The global automotive wire & cable materials market is expected to highlight lucrative growth opportunities over the projection period from 2022 to 2032 by exhibiting an opulent CAGR of 6.1%, the market was valued at US$ 4,535.0 Mn in 2021 and is anticipated to surpass US$ 8,732.3 Mn by 2032. Because of material type, the PVC segment is set to account for more than 46.9% of the global automotive wire & cable materials market share in the evaluation period.
As per the historical data published by FMI, the global automotive wire & cable materials market grew at a stable CAGR of 3.4% between 2014 and 2021. In comparison with the present estimations, the automotive wire & cables materials market is anticipated to reach US$ 4,830.3 Mn in 2022. As per FMI, the automotive wire & cable materials market is anticipated to grow by 1.8X in 2032, as compared to 2022.
The automotive wire & cable market is expected to surge at a phenomenal growth rate, attributing to the enhancement in the production of passenger cars, as well as commercial vehicles across the globe, especially in North American and Asian countries. According to the reports of the India Brand Equity Foundation (IBEF), around 10 million electric vehicles could be sold each year by 2030 and 4 million by 2025.
- Global automotive production is majorly being driven by rising disposable income and enhanced economic conditions in various countries. Furthermore, increasing concerns over heightened greenhouse gas emissions have been raised due to increasing vehicle fleets and growing carbon emissions from the roadways sector, which has made automotive manufacturers shift towards green mobility.
- Digitalization in vehicles has been immensely enhanced due to increased development in modern technologies, which is resulting in creating multiple opportunities for manufacturers of electrical system components and wires & cables for the automotive sector. This surging enhancement is further propelling the electrification of vehicles that have managed to create high growth opportunities for companies in the global wire & cable materials market.
- In addition to that, the introduction of hybrid & flex-fuel vehicles and connected cars would drive the global automotive wire & cable materials market during the assessment period. Digital technologies are massively being employed in enhancing automotive; the replacement of copper with aluminum in battery cables, and the development of bio-based plasticizers to produce PVC are some of the other latest trends in the automotive wire & cable materials market.
- The demand for automotive wire & cable materials is rising owing to diverse factors including rising vehicle production, increasing electrification of vehicles, and surging development of electric systems in vehicles, especially in developing economies such as India and China.
- In addition to that, a reasonable increase in the number of emissions and safety regulations implemented by government bodies is pushing the demand for effective harness systems in the automotive sector, thereby creating new growth opportunities for automotive wire & cable material market players.
- With the presence of various big, medium, and small-scale manufacturers, the global automotive wire & cable materials market is gaining momentum. Prominent players in the market are focusing on collaborating and collaborating with vehicle manufacturers for gaining better market opportunities.
- · Several other key players in the market are engaging in mergers & acquisitions and new product developments to come up with innovative materials to meet the unmet demand from a wide range of industries.
The U.S. is expected to account for more than1/10th of the global automotive wire & cable materials market in 2022. Owing to several regulations implemented by the U.S. government along with efforts made by private organizations have led to the reduction of carbon emissions from vehicles which is a major factor pushing sales in the country. In addition to that, the presence of a well-developed infrastructure and ongoing development in the automotive sector in the U.S. is driving the wire & cable materials market.
China is anticipated to excel at an impressive CAGR of 6.7% in 2022, opines FMI. China is considered the hub for global vehicle manufacturers. Apart from that, the country is a leading exporter of wire & cable materials and one of the prime producers of electric & hybrid vehicles. Thus, mass production of electric and hybrid vehicles in the country is projected to drive the demand for wire & cable materials in the Chinese market.
These insights are based on a report on the Automotive Wire & Cable Materials Market by Future Market Insights