Global Cable Assembly Market Size, Share, Growth Analysis, By product(Custom/Application Specific Assemblies, Rectangular Assemblies), By application(Automotive, Telecom) - Industry Forecast 2024-2031

Global cable assembly market size was valued at USD 157.63 billion in 2022 and is poised to grow from USD 167.56 billion in 2023 to USD 273.17 billion by 2031, at a CAGR of 6.30% during the forecast period (2024-2031).

Cable assemblies serve a crucial role in safeguarding cables and facilitating the transmission of power, signals, and data to intended destinations. Their ease of installation, repair, and maintenance expedites replacement procedures. In response to the aftermath of the COVID-19 pandemic, cable assembly businesses are focusing on burgeoning applications such as high-performance computing (HPC), artificial intelligence (GPU to GPU), core routing, switching, and infotainment systems to drive growth. The market expansion of cable assemblies is attributed to the escalating demand for high-speed cable assemblies in computing devices, servers, switches, and other data and communication equipment. Furthermore, the increased consumer adoption of personal computers (PCs), laptops, and internet connectivity is expected to fuel the growth of the cable assembly industry. However, the growing need for high-bandwidth communication may impede market growth. Moreover, the anticipated price surge compared to wire harnessing could pose a challenge to the expansion of the cable assembly market during the forecast period. Despite these potential constraints, the market is poised to grow significantly due to the myriad benefits offered by cable assemblies, including minimal cable wastage, superior performance, and ease of installation.

Top-down and bottom-up approaches were used to estimate and validate the size of the global cable assembly market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Cable Assembly Market Segmental Analysis

The global cable assembly market is segmented based on the product, application and region. By product, the market is segmented into custom/application specific assemblies, rectangular assemblies, radio frequency (RF) assemblies, circular assemblies, fiber optics assemblies, printed circuit board (PCB) assemblies and others. By application, the market is segmented into automotive, telecom, computers and peripherals, industrial, military & aerospace, medical and others. By region it is categorized into North America, Europe, Asia-Pacific, Latin America, and MEA.

Drivers of the Global Cable Assembly Market

Advancements in technology have led to a reduction in battery costs and enhanced efficiency in electric vehicles (EVs), prompting a rapid increase in EV sales over the past decade, notably in countries such as the United States, Germany, China, the United Kingdom, and the Netherlands. Throughout the forecast period, EV sales are expected to continue rising due to the availability of subsidies and the implementation of lower prices. Numerous onboard systems in EVs, including the battery and power supply, ignition system, steering system, brake system, interior and exterior lighting, as well as safety and security systems, rely on cable assemblies. With the growing number of cable connections required for batteries and other interconnected circuits, the utilization of cable assemblies in EVs surpasses that in internal combustion engine (ICE) vehicles. Consequently, the global cable assembly market is projected to witness development during the forecast period, driven by the increasing sales of EVs.

Restraints in the Global Cable Assembly Market

To increase their profit margins, many bulk purchasers of raw materials are turning to suppliers who manufacture counterfeit products. This has led to an influx of low-quality products from local vendors, some of whom produce unbranded items or use the names of well-known brands without authorization. The presence of these counterfeit goods negatively affects the reputation and sales of legitimate international vendors. With the relatively low capital investment required, numerous suppliers can produce cable assemblies and market them under reputable brand names. Some vendors resort to discounting fake cable assemblies to boost sales. The availability of raw materials, a wide range of product variations, strong demand in the aftermarket, and minimal initial investment have all contributed to the proliferation of counterfeit goods, posing a barrier to the growth of the global cable assembly industry.

Market Trends of the Global Cable Assembly Market

The surge in sales of electric vehicles (EVs) is driven by growing environmental awareness and concerns about depleting fossil fuel reserves. Given that each vehicle requires multiple cable assemblies for various connections, the automotive sector has become the primary end-user of cable assemblies. EVs, in particular, rely on a greater number of cable assemblies due to the numerous connections required for batteries and associated circuits. Consequently, the increasing sales of EVs and the resultant rise in market demand are expected to propel the global cable assembly market throughout the forecast period.