PUBLISHER: Acute Market Reports | PRODUCT CODE: 1402954
PUBLISHER: Acute Market Reports | PRODUCT CODE: 1402954
The wire harness market is a vital component of various industries, facilitating the transmission of electrical signals and power across different applications. The wire harness market is expected to grow at a CAGR of 5.8% during the forecast period of 2023 to 2031, driven by the expansion of the automotive industry, aerospace and defense applications, and growing consumer technology demand. However, supply chain disruptions pose a significant restraint. Market segmentation by application and sales type reveals varying trends, with different segments leading in revenue and CAGR. Geographic trends highlight regional variations, with Asia-Pacific and North America playing pivotal roles.
Automotive Industry Expansion
One of the primary drivers propelling the wire harness market is the expansion of the automotive industry. In 2022, the automotive sector experienced significant growth, driven by technological advancements, electric vehicles (EVs), and increasing demand for connected and autonomous vehicles. Wire harnesses play a crucial role in modern vehicles, connecting various electrical components, sensors, and control systems. As evidence, leading automakers have been investing in wire harness technology to enhance vehicle performance, safety, and connectivity. The anticipated growth in EVs and smart vehicles is expected to sustain this demand for wire harnesses in the coming years.
Aerospace and Defense Applications
The aerospace and defense sectors have been key drivers of the wire harness market. In 2022, these industries saw continued innovation and development of advanced aircraft, unmanned systems, and defense technologies. Wire harnesses are fundamental components in aircraft, providing a reliable means of electrical connectivity and communication between various onboard systems. As evidence, major aerospace and defense companies have sought to optimize wire harness designs to reduce weight, increase performance, and ensure safety in mission-critical applications. The expected growth in both civil and military aviation, along with ongoing defense modernization efforts, is set to bolster the wire harness market.
Growing Consumer Technology Demand
The demand for consumer technology and durables has been a notable driver for the wire harness market. In 2022, consumers' reliance on electronic devices, from smartphones to home appliances, continued to grow. Wire harnesses enable the seamless integration of various electronic components, ensuring reliable operation and connectivity. As evidence, leading technology companies have been focused on creating efficient wire harness solutions to support the development of innovative consumer products. The anticipated increase in consumer technology adoption, including the Internet of Things (IoT) devices, is expected to drive the demand for wire harnesses in the years ahead.
Supply Chain Disruptions
While the wire harness market exhibits significant growth drivers, it is not without restraints. Supply chain disruptions became a critical concern in 2022, impacting the availability of components and materials required for wire harness manufacturing. As evidence, the global supply chain was affected by factors such as the COVID-19 pandemic, natural disasters, and geopolitical tensions, leading to delays and increased costs in the wire harness production process. These disruptions have put pressure on manufacturers to diversify their supply sources and enhance resilience in the supply chain.
Market Segmentation by Application: Automotive Sector Dominates the Market
The wire harness market is segmented by application into various sectors, including Automotive, Marine and marine Engine, Aerospace, Defense, Gaming and amusement, Medical Equipment and devices, Commercial Refrigeration and food Machines, Consumer Technology and durables, Fitness Equipment/Machines, Power & Energy, Agricultural Equipment, Industrial, Elevators & Escalators, and Others. In 2022, the highest revenue was generated in the automotive sector, while the Medical Equipment and devices segment exhibited the highest CAGR during the forecast period from 2023 to 2031. The automotive industry's reliance on wire harnesses for various applications, including EVs and advanced safety systems, contributed to the highest revenue in 2022. In contrast, the Medical Equipment and devices sector is expected to experience the highest CAGR, driven by the increasing demand for healthcare equipment, including wheelchairs and medical devices.
Market Segmentation by Sales Type: OEM Segment Dominates the Market
The market segmentation by sales type includes OEM (Original Equipment Manufacturer) and Aftermarket. In 2022, the highest revenue was generated through OEM sales, while the Aftermarket segment is expected to exhibit the highest CAGR during the forecast period from 2023 to 2031. OEM sales are driven by the direct integration of wire harnesses into new equipment and vehicles. In contrast, the Aftermarket segment's growth is anticipated due to the replacement and maintenance of wire harnesses in existing machinery and vehicles, ensuring continued functionality and safety.
APAC remains the Global Leader
Geographic trends in the wire harness market highlight regional disparities in both revenue and CAGR. In 2022, Asia-Pacific led in revenue, driven by the robust automotive and consumer electronics industries. However, North America is projected to exhibit the highest CAGR from 2023 to 2031, driven by the expansion of the aerospace, defense, and automotive sectors. Europe, with its focus on automotive innovation and sustainability, also contributes significantly to the market's dynamics.
Market Competition to Intensify during the Forecast Period
Competitive trends in the wire harness market are characterized by top players and their key strategies. In 2022, companies such as Yazaki Corporation, Sumitomo Electric Industries, Leoni AGAME Systems, Aptiv Plc, BorgWarner, Inc., Coroplast Group (WeWire), Draexlmaier, Elcom International, Fujikura Ltd., Furukawa Electric Co. Ltd., Kromberg & Schubertand, and Kunshan Huguang Auto Harness Co. Ltd. were prominent in the industry, with substantial revenues from wire harness manufacturing. These players are expected to continue their dominance in the forecast period from 2023 to 2031 through innovation, diversification, and geographic expansion. Their strategies revolve around staying ahead in the competitive landscape, expanding their product portfolios, and addressing emerging market demands.
Historical & Forecast Period
This study report represents analysis of each segment from 2021 to 2031 considering 2022 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2023 to 2031.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation ofWire Harness market are as follows:
Research and development budgets of manufacturers and government spending
Revenues of key companies in the market segment
Number of end users and consumption volume, price and value.
Geographical revenues generate by countries considered in the report:
Micro and macro environment factors that are currently influencing the Wire Harness market and their expected impact during the forecast period.
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
Market Segmentation
Application
4 Combat Vehicles
4 Non-combat Vehicles
4 Ride on
4 Battery operated
Sales Type
Region Segment (2021-2031; US$ Million)
North America
U.S.
Canada
Rest of North America
UK and European Union
UK
Germany
Spain
Italy
France
Rest of Europe
Asia Pacific
China
Japan
India
Australia
South Korea
Rest of Asia Pacific
Latin America
Brazil
Mexico
Rest of Latin America
Middle East and Africa
GCC
Africa
Rest of Middle East and Africa
Key questions answered in this report
What are the key micro and macro environmental factors that are impacting the growth of Wire Harness market?
What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
Estimated forecast and market projections up to 2031.
Which segment accounts for the fastest CAGR during the forecast period?
Which market segment holds a larger market share and why?
Are low and middle-income economies investing in the Wire Harness market?
Which is the largest regional market for Wire Harness market?
What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
Which are the key trends driving Wire Harness market growth?
Who are the key competitors and what are their key strategies to enhance their market presence in the Wire Harness market worldwide?
FIG. 9Market Positioning of Key Wire Harness Market Players, 2022
FIG. 10Global Wire Harness Market - Tier Analysis - Percentage of Revenues by Tier Level, 2022 Versus 2031