The wire harness industry is anticipated to grow significantly, reaching a valuation of US$ 150.70 billion by the year 2030, up from US$ 94.19 billion in 2023. This growth trajectory indicates a compound annual growth rate (CAGR) of 6.9% from 2023 to 2030.
In the automotive sector, wire harnesses typically weigh between 100 to 150 pounds, contingent on the vehicle's size and model. The weight of the wire harness is directly proportional to the overall weight of the vehicle. This is particularly critical in sectors like aerospace, where weight reduction is paramount. Consequently, aircraft manufacturers are increasingly seeking lightweight wire harness solutions, utilizing lighter connectors, clamps, and other components. The adoption of lightweight wire harnesses not only contributes to lower vehicle emissions but also enhances fuel efficiency. Countries such as China and Japan are leading the charge in the miniaturization of original equipment manufacturers (OEMs). These manufacturers prioritize component selection based on cost, quality, and weight, often opting for aluminum alloys over copper due to the latter's higher expense. The Corporate Average Fuel Economy (CAFE) regulations in the United States impose stringent standards on automobile manufacturers. In August 2021, the National Highway Traffic Safety Administration (NHTSA) finalized CAFE standards for model years 2024-2026, mandating that passenger cars and light trucks achieve a fleet average of 49 miles per gallon (mpg) by 2026, with annual efficiency improvements of 8% for 2024 and 2025, and 10% by 2026. Such regulations necessitate weight reductions to enhance fuel economy.
Effects of the COVID-19 Pandemic on the Wire Harness Market
The COVID-19 pandemic caused significant disruptions in the supply chain for semiconductor components essential for wire harnesses, leading to delays and negatively affecting the market during 2020 and 2021. The semiconductor industry has faced acute shortages since 2020, which contributed to the overall downturn in the wire harness market. However, as various markets began to reopen in 2021, factories resumed operations, and production levels across industries started to recover. As a result, the demand for wire harnesses is projected to increase globally throughout the forecast period.
Electronics manufacturing plays a crucial role in the export sectors of numerous East Asian nations, including China, South Korea, Taiwan, Malaysia, Singapore, the Philippines, Thailand, and Vietnam. The electrical device supply chain is intricately linked across these economies, with China serving as a primary supplier of electrical device intermediaries to various sectors in Southeast Asia. This interconnectedness creates a favorable environment for wire harness market vendors to expand their sales.
Moreover, this region boasts the largest consumer appliance industry worldwide, which serves as a significant driver for the market. Companies within the wire harness sector are innovating to develop solutions for electronic consumer devices, catering to both high-strength and low-strength applications across diverse equipment types. The remarkable proliferation of connected devices among consumers is generating a consistent revenue stream for businesses in the wire harness market.
Key players in the wire harness market include Fujikura Ltd., Furukawa Electric Co. Ltd., Lear Corporation, LEONI, Motherson Group, Nexans, Sumitomo Electric Industries, Ltd., THB Group, Yazaki Corporation, and Yura Corporation. In addition to these major companies, several other significant firms were analyzed during this market research to provide a comprehensive overview of the global wire harness market.
Strategic Insights - Wire Harness Market
This research report offers valuable insights into the "Global Wire Harness Market." It encapsulates the findings from an assessment conducted by The Insight Partners, focusing on the wire harness sector from a global standpoint. The report analyzes the market size of wire harnesses by product type, application, and geographical distribution. It presents the current market size, identifies trends, and forecasts growth for a five-year period from 2023 to 2028. The historical data considered includes the years 2019, 2020, and 2021, with 2022 serving as the base year for analysis. The forecast period for the entire report spans from 2023 to 2028. The scope of this market study encompasses wire harnesses provided by various companies operating within this sector. Revenue figures for market size calculations are expressed in US dollars, reflecting the earnings from both fixed and handheld wire harnesses.