Automotive Wire and Cable Materials Market to grow at highest pace...

Automotive Wire and Cable Materials Market to grow at highest pace owing to increasing electric vehicles adoption

Posted 2024-02-23 10:46:56

The global automotive wire and cable materials market is used in manufacturing wires and cables which are extensively used in vehicles for electrical conduction. Automotive wires and cables find usage in varied vehicle applications including battery cables, brake cables, HVAC wires, data communication wires and others. They are manufactured using metals like copper, aluminum and plastics which provide protection against heat, abrasion and electromagnetic interference. The increasing demand for performance, safety, and comfort features in vehicles has boosted the need for wiring harnesses that require extensive use of wire and cable materials.

The Global automotive wire and cable materials market is estimated to be valued at US$ 5679.85 Bn in 2024 and is expected to exhibit a CAGR of 17% over the forecast period 2024 to 2030. Key Takeaways

Key players operating in The Automotive Wire And Cable Materials are Alibaba Group, JD.com, Pinduoduo, Vipshop, Ymatou, Xiaohongshu, Suning.com, Gome Retail, Dangdang, Secoo, Mogu Inc, Meilishuo, Dolap, Shangpin, Yanxuan, Yoho!Buy, Mei.com, Amazon China, NetEase Kaola, Tencent. The growing demand for electric vehicles around the world has significantly boosted the demand for automotive wire and cable materials market. Technological advancements such as greater integration of electronics in vehicles and development of lighter and thinner wires and cables have promoted market growth.

Market Trends

Cable redundancy and lighter cables- With the increasing complexity of vehicles, manufacturers are focusing on developing lighter and more durable cables with redundancy to avoid single-point failures. Cables are being integrated with fiber optics, shielding and high temperature resistant properties.

Shift towards renewable materials- Stricter environmental regulations have boosted the adoption of renewable and recyclable materials for automotive wiring. Bioplastics, natural fiber composites and recyclable thermosets are gaining popularity as cable insulation and sheathing materials.

Market Opportunities

Increasing electric vehicle sales- Strong policy support for electric vehicle adoption across nations has accelerated the demand for wiring systems. EVs require extensive wiring for high voltage applications and connections to batteries, motors and onboard chargers.

Growing vehicle connectivity and infotainment- Advancements in vehicle telematics, autonomous driving technologies and connectivity features have increased the need for high speed data transmission cables. Greater wiring requirements present opportunities for materials suppliers and OEMs.

Impact of COVID-19 on Automotive Wire and Cable Materials Market

The COVID-19 pandemic has significantly impacted the automotive wire and cable materials market. Lockdowns enforced to curb the spread of the virus resulted in temporary closure of several automotive manufacturing facilities across the globe in 2020. This led to decline in production as well as sales of vehicles during the initial months of the pandemic. Consequently, the demand for automotive wire and cable materials also reduced substantially.

However, with gradual lifting of lockdowns and restarting of manufacturing activities in 2021, the market is witnessing signs of revival. While production levels are yet to return to pre-COVID figures, demand as well as sales have improved from the lows of 2020. Manufacturers are focusing on development of lightweight and durable wire and cable materials to improve fuel efficiency of vehicles. Moreover, increasing electrification of vehicles is propelling the demand for special wires and cables suitable for transmission of high power. The growing demand for electric vehicles (EVs) is especially driving the market as EVs require extensive network of wiring to support their complex electrical operations.

Asia Pacific Region dominates the Automotive Wire and Cable Materials Market

The Asia Pacific region holds the major share of the global automotive wire and cable materials market in terms of value. This is attributed to presence of two largest vehicle manufacturing countries – China and India – in this region. Further, countries like Japan, South Korea and Thailand are also prominent automakers with well-established automotive supply chain ecosystem. Abundant availability of raw materials and cheap labor have enabled market penetration of international as well as domestic companies in the region.

North America is the fastest growing region for the Automotive Wire and Cable Materials Market

North America is identified as the fastest expanding regional market for automotive wire and cable materials. This growth can be ascribed to increasing per capita vehicle ownership, rising demand for luxury and upgraded vehicles, and flourishing aftermarket industry in countries like the US and Canada. Strict emission regulations in the region are spurring adoption of fuel-efficient and electric vehicles, thereby augmenting the requirement of advanced wiring systems. Government initiatives to promote domestic manufacturing are also encouraging development of local supply chain networks in the region.

Geographical regions:

Asia Pacific region dominates the Automotive Wire and Cable Materials Market in terms of value share due to presence of large automotive manufacturing hubs and supply chain ecosystems in countries like China, India, Japan, South Korea and Thailand. Abundant raw material availability and lower costs have enabled market penetration of international as well as domestic players.

North America represents the fastest growing regional market for automotive wire and cable materials. Factors such as increasing vehicle ownership, demand for upgraded vehicles, stringent emission norms, and initiatives to boost local production are driving the market growth in the region, especially in the US and Canada.