June 17, 2024

Automotive Wire and Cable Materials Market is Estimated to Witness High Growth Owing to Rising Automotive Production

The automotive wire and cable materials market has been gaining significant traction over the recent past owing to rising automotive production. Automotive wires and cables are integral components used for transmission of electric signals and power supply in vehicles. These wires and cables help in transmission of control signals between various electrical components such as infotainment system, battery packs, charging ports and others.

The global automotive wire and cable materials market is estimated to be valued at US$ 5679.85 Bn in 2024 and is expected to exhibit a CAGR of 17% over the forecast period 2024 to 2030.

Key Takeaways
Key players operating in the automotive wire and cable materials are Alibaba Group, JD.com, Pinduoduo, Vipshop, Ymatou, Xiaohongshu, Suning.com, Gome Retail, Dangdang, Secoo, Mogu Inc, Meilishuo, Dolap, Shangpin, Yanxuan, Yoho!Buy, Mei.com, Amazon China, NetEase Kaola, Tencent. These players are focusing on new product launches and partnerships for further penetration in the market.

The key opportunities in the automotive wire and cable materials market include rising adoption of electric vehicles which present huge demand for wires and cables. Additionally, increasing investment by automakers in connected and autonomous vehicles will also fuel the demand.

Globally, Asia Pacific dominates The Automotive Wire And Cable Materials Market owing to presence of emerging economies like China and India with huge automotive manufacturing bases. However, North America and Europe are also expected to showcase significant growth owing to stringent vehicular emission and fuel efficiency norms.

Market Drivers
The primary driver which is augmenting the growth of automotive wire and cable materials market is rising automotive production across the world. As per industry estimates, over 90 million vehicles are produced annually which generates substantial demand for wires and cables. Additionally, growing electronic integration in modern vehicles is another key factor accelerating the market growth. Features like advanced driver assistance, telematics, infotainment and others employ extensive network of wires and cables for their functioning. Stringent fuel-efficiency and emission standards by regulatory bodies have also been instrumental in propelling the adoption of light-weight automotive components like lightweight wires and cables.

PEST Analysis
Political: Automotive industry regulations regarding fuel efficiency and emissions standards directly impact the demand for wire and cable materials that enable new vehicle technologies.
Economic: As vehicle sales increase during economic growth periods, manufacturers demand more wire and cable materials for new automotive production which spurs market growth.
Social: Rise in passenger vehicle ownership in developing nations increases overall vehicle production and corresponding need for high-quality wire and cable materials.
Technological: Advancements in electric vehicles and autonomous driving features require high-performance wire and cable materials that can withstand heat, friction and vibration while reliably transmitting large volumes of data. Wire and materials capable of faster data transfer and greater flexibility are priorities.

North America
In terms of value, the North American region holds a significant share of the global automotive wire and cable materials market due to large scale vehicle production operations of major OEMs based in the US and Canada. Rising demand for lightweight commercial electric vehicles further stimulates regional market growth.

Asia Pacific
The Asia Pacific region currently witnesses the fastest market growth and is expected to continue leading in terms of value due to rapidly expanding automobile manufacturing industries in China, India, Japan and South Korea. Increasingly stringent fuel efficiency and emissions norms also drive wire and cable innovation.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it