The commercial vehicle wiring harness market size is expected to reach US$ 25.79 billion by 2031 from US$ 13.45 billion in 2023. The market is estimated to record a CAGR of 8.5% from 2023 to 2031. The emergence of smart wiring harnesses is likely to bring in new trends in the market.
The demand for electric vehicles (EVs) is increasing worldwide, particularly due to the strong government policies that support its adoption and growing environmental concerns. This rise in the demand for EVs is fueling the growth of the commercial vehicle wiring harness market, as wire harnesses play a vital role in handling the energy and information flow in vehicles. In addition, the growing integration of advanced features such as self-driving cars and advanced driver assistance systems (ADAS) is fueling the growth of the market. Furthermore, the growing integration of fiber optics for high connectivity and increasing demand for sustainability in wiring harness production is anticipated to create an opportunity for the growth of the commercial vehicle wiring harness market. Moreover, the increasing demand for smart wire harnesses, which can be compatible with any vehicle, is expected to further propel the growth of the market during the forecast period.
The wiring harness is a collection of electrical cables or wire assemblies that connect all of the electrical and electronic components in an automobile, such as sensors, electronic control units, batteries, and actuators. The wiring harness manages the flow of energy and information inside the electrical system to enable main automotive tasks, such as steering and braking, as well as secondary car functions, such as ventilation and infotainment. Wire harnesses link several wires into non-flexible bundles, making them safer than loose wires and reducing the chance of shorts in electrical circuits. In addition, wiring harnesses are composed of durable materials. They are built such that these bundles may function well in harsh conditions while carrying huge power loads. Furthermore, wiring harnesses help improve the fuel efficiency of any car, which is further raising their demand in the automotive industry.
Electric vehicle (EV) sales are increasing due to concerns regarding environmental protection and government policies favoring the adoption of low-emission or zero-emission vehicles. Also, governments of different countries are offering subsidies and tax rebates to citizens to increase the adoption of EVs. The government authorities are taking various initiatives to promote EVs globally. Several US states are taking initiatives by providing financial incentives, including rebates, tax credits, and registration fee reductions, thereby promoting EV adoption in the country. For instance, in 2021, the government of Colorado offered a tax credit of US$ 4,000 on the purchase of a light-duty EV. Similarly, the government of Connecticut accepts a reduced biyearly vehicle registration fee of US$ 38 for EVs. Such government initiatives are leading to increased EV sales worldwide. According to IEA’s annual Global EV Outlook 2024, ~14 million new electric cars were registered in 2023 worldwide.
In 2023, the sales of electric cars were 3.5 million higher than in 2022, an increase of 35% year-on-year. As per the same source, electric cars accounted for ~18% of all cars sold in 2023, which was an increase from 14% in 2022. Also, in 2023, of the total number of new electric cars registered globally, China registered ~60% of new electric cars, Europe registered 25% of new electric cars, and the US registered 10% of new electric cars. The number of new electric car registrations reached 8.1 million in China in 2023, increasing by 35% compared to 2022. China is the world’s largest EV producer, producing 64% of global EV volume. Thus, the rise in sales of EVs boosts the demand for wire harnesses as they play a vital role in handling the energy and information flow within EVs.
The growing reliance on fiber optic cables is becoming a cornerstone of innovation and efficiency in the rapidly changing automobile industry. As automobiles become more connected with new technology, the use of automotive fiber optic cables becomes critical in addressing the increased need for quicker data transmission and better performance. Fiber optic cables boost in-car entertainment and information systems, providing passengers and drivers with an unrivaled audio-visual experience that dramatically increases user happiness and overall driving experience. In addition, fiber optics can provide real-time vehicle diagnostics, enhanced driver assistance systems, and autonomous driving capabilities by allowing for quick data transfer, which is critical for split-second decision-making. Its application in automobile design reduces vehicle weight, resulting in more fuel-efficient and environmentally friendly vehicles.
Fiber optics are critical in systems such as adaptive cruise control, collision avoidance, and lane departure warnings, which require quick data transfer. Their application ensures that safety measures are not only more effective but also more reliable, giving drivers a greater sense of confidence. Moreover, using fiber optic cables in in-vehicle communication systems allows for a more seamless and efficient flow of information, which is critical for the proper functioning of modern safety measures. This real-time communication improves vehicle performance and marks a significant step in automotive safety innovation, paving the way for future vehicle technology advancements and moving the industry to greater levels of passenger protection. Thus, the growing integration of fiber optics in vehicles is expected to boost the demand for wire harnesses during the forecast period.
Key segments that contributed to the derivation of the commercial vehicle wiring harness market analysis are vehicle type, light commercial vehicle, and medium and heavy commercial vehicle.
The regional trends and factors influencing the Commercial Vehicle Wiring Harness Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Commercial Vehicle Wiring Harness Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 13.45 Billion |
| Market Size by 2031 | US$ 25.79 Billion |
| Global CAGR (2023 - 2031) | 8.5% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Vehicle Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Commercial Vehicle Wiring Harness Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Commercial Vehicle Wiring Harness Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The commercial vehicle wiring harness market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the commercial vehicle wiring harness market are listed below:
(Source: Lear Corporation, Press Release, March 2024)
(Source: Sumitomo Electric Wiring Systems Inc., Press Release, April 2023)
The "Commercial Vehicle Wiring Harness Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
The List of Companies - Commercial Vehicle Wiring Harness Market
Rising demand for smart wiring harness are expected to drive the growth of the commercial vehicle wiring harness market in the coming years.
The key players holding majority shares in the commercial vehicle wiring harness market include Motherson Sumi Systems Ltd., AME Systems (VIC) Pty Ltd., Spark Minda, Yazaki Corp, Sumitomo Electric Industries Ltd, Nexans SA, Furukawa Electric Co Ltd, Lear Corp, DRÄXLMAIER Group, and ECOCABLES.
Rise in demand for electric vehicles and integration of advanced features in vehicles are driving factors in the commercial vehicle wiring harness market.
The commercial vehicle wiring harness market was estimated to be valued at US$ 13.45 billion in 2023 and is anticipated to grow at a CAGR of 8.5% over the forecast period.
The automotive segment led the commercial vehicle wiring harness market with a significant share in 2023.
The commercial vehicle wiring harness market is expected to reach US$ 25.79 Billion by 2031.
Asia Pacific is anticipated to grow at the fastest CAGR over the forecast period.