by Automotive wire and cable materials are an essential component used in vehicles for transmission of power and signals. They serve applications such as charging systems, entertainment systems, windows, mirrors and other electrical components in vehicles. Copper is widely used automotive wire and cable material owing to its high electrical conductivity, strength and flexibility.
The global Automotive Wire And Cable Materials Market is estimated to be valued at US$ 4930.42 Mn in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Copper continues to be the dominant material used for automotive wiring and cables due to its high electrical conductivity. However, with the rise in vehicle electrification technologies, demand for light weight and enhanced conductivity materials is growing. Aluminum and carbon fiber reinforced polymer materials are emerging as viable substitutes to copper owing to their lighter weight that helps improve vehicle efficiency. For instance, aluminum weighs nearly 30% less than copper and has nearly same electrical conductivity, making it an attractive alternative material especially for battery electric vehicles and hybrids. original equipment manufacturers are also experimenting with materials such as magnesium and conductive polymer composites to develop advanced high strength lightweight wiring solutions for next generation electric vehicles.
SWOT Analysis
Strength: The automotive wire and cable materials market benefits from rising vehicle production and sales globally. Materials such as polyvinyl chloride and polyethylene are inexpensive and provide effective electrical insulation.
Weakness: Frequent change in cable designs to integrate new features leads to high R&D costs for manufacturers. Stringent quality regulations increase compliance costs.
Opportunity: Advancements in autonomous and electric vehicles will drive demand for high-performance wire and cable materials with enhanced data transmission capability and insulation from EM radiation. Growing demand for lightweight cables offers opportunities.
Threats: Volatility in raw material prices impacts the profit margins of manufacturers. Shift towards different types of electric vehicles poses threat to established materials.
Key Takeaways
The global Automotive Wire And Cable Materials Market is expected to witness high growth, exhibiting CAGR of 6.5% over the forecast period, due to increasing vehicle production worldwide especially in Asia Pacific and Latin America.
Regional analysis: Asia Pacific dominates the global market and is expected to grow at fastest pace due high vehicle manufacturing hubs in China, India, Japan, and South Korea. China accounted for over 28% of overall automotive production in 2020. Major automotive cable manufacturers have established production facilities in the region to cater to the burgeoning demand.
Key players operating in the automotive wire and cable materials market are ACOME, Allied Wire & Cable Inc., Coficab Tunisie SA, Coroplast Fritz Muller GmbH & Co. KG, Coroplast Fritz Muller GmbH & Co. KG, Delphi Automotive PLC, Draka Holdings B.V. Lear Corporation, Leoni AG, Sumitomo Electric Industries, Ltd, and Yazaki Corporation. Players are focused on developing halogen-free wire-insulating materials, lightweight cables, and materials that meet stringent fuel efficiency and emissions regulations.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
