Automotive Connector Market Size, Share & Growth Report 2031

Report Description

Automotive Connector Market Outlook 2031

The global automotive connector market size was valued at USD 6.42 Billion in 2022 and is likely to reach USD 9.57 Billion by 2031, expanding at a CAGR of 4.53% during the forecast period, 2023–2031. The growth of the market is attributed to increasing demand for convenience, connectivity, and safety features in commercial vehicles as well as passenger cars.

Advancements in technology have resulted in many features that provide better safety and enhance the driving experience. An automotive electrical connector refers to a device that connects electrical terminations to form a circuit.

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Automotive connectors form connections in a vehicle similar to the connection of blood vessels in the human body. Automotive electrical connectors comprise two categories: un-sealed and sealed. In wire-to-board connectors, the electrical connections through wire terminals are inserted into the printed circuit boards (PCB) and a circuit is made.

It offers seamless connections in industrial and other sectors. The ability to provide a strong and reliable connectivity system in the user's vehicles is paving the way for automotive connectors in the market.

The COVID-19 pandemic had an unpleasant impact on the automotive connector market. Automotive production has been on halt and the demand and supply were affected. The market suffered a significant loss; however, the government’s steps and strategies have helped to neutralize the situation.

This pandemic has encouraged the key players to implement advanced technologies to overcome these challenges and expand the market growth.

Automotive Connector Market Dynamics

Major Drivers

The rise in safety-related initiatives from government agencies along with safety concerns among consumers has uplifted the demand for a dependable connector in various vehicle systems. For instance, safety systems such as airbags, seatbelts, and brakes used in vehicles require a connection system comprising a retainer and safety restraint system connector. This has a direct influence on driving the growth of the market. 

The increasing usage of electronics in other applications, such as advanced and convenient systems, like infotainment and automatic transmissions, is driving the need for connectors in these systems, thereby, fuelling the market growth of automotive connectors.

Existing Restraints

Automotive connectors sometimes create wiring complexities which in turn increases the time of production and cost as well. This is expected to hamper the market. Moreover, space restraints are another concern that prevents the use of larger in-line connectors and requires a smaller connection solution.

Emerging Opportunities

R&D investment and technological advancement in the automotive connector market are expected to offer lucrative opportunities for the market players. Major applications of automotive connectors in the powertrain systems along with safety and infotainment systems are projected to propel the market expansion during the forecast period.

Scope of Automotive Connector Market Report

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

Automotive Connector Market Segment Insights

Product Type Segment Analysis

Based on product type, the market is segmented into IC, RF, PCB, fiber optic, and others. The PCB segment dominates the market during the forecast period owing to their use of electronic devices. Printed circuit boards (PCBs) are the circuit boards used as stereo and video display devices in cars.

Furthermore, the functions of PCB include rail applications as they are used for transmitting data, signals, and others on sensors and other railway communication systems. New product launches and developments in the industry are manipulating the segment growth.

• For instance, in November 2021, Smiths Interconnect released its new Intercompact Series, a lightweight ethernet PCB connector solution for providing a stable connection in industrial and rail applications.

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Connectivity Segment Analysis

On the basis of connectivity, the market is classified as wire to board, wire to wire, and others. The wire to board segment is expected to hold a significant market share during the forecast period. Wire to board connections is used for their ability to create reliable connections to PCBs. 

It enables products to deliver power to the circuit boards and offers a cost-effective system for transferring header relays and others.

Application Segment Analysis

Based on application, the automotive connector market is segregated into powertrain, comfort, convenience and entertainment, safety and security, body wiring and power distribution, and navigation and instrumentation. The safety and security segment is expected to account for a key share of the market during the forecast period.

Several new safety features in vehicles, such as adaptive front lighting, lane departure warning, adaptive cruise control, and park assistance initiated through technological advancements. These functions require a vast number of electronic components, sensors, and ECUs.

Several types of connectors are used to establish reliable connectivity between these components. Furthermore, the establishment of machine learning and V2V communication has enhanced vehicle safety.

However, the navigation and instrumentation segment is anticipated to expand at a rapid pace during the forecast period. Implementation of advanced software such as Android Auto and Apple Carplay and increasing accuracy of GPS-enabled devices has stimulated the use of navigational applications in both commercial and passenger vehicles.

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Vehicle Type Segment Analysis

Based on vehicle type, the automotive connector market is divided into passenger cars and commercial vehicles. The passenger car segment accounts for a key market share and is estimated to propel even further over the forecast period owing to increasing sales of cars in developing countries.

According to a survey conducted by the International Energy Association (IEA), the number of passenger car sales in 2022 was 16.1 Million (conventional cars) in emerging economies, 15.1 Million (conventional SUVs) in emerging and developing economies, and others. Thus, the use of automotive electrical connectors is increasing further with the increasing number of passenger cars.

Automotive Connector Market Regional Analysis

In terms of region, the market is broadly classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the forecast period owing to the rising number of electric component manufacturers.

Countries including China, Japan, and others are leading producers of electronic products for commercial and passenger vehicles due to wide manufacturing facilities.

• For instance, in July 2023, Volkswagen partnered with Chinese EV startup Xpeng and joint venture partner SAIC to build new models and potentially co-create platforms. The company is expected to partner with Xpeng Inc. to produce two models targeting the middle-class segment which carries the VW logo but features Xpeng know-how in software and autonomous driving.

Europe is anticipated to expand at a robust CAGR during the forecast period. Increasing inclusion of advanced driver assistant systems (ADAS) in commercial vehicles is anticipated to boost the market growth over the coming years.

Furthermore, the European Union has made the inclusion of ADAS features such as autonomous braking and lane departure warning signals mandatory in heavy commercial vehicles.

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