Automotive Wiring Harness Market Size, Share & Trends Analysis Report By Vehicle, By Component (Electric Wires, Connectors, Terminals), By Application, By Electric Vehicle, By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The global automotive wiring harness market size was exhibited at USD 48,614.8 million in 2023 and is projected to hit around USD 67,916.28 million by 2033, growing at a CAGR of 3.4% during the forecast period of 2024 to 2033.

Key Takeaways:

• The Asia-Pacific region dominated the automotive wiring harness market and accounted for the largest revenue share of 49.0% in 2023.
• The battery electric vehicle (BEV) is expected to accumulate the largest market share and is projected to expand at the highest CAGR within the forecast period. 
• The terminal segment dominated the market and is anticipated to hold the majority of the market share in 2022.
• Light vehicles dominated the market and accounted for the largest revenue share of over 90% in 2022.
• The chassis segment dominated the market and accounted for the largest revenue share of over 34% in 2022.

Automotive Wiring Harness Market: Overview

In the realm of automotive engineering, wiring harnesses play a pivotal role in ensuring the seamless integration and functioning of electrical systems within vehicles. The automotive wiring harness market is witnessing significant growth driven by advancements in automotive technology, increasing demand for electric vehicles (EVs), and the proliferation of advanced driver-assistance systems (ADAS) and infotainment systems.

Automotive Wiring Harness Market Growth

The automotive wiring harness market is experiencing robust growth attributed to several key factors. The surge in demand for electric vehicles (EVs) and the integration of advanced technologies such as advanced driver-assistance systems (ADAS) and infotainment systems are driving the need for sophisticated wiring solutions. Additionally, the industry's focus on lightweight and efficient designs, coupled with the shift towards modular vehicle architectures, is spurring innovation in wiring harness development. Safety and reliability remain paramount, leading to investments in rigorous testing and validation processes. As automakers prioritize innovation, efficiency, and sustainability, the automotive wiring harness market is poised for continued expansion, presenting significant opportunities for market players across the value chain.

Automotive Wiring Harness Market Report Scope

Automotive Wiring Harness Market Dynamics

• Electrification Drive and Advanced Technology Integration:

The automotive industry is undergoing a significant transformation with the rapid adoption of electric vehicles (EVs) and the integration of advanced technologies into vehicles. This shift towards electrification is fueled by environmental concerns, regulatory mandates, and the increasing consumer demand for sustainable transportation options. As a result, there is a growing need for specialized wiring harnesses designed to support electric drivetrains, battery management systems, and other electrification components. Additionally, the proliferation of advanced driver-assistance systems (ADAS), infotainment systems, connectivity features, and autonomous driving capabilities necessitates complex wiring solutions to facilitate seamless communication and operation.

• Lightweight Design and Modular Architectures:

In response to stringent fuel efficiency regulations and consumer demand for environmentally-friendly vehicles, automotive manufacturers are increasingly focusing on lightweight design solutions across all vehicle components, including wiring harnesses. Lightweight wiring harnesses not only contribute to improved fuel economy but also enhance overall vehicle performance and handling. Furthermore, the adoption of modular vehicle platforms and flexible architectures enables automakers to streamline production processes and accommodate diverse vehicle configurations more efficiently. This trend towards modularization necessitates adaptable wiring harness solutions that can be easily customized and integrated into different vehicle models. 

Automotive Wiring Harness Market Restraint

• Complexity and Cost Challenges:

The increasing complexity of automotive wiring harnesses, driven by the integration of advanced technologies and the proliferation of electronic components, poses significant challenges for manufacturers. As vehicles become more technologically advanced, the number of wires, connectors, and modules within wiring harnesses continues to grow, resulting in larger and more intricate harness designs. This complexity not only increases manufacturing and assembly costs but also complicates troubleshooting, maintenance, and repair processes for automotive technicians. Additionally, the demand for high-quality materials, stringent regulatory requirements, and the need for rigorous testing further contribute to the overall cost burden associated with automotive wiring harnesses.

• Supply Chain Disruptions and Component Shortages:

The automotive industry is susceptible to supply chain disruptions and component shortages, which can significantly impact the production and availability of wiring harnesses. Factors such as geopolitical tensions, natural disasters, trade disputes, and global pandemics can disrupt the supply of raw materials, components, and finished products, leading to delays in manufacturing and delivery schedules. Moreover, the increasing demand for electronic components and semiconductors, driven by the electrification and digitization of vehicles, has exacerbated supply chain challenges, resulting in shortages and price fluctuations. These supply chain disruptions not only disrupt production processes but also increase costs and lead times for automotive wiring harness manufacturers.

Automotive Wiring Harness Market Opportunity

• Expansion of Electric Vehicle (EV) Market:

The rapid expansion of the electric vehicle (EV) market presents a significant opportunity for growth in the automotive wiring harness industry. With governments worldwide implementing stringent emissions regulations and offering incentives to promote electric vehicle adoption, the demand for EVs is expected to surge in the coming years. Electric vehicles require specialized wiring harnesses to accommodate the unique requirements of electric drivetrains, battery management systems, and charging infrastructure. As a result, automotive wiring harness manufacturers have the opportunity to capitalize on the growing demand for EV components by developing innovative wiring solutions tailored to electric vehicles.

• Integration of Advanced Connectivity and Autonomous Driving Technologies:

The integration of advanced connectivity and autonomous driving technologies into vehicles represents a significant opportunity for innovation and growth in the automotive wiring harness market. As vehicles become more connected and autonomous, the demand for sophisticated wiring harnesses capable of supporting high-speed data transmission, sensor integration, and real-time communication is expected to increase. Advanced driver-assistance systems (ADAS), in-vehicle infotainment systems, vehicle-to-everything (V2X) communication, and autonomous driving features require robust wiring solutions to facilitate seamless integration and operation. Automotive wiring harness manufacturers have the opportunity to develop specialized wiring solutions tailored to the unique requirements of connected and autonomous vehicles, including high-bandwidth data cables, sensor harnesses, and power distribution systems.

Automotive Wiring Harness Market Challenges

• Integration of Advanced Technologies and Electronics:

One of the major challenges in the automotive wiring harness market is the integration of increasingly complex and advanced technologies into vehicles. With the rise of electric vehicles (EVs), advanced driver-assistance systems (ADAS), infotainment systems, and other electronic features, there is a growing demand for wiring harnesses capable of supporting these sophisticated systems. However, integrating a multitude of sensors, cameras, processors, and communication modules into vehicles requires wiring harnesses with higher pin counts, greater flexibility, and increased reliability. Moreover, the rapid pace of technological innovation and the emergence of new vehicle architectures further complicate the design and development of wiring harnesses, as manufacturers must constantly adapt to evolving requirements and standards. This challenge is exacerbated by the need to ensure compatibility and interoperability between different electronic components and systems, as well as compliance with stringent safety and regulatory requirements. 

• Supply Chain Disruptions and Component Shortages:

Another key challenge in the automotive wiring harness market is the risk of supply chain disruptions and component shortages. The automotive industry relies on a complex global supply chain involving numerous suppliers, subcontractors, and logistics providers to source raw materials, components, and finished products. However, this interconnected network is susceptible to various external factors, including geopolitical tensions, natural disasters, trade disputes, and global pandemics, which can disrupt production and distribution channels. In recent years, the automotive industry has faced shortages and price fluctuations for critical components such as semiconductors, connectors, and wire harnesses, leading to production delays and increased costs for manufacturers. Moreover, the increasing demand for electronic components and the growing competition for limited resources further exacerbate supply chain challenges, making it difficult for automotive wiring harness manufacturers to secure a stable and reliable supply of materials and components.

Segments Insights:

Electric Vehicle Insights

The battery electric vehicle (BEV) is expected to accumulate the largest market share and is projected to expand at the highest CAGR within the forecast period. The BEVs are fitted with comparatively more wires and connections than an ICE vehicle, with the integration of a more electric-based system in the vehicle for auxiliary and primary vehicle functions. The use of high-voltage wiring harnesses is gaining prominence throughout the automotive industry, and as sales for electric commercial and passenger vehicles throughout the world increase, the market for automotive wiring harnesses within the electric vehicle segment will experience a positive growth trajectory.

Component Insights

The terminal segment dominated the market and is anticipated to hold the majority of the market share in 2022. The growing complexity and connections of vehicle wiring structures are major factors propelling the market growth. Terminals are designed to facilitate effective and robust wiring connections between two or more wires. These terminals withstand high thermal and vibrations, thus positioning them as an essential part of the wiring harness system. The constant technological advancement in the automotive industry and the electrification of vehicles are further expected to propel market growth.

The connector segment is expected to have the highest growth rate from 2023-2033. The connectors play a crucial role in maintaining a consistent flow of power or data while the vehicle is functioning. The dependency vehicles with level 2 to level 5 autonomous functions have sensors and radar, the function of wires, and the flow of data and power becomes more important. Thus the market for connectors is expected to gain momentum during the forecast period.

Vehicle Insights

Light vehicles dominated the market and accounted for the largest revenue share of over 90% in 2023. Light vehicles such as utility vans, SUVs, or trucks are now equipped with systems such as GPS, advanced infotainment systems, smart lights, and panoramic roofs, even with sensors for temperature control and tire pressure. The integration of such technologies and equipment in light vehicles is helping in redefining comfort and functionality while traveling as consumers are now considering advanced functions and driving experience while buying a vehicle. The wiring harness in these vehicles is expected to increase in proportion while maintaining an optimum vehicle weight. Thus, the rising functions in the vehicle will positively impact the demand for wiring harnesses in light vehicles.

Light vehicles are expected to register a CAGR of 3.4% from 2023-2033. The automotive wiring harness market is expected to gain traction in the heavy vehicle segment owing to increasing traction in heavy-duty electric vehicles, and the integration of telematics, GPS, and ADAS sensors and radar by trucks and bus fleet managers is further augmenting the market growth.

Application Insights

The chassis segment dominated the market and accounted for the largest revenue share of over 34% in 2022. The chassis harness system consists of the main, rear, and front harness, which houses wired connections to multimedia such as GPS, DVD, radio, engine, AC, and other sensors for temperature control and ADAS. The chassis holds wiring and connections for all the important components that enable the vehicles to perform their primary functions. In addition, the chassis carries the advantage of minimal risk of shorting its ability to withstand high temperatures while improving fuel efficiency and vehicle performance.

The sensors sub-segment is expected to exhibit the highest growth rate of 5.0% within the forecast period. It includes numerous sensors for systems such as illumination, battery system, speed systems, infotainment systems, and ADAS. The wiring harness is equipped with sensors required to maintain and enable an analysis of relevant data coupled with the increasing use of sensors based on the level of autonomous driving technology in vehicles is expected to determine the market.

Regional Insights

The Asia-Pacific region dominated the automotive wiring harness market and accounted for the largest revenue share of 49% in 2022. Asia Pacific region is home to some of the major automobile markets, such as China and India. Economics such as China, India, and South Korea ranks among the top 5 car-producing countries in the world, and the application of automotive wiring harness in the region is expected to be high, thus positively impacting the market. The region also has a high population density and disposable income. Many manufacturers have a strong presence in the Asian market and are launching many technological advance vehicles in the region. Furthermore, the presence of automobile manufacturing units concentrated in India, Thailand, China, South Korea, and Japan, coupled with increasing demand for passenger & commercial vehicles in the region, is bound to spur the demand for automotive wiring harnesses in the region.

The European region is expected to experience a healthy growth rate over the forecast period, the region is expected to see a rise in the demand for high-voltage harness wires as the region witnessed a consistent rise in electric vehicle sales. The sales of EV vehicles are further propelling owing to subsidies provided by the EU and respective governments of European countries. The EV sales are anticipated to positively affect the wiring harness sales.

Some of the prominent players in the automotive wiring harness market include:

• Delphi Technologies PLC (Aptiv PLC)
• Furukawa Electric Co., Ltd.
• Kromberg & Schubert GmbH Cable & Wire
• LEONI AG                                    
• Lear Corporation
• PKC Group
• Sumitomo Electric Industries, Ltd.
• Spark Minda, Ashok Minda Group
• China Auto Electronics Group Limited (THB Group)
• Yazaki Corporation

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global automotive wiring harness market.

Component

• Electric Wires
• Connectors
• Terminals
• Others

Application

• Body
• Chassis
• Engine
• HVAC
• Sensors

Electric Vehicle

• Battery Electric Vehicle (BEV)
• Plug-in Hybrid Electric Vehicle (PHEV)

Vehicle

• Light Vehicles
• Heavy Vehicles

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)