Global Automotive Sensor Cable Market - 2024-2031

Overview

Global Automotive Sensor Cable Market reached US$ 1.5 billion in 2023 and is expected to reach US$ 2.7 billion by 2031, growing with a CAGR of 7.5% during the forecast period 2024-2031.

The growth of smart cities that have modern transportation systems is pushing up demand for connected and automated vehicles that rely largely on sensor technology and connections. Investments in road infrastructure and transportation networks promote the expansion of the automotive industry, increasing demand for sensor cables. In recent years, EVs have acquired tremendous appeal, particularly caused by increased environmental consciousness and a focus on sustainability.

As EV use grows, governments throughout the world are establishing rules to encourage industrial growth, resulting to an increase in demand for automotive sensor cables. For example, U.S. Federal Government offers a tax credit of up to US$ 7,500 for qualified EVs. Furthermore, the Canadian government plans to attain a zero-emission objective for all light-duty cars sold by 2040. Government actions to promote electric vehicle use are projected to support market growth.

In 2023, North America is expected to be the second-dominant region with over 20% of the global automotive sensor cable market. U.S. and Canada have strict safety standards that require the incorporation of modern safety features in automobiles. North America has strict pollution rules that require vehicles to have complex engine management and emission control systems, fueling the demand for sensor cables utilized in these technologies.

Dynamics

Growing EV Demand

The fast adoption of electric vehicles, fueled by government incentives and environmental concerns, necessitates better sensor technology for battery management, energy economy and safety, which raises the demand for sensor cables. The proliferation of EV charging infrastructure increases demand for sensor cables used in charging stations and related equipment.

One of the primary drivers of the passenger car segment's growth has been the rapid increase in electric passenger vehicle sales in recent years. In accordance to the International Energy Agency, global electric passenger car sales increased by 41% in 2020, despite the hurdles created by the COVID-19 epidemic. The growth has been driven by reasons such as lowering battery costs, government incentives and developments in EV technology, enabling electric passenger cars more appealing to consumers.

Rising Technological Advancements

The increasing integration of ADAS in automobiles to improve safety and driving experience is significantly reliant on sensor cables to ensure proper operation of cameras, radars and other sensors. The growth of connected and autonomous vehicles necessitates complex sensor networks for data transmission and processing, which increases the demand for high-quality sensor cables.

Key industry players are increasing their investments and forming partnerships with telecom providers to meet the increased demand for connected automobiles, which will fuel the market for automotive sensor cable. For example, in May 2023, MediaTek, a Taiwanese chip company, announced its partnership with NVIDIA to build an automotive solution for intelligent and connected vehicles, integrating artificial intelligence and accelerated computing.

High Production Costs and Technical Challenges

Automotive sensor cables are made with specialist materials including high-quality metals and insulating compounds, which can be pricey. Price fluctuations in these raw materials might have an impact on total manufacturing costs. Incorporating modern technology to improve the performance and durability of sensor wires raises manufacturing costs. The high expenditures can be prohibitive, especially in price-sensitive sectors.

Integrating sensor wires into current car systems can be complicated and technically difficult. Ensuring compatibility and smooth functioning across multiple vehicle models and systems necessitates tremendous effort and skill. Ensuring the dependability and endurance of sensor cables in severe automotive environments is critical. Any notion of unreliability or technical breakdowns will hamper market demand.

Segment Analysis

The global automotive sensor cable market is segmented based on type, end-user and region.

Rising Safety in Passenger Vehicles Drives the Segment Growth

Passenger vehicles is expected to be the dominant segment with over 30% of the market during the forecast period 2024-2031. Consumers are increasingly looking for vehicles with improved safety features. It raises the demand for advanced sensor systems, including sensor cables, to assure vehicle safety and performance. As a result, several car manufacturers are introducing new models with built-in networking features, which stimulates market demand.

For example, in March 2023, Chinese electric vehicle maker Xpend announced the release of their advanced driver assistance system, which is equivalent to Tesla's full self-driving technology. It enables its automobiles to automatically traverse city streets. The recently released X NGP (navigation-guided pilot) software can be installed in the G9 Max and P7i Max models in Guangzhou, Shenzhen and Shanghai.

Geographical Penetration

Rapid Growth in Automotive Sectors in Asia-Pacific

Asia-Pacific is expected to be the dominant region in the global Automotive Sensor Cable market covering over 30% of the market. Asia-Pacific is a major automobile manufacturing region, with China, Japan and India producing the most vehicles. The large volume of car manufacturing pushes the demand for automotive sensor cables.

Governments in the region are enacting policies to boost the automobile industry, such as subsidies for electric vehicles and strict safety rules. The policies support the use of advanced sensor cables. The region is seeing a surge in the use of electric vehicles, fueled by environmental issues and government incentives. EVs require complex sensor systems for battery management, safety and efficiency, which increases demand for sensor cables.

Competitive Landscape

The major global players in the market include LEONI, Prysmian Group, Coficab, TE Connectivity, Sumitomo Electric, Hitachi, Nexans, Beijing Force, LS Cable & System and Harnex Systems Pvt. Ltd.

COVID-19 Impact Analysis

The pandemic created substantial disruptions in the availability of raw materials and components required to manufacture vehicle sensor wires. Lockdowns and restrictions forced factory closures and halted operations in major manufacturing hubs. International transportation and logistics were severely impacted, resulting in cargo delays, port congestion and higher freight costs. It hindered the timely supply of materials and final products, resulting in delays in production schedules.

Vehicle sales fell sharply in the early stages of the epidemic due to economic uncertainty, lockdowns and lower consumer spending. It had a direct impact on the demand for vehicle components, particularly sensor cables. As economies recovered and limitations were eliminated, automobile sales increased, particularly in places experiencing significant economic recovery. It resulted in an increase in demand for vehicle sensor cables.

Russia-Ukraine War Impact

Russia and Ukraine are major producers of raw materials such as metals and rare earth elements used in the manufacture of automobile sensor cables. The war has affected mining and production activity, resulting in shortages and higher prices for key goods. The fighting has resulted in substantial disruptions in transportation networks. It includes limited airspace, damaged infrastructure and higher shipping costs, which complicate the transportation of products and equipment.

Demand for vehicle sensor cables vary regionally depending on the economic impact of the war. For example, due to economic instability, demand in Europe was reduced, whilst demand in other regions may vary. The war's general economic instability has an impact on both consumer and company spending. Reduced investments in the automobile sector can be predicted in the immediate term.

By Type

• Copper Core
• Aluminum Core

By End-User

• Passenger vehicles
• Commercial Vehicles
  • Light Commercial vehicles
  • Medium Commercial Vehicles
  • Heavy Commercial vehicles

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In February 2024, Remsons Industries, a leading manufacturer of cables and shifters for the automobile sector, has reached an agreement to make a majority investment in the automotive sensor section of Uni-Automation, a renowned sensor technology firm.
• In 2023, Panasonic Life Solutions India's Industrial Devices Division, a major diversified technology firm, has launched an innovative 6-in-1, 6DoF (Degrees of Freedom) inertial sensor. The sensor detects vehicle speed and angular rates across three axes (X, Y and Z), providing crucial information to improve vehicle safety and stability.

Why Purchase the Report?

• To visualize the global automotive sensor cable market segmentation based on type, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of automotive sensor cable market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global automotive sensor cable market report would provide approximately 54 tables, 40 figures and 181 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies