According to a report recently released by the international market research organization Markets and Markets, the global automotive wiring harness market demand is expected to reach US$47 billion in 2021. By 2026, this figure will increase to US$57.4 billion, with a compound annual growth rate of approximately 4.1%.
From the perspective of market segments, the chassis wiring harness segment market is expected to become the largest segment market during the forecast period. Due to the increased demand for automotive wiring harnesses for chassis applications (such as vehicle frames, air brake pumps, suspension systems, etc.), it is expected that the chassis wiring harness division will lead the market in terms of market size during the forecast period. The increase in demand has prompted automotive wiring harness manufacturers and other component manufacturers to provide technologically advanced chassis wiring harnesses that help shortens distances and reduce weight. The growing demand for high-end automobiles and the integration of advanced technologies in automobiles are also expected to increase the demand for automotive wiring harnesses.
Divided by material type, the metal segment is expected to occupy the largest market share during the forecast period. Due to high conductivity, limited corrosion, high tensile strength, and high data transmission, OEMs mostly use copper to make automotive wiring harnesses. Although the recent fluctuations in copper prices have affected the profit margins of wire harness manufacturers, it is expected that by 2026, metal materials will still occupy 92% of the automotive wire harness market.
From the perspective of the market area, during the forecast period, the Asia-Pacific region is expected to become the dominant regional market. China is the main contributor (approximately 60%) of the overall sales of automotive wiring harnesses in the Asia-Pacific region in 2021. China is considered to be the manufacturing center of the automotive industry. According to MarketsandMarkets data, China and India together produce approximately 25 million cars each year. With the increase in automobile production, the demand for automobile wiring harnesses is expected to increase. In turn, this is expected to promote the growth of the automotive wiring harness market in the Asia-Pacific region.
