The “Automotive Wire and Cable Materials Market, by Material Type (Polyvinyl Chloride (PVC), Polypropylene (PP), Cross-linked Polyethylene (XLPE), Thermoplastic Polyurethane (TPU), Polyphenylene Ether (PPE), and Others (Fluoropolymers, Polyurethane, Neoprene, Ethylene Propylene Rubber, and Co-polyester Elastomer)), by Vehicle Type (Passenger vehicle segment is further sub-segmented into (Compact Cars, Sub-compact Cars, Mid-size Cars, Sedan, Luxury Cars, and Vans), LCV, and HCV) and by Region (North America, Latin America, Europe, Asia Pacific, Middle East & Africa)
Market Statistics:
Automotive Wire and Cable Material market was valued at US$ 4,629.5 Mn in 2022 and is forecast to reach a value of US$ 7,663.1 Mn by 2030 exhibiting a CAGR of 6.5% between 2023 and 2030.
Automotive wire is wrapped in a thermoplastic PVC insulation, which is a smooth, pull-through wire loom and conduit, tough enough to resist and grease, acid, oil, and temperature of around 80oC. The wire used inside these insulation is usually made of copper though aluminum is also used for certain purposes. An automotive wiring harness is a collection of wires with minimum 8-12 circuits. Most automotive components are given DC power, in order to work properly. Different colors are used for insulation and jacketing of the wire, in order to identify, manage, and repair the wires.
Automotive Wire and Cable Material Market: Drivers
Increasing in-vehicle wiring applications is expected to offer significant growth opportunity In-vehicle communications between devices such as switches and actuators were achieved through point to point wiring techniques. However, this system led to certain complications such as reduction in fuel efficiency, inefficient distribution of sensors or input data to numerous discreet data channels. This glitch was encountered with introduction of vehicle networking where conventional data transfer strategies were replaced by control strategies. Initially, it was adopted for high-end vehicles and later it was integrated into economy-class vehicles. Increasing demand for specialty cables and wires has increased due to increasing applications such as bearing grease wire, wheel speed sensor cable, databus, fuse link, battery cable, gas tank wire, sliding door sensor cable, frontal air bag wire, seatbelt pretension wire, etc.
Automotive Wire and Cable Material Market: Opportunities
Increasing in-vehicle wiring applications is expected to offer significant growth opportunity
In-vehicle communications between devices such as switches and actuators were achieved through point to point wiring techniques. However, this system led to certain complications such as reduction in fuel efficiency, inefficient distribution of sensors or input data to numerous discreet data channels. This glitch was encountered with introduction of vehicle networking where conventional data transfer strategies were replaced by control strategies. Initially, it was adopted for high-end vehicles and later it was integrated into economy-class vehicles. Increasing demand for specialty cables and wires has increased due to increasing applications such as bearing grease wire, wheel speed sensor cable, databus, fuse link, battery cable, gas tank wire, sliding door sensor cable, frontal air bag wire, seatbelt pretension wire, etc.
Automotive Wire and Cable Material Market: Restraints
Growing environmental concerns regarding recycling and disposal of cables wires are expected to restrain the global automotive wire and cable materials market during the forecast period
PVC is the most commonly used material for jacketing and insulation of copper wires and cables in automotive industry. However, PVC is not a biodegradable material and its burning can release highly toxic dioxins, eventually contaminating land and water bodies. Numerous automotive manufacturers are focused on developing reliable substitute for PVC that can offer similar performance with environment-friendly features. Europe-based automakers have started implementing this idea with BMW adopting
PVC-free materials for its products including wires, trims, dashboards, etc. This, in turn, is expected to hinder the market growth over the forecast period.
Market Trends
Manufacturing of lighter vehicles is a major trend in the market
Key manufacturers in the market are focused on reducing wires cross-cross section/miniaturization, in order to reduce vehicle weight and improve fuel efficiency. Lightweight vehicles have shown better performance than conventional vehicles, which is expected to be major trend in the market during the forecast period.
Covid-19 Impact Analysis:
The Covid-19 pandemic had a detrimental effect on the growth of the automotive cable and wire market. The widespread transmission of the coronavirus necessitated the implementation of strict lockdown measures aimed at containing its spread. Consequently, these lockdowns resulted in travel restrictions and disruptions within the supply chain, ultimately leading to untimely product availability.
Automotive Wire and Cable Material Market: Competitive Landscape
Key companies operating in the global automotive wire and cable materials market are ACOME, Allied Wire & Cable Inc., Coficab Tunisie SA, Coroplast Fritz Muller GmbH & Co. KG, Delphi Automotive PLC, Draka Holdings B.V., Lear Corporation., Leoni AG, Sumitomo Electric Industries, Ltd., and Yazaki Corporation.
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Key Takeaways:
Automotive Wire and Cable Material market was valued at US$ 4,629.5 Mn in 2022 and is forecast to reach a value of US$ 7,663.1 Mn by 2030 exhibiting a CAGR of 6.5% between 2023 and 2030.
Automotive Wire and Cable Material Market: Recent Developments
In April 2023, Sights firmly set on the megatrends of the automotive industry: Leoni AG has upgraded its Business Group AM to become Automotive Cable Solutions (ACS) Division – thereby underscoring the major importance of the automotive cables business for its cables segment.
In March 2022, According to industry minister Ryad Mezzour, Morocco has recently signed new investment agreements worth $180 million with five automotive cable suppliers. The purpose of these agreements is to address the increasing demand from electric vehicle manufacturers.
In Nov 2021, Genuine Cable Group (GCG) is a provider meeting the wire, cable and automation needs of customers across a wide spectrum of markets, Aquires Allied Wire and Cable a specialty distributor of wire and cable products across the U.S.
