Automotive Cables Market Size, Share & Growth Report | 2031

Report Description

Market Outlook:

The Global Automotive Cables Market was valued at USD 7,381.6 Million in 2022 and is projected to reach USD 16,646.5 Million by 2031, expanding at a CAGR of 9.8% during the forecast period. Automotive cables are flexible wires made of copper, aluminum, or other alloys that are used for data transmission and electrical connections in various automotive components such as engine, transmission, brakes, clutch, audio system, and others. Automotive cables are designed to withstand high temperatures, vibrations, abrasions, and corrosions. Automotive cables are essential for the functioning of various automotive systems such as safety, infotainment, lighting, powertrain, and chassis.

Macro-economic Factors

GDP

GDP is a crucial metric used to assess an economy's size and performance. It is the total market value of all finished services and products produced within a border of a country at a certain time. The gross domestic product (GDP) of a country is highly influenced by its automotive industry. For instance, the automobile industry in the US contributes 3% to 3.5% to the GDP of the country. Moreover, the automobile sector in India generates about 6.4% of India's GDP and 35% of the manufacturing industry. Thus, GDP is one of the major macroeconomic factors that impact the overall automotive industry and related businesses, including automotive cables.

Government Regulations

The governments of various nations are imposing several regulations regarding automotive control systems to improve safety from road accidents. According to Waymo LLC’s record, approximately 1.4 million people die annually, due to road accidents. Furthermore, the National Highway Traffic Safety Administration in the US has imposed the installation of sophisticated braking systems, such as automatic emergency braking systems, air brake systems, and Anti-lock braking system (ABS), to improve vehicle safety. However, brake cables are essential in all of these braking systems, thus influencing the market.

Research and Development

Increased research & development (R&D) activities from key competitors and a high emphasis on product innovation have a substantial impact on the global automotive cables market. Several prominent players in the market are investing to introduce new technologies in the market, aiming to expand their market position. However, advancements in products and development in the automotive industry are increasing the usage of automotive cables, thus influencing the market.

Market Dynamics

Market Driver - Growing Automotive Industry

The overall expansion of the automotive industry, particularly in emerging economies, is a significant driver for the market. The demand for automotive cables rises in direct proportion to the increase in car production. Automobile manufacturers frequently update existing models and launch new ones with advanced features. These innovations often require the incorporation of new and specialize cables. The demand for automotive cables grows as increasing number of vehicles are manufactured and sold. For instance, according to the International Trade Administration (ITA), China, the large motor vehicle market across the globe, is expected to reach 35 million vehicles in automotive manufacturing by 2025. Thus, the rising automobile manufacturing leads to the demand for automotive components, serving as a prominent driver for the automotive cables market during the forecast period.

Market Driver- Prevalence of Safety and Emission Standards

Governments and regulatory bodies around the globe are enforcing stringent safety standards to improve occupant protection, lower accident rates, and reduce the severity of crashes. These regulations encompass a range of safety features, including antilock braking systems (ABS), air bags, advanced driver assistance system (ADAS), and electronic stability control (ESC). Vehicles require an intricate network of connections to connect sensors, control units, and safety devices in order to apply these safety technologies successfully. For instance, ADAS relies significantly on data from cameras, radar, and LiDAR sensors, necessitating high-quality wiring to transmit information reliably and quickly. Manufacturers invest in the development and installation of new safety systems to comply with these standards.

Market Driver- Technological Advancements

Innovations in cable materials and designs, such as lightweight and high-performance cables, drive the demand for upgraded automobile cables. The development of lightweight and high-performance cable materials facilitates vehicles to be fuel-efficient. Lightweight cables lower the overall weight of a vehicle, boosting fuel efficiency and lowering pollution. Furthermore, advances in cable design have eased the integration of complicated electronic systems in automobiles. Automobiles become increasingly networked and autonomous; therefore, they require a complex wiring system for sensors, control, and communication. Advanced automobile cables carry data at high speeds, ensuring that these systems operate reliably.

Market Restraint - Easy Availability of Counterfeit Products

Counterfeit automotive cables can pose a serious threat to the safety and performance of vehicles. These cables are often not manufactured to the same safety standards as genuine products. They can cause electrical failures, short circuits, fires, and accidents. For instance, the Indian and Chinese markets are flooded with counterfeit automotive cables, resulting in car fires and accidents caused by defective wiring. These cables can also damage the vehicle’s engine, battery, and other components. Counterfeit automotive cables also reduces the fuel efficiency and increase the emissions of vehicles.

Market Restraint - Fluctuating Raw Material Prices

Automotive cables often use various raw materials such as copper, aluminum, steel, and polymer compounds. These materials have experienced significant price fluctuations in recent years, due to factors such as supply & demand imbalances, trade tensions, environmental regulations, and geopolitical uncertainty. High raw material prices increase the production costs of automotive cables, which affect the profitability and competitiveness of cable manufacturers. Rapid price fluctuations disrupt the supply chain, as manufacturers face difficulties in securing a consistent and affordable source of raw materials. Furthermore, fluctuations in raw material prices limit the demand for automotive cables by raising production costs, reducing profit margins, disrupting the supply chain, potentially raising car pricing, and impeding innovation in the automobile industry.

Market Opportunity- Growing Trend of Vehicle Electrification and Automation

The surge in electric vehicle (EV) adoption requires robust cable networks for power distribution, battery management, and charging infrastructure. This shift towards electric vehicles (EVs) creates a massive market for specialized high-voltage and high-capacity connections, as electric vehicles (EVs) and hybrid electric vehicles (HEVs) have more complex electrical systems and higher power requirements than conventional vehicles. Increasing vehicle electrification and increased demand for electric vehicles are projected to drive demand for automotive cables in the coming years. For instance, the European Automobile Manufacturers’ Association (ACEA) has analyzed the trends and developments in battery electric vehicle (BEVs). While China is currently ahead of Europe and the US in the electrification of the car market, the European market is expected to rebound in 2025 and take the lead again by 2030. Furthermore, rising disposable income and living standards are predicted to stimulate the demand for electric vehicles, which in turn boosting the automotive cables market.

Scope of the Report

The report on the global Automotive Cables Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Segmental Outlook

The Global Automotive Cables Market is segmented on the basis of cable type, structure, voltage type, conductor material type, insulation material type, vehicle type, sales channel, and region.

In terms of cable type, global automotive cables market is segmented into Data Cables, Sensor Cables, Battery/Welding Cables, Charging Cables and Others. The Battery/ Welding Cables is expected to hold a significant market share of the market during the forecast period. High-quality battery cables are crucial for the safety and reliability of vehicles. As safety standards and regulation become more stringent, automobile manufacturers are investing in better materials and designs for better battery cables to ensure dependable performance, thus boosting the segment.

Based on Structure, the global automotive cables market is fragmented into Coaxial Cables, Shielded Flexible Flat Cable (FFC), and Others. Shielded Flexible Flat Cable (FFC) segment is expected to expand at a significant CAGR during the forecast period due to its increasing adoption owing to its lightweight and compact nature, which is crucial for vehicles, as they need to reduce weight for better fuel efficiency and create more space for other components.

In terms of Voltage Type, the global automotive cables market is bifurcated into Low Voltage Cables and High Voltage Cables. The Low Voltage Cables segment is expected to hold a significant market share during the forecast period as vehicles are increasingly incorporating more advanced electronic systems, such as ADAS, infotainment, and connectivity features, which rely on low-voltage cables.

Based on conductor material type, the global automotive cables market is bifurcated into aluminum, copper, and others. The copper segment is expected to hold a significant share of the market in 2022. Properties such as high conductivity, low resistance, improved solderability, high tensile strength, and high melting point are essential for the performance and reliability of automotive wire harnesses under different conditions. These wires require high-quality copper alloys and plating that withstand the rigorous requirements of the automotive sector, such as abrasion resistance, corrosion resistance, solderability, and reliability.

Based on Insulation Material Type, the global automotive cables market is segmented into PVC (polyvinyl chloride), PUR (polyurethane), PE (polyethylene), TPE (thermoplastic elastomer), XLPE (cross-linked polyethylene), and others. The PE (polyethylene) segment is expected to hold a significant share of the market and is projected to expand at a significant CAGR during the forecast period, as PE (polyethylene) offers excellent electrical insulation properties. These are crucial for automotive cables to prevent short circuits and ensure the safe transmission of electrical signals.

In terms of vehicle type, the global automotive cables market is bifurcated into passenger cars and commercial vehicles. The passenger cars segment is expected to hold a significant market share during the forecast period. Passenger cars are adopting advanced features and technologies, such as infotainment systems, communication devices, safety systems, and powertrain systems, which require improved data transmission and communication among the components. This drives the demand for automotive data cables, which are used to transfer data signals and power between the devices.

Based on sales channel, the global automotive cables market is bifurcated into OEM and aftermarket. The OEM segment is expected to hold a significant share of the market and is anticipated to expand at a significant CAGR of during the forecast period. Rising demand for automobiles across the globe encouraged automotive cable manufacturers to increase their production. Furthermore, stringent environmental regulations led to the development of electric and hybrid vehicles. Thus, the increased electrification of vehicles is boosting the demand for complex cable systems, which, in turn, is boosting the OEM segment.

Regional Analysis:

On the basis of region, the global automotive cables market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa (MEA). Asia Pacific accounted for significant market share in 2022. The market in the region is projected to expand at a significant CAGR during the forecast period, owing to the increasing use of automotive telematics, growing demand for electric vehicles, and the development of smart grid infrastructure. The adoption of coiled charging cables and DC charging cables, along with the development of rapid charging technologies, are driving the demand for EV charging cables. Coiled charging cables are flexible and extend or retract according to the distance between the vehicle and the charging station. DC charging cables deliver high power and fast charging for electric vehicles. These cables are expected to register high growth in Asia Pacific, especially in China, Japan, South Korea, and India, where the demand for electric vehicles is booming.

Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Automotive Cables Market

• Historical, Current, and Projected Market Size in terms of Value and Volume

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on Global Automotive Cables Market