyurethane (TPU),
and other materials such as silicone and EBR by product types. PVC and XLPE
wire and cable insulation materials are the most used product types owing to
their favorable physical characteristics and applicability over a wide
temperature range. The most typical type of wire used in most automotive
applications is automotive cross-link wire and automotive primary wire. General
Purpose high-temperature automotive wire is ideal for under-hood automotive
wiring applications with hard-to-fit areas. The rapid growth of the automotive
industry has increased the demand for automotive wires and cables thereby,
fueling the market growth. Furthermore, the flourishing automotive industry is
also expected to drive the automotive wire and cable materials industry
substantially during the forecast period.
COVID-19 Impact
The coronavirus pandemic has
impacted the automotive industry to a great extent stuttering the manufacturing
industry. Currently, industries such as aerospace, automotive, and energy
industry are highly impacted. Due to social distancing policy, most of the
manufacturing plants of automobiles were shut down, which declined the
production of automotive
wires and cable materials. Global automobile demand due to COVID-19, the flexibly
adjust production capacity in anticipation of future economic recovery and
focus on further cost reduction activities to rebuild a stronger and leaner
business structure. The automobile manufacturers have pledged to work toward
becoming a mega-supplier with the wiring harness business at the core. The
automotive manufacturers want to achieve this by creating products for electric
vehicles, such as high-voltage wiring harnesses; electrical products for
electronic control systems used in automobiles. According to the Society of
Indian automobile manufacturers, the automobile industry faced a drop of 14.4%
in 2021. However, the demand for Wires and cables in the automotive industry
for equipment manufacturing will help to raise market trends during the
forecast period.
Report Coverage
The report: “Automotive Wire and Cable Materials Market
Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis
of the following segments of the automotive wire and cable materials market
outlook.
By Material Type:
Polyvinyl Chloride (PVC), Polypropylene (PP),
Cross-linked Polyethylene (XLPE), Thermoplastic Polyurethane (TPU),
Polyphenylene Ether (PPE), and Others
By Vehicle Type: Passenger vehicles (Compact Cars, Sub-compact
Cars, Mid-size Cars, Sedan, Luxury Cars, and Vans)), LCV, and HCV. Two/Three Wheelers (Scooters, Bikes)
By Geography: North
America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy,
Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China,
Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan,
Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile,
and Rest of South America), Rest of the World (the Middle East, and Africa)
Key Takeaways
- The automotive wires and cable materials are available in
various standards including ISO, JASO, and SAE with the development of the automotive
component industry and broadening automotive production.
- The increase in the production of hybrid electric vehicles is
expected to drive the automotive wire and cable material market in the coming
years.
For more details on this report - Request for Sample
Automotive Wire and Cable Materials Market Segment Analysis – By Material Type
The PVC segment held the largest share in the automotive
wire and cable materials market in 2021 and is growing at a CAGR of over 3.5% during 2022-2027. PVC wire and cable insulation
materials are the most used product types owing to their favorable physical
characteristics and applicability over a wide temperature range. PVC has a good
combination of characteristics that are used for wire insulation and cable
jacketing. PVC is important in shock-absorbing vehicle components such as
'soft' dashboards, reducing injury in the case of impact. Fabrics coated with
PVC are often used in life-saving vehicle airbags, whilst the fire retardant
properties of the material contribute to the overall safety of a vehicle.
According to the European Commission, the automotive industry is contributing
7% to European GDP. The rapid growth in the automotive wires and cables is
owing to the growth of the automotive industry during the forecast period.
Automotive Wire and Cable Materials Market Segment Analysis – By Vehicle Type
The passenger vehicles sector is segmented accounted for around 40% of the market share in 2021. Key drivers for the automotive wire
and cable segment increased in the electronic components used in cars and the
increase in demand for automotive safety systems. and the increase in demand
for automotive safety systems. The addition of electronic components in cars
provides a novel niche for tier-two suppliers in South Korea. Electronic
component manufacturers like LG and Samsung see the convergence of the
automotive markets with their business. South Korea can either export these
parts or use its excellent manufacturing base to complete the assembly of
passenger vehicles. These then could be easily exported because of the
proximity of excellent ports and logistical systems. According to the
association for manufacturing technology, the integration of electronics in
cars will positively boost the South Korean automotive industry. South Korean
exports of electric vehicles expanded by 65.9% while exports of the lithium-ion
batteries needed to power electric vehicles grew by 4.35% in the second half of
2020. The
effective wiring harness system in automotive is constructively influencing the
growth of the global automotive wire and cable materials market during the
forecast period.
Automotive Wire and Cable Materials Market Segment Analysis – By Geography
Asia-Pacific region held the largest share in the automotive wire and cable materials market in 2021 up to 35% owing to the growth of end-use industries like appliances, automobiles, electronics, and others. Increasing emphasis on safety and functionality and implementation of vehicle safety regulations will influence demand emphatically. The growth in the Sales of passenger cars in China rose 4.4% year on year to 20.15 million units in 2021 as strong demand for new energy vehicles (NEVs) continued to underpin market growth. international wiring harness manufacturers deploy the promising Chinese market by way of acquiring or establishing wholly-owned companies or joint ventures with local companies, hoping to support co-funded auto plants and homegrown automakers. Thus, with the flourishing automobile industry, there will be an upsurge in the demand for Automotive wire and cable components, which is anticipated to drive the automotive wire and cable materials market in the Asia-Pacific region.
Automotive Wire and Cable Materials Market – Drivers
Increasing Automotive Production
Automotive wires and cable
materials are in demand in the automobile sector due to their excellent feature
safety and comfort. The growth in vehicle production, the launch of hybrid flex-fuel
vehicles, connected cars, increasing scope of digitation in cars are driving the
market. According to the International Trade
Administration (ITA), China is the world's largest motor vehicle market and is expected
to reach 35 million by 2025 in automotive manufacturing. Thus, increasing automotive
production will require more automotive components, which will act as a driver
for the automotive wire and cable materials market during the forecast period.
Improved Cable Performance Driving the Market
The
driving factor behind the growth of the automotive cable market is the advanced
performance of the automotive cables with advanced technological research. The
increase in the number of electronic components used in vehicles and the
increase in demand for automotive safety systems is owing to the better
performance cables. The installation of the multicore cables is very quick. They
are highly flexible and are easy to use and handle. So most automotive manufacturers
are preferring multicore cables for different applications. Cables are ideal
for a variety of general-purpose applications including machine tools, circuits
and internal appliance wiring. It is also available for use in commercial,
residential and industrial buildings. According to the electronic components
industry association, the sales of electrical components had increased by 68%
in 2021. The increasing use of electrical components in the engine and gearbox
compartment is projected to increase demand for automotive cables over the
forecast period.
Automotive Wire and Cable Materials Market – Challenges
Fluctuating cost of materials
Major
raw materials used in the production of cables are copper, aluminum, steel, polymer
compounds etc. The cable industry can be considered a conversion industry. This
means that material costs determine a large part of the costs of the end
product, typically over 60%. As a result, cable manufacturers need to strive
for perfection in the transformation processes in the company. That’s where the
profits are made. Also, a close eye needs to be kept on the working capital. The
expensive raw materials and work-in-progress (WIP) can consume excessive
amounts of the financial resources of a company. The market has experienced
typical fluctuation in the prices of raw materials used the cable production
due to the pandemic. Copper rates have seen an increasing trend since the dip
seen during the pandemic shutdown in March 2020. Copper trading at US$4617.50 /
MT on March 2020 on according to London Metal Exchange (LME). Since then,
Copper prices have continuously shown upward momentum with day prices reaching US$10,724
per ton on May 2021. Thus, the copper
prices have been fluctuating in the range of USD 9K-10.5K per MT till July
2021. Finally, the large inventories of non-ferrous metals (Cu, Al) can pose a
significant price variation risk on the company. Thus, rise prices and its
fluctuation is expected to create major challenge in the pricing of products by
the manufacturer in the coming years.
Automotive Wire and Cable Materials Industry Outlook
Technology launches, acquisitions, and R&D
activities are key strategies adopted by players in the Automotive Wire and
Cable Materials market. Automotive Wire and Cable Materials market top
companies are
- Sumitomo Electric Industry
- Yazaki Corporation
- Leoni AG
- Coficab Tunisie SA
- Lear Corporation
- Allied Wire & Cable Inc
- Coroplast Fritz Muller GmbH & Co.
KG
- Delphi Auto Delphi Automotive PLC
motive PLC
- Draka Holdings B.V
- Furukawa Electric
Recent Developments
- On December 2021 – Valens Semiconductor and Sumitomo Electric Industries, Ltd. announced that they are collaborating in the field of A-PHY technology and deployments. The companies will work together to ensure that Sumitomo Electric’s wiring harness systems meet the demand.
- On April 2021 InnoVites announces that Hitachi Cable America is
completing the roll-out of Cable Suite as their innovative IT platform. With the
implementation of Cable ERP, based on Microsoft Dynamics, HCA-NH will benefit
from an industry-specific solution
Relevant Reports
LIST OF TABLES
1.Global Automotive Wire and Cable Materials Market Product Segment Analysis Market 2023-2030 ($M)1.1 automotive wire and cable materials market:Product segment overview Market 2023-2030 ($M) - Global Industry Research
1.2 PVC Market 2023-2030 ($M) - Global Industry Research
1.3 XLPE Market 2023-2030 ($M) - Global Industry Research
1.4 TPU Market 2023-2030 ($M) - Global Industry Research
1.5 PPE Market 2023-2030 ($M) - Global Industry Research
2.Global Automotive Wire and Cable Materials Market Product Segment Analysis Market 2023-2030 (Volume/Units)
2.1 automotive wire and cable materials market:Product segment overview Market 2023-2030 (Volume/Units) - Global Industry Research
2.2 PVC Market 2023-2030 (Volume/Units) - Global Industry Research
2.3 XLPE Market 2023-2030 (Volume/Units) - Global Industry Research
2.4 TPU Market 2023-2030 (Volume/Units) - Global Industry Research
2.5 PPE Market 2023-2030 (Volume/Units) - Global Industry Research
3.North America Automotive Wire and Cable Materials Market Product Segment Analysis Market 2023-2030 ($M)
3.1 automotive wire and cable materials market:Product segment overview Market 2023-2030 ($M) - Regional Industry Research
3.2 PVC Market 2023-2030 ($M) - Regional Industry Research
3.3 XLPE Market 2023-2030 ($M) - Regional Industry Research
3.4 TPU Market 2023-2030 ($M) - Regional Industry Research
3.5 PPE Market 2023-2030 ($M) - Regional Industry Research
4.South America Automotive Wire and Cable Materials Market Product Segment Analysis Market 2023-2030 ($M)
4.1 automotive wire and cable materials market:Product segment overview Market 2023-2030 ($M) - Regional Industry Research
4.2 PVC Market 2023-2030 ($M) - Regional Industry Research
4.3 XLPE Market 2023-2030 ($M) - Regional Industry Research
4.4 TPU Market 2023-2030 ($M) - Regional Industry Research
4.5 PPE Market 2023-2030 ($M) - Regional Industry Research
5.Europe Automotive Wire and Cable Materials Market Product Segment Analysis Market 2023-2030 ($M)
5.1 automotive wire and cable materials market:Product segment overview Market 2023-2030 ($M) - Regional Industry Research
5.2 PVC Market 2023-2030 ($M) - Regional Industry Research
5.3 XLPE Market 2023-2030 ($M) - Regional Industry Research
5.4 TPU Market 2023-2030 ($M) - Regional Industry Research
5.5 PPE Market 2023-2030 ($M) - Regional Industry Research
6.APAC Automotive Wire and Cable Materials Market Product Segment Analysis Market 2023-2030 ($M)
6.1 automotive wire and cable materials market:Product segment overview Market 2023-2030 ($M) - Regional Industry Research
6.2 PVC Market 2023-2030 ($M) - Regional Industry Research
6.3 XLPE Market 2023-2030 ($M) - Regional Industry Research
6.4 TPU Market 2023-2030 ($M) - Regional Industry Research
6.5 PPE Market 2023-2030 ($M) - Regional Industry Research
7.MENA Automotive Wire and Cable Materials Market Product Segment Analysis Market 2023-2030 ($M)
7.1 automotive wire and cable materials market:Product segment overview Market 2023-2030 ($M) - Regional Industry Research
7.2 PVC Market 2023-2030 ($M) - Regional Industry Research
7.3 XLPE Market 2023-2030 ($M) - Regional Industry Research
7.4 TPU Market 2023-2030 ($M) - Regional Industry Research
7.5 PPE Market 2023-2030 ($M) - Regional Industry Research
LIST OF FIGURES
1.US Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)2.Canada Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)
3.Mexico Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)
4.Brazil Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)
5.Argentina Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)
6.Peru Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)
7.Colombia Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)
8.Chile Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)
9.Rest of South America Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)
10.UK Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)
11.Germany Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)
12.France Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)
13.Italy Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)
14.Spain Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)
15.Rest of Europe Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)
16.China Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)
17.India Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)
18.Japan Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)
19.South Korea Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)
20.South Africa Automotive Wire And Cable Materials Market Revenue, 2023-2030 ($M)
21.North America Automotive Wire And Cable Materials By Application
22.South America Automotive Wire And Cable Materials By Application
23.Europe Automotive Wire And Cable Materials By Application
24.APAC Automotive Wire And Cable Materials By Application
25.MENA Automotive Wire And Cable Materials By Application
26.Leoni AG, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.Draka Holding N.V., Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.Judd Wire, Inc., Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.Allied Wire Cable, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.Delphi Automotive PLC, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Yazaki Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.ITC Thermo Cable GmbH, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.Coficab Tunisie SA, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Coroplast Fritz Mller GmbH Co. KG, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Lear Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
36.Sumitomo Electric Industries Ltd, Sales /Revenue, 2015-2018 ($Mn/$Bn)