AUTOMOTIVE WIRE AND CABLE MATERIALS MARKET ANALYSIS

Market Challenges And Opportunities

Automotive Wire And Cable Materials Market - Impact of Coronavirus (COVID-19) Pandemic

The COVID-19 pandemic has had a significant impact on the automotive industry, causing disruptions in manufacturing and affecting various sectors including aerospace, automotive, and energy. The implementation of social distancing measures resulted in the temporary closure of automobile manufacturing plants, leading to a decrease in the production of automotive wires and cable materials. As a result of the global decline in automobile demand caused by the pandemic, manufacturers have been adjusting their production capacity to prepare for future economic recovery while focusing on cost reduction efforts to establish a more resilient and efficient business structure. Automobile manufacturers have made commitments to transform into major suppliers, with the wiring harness business serving as a core component. They aim to achieve this transformation by developing products such as high-voltage wiring harnesses for electric vehicles and electronic control systems used in automobiles. Despite the challenges faced, the demand for wires and cables in the automotive industry for equipment manufacturing is expected to contribute to market growth during the forecast period.

Automotive Wire And Cable Materials Market- Drivers:

Increasing Automotive Production

The automotive wire and cable materials market is experiencing a surge in demand within the automobile sector, primarily driven by their exceptional safety and comfort features. Factors such as the expansion in vehicle production, the introduction of hybrid flex-fuel vehicles, the rise of connected cars, and the growing integration of digital technologies in automobiles are propelling market growth. The International Trade Administration (ITA) reports that China, as the largest motor vehicle market globally, is projected to reach 35 million vehicles in automotive manufacturing by 2025.

Improved Cable Performance Driving the Market 

The growth of the automotive wire and cable material market is primarily driven by the advanced performance offered by automotive cables, which is a result of extensive technological research. The rising number of electronic components integrated into vehicles and the increasing demand for automotive safety systems are key factors contributing to the adoption of high-performance cables. Multicore cables, known for their quick installation, high flexibility, and ease of use, have gained preference among automotive manufacturers for various applications. These cables are suitable for a wide range of purposes, including machine tools, circuitry, and internal appliance wiring, and are also utilized in commercial, residential, and industrial buildings. According to the electronic components industry association, sales of electrical components experienced a significant 68% increase in 2021. The growing utilization of electrical components in the engine and gearbox compartments is expected to further drive the demand for automotive cables throughout the forecast period.

Automotive Wire And Cable Materials Market- Opportunities:             

Availability bio-based plasticizer as a substitute to traditional PVC plasticizers

Although PVC is the most-preferred insulation and jacketing material for wires, growing concerns regarding environmental hazards have increased adoption of bio-based plasticizers. Bio-based plasticizer is an environment-friendly solution since it satisfies the temperature requirement of the wiring application. However, further research needs to be done before it is fully accepted as an insulation and jacketing material in wires and cables. For instance Cargill has created a bio-based plasticizer that meets the rigorous regulations for the PVC industry without sacrificing performance or profitability. The Biovero plasticizer solution is derived from bio-based feedstock and includes sustainability benefits, flexibility, and high efficiency.

• Growing adoption of automotive Ethernet by OEMs are expected to restrain the global automotive wire and cable materials market growth in the near future 
• Additional weight imposed on vehicle is expected to hamper the global automotive wire and cable materials market growth over the forecast period

Growing adoption of automotive Ethernet by OEMs are expected to restrain the global automotive wire and cable materials market growth in the near future

Major OEMs in the market are increasingly adopting automotive Ethernet in both internal and external electronic devices connectivity in automobile. Automotive Ethernet is mainly used in high-end and luxury cars. The current trend suggests automakers are expected to shift to Ethernet for production of other cars as well. Ethernet is slowly catching up with Hyundai making use of automotive Ethernet for infotainment systems in its upcoming cars, while Volkswagen deploying automotive Ethernet for drive-assist systems. Incarnation of Ethernet in automotive industry is going to hinder the adoption of wires as it reduces complex wiring structure, which in turn, is expected to hinder the market growth.

Additional weight imposed on vehicle is expected to hamper the global automotive wire and cable materials market growth over the forecast period

Automobiles usually consist of hundreds of meters of wires, extending from headlights and taillights, carpeting, doors, dashboards, seats, and frames.  These wires lead to additional of around hundreds of kilometers that reduce fuel efficiency and overall performance. Growing adoption of novel technologies such as Ethernet is expected to decrease the use of wires and cables and thereby hamper the market growth in the near future.