Global Automotive Wire And Cable Material Market Overview 2024: Size, Drivers, And Trends
The Business Research Company’s global market reports are now updated with the latest market sizing information for the year 2024 and forecasted to 2033
The automotive wire and cable material market has shown strong growth, increasing from $4.78 billion in 2023 to $5.14 billion in 2024 at a CAGR of 7.6%. This growth reflects the ongoing electrification of vehicles, enhanced infotainment and connectivity features, and evolving safety regulations aimed at reducing vehicle emissions.
Key Drivers of Market Growth
- Vehicle Electrification: The shift towards electric vehicles (EVs) has driven demand for advanced wire and cable materials. These materials are essential for transmitting power and data in EVs, contributing to their smooth operation.
- Safety and Emissions Regulations: Stringent safety regulations and policies promoting lower emissions and recyclability are pushing the development of new, more efficient materials.
- Copper Alternatives: Exploration of alternatives to copper has also contributed to the market’s expansion, offering cost-effective and lightweight options for automotive wiring.
Future Market Projections
The market is expected to continue its growth, reaching $6.92 billion by 2028 with a CAGR of 7.7%. This growth will be driven by several factors:
- New Material Development: Innovations in materials with enhanced properties will be crucial, especially in the context of electric and hybrid vehicle technologies.
- Charging Infrastructure Standards: Adoption of standards for EV charging infrastructure will further drive demand for specialized wire and cable materials.
- Autonomous and Connected Vehicles: The rise of autonomous and connected vehicle technologies will increase the need for high-speed data transmission and durable, efficient wiring solutions.
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Electric Vehicles Driving Market Growth
- Rising Demand: The surge in electric vehicle (EV) sales is a significant driver for the automotive wire and cable material market. EVs rely heavily on specialized wiring to ensure the safe and efficient transfer of power and data.
- Market Impact: The increase in EV sales directly impacts the demand for high-quality wire and cable materials. For example, in the first quarter of 2023, EV sales increased by 25% compared to the same period in 2022, highlighting the growing market for these materials.
- Example: By the end of 2023, EV sales were expected to reach 14 million, representing a 35% year-on-year increase, further emphasizing the importance of automotive wiring in this segment.
Major Players in the Market
Several leading companies dominate the automotive wire and cable material market:
- ExxonMobil Chemical Limited
- Reliance Industries Limited
- BASF SE
- LG Chem Ltd.
- Sumitomo Chemical Co. Ltd.
These companies are actively involved in innovation and expanding their product lines to meet the growing demand.
Innovations in High-Voltage Automotive Cables
- Silicone Rubber Insulation: Companies are developing advanced insulation materials for high-voltage automotive cables to enhance durability and thermal resistance.
- New Product Launches: For instance, in March 2023, Shin-Etsu Chemical introduced KE-5641-U, a silicone rubber for molding, designed for high-voltage automotive cables. This material offers superior dielectric withstand voltage, flexibility, and long-term reliability, outperforming traditional non-silicone insulation materials.
Strategic Acquisitions and Market Expansion
- GEON Performance Solutions’ Acquisition: In December 2023, GEON Performance Solutions acquired Polymax TPE, aiming to expand its product portfolio in the thermoplastic elastomer (TPE) sector.
- Impact on Market: This acquisition allows GEON to integrate Polymax TPE’s expertise into its offerings, potentially driving further innovation in automotive wire and cable materials.
Market Segmentation
The automotive wire and cable material market is segmented into:
- By Type: Polyvinyl Chloride (PVC), Polypropylene (PP), Cross-Linked Polyethylene (XLPE), Thermoplastic Polyurethane (TPU), Polyphenylene Ether (PPE), Other Types
- By Component: Connectors, Terminals, Wires, Other Components
- By Application: Passenger Vehicles, Light Commercial Vehicles, Heavy Commercial Vehicles
Regional Insights
- Asia-Pacific: Asia-Pacific was the largest region in the automotive wire and cable material market in 2023, driven by the rapid growth of the automotive industry and the increasing adoption of electric vehicles in the region.
Conclusion
The automotive wire and cable material market is poised for significant growth, driven by the increasing demand for electric vehicles, technological advancements, and strategic acquisitions. With major players focusing on innovation and expanding their product lines, the market is expected to reach $6.92 billion by 2028, making it a critical component of the evolving automotive industry.
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The Automotive Wire And Cable Material Global Market Report 2024 provides an overview of the automotive wire and cable material market for the time series: historic years (2010 – 2021) and ten years forecast (2023 – 2032). The automotive wire and cable material market forecast analyzes automotive wire and cable material market size, automotive wire and cable material market share, leading competitor and their market positions.
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