Electric Vehicle Wiring Harness Market 2028 Industry Analysis

The electric vehicle wiring harness market is expected to grow from US$ 2,398.5 million in 2021 to US$ 7,167.0 million by 2028; it is estimated to grow at a CAGR of 16.9% from 2021 to 2028.

Increasing technological advancements and rising manufacturing of electric vehicles (EV) lead to the growing demand for lightweight wiring harnesses to achieve weight reduction and improved vehicle packaging. Changing consumer behavior and growing demand for technology-led characteristics are projected to lead the auto industry extensively. Environment and safety regulations and norms implemented by governments across the globe require OEMs to invest in techniques that meet mobility demands. The transition from internal combustion engines to electric passenger and commercial vehicles in developed nations will contribute to the demand. Emerging markets, changing consumer preferences, and increasing automation are anticipated to revolutionize the EV industry by increasing technology-driven trends. The rise in demand for electric vehicle wiring harnesses to achieve improved performance, flexibility, and reliability is propelling the market's growth.

Strategic Insights

Wire harnesses are electrical cables grouped into a single covering used to transmit signals in electrical applications. They also aid in powering up electronic and electrical devices and are designed to operate in extreme conditions. Harnesses are designed as per the requirements in automobiles and are embedded in the body, engine, and chassis of vehicles. These harnesses are embedded into dashboards, door locks, power windows, interior electrical components, speed sensors, lock braking system, cruise control system, and fuel injection system. Various benefits such as reduced installation time and improved fuel efficiency are increasing their uptake among automakers. Many leading and renowned automotive wire harness manufacturers provide customized harnesses designed to meet individual specifications and requirements. The rising demand for wire harnesses from the automotive industry, which accounts for one of its largest consumers, is remarkably bolstering the global electric vehicle wiring harness market

Impact of COVID-19 Pandemic on Electric Vehicle Wiring Harness Market

Electric vehicles (EVs) have become increasingly important for a new generation of environmental technologies in the global automotive industry. The COVID-19 pandemic severely disrupted the auto industry worldwide. The economic slowdown caused a rapid decline in EV sales, particularly in developing nations. According to the Society of Electric Vehicle Manufacturers (SMEV), the registration of all-electric vehicles during FY21 declined 20% to 236,802 units from 295,683 units sold in FY20. In 2019, electric cars accounted for a record 2.5% share of the global light-vehicle (LV) market, with more than two million EVs sold globally. Then the COVID-19 pandemic hit, shaking up supply chains and shutting down factories. However, emerging developments are anticipated to shape the market over the coming years. After witnessing a significant drop in 2020, the automotive market has begun witnessing a gradual recovery in consumer demand since the last quarter of 2020. According to industry experts, the EV market is more likely to see a quick recovery in China and Europe. The market share of EVs in these regions is likely to increase over the long term. Economic growth and improvements in production and manufacturing infrastructures will encourage the global electric vehicle wiring harness market.

Lucrative Regions for Electric Vehicle Wiring Harness Market

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Market Insight

Surge in Electric Vehicle Sales with Advanced Features

Evolving consumer preferences and technological advancements are helping to reshape the electric vehicles (EV) industry significantly. China is one of the leading regions in terms of EV adoption. China is also the world's largest automobile market, with a rapidly increasing number of new fully electric or plug-in hybrid car sales. In Europe, Germany is offering financial incentives to consumers to purchase EVs. OEMs and suppliers across the globe are preparing for the shift toward EVs and away from internal combustion engine (ICE) vehicles. The increasing demand for comfortable vehicles with advanced features such as air conditioning, climate control, park-assist cameras, high-resolution intelligent displays, touch screens, rapid charging capability, and automatic wipers and lights is fueling the need for electric vehicle wiring harnesses.

Vehicle Type Segment Insights

Based on vehicle type, the global electric vehicle wiring harness market is segmented into plug-in hybrid electric vehicles (PHEV), battery electric vehicle (BEV), hybrid electric vehicles (HEV), and fuel cell battery electric vehicles (FCBEV). The significant advantages of BEVs, such as the most sustainable driving experience and no carbon dioxide emission, are bolstering the growth of BEVs across the globe. The ability of BEVs to provide environmental, societal, and health benefits is projected to boost the demand for wiring harnesses. The demand for high-speed data transmission from vehicle manufacturers has led to a rise in investment in optical fiber cables that provide a relatively higher speed than other materials. This is propelling the growth of wiring harnesses for BEVs. Further, upgrade of charging infrastructures and increased fuel prices are likely to enhance the demand for BEVs with more user-friendly features.

Electric Vehicle Wiring Harness Market, by Vehicle Type (% Share)

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Product Type Segment Insights

Based on product type, the global electric vehicle wiring harness market is segmented into high voltage wiring harness and medium low voltage wiring harness.

Sumitomo Wiring Systems LTD. provides harnesses installed in high voltage batteries in a hybrid vehicle to detect the voltage, enabling the connectors to connect with the battery's electronic control unit (ECU). A high voltage battery is installed in the electric vehicle (EV) for enhanced motor driving operation. The rising demand for a high voltage power distribution system that contributes to improvements in performance, reliability, and convenience of hybrid and electric vehicles is driving the high voltage wiring harness segment. LEONI manufactures high voltage wiring systems, power distribution boxes, and components for hybrid and fully electric vehicles. Innovative capabilities regarding optimizing high voltage electrical distribution system (EDS) architectures and product designs using innovative materials and production methodologies are providing lucrative growth opportunities for the market vendors.

Material Type Segment Insights

Based on material type, the global electric vehicle wiring harness market is segmented into copper-clad wire, aluminum alloy wire, glass optical fiber, plastic optical fiber, and others.

Copper conductor is gaining widespread popularity as a mainstream material for the automotive wiring harness. The growing demand for lightweight aluminum alloy wires and harnesses for better fuel efficiency is anticipated to boost the segment growth during the forecast period. Growth in the development of environment-conscious high-voltage wire harnesses and lightweight wire harness systems is further enhancing the demand for copper-clad wires. Copper-clad aluminum is a low gravity material, with the characteristics of copper's good conductivity and aluminum's high specific gravity-conductivity ratio. Copper surfaces that can enable electric connection by using conventional terminals for copper wires reduce investment costs. Such benefits are propelling the growth of the copper-clad wire segment in the electric vehicle wiring harness market.

The market players focus on new product innovations and developments by integrating advanced technologies and features to compete. In October 2021, SINBON Electronics Co., Ltd. was named one of the top ten high-tech electric vehicles (EVs) solution firms in Asia-Pacific by the automotive journal "Autotech Outlook" for two consecutive years. Since 2012, the company has been committed to expanding the EV sector and has already established itself as a significant provider of wiring harnesses for charging systems for electric vehicles.

Based on vehicle type, the global electric vehicle wiring harness market is segmented into plug-in hybrid electric vehicles (PHEV), battery electric vehicle (BEV), hybrid electric vehicles (HEV), and fuel cell battery electric vehicles (FCBEV). Based on product type, the global electric vehicle wiring harness market is segmented into high voltage wiring harness and medium low voltage wiring harness. Based on material type, the global electric vehicle wiring harness market is segmented into copper-clad wire, aluminum alloy wire, glass optical fiber, plastic optical fiber, and others. In terms of geography, the electric vehicle wiring harness market is primarily segmented into North America, Europe, Asia Pacific, the Middle East and Africa, and South America.

Electric Vehicle Wiring Harness Market – Company Profiles

• Coroplast Fritz Müller GmbH & Co. KG
• Cypress Industries
• Fujikura Ltd.
• Furukawa Electric Co., Ltd.
• Motherson
• Nexans Autoelectric Gmbh
• Sinbon Electronics Co., Ltd.
• Sumitomo Wiring Systems Ltd.
• THB Group
• Yazaki Corporation