High Electric Vehicle Sales To Steer Automotive Wire Harness Demand
The International Energy Agency (IEA) states that global battery electric vehicle (BEV) (buses) sales surged from 69,961 units in 2019 to 78,032 units in 2020, and global BEV (cars) and plug-in hybrid electric vehicle (PHEV) (cars) sales increased from 1,542,867 units in 2019 to 2,008,024 units in 2020 and 570,724 units in 2019 to 969,034 units in 2020, respectively. The surging electric vehicle (EV) sales will, therefore, create an extensive requirement for wire harnesses, as they are equipped with numerous electrical units and electronic components, which require wires for electricity transmission and data transfer.
Additionally, the rising integration of advanced features in internal combustion engine (ICE)-based vehicles, primarily passenger cars, will drive the automotive wire harness market at a CAGR of 4.7% during the forecast period (2020–2030). The market was valued at $42.8 billion in 2019 and it is projected to generate $59.3 billion revenue by 2030. Presently, automobile original equipment manufacturers (OEMs) are focusing on developing advanced automotive wire harnesses and replacing copper-based wire harnesses with other materials.
According to P&S Intelligence, the Asia-Pacific (APAC) region will adopt a significant volume of automotive wire harnesses in the foreseeable future, owing to the expanding customer base of ICE-based vehicles, especially passenger cars and commercial vehicles in India, South Korea, China, and Japan, and increasing EV production and adoption in regional countries. For instance, the Next Generation Vehicle Promotion Center (NeV) states that 1.385 million HEVs, 1.385 million FCEVs, 18,000 BEVs, and 36,000 PHEVs were sold in Japan in 2017.
Whereas, the Latin America, Middle East, and African (LAMEA) automotive wire harness market is expected to demonstrate the fastest growth during the forecast period. This will be on account of the surging automobile production in Mexico, Argentina, Brazil, Iran, and South Africa. The OICA states that Argentina, Brazil, Iran, Mexico, and South Africa produced 93,001 cars and 164,186 commercial vehicles, 1,608,870 cars and 405,185 commercial vehicles, 826,210 cars and 54,787 commercial vehicles, 967,479 cars and 2,209,121 commercial vehicles, and 238,216 cars and 209,002 commercial vehicles, respectively, in 2020.
Therefore, the soaring EV sales and increasing adoption of advanced features in ICE-powered vehicles will facilitate the production of automotive wire harnesses.
