One of the major reasons propelling the expansion of this market is the increased demand for electric and hybrid automobiles. The demand for hybrid and electric vehicles has surged in many nations as a result of growing industrialization worldwide and strict regulatory regulations. This has increased demand for cutting-edge automotive high-voltage cables that can efficiently handle such applications. Over the course of the projection period, it is also projected that rising car production in both developed and developing nations will enhance demand for automotive high-voltage cables. Manufacturers have prioritised safety measures in their goods due in large part to consumers' increased safety concerns regarding car components. This has prompted numerous automakers to make significant investments in R&D projects to create safer automotive components. The global market for vehicle manufacturing high-voltage cables has been opened up by the growing need for high-performance and dependable car components.
Due to the increasing rivalry, it is crucial for automobile manufacturers to invest in cutting-edge parts and technology, which is why there is a requirement for the Automotive High Voltage Cables Market. To ensure the effective transfer of electricity from the battery to various electrical systems & sub-systems in electric and hybrid vehicles, automotive high-voltage cables are crucial parts. Automotive manufacturers are investing extensively in research and development activities to create new high-voltage cables with the best performance and dependability due to the rising demand for electric and hybrid vehicles around the world. Despite their extensive use, these cables have some drawbacks, such as a higher danger of fire from a short circuit or equipment malfunctions. This has prompted a number of automakers to invest in R&D projects and develop superior cable materials that provide improved performance as well as increased safety and reliability.
Automotive high-voltage cables are electrical parts used in electric and hybrid automobiles to carry electricity. Steel, copper, aluminium, and other alloys are used in the construction of these cables to ensure maximum performance and dependability while offering a specified resistance to voltage and current flow. Different insulation layers are also included in the automobile high-voltage cables to shield the wires from damage from the environment or interference from electromagnetic fields. These cutting-edge vehicle parts are also made to transmit a lot of power without producing heat or any other potentially dangerous impacts. They are frequently utilised in automotive applications such as charging ports, lighting systems, airbag systems, and engine control systems.
The market for automotive high-voltage cables is anticipated to develop at a CAGR of 7.24% from 2021 to 2031 and reach USD 14.14 billion by that year.
The global automotive high-voltage cables market is anticipated to develop as a result of factors including increased safety concerns, rising vehicle production, and growing demand for electric and hybrid vehicles.
The high cost of revamping and retrofitting is the main issue the market is facing. Additionally, compared to other automotive parts, these wires take longer to produce because of their complexity. This raises the entire cost of manufacturing cars, which has a negative impact on the expansion of the automotive high-voltage cables industry. Additionally, strict government rules regarding material and quality control are limiting industry growth. Furthermore, this market's growth is anticipated to accelerate over the course of the projected period due to the desire for industrialization and automation.
LEONI AG, SamvardhanaMotherson Automotive Systems Group B.V., Yazaki Corporation, Sumitomo Electric Industries, Ltd., Farook International Rubber Products LLC, Nippon Wires Co. Ltd., Furukawa Electric Co., Ltd., Delphi Automotive PLC, General Cable Corporation, and ElringKlinger AG are the market's top competitors. To maintain their position in the market, these businesses employ business expansion tactics including mergers and acquisitions, collaborations, partnerships, product launches, and investments.
The Shielded Cables Segment emerged as the Most Lucrative Type
The shielded cables category is anticipated to experience the largest market growth among the others. This is explained by the fact that they outperform and are more dependable than unshielded cables. Additionally, due to growing consumer concerns about safety, many automakers are making significant investments in R&D projects to create safer car components. For their high-performance automobiles, this has pushed some automakers to choose shielded cables over unshielded connections.
The Most Prominent Application is the Passenger Car Segment
The Passenger Car category is anticipated to experience the highest increase among the Applications over the projection period. This might be linked to the expanding global demand for electric and hybrid vehicles as well as the increased spending by automakers on R&D initiatives to create safer automotive components. The development of high-performance vehicles with cutting-edge features like automated driving, ride-sharing, and linked technologies is another area in which several automakers are making significant investments. This has boosted the demand for automotive high-voltage cables in passenger automobiles by increasing the necessity for efficient electricity transmission from batteries to other electrical systems.
The Asia Pacific Region to render Ample Financing Opportunities
Asia Pacific is anticipated to dominate the global market throughout the projection period. This can be due to the rising demand for hybrid and electric cars in nations like China, India, Japan, and South Korea. Additionally, many automakers are concentrating on enhancing their product lines by releasing new hybrid and electric models with cutting-edge technologies that necessitate effective electricity transmission from batteries to other electrical systems. Due to the rising need for automotive high-voltage cables, the Asia Pacific area is expanding rapidly in the global market.
COVID-19 Impact and Market Status
The COVID-19 epidemic has had an impact on the market for automotive high-voltage cables by sabotaging the production and supply chain for the sector. Due to this, there was a decline in the market for cars and other types of vehicles, which caused manufacturing to stagnate. The progressive reopening of sectors, however, is anticipated to have a beneficial effect on the expansion of the worldwide automotive high-voltage cables market from 2021 to 2031. In order to meet the rising demand for electric vehicles, numerous producers and suppliers are also investing in the creation of high-voltage cables. The market growth is probably going to be positively impacted by this.
Recent Developments in the Automotive High Voltage Cables Market
• To increase its footprint in the Asia-Pacific region, Sumitomo Electric Industries Ltd. purchased the Chengdu Yizhong Electronics Co., Ltd., a Chinese maker of automotive cables, in January 2019.
• A strategic agreement between Leoni AG and Zhejiang Kabeling Co., Ltd was formed in March 2019 to boost Leoni AG's production capacity of special and standard cables for electric vehicles (EV) in China.
• In order to strengthen its position in Australia and New Zealand, Leoni AG bought Bambach Cables & Wires Service Pty Ltd. in May 2020.
• To increase its foothold in Europe, Yazaki Corporations purchased SE Vehicle Connective Solutions Dresden GmbH in April 2021, a German manufacturer of automotive cables.
Automotive High Voltage Cables Market Scope
|Revenue forecast in 2031
|USD 14.14 billion
|CAGR of 14.24% during 2021-2031
|Type, Application, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|LEONI AG, SamvardhanaMotherson Automotive Systems Group B.V., Yazaki Corporation, Sumitomo Electric Industries, Ltd., Farook International Rubber Products LLC, Nippon Wires Co. Ltd., Furukawa Electric Co., Ltd., Delphi Automotive PLC, General Cable Corporation, and ElringKlinger AG
Key Segments of the Automotive High Voltage Cables Market
Type Overview,(USD Billion)
• Shielded Cables
• Unshielded Cables
Application Overview,(USD Billion)
• Passenger Car
• Commercial Vehicle
Regional Overview, (USD Billion)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
• Middle East and South Africa