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Demand is growing
Due to their smaller weight, bundle diameter, and lower cost, specialty cables are increasingly in demand. The demand for infotainment products such as displays and cameras will increase. Specialty cables can combine video and camera signals, reducing weight and cost. OEMs prefer aluminum or optical fiber to make lightweight, high-speed cables. Fiber optic cable has a lower sensitivity to environmental factors than copper cable. For high-speed data transmission, optical fiber is being used by manufacturers. A lightweight aluminum wiring harness that is made of aluminum and copper alloys, with high voltage coax and optical fibers as the wiring harness, can be developed.
Modern cars have many electronic connections. Around 125 million vehicles will receive 5G connections by 2022. Electronic and electrical components are also required in vehicles’ head-up displays, infotainment, and dashboards. Electronic equipment is becoming an increasingly common accessory. Consumers and car manufacturers have encouraged electronic component suppliers to integrate more innovations and make them more popular. Today’s customers demand intuitive technology. They want an in-vehicle experience that keeps them connected, entertained, and comfortable. Automobile manufacturers are always looking for the best features and technology. These factors are critical in driving the global market.
Globally, car demand is increasing due to better economies, higher purchasing power, and improved lifestyles. Because of the higher demand for automobiles, particularly in India and China, Asia Pacific has the highest automotive output. This market also benefits from increasing government financial and regulatory efforts.
Restraining Factors
Wiring Harness’s Corrosive Nature Hurtle at Hinder Growth
Market growth is expected to be slowed by issues such as the reliability and durability of wiring harnesses for electric vehicles. Additionally, wiring harnesses’ corrosive nature and complexity make them difficult to integrate into EVs. These factors will, in turn, be a restraint in the future. Manufacturers must invest extensively in developing advanced wiring harnesses to limit the market growth.
Market Key Trends
Market to be driven by increasing electric vehicles
Electric vehicles are now an integral part of the automotive industry. They offer a path to energy efficiency and reduced greenhouse gas emissions. These are mainly driven by favorable government initiatives and growing environmental concerns.
The 2020 electric car purchase total was USD 120 Billion. This represents a 50% increase in 2019 and an average 41% increase in sales. The increase in average prices results from more electric car registrations in Europe, which has higher average prices than in Asia.
Global sales of electric vehicles increased by 39% in 2020 to 3.1 million units. In 2020, 1.3 million EVs will be sold across Europe and China. This was four times as many as the EVs sold in the United States. The EV market in the United States accounted for only 2.4%. The annual sales volume of electric passenger cars is expected to surpass 7 million by 2026. It will account for approximately 15% of all vehicle sales by 2026.
Many wire and cable producers are increasing their production capacity to meet the growing demand for electric vehicles. LS Cable and System, for instance, announced in September 2020 that they had begun mass production of aluminum cables for electric cars. The company also announced that it had built a factory for aluminum wire production exclusively in Korea. The company supplies aluminum wires for significant automotive manufacturers like Hyundai Motors and Kia Motors.
These trends and other developments will continue to drive demand for wiring harnesses soon.
Recent Development
Yazaki Corporation proposed a plan to construct a wire-harness manufacturing facility in Manipur (India) in July 2021.
Furukawa Electric created ultrahigh fiber count 6,912-fiber optical cables that use 16-fiber rollable ribbons. This cabling can reduce the time it takes to fusion-splice and increases network capacity. The company has created the world’s dense core optical fiber cable, which features ultra-high counts and multicores. The 12-core rollable ribbon is made of optical fiber with a narrower outer diameter (200mm). The cable is highly dense and has a narrow outer diameter of just 29mm. This technology allows the installation of multi-core fibers with a high-quality count in bulk pipes.
Furukawa Electric and Essex Magnet Wire (Essex) joined forces in October 2020 to create a joint venture. This was to expand on a previous magnet wire partnership between European entities. Following the execution of the definitive agreements, customary regulatory approvals and other approvals were obtained, and the companies would merge the magnet wire business operations in the following months.
Nexans entered into a share purchase agreement with Xignux SA Mexico in September 2021 for Centella. Centella, a premium cable producer from Latin America, produces cables for utility and building applications. The closing of the agreement will require regulatory approvals. It is expected to occur in the first quarter of 2022.
Aptiv (NYSE APTV), Hyundai Motor Group, created a 50/50 joint venture (JV), autonomous driving, in March 2020 to improve mobility safety and greenness. It has its headquarters in Boston and technology centers all over the US. Hyundai Motor Group’s design engineering expertise and Aptiv’s autonomous driving solutions will be leveraged by the JV to market the SAE 5/5 platform for vehicle fleet operators, robotaxi providers, and automobile manufacturers.
