Automotive Terminal Market – Global Industry Size, Share, Trends Opportunity, and Forecast, Segmented By Vehicle Type (Passenger Car, Commercial Vehicle), By Application (Body Control & Interiors, Safety & Security, Cooling, Engine & Emission Control, Infotainment, Lighting System, Battery System), By Propulsion Type (IC Engine and Electric), By Region, Competition, 2018-2028

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Market Overview

The Global Automotive Terminal Market valued at USD 24.51 Billion in 2022 is expected to showcase strong growth in the forecast period with a CAGR of 7.04% during 2028.

Among the prime drivers of the automotive terminal market is the increased use of electric and hybrid vehicles. Since such vehicles have great dependence on electronic systems, demand for durable and high-quality terminals for electrical connections has grown rapidly. Also, the ongoing advancements in advanced driver-assistance systems (ADAS) and in-vehicle infotainment systems have supported the growth of the market.

World automobile producers are becoming more focused on compact and light vehicles, which further necessitate compact and smaller terminals in demand. Furthermore, the business has experienced the shift to scalable and modular designs, calling for adaptable and multifunctional terminal solutions.

Tight regulatory requirements on vehicle safety and emissions have also impacted the automotive terminal market. To meet these requirements, complex electronic systems must be integrated, thereby increasing the demand for high-performance terminals. Moreover, the increasing trend of connected and autonomous vehicles has complicated the electrical architecture, necessitating the need for sophisticated terminal solutions.

The industry is marked by the existence of a number of prominent players, ranging from leading automobile suppliers to specialized terminal manufacturers. The drivers of competition are product innovation, reliability, and cost. With the auto industry ongoing its transformation through advancements in technology, the auto terminal market is set to experience steady growth fueled by the constant need for efficient and reliable electrical connection solutions in vehicles globally.

Key Market Drivers

Electrification Trends

The global automotive terminal market is significantly influenced by the ongoing trend towards vehicle electrification. The increasing adoption of electric and hybrid vehicles has driven demand for specialized terminals that can handle high-voltage applications. As automakers strive to develop more electric models to meet environmental regulations and consumer demand for sustainable transportation, the automotive terminal market benefits from the growing need for advanced electrical connectivity solutions in these vehicles.

Advanced Driver-Assistance Systems (ADAS)

The proliferation of ADAS in modern vehicles is a major driver for the automotive terminal market. ADAS relies on a complex network of sensors and electronic components, requiring robust and reliable terminal solutions. As automakers strive to enhance vehicle safety and incorporate features such as adaptive cruise control, collision avoidance, and automated parking, the demand for high-performance automotive terminals continues to rise.

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In-Vehicle Infotainment (IVI) Systems

The increasing integration of sophisticated in-vehicle infotainment systems is another key driver. Consumers now expect seamless connectivity and entertainment options within their vehicles. This demand has led to the integration of advanced audio, video, and communication systems, requiring a robust electrical architecture supported by high-quality terminals to ensure uninterrupted connectivity and performance.

Lightweight and Compact Designs

Automotive manufacturers are increasingly focusing on lightweight and compact designs to improve fuel efficiency and overall vehicle performance. This trend has a direct impact on the automotive terminal market, as smaller, lighter, and more efficient terminals are required to meet the evolving design requirements without compromising on reliability or functionality.

Stringent Regulatory Standards

The automotive industry is subject to stringent regulatory standards related to safety and emissions. Compliance with these standards necessitates the integration of advanced electronic systems, including those controlled by terminals. Manufacturers must ensure that their vehicles meet these standards, leading to a continuous demand for high-quality terminals that can withstand rigorous testing and adhere to global regulations.

Modular and Scalable Architectures

The shift towards modular and scalable vehicle architectures has become a prominent driver for the automotive terminal market. Modern vehicles are designed with modular electronic systems that can be easily upgraded or replaced. This modular approach requires terminals that are versatile and adaptable, accommodating the evolving needs of the automotive industry as it embraces new technologies and functionalities.

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Connected Vehicle Technologies

The rise of connected vehicles, including those equipped with telematics and vehicle-to-everything (V2X) communication, contributes significantly to the demand for advanced automotive terminals. As vehicles become more connected, the complexity of their electrical systems increases, requiring terminals that can handle data transfer, communication protocols, and power distribution for various connected features.

Autonomous Driving Developments

The ongoing development of autonomous driving technologies is driving the demand for sophisticated automotive terminals. Autonomous vehicles rely on a multitude of sensors, cameras, and control units that require seamless communication through a robust electrical infrastructure. The automotive terminal market benefits from the integration of terminals capable of supporting the complex communication and computing requirements of autonomous driving systems.

Key Market Challenges

Rapid Technological Advancements

One of the significant challenges in the global automotive terminal market is the rapid pace of technological advancements. As automotive technologies evolve, the demand for more advanced and specialized terminals increases. This poses a challenge for manufacturers to keep pace with the latest innovations, invest in research and development, and adapt their production processes to meet the changing requirements of the automotive industry.

Cost Pressures

The automotive industry is highly competitive, and manufacturers face constant pressure to reduce costs while maintaining high-quality standards. This cost pressure extends to the components, including terminals. Manufacturers in the automotive terminal market must strike a balance between providing technologically advanced and reliable solutions and keeping costs competitive to meet the demands of both automakers and consumers.

Complex Regulatory Landscape

The global automotive industry is subject to a complex and evolving regulatory landscape. Compliance with various safety, environmental, and performance standards poses a challenge for automotive terminal manufacturers. Navigating these regulations requires ongoing investment in testing, certification, and ensuring that terminal designs meet the diverse requirements of different markets.

Supply Chain Disruptions

The automotive terminal market is susceptible to supply chain disruptions, which can be caused by factors such as geopolitical tensions, natural disasters, or global health crises. These disruptions can impact the timely delivery of components, leading to production delays for automakers. Establishing resilient and diversified supply chains becomes crucial to mitigate the risk of interruptions and ensure a steady flow of materials for terminal manufacturing.

Integration Challenges with Existing Infrastructure

As the automotive industry transitions to new technologies and vehicle architectures, there is a challenge of integrating advanced terminals with existing infrastructure. Legacy systems may not be readily compatible with the latest terminal designs, requiring additional investments and efforts for seamless integration. This challenge is particularly relevant as the industry embraces electric vehicles, connected technologies, and autonomous driving.

Cybersecurity Concerns

With the increasing connectivity and digitalization of vehicles, the automotive industry faces growing cybersecurity threats. Automotive terminals, being critical components of a vehicle's electronic system, are potential targets for cyber-attacks. Manufacturers must invest in robust cybersecurity measures to protect terminals from unauthorized access, data breaches, and potential disruptions to vehicle functionality.

Environmental Sustainability

The automotive industry is under increasing pressure to adopt environmentally sustainable practices. This includes the production processes of components such as automotive terminals. Manufacturers need to address concerns related to the environmental impact of materials used in terminal production, disposal of old components, and the overall carbon footprint associated with the manufacturing and transportation of terminals.

Global Economic Uncertainties

The automotive terminal market is influenced by global economic conditions, and uncertainties such as trade tensions, economic downturns, or fluctuations in currency exchange rates can impact market dynamics. Automotive terminal manufacturers need to be agile in responding to economic uncertainties to ensure business continuity and adapt to changes in demand from the automotive sector worldwide.

Key Market Trends

Electrification Dominance

A prominent trend in the global automotive terminal market is the continued dominance of electrification. With a shift towards electric and hybrid vehicles, there is an increasing demand for specialized terminals capable of handling high-voltage applications. As automakers worldwide accelerate their efforts to develop electric models in response to environmental concerns and regulatory requirements, the automotive terminal market is witnessing a surge in demand for components that support the unique electrical needs of these vehicles.

Smart and Connected Solutions

The automotive industry is witnessing a surge in smart and connected vehicle technologies, and this trend significantly influences the automotive terminal market. Terminals are now being designed to support advanced connectivity features, including vehicle-to-everything (V2X) communication, telematics, and over-the-air (OTA) updates. The integration of these smart technologies requires terminals that can facilitate seamless data transfer and communication, reflecting a growing trend towards more intelligent and interconnected automotive systems.

Increased Focus on Lightweight Materials

Automotive manufacturers are placing a strong emphasis on reducing vehicle weight to enhance fuel efficiency and overall performance. This trend extends to the materials used in automotive terminals. There is a growing shift towards lightweight materials and compact designs for terminals to meet the evolving needs of the industry. These lightweight solutions not only contribute to fuel efficiency but also align with broader industry goals related to sustainability and environmental impact.

Growing Importance of Terminal Position Assurance (TPA)

Terminal Position Assurance (TPA) systems are gaining importance in the automotive terminal market. TPA ensures that terminals are correctly seated and secured during assembly, reducing the risk of connectivity issues or electrical failures. As vehicle electronics become more complex and integrated, TPA systems play a crucial role in maintaining the reliability and functionality of the electrical connections, contributing to improved overall vehicle performance.

Modular and Scalable Architectures

The trend towards modular and scalable vehicle architectures is influencing the design of automotive terminals. Modern vehicles are increasingly adopting modular approaches to accommodate evolving technologies. Terminals that support scalability and adaptability become essential in this context, allowing manufacturers to easily upgrade or replace electronic components as new features and functionalities emerge. This trend aligns with the industry's pursuit of flexibility and future-proofing in vehicle design.

Focus on Advanced Materials and Coatings

The automotive terminal market is experiencing a shift towards the use of advanced materials and coatings to enhance the durability and performance of terminals. This includes materials that provide resistance to corrosion, vibration, and extreme temperatures, ensuring the longevity of electrical connections. As vehicles become more sophisticated and operate in diverse environments, the demand for terminals with advanced materials and coatings is on the rise.

Enhanced Safety Features

Safety remains a top priority in the automotive industry, and this extends to the design and functionality of terminals. Automotive terminals are now being equipped with enhanced safety features such as built-in fuses, short-circuit protection, and flame-retardant materials to mitigate the risk of electrical faults and ensure the safety of vehicle occupants. This trend aligns with the overall industry focus on improving vehicle safety standards.

Adoption of Industry 4.0 Technologies

The automotive terminal manufacturing process is incorporating Industry 4.0 technologies, such as automation, data analytics, and IoT (Internet of Things). These technologies are optimizing production processes, improving quality control, and enhancing overall efficiency. The adoption of smart manufacturing practices contributes to faster production cycles, reduced costs, and improved product quality in the automotive terminal market.

Segmental Insights

By Vehicle Type

Passenger car is an important driver in the global market for automotive terminals. As customer demand for premium features, protection systems, and in-car connectivity increases, latest passenger cars considerably depend on advanced electrical systems. Automotive terminals are central to allowing electronic devices like infotainment systems and assistance systems (ADAS) for drivers, together with convenience functionalities, to perform smoothly. Even as passenger autos continue to feature new technologies created to further enhance the overall driving experience, there remains strong demand for high-performance terminals that are focused on the special requirements of such vehicles. And with the increasing popularity of electric and hybrid passenger autos, it further underscores the value of advanced terminals specially designed to handle the special electrical loads of alternative motive systems.

The commercial vehicle segment is another leading driver shaping the dynamics of the automotive terminal market. Commercial vehicles such as trucks, buses, and vans are characterized by robust electrical architectures enabling a wide variety of functions that are critical in logistics, transportation, and public services. With the commercial vehicle market undergoing advancements in telematics, fleet management systems, and safety features, the demand for robust and reliable terminals continues to rise. Commercial vehicles often operate under tough conditions, and therefore terminals must be capable of withstanding vibrations, extreme temperatures, and heavy-duty usage. Furthermore, with increasing focus on fuel efficiency and emissions reduction in the commercial vehicle industry, the incorporation of advanced electronic systems, supported by high-quality terminals, is essential. The growth of electric commercial vehicles further adds to the need for terminals in order to serve the unique needs of such fleets in addition to the general increase in the automotive terminal market within the commercial vehicle category.

By Application

The application of automotive terminals to body control and interiors is a critical aspect of the automotive industry. Terminals in this context control some of the functions of car interiors, including power windows, central lock systems, seat control, and climate control. The increasing demand for convenience and comfort aspects of modern vehicles has led to increased electronic component integration in the interior and body control systems. Automotive terminals employed in this application segment deliver secure and efficient contact, supporting the smooth functioning of features adding up to a better driving experience.

The safety and security application segment is of the most key importance within the automotive terminal market, due to the industry's continued emphasis on automotive safety standards. Terminals in this range are essential for the operation of advanced safety systems such as airbags, anti-lock braking systems (ABS), traction control, and electronic stability control. In addition, terminals are important to security systems such as central locking, alarm systems, and immobilizers. As the automotive sector keeps on developing with greater use of more sophisticated safety and security systems, the demand for high-performance terminals that can ensure the reliability and accuracy of these systems keeps on rising.

Automotive terminals in the cooling, engine, and emission control application segment are at the center of smooth operation of a car's powertrain. These terminals allow for the connection of actuators, sensors, and control units for engine management, emission control, and cooling systems. With increasing focus on fuel efficiency, reduced emissions, and environmental regulations, the market for terminals for sophisticated engine and emission control technologies is expanding. Terminals in this segment contribute to overall powertrain optimization of performance, which ensures smooth operation of critical components that both have efficiency and environmental sustainability effects.

The use of infotainment is a rapidly evolving market in the car terminal sector because of customers' need for advanced car entertainment and connectivity. Terminals of this category enable the connectivity of multimedia units, touch screens, audio units, navigation units, and other infotainment components. With the automotive market embracing connected cars and intelligent infotainment units, demands on terminals to carry multiple streams of data, communication protocols, and multimedia interfaces are increasing increasingly. These terminals play a crucial role in providing drivers and passengers an enhanced and trouble-free in-car entertainment experience.

Terminals play a crucial role in the functioning of car lighting systems, both interior and exterior. In the exterior, terminals connect various parts of the lighting system, including headlights, taillights, turn signals, and fog lights. Interior lighting like ambient lights and dashboard lights also rely on solid terminal connections. With the development of LED and adaptive lighting technologies, the demand for terminals that could accommodate these advanced lighting systems has risen. Automotive terminals in the lighting systems' application segment contribute to safety and aesthetics, enhancing vision and overall car appearance.

The application of the battery system is the backbone of the electric and hybrid vehicle market, where automotive terminals play a key role in power distribution management and connectivity within the vehicle battery system. Terminals in this application allow for the connection of battery cells, control units, and charging systems. With electric cars becoming more prominent and the need for energy-efficient solutions increasing, the automotive terminal market sees a growing demand for specialized terminals that can address the specific challenges of high-voltage battery systems. Efficient and reliable terminals in the battery system segment help ensure the overall performance and safety of electric and hybrid cars.

Regional Insights

North America is an important region of the world automobile terminal market due to a healthy automobile industry and focus on innovation. The area boasts top-tier automobile manufacturers and suppliers, so high-tech terminals are in strong demand. Electrification of vehicles and adoption of intelligent technology in automobiles have been leading themes, increasing demand for advanced auto terminals. In addition, high safety and emission standards in North America have been boosting innovation in safety systems, consequently necessitating more automotive terminals.

Europe has a dominant share in the automotive terminal market, where there is intense focus on vehicle safety, environmental suitability, and production of premium automobiles. The region has large luxury automobile producers and growing demand for electric cars, all contributing to boosting the demand for high-performance terminals. The European countries have been at the forefront with the implementation of high-level emission norms and advanced driver-assistance systems (ADAS), necessitating terminals in emission management, safety, and infotainment applications. Sustainability can be seen in the region in the form of demand for terminals that support electric and hybrid car technologies.

The Asia-Pacific region is emerging as a market leader for automotive terminals with the speeding up of the growth of the auto sector in countries such as China, Japan, South Korea, and India. Growth in production and sales in both conventional and electric vehicles plays a significant role in driving demand for automotive terminals. The Asia-Pacific is a hotbed of innovation, and the adoption of new technologies in cars, including sophisticated infotainment and safety features, drives the terminal market. The focus of the region on electric mobility and making vehicles more affordable also plays an important role in driving demand for specialty terminals.

Latin America is not as large a market as some other regions, but it is a player in the automotive terminal market, particularly in the context of the entire automotive marketplace. The region experiences demand for terminals from the manufacturing and usage of commercial and passenger vehicles. Consumer preference, public policy, and economic conditions influence the automotive marketplace in Latin America. While the region is not so much a technological innovator, it is a growing market for automotive terminals as producers seek to meet the shifting tastes of local consumers.

The Middle East and Africa contribute their share to the global automotive terminal market, with the automotive industry growing as a result of economic development and urbanization. Demand for the terminals in the region is boosted by aspects including growth in number of vehicles under possession, improvements in infrastructure, and integration of safety features. Even though the market is more limited compared to other regions, the growing need for connectivity as well as security in the vehicle has a place in influencing the demand for high-end terminals. The future expansion of electric vehicles can also affect the automotive terminal market in this region.

Such regional insights indicate the diverse drivers of demand for automotive terminals around the world, reflecting the unique dynamics, trends, and challenges in every region.

Key Market Players

• TE Connectivity Ltd.
• SumitomoElectric Industries, Ltd.
• DelphiPlc
• LearCorporation
• FurukawaElectric Co., Ltd.
• PKCGroup
• Molex,LLC
• GroteIndustries
• KeatsManufacturing Co.
• VineyCorporation Limited