The Automotive Connectors Market size is estimated at $4.38 billion in 2018, and it is expected to reach $11 billion with a CAGR rate of 8.5% in the forecast period.
Automotive Connectors are electrochemical elements used for connecting various electrical circuits. They are used to join the electric terminals and form a complete circuit to make the effectiveness of communication and navigation between the devices and the automobile's electronics. Automotive Connectors are usually made of plugs and sockets that are placed in the vehicle. These connectors offer advanced safety and many security features such as adaptive cruise control, anti-theft, keyless entry and braking system, and other features.
Automotive Connectors play a huge role in delivering good power to many components. Additionally, these connectors are designed so that they can withstand high/low temperature, dirt, wear, and dirt—also, an increasing number of vehicles and electrification among the vehicle segments propelling the Market growth of Automotive Connectors. Additionally, increasing demand for advanced features and security features in the automobile sector and rising demand for electric vehicles will boost the market size of Automotive Connectors in the forecast period. Increasing the use of automotive sensors will also play a crucial part in propelling Market growth.
The automotive manufacturers use copper cables with plastic optical fiber to enhance the data transmission process, reducing overall cost and design flexibility to boost the market growth of Automotive Connectors. But the plastic optical fiber will need automotive connectors for effective functioning. As a result, the demand for Automotive Connectors is increasing. Many advanced innovations such as park assistance, front lighting, and the incorporation of machine learning will create many advantages for the Market. The key players play a huge role in propelling the Market trends.
The covid-19 pandemic has affected almost all the sectors in the world. The spread of coronavirus first started in Wuhan city, and now it created a huge problem for many industries. Many businesses are suffering due to it, and they are going through a tough time. Among all the sectors, the automotive sector was highly affected by the pandemic. Due to the pandemic, the governments in various countries decided to impose a lockdown, affecting the supply-demand chain. The production of vehicles was on a halt, and due to it, the demand of automotive sectors declined, which negatively impacted the Market of Automotive Connectors.
Furthermore, the people were going through a financial crisis. As a result, their purchasing power was low, and they didn't invest in buying new vehicles. As a result, the automotive market growth decline, and it further hampered the market trends. Still, the businesses aren't recovered fully, and different variants are causing problems for the market. The Market is expected to see a positive result after the end of the pandemic.
The major market key players in the Automotive Connectors Market are
In January 2021, Bentley introduced its hybrid model and then Bentayga Speed and Bentagya V8.
Increasing safety and security concerns and government initiatives to enhance security are driving the market growth. Security in the vehicles is a major concern for the vehicle manufacturer and the governments as well. Due to the manufacturers are installing advanced security features and investing in the dedicated electronic units in the vehicle system that includes powertrain, braking, and steering. The demand for electric control units has increased in the past few years. Also, increasing security features such as central locking and airbags contributed to the market growth. From running GPS to distributing the power, the Automotive Connectors play a crucial role in the vehicle's functioning and many features. Even the slightest malfunctioning in the connectors can lead to big problems; as a result, the automakers are using high-quality connectors, which will drive the market. The rising demand for automotive sectors and increasing per capita income of people is also driving the Automotive Connectors Industry. According to the census data, America's motor vehicle manufacturers reported $344.4 billion in automotive industry shipments, $5.7 billion in total capital spending, and $261.7 billion in cost of materials in 2016.
Due to increasing environmental concerns, the demand for electric vehicles is increasing. And to reduce carbon emissions, the governments are taking many steps and promoting electric vehicles that will generate opportunities for the market. Automotive connectors are used in electric vehicles to improve their efficiency to create for the Market of Automotive Connectors in the future.
Automotive Connectors are used in the automotive sector for various reasons. These days the vehicles are coming with various features to increase their efficiency. But these connectors have to be reliable and durable; otherwise, it will lead to various problems and disastrous results. Due to this, the manufacturers are very concerned about using these connectors that can hamper the Automotive Connectors Industry.
Just like any other market Automotive Connectors Market is also facing challenges. The underdeveloped regions don't have access to technological advancement, and their purchasing power is very low; as a result, it has become a challenge for the Market of Automotive Connectors. The market key players and the drivers will play a huge role in overcoming these challenges and boosting the market demand in the coming years.
Cumulative Growth Analysis
The Automotive Connectors Market has shown substantial growth over the years, and it is expected to register a healthy CAGR of 8.5% in the forecast period. Various applications of connectors will play a huge role in boosting the growth of the market.
The Automotive Connectors Market is segmented based on product, application, connectivity, and vehicle type.
Based on product, the Automotive Connectors industry is segmented into an integrated circuit, printed circuit board, fiber optic, radiofrequency, and others. The fiber optic segment is expected to hold the highest Market share in the forecast period. It is also expected to register a CAGR of 10.6%.
Based on application, the market is divided into convenience, comfort, powertrain, safety and security, power distribution, instrumentation, and navigation. The safety and security segment was responsible for the highest Market share in 2017. Development in technology has increased focus on various safety features in vehicles.
Based on connectivity, the market of Automotive Connectors is segmented into wire to board, wire to wire, and others. The wire to wire segment was accounted for the highest share worth 5.44 billion in 2017. These connectors are highly used to connect two wires for data transmission and power distribution.
Based on vehicle type, the market is divided into commercial vehicles and commercial vehicles. The passenger car segment was responsible for the highest Market share and dominated the market in 2017, and it was valued at 11.55 billion.
The major regions in the market of Automotive Connectors are Asia-Pacific, Europe, North America, and the rest of the world. The Asia-Pacific region was accounted for the highest share in 2017 with 36%. Asian countries such as Japan, China, and Taiwan are the leading electric components manufacturers for commercial and passenger vehicles. Asia-Pacific region is one of the biggest export hubs for different automotive parts due to low-cost labor, availability of raw materials, and advanced manufacturing facilities. Europe holds the second highest Market share in the market due to advanced driver assistant systems. The European Union has made it mandatory to use safety features in vehicles. North America is also showing significant growth in the Market of Automotive Connectors due to economic development and major market key players.
This Automotive Connectors Market report highlights the qualitative and quantitative analysis of the Automotive Connectors industry. Additionally, it analyzes the covid-19 impact on the market, the market dynamics, and market segmentation. It also shows data on the regional analysis, recent developments, and cumulative growth analysis.
By Vehicle Type
|CAGR||8.5% CAGR (2022 to 2030)|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Connection Type, System Type, Application and Vehicle Type|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||E Connectivity (Switzerland), Delphi Automotive (UK), Yazaki Corporation (Japan), Sumitomo Electric (Japan), Japan Aviation Electronics Industry (Japan), Amphenol Corporation (US), Hirose Electric Co., Ltd (Japan), Hu Lane Associates Inc. (Taiwan), Korea Electric Terminal Co. Ltd (South Korea), and Kyocera Corporation (Japan)|
|Key Market Opportunities||Increase in electrification in vehicles|
|Key Market Drivers||The rise in the security needs in the automobile|
The global automotive connectors market is poised to record a market value of USD 11 Billion by 2025.
The global automotive connectors market is maturing at a whopping 8.5% CAGR over the review period of 2022 to 2030.
A few significant players of the global automotive connectors market are Hu Lane Associates Inc. (Taiwan), Korea Electric Terminal Co. Ltd (South Korea), and Kyocera Corporation (Japan), among others.
The wire-to-board segment is expected to drive market growth over the review period.
The safety and security system segment is likely to witness the highest demand in the automotive connectors market.
Asia-pacific holds the highest share in the Automotive Connectors Market