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Last Updated: Apr 25, 2025 | Study Period: 2024-2030
The global automotive wiring harness market is expected to witness steady growth in the coming years, driven by the increasing demand for EVs and HEVs, ADAS, and other advanced safety features.
Automakers and wiring harness manufacturers are focusing on developing lightweight and high-performance wiring harnesses to improve fuel efficiency and reduce emissions. AI and ML are being used to automate the production and testing of wiring harnesses, which is helping to improve efficiency and quality.
In the landscape of the global automotive wiring harness market, it is crucial to grasp the pivotal role that wiring harnesses assume. These intricate networks comprising electrical cables and connectors serve as the lifeblood of contemporary vehicles, facilitating the seamless transmission of power and data.
Their significance lies in underpinning the functionality of diverse vehicle components, encompassing lighting, sensors, and control units. Consequently, the automotive wiring harness market stands poised for sustained expansion and innovation, driven by the ever-evolving demands of the automotive sector."
The global automotive wiring harness market is a large and growing market that plays a critical role in the automotive industry. Automotive wiring harnesses are essential for the operation of all vehicles, regardless of the propulsion system. The market is expected to witness steady growth in the coming years, driven by the increasing demand for electric vehicles, hybrid electric vehicles, ADAS, and other advanced safety features.
The global automotive wiring harness market is the global market for the design, manufacturing, and sale of automotive wiring harnesses. Automotive wiring harnesses are bundles of wires, terminals, and connectors that run throughout a vehicle and transmit power and signals between electrical components. They are essential for the operation of all vehicles, regardless of the propulsion system.
A wiring harness is a systematized set of wires, connectors and terminals that run through the entire vehicle which help in transmitting information and electrical power. They play a very critical role in linking a variety of components. These wires are made of vinyl, rubber or a combination of other materials.
As the features in cars is increasing to provide safety, comfort, luxury etc., so does their component parts and to meet their requirements, they require electronics which can help them save a lot of space.
Some automobiles contains such amount of wires that if extended it could stretch over several kilometers. So, by binding them together in wire/cable harness, they could be secured against several phenomenon such as abrasion, vibration and moisture, which could possibly damage them.
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COVID has undoubtedly negatively affect the auto production worldwide resulting in decreased sales for wiring harness manufacturers but China saw a V shaped recovery from April 2020.
Europe auto production declined by ~25% in 2020, with total passenger car sales ~11M units as compared to ~15M in 2019.
US declined by 13-14% YOY which was a huge relief to all wiring harness manufacturers.
LEONI was also forced to decide to temporarily but sharply curtail production at its European, North African and American wiring systems facilities. In late March 2020, Leoni faced material additional effects on sales, earnings and liquidity.
There was not much change in the investments made by Leoni in the wiring systems division in Q1-2021. It remained at $ 14.8M same as Q1 of 2020.
Every machine and electronic device have varying operative needs. Even though the design of wire harnesses may vary depending on the application of the device or machine, but the three core components remains the same.
A wire harness assembly consists of connectors, terminals and wires. Connectors and terminals are important parts of designing and manufacturing a wire harness. Also, theses connectors and terminals ascertain the dependability, stability and performance of the harness.
Some of different types of wire harnesses are:
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The sole purpose of a connector is to transmit electric signals for connecting a wire harness to an electrical power source. Electronic signal or power is transmitted through plugs & jack in a connector.
Functioning and performance depend on the design of connectors and the setting, in which it will perform, decides the material used, its durability, types of insulation between the pins etc. Depending on the type of application, connectors are designed to perform various tasks in different fields such as medical devices, defence equipment, car components, aerospace equipment etc.
Terminals in wire harnesses are usually made of metals/alloys. They also contain materials like carbon or silicon. Terminals have different designs, shapes and sizes, depending on the type of connection.
Many shapes of terminals are available in market likes hooks, rings, spades, quick-disconnect, bullet. Each wire harness application is selective and designed for a precise operation having its own set of constraints and grouping of signals.
Choosing the accurate connector and terminal for an operation is vital to the overall performance of the wire harness.
The increasing demand for hybrid and electric vehicles has remarkably contributed to the development of wire harness market. The trend of integrating cutting-edge features in the vehicles has led in heavy demand for wire harnesses, which ultimately help in growth of the market.
Also, the drift in electrification and advance safety solutions in vehicles has aided in the growth of the market.
NORTH AMERICA AUTOMOTIVE WIRING HARNESS MARKET
The $630 Billion per annum passenger car market of US is the most lucrative market for wiring harness manufacturers globally. As vehicles in this region have highest average transaction prices and comparatively better loaded with safety and comfort features.
Plugged in EV sales are still lagging accounting for just 2% of overall vehicle sales in 2019, the growth in wiring harness market value will come from ever growing sales of SUVs and crossovers.
With the governmentâs policies to increase the safety of vehicle, advanced technologies are being installed in the vehicle which has increased the demand in wire harness in the North America region. High penetration of sunroof and seats with automatic controls will drive the growth of this segment of wiring harness.
With most of the major companies in wire harness, this region is the biggest producer and supplier worldwide.
ASIA PACIFIC AUTOMOTIVE WIRING HARNESS MARKET
Due to increasing demand of premium vehicle and growing electronics content, Asia Pacific has become the hotspot market for wire harness. Chinaâs commitment to increase imports of US goods by $200 Billion over the next two years, including purchases of manufacturing products (like connectors, terminals, wires etc.), will boost wire harness market.
EUROPE AUTOMOTIVE WIRING HARNESS MARKET
In Europe, governments and consumers are focusing more on advance safety options in vehicles to reduce the number of accidents across countries. This is expected to increase the implementation of safety features related wire harness, ultimately leading to the growth of the market.
Almost 50% of the labor cost in a vehicle is accounted by wiring harnesses due to lack of automation in the field.
Mainly two types of interfaces (software) are used by wire harness in vehicles till date.
CAN (CONTROLLER AREA NETWORK): It mainly controls the communication between major components of vehicle such as door modules, weather control module, power seat modules etc.
CAN-FD (an upgrade version of CAN), FlexRay (costly than CAN), MOST etc. are other types of software that can be used in place of CAN.
LIN (LOCAL INTRANET NETWORK) : It controls the other components of vehicle such as motor, heater, cooler etc.
In terms of raw materials used in a vehicle, steel and copper has been replaced with aluminum and copper-based alloy so as to reduce the overall weight of the vehicle because higher the weight of vehicle higher the fuel consumption and lower the battery life. Wire harness innovations and designs are typically aimed at plummeting the metal content use in a vehicle in order to reduce its overall weight.
LEIKO is a new concept in wire harness by BMW along with scientists from Technische Universiteit München, which will overcome the cons of metals such as Aluminum like its corrosion resistance ability.
Fujikura has developed three types of new wires that will enable further reductions in weight and diameter according to their usage by reducing the specific gravity of conductors and strengthening them.
One is an aluminum alloy automotive wire with high strength and high conductivity, another is copper-clad aluminum (CA) wire suitable for a thick wire such as a battery cable, and the last is a high strength wire suitable for signal lines that have the same strength with the one quarter cross section to that of a current soft wire.
Here are some recent industry news for the global automotive wiring harness market:
Aptiv and BMW Group to co-develop wiring harness solutions for future vehicles (October 2023): Aptiv, a global technology company that develops safer, greener, and more connected solutions for the transportation industry, and the BMW Group, a leading manufacturer of premium automobiles and motorcycles, have announced a partnership to co-develop wiring harness solutions for future vehicles. The partnership will focus on developing lightweight, high-performance wiring harnesses that can support the increasing number of electrical and electronic components in future vehicles.
Emergency One and Teepee Electrical have deepened their partnership to support the integration of Teepee's new electric vehicles (EVs). This transition to electrification required the development of a unique wiring system with varying cable specifications, encompassing high and low voltage circuits, and the incorporation of on-vehicle technologies. Emergency One's design software has seamlessly interfaced with manufacturing software, enabling a streamlined electrification process.
It's worth noting that the shift towards electrification extends beyond passenger cars, with various industries prioritizing cleaner and more environmentally friendly transportation solutions. Emergency One, based in Cumnock, Scotland, has been a pioneer in building all-electric vehicles, consistently delivering vehicles that rival or surpass their competitors in terms of performance and range. Despite the pandemic's challenges, the company is experiencing a surge in orders for fire and rescue equipment.
Some of the key government regulations that impact the automotive wiring harness market include:
Government incentives
Governments around the world offer a variety of incentives to promote the adoption of electric vehicles and other advanced vehicles. These incentives can include tax breaks, rebates, and access to high-occupancy vehicle (HOV) lanes.
Government incentives are driving the demand for wiring harnesses that can support electric vehicles and other advanced vehicles. Electric vehicles require more complex wiring harnesses than traditional gasoline-powered vehicles due to the increased number of electrical components and sensors.
Impact on the global automotive wiring harness market
Government regulations and incentives have a significant impact on the global automotive wiring harness market. These regulations and incentives are driving the demand for lightweight, high-performance, and safe wiring harnesses.
The government regulations and incentives are expected to continue to drive the growth of the global automotive wiring harness market in the coming years.
SI No | Timeline | Company | Developments |
1 | Oct 2021 | Motherson Sumi Systems Limited | Motherson Sumi Systems (MSSL) acquired 55% in CIM Tools at an enterprise value of 400 crore. CIM Tools is a components vendor to the aerospace industry |
2 | Oct 2021 | Bizlink Holding Inc. | Bizlink Holding Inc. announced that it had reached a binding agreement with Leoni AG to acquire the German companyâs Leoni Industrial Solutions for 451 million euros (US$522.9 million) in an all-cash transaction.
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3 | Jan 2022 | Aptiv PLC | Announced a definitive agreement to acquire Wind River® from TPG Capital, the private equity platform of global alternative asset management firm TPG, for $4.3 billion in cash. |
The Wiring Systems Division contributed $ 2.85 billion to the consolidated sales and the Wire & Cable Solutions Division accounted for $ 1.82 billion of the overall sales.LEONI will concentrate mainly on the wiring systems business and plans to part with the WCS (Wire & Cable Solutions) Division.
TE Connectivity has introduced the Generation Y 68P Sealed Hybrid Inline Connector, addressing the growing complexity of wire harnesses in modern passenger vehicles. With cars packed with electronics, streamlining connections has become a priority for OEMs to simplify manufacturing, supply chains, and reduce costs.
This connector combines low voltage signal and power connectors with data connectors, reducing complexity, saving space, and cutting costs. It's a compact solution frequently used in applications involving cameras, displays, antennas, and video and sensor signal transmission.
Sl no | Topic |
1 | Market Segmentation |
2 | Scope of the report |
3 | Research Methodology |
4 | Executive Summary |
5 | Average B2B Price, By Region |
6 | Introduction |
7 | Insights from Industry stakeholders |
8 | Disruptive innovation in the Industry |
9 | Technology trends in the Industry |
10 | Consumer trends in the industry |
11 | Recent Production Milestones |
12 | Identification of technological challenges in wiring harness design and manufacturing. |
13 | |
14 | |
15 | Competition from substitute products |
16 | New product development in past 12 months |
17 | Market Size, Dynamics and Forecast by Geography, 2024-2030 |
18 | Market Segmentation, Dynamics and Forecast by Vehicle Type, 2024-2030 |
19 | Market Segmentation, Dynamics and Forecast by Wiring Harness Type, 2024-2030 |
20 | Market Segmentation, Dynamics and Forecast by Technology Type,2024-2030 |
21 | Product installation rate by OEM, 2023 |
22 | Competitive Landscape |
23 | M&A in past 12 months |
24 | Growth strategy of leading players |
25 | Market share of vendors, 2023 |