Global Automotive Connector Market Size By Type (Board-to-Board, Wire-to-Connectors), By Application (Body Electronics, Engine Control & Cooling System), By Vehicle Type (Passenger Cars, Commercial Vehicles), By Geographic Scope And Forecast

Published Date: August - 2024 | Publisher: MIR | No of Pages: 320 | Industry: latest updates trending Report | Format: Report available in PDF / Excel Format

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Global Automotive Connector Market Size By Type (Board-to-Board, Wire-to-Connectors), By Application (Body Electronics, Engine Control & Cooling System), By Vehicle Type (Passenger Cars, Commercial Vehicles), By Geographic Scope And Forecast

Automotive Connector Market Size And Forecast

Automotive Connector Market size was valued at USD 22.1 Billion in 2024 and is projected to reach USD 38.68 Billion by 2031, growing at a CAGR of 7.25% from 2024 to 2031.

  • Automotive connectors are essential vehicle components to link various electronic systems and modules. These connectors ensure that power and signals are reliably transmitted between various car components, including the engine control unit, infotainment systems, sensors, and lights. They are designed to survive extreme circumstances found in automotive applications, such as high temperatures, vibrations, and exposure to moisture and chemicals. Automotive connectors are classified into three typesplug-and-socket, terminal, and wire-to-board, each of which is designed for a specific application within the vehicle’s electrical architecture.
  • These connectors are directly related to advances in automotive technology, such as the advent of electric vehicles (EVs), self-driving cars, and advanced driver-assistance systems (ADAS). As vehicles become more electrified and have more complicated electronics, there will be greater demand for high-performance connectors that handle high-speed data transfer and power delivery.
  • Material and design innovations, such as creating lightweight, corrosion-resistant, and reduced connectors, will be essential for improving vehicle performance and dependability. Furthermore, integrating smart connectors with diagnostic and communication capabilities would allow for more effective maintenance while also improving overall vehicle safety and functionality.

Global Automotive Connector Market Dynamics

The key market dynamics that are shaping the global automotive connector market include

Key Market Drivers

  • Increasing Electric Vehicle (EV) AdoptionThe rapid growth of the electric car market is a major driver of automotive connectors. According to the International Energy Agency (IEA), global electric vehicle sales hit 6.6 million in 2021, more than doubling from 2020 and accounting for roughly 9% of the global car market. The increase in EV usage demands a greater number of specialized connectors for battery management systems, charging ports, and power distribution.
  • Stringent Safety RegulationsGlobally, stricter automobile safety requirements are driving the introduction of more safety measures, increasing demand for reliable connectors. According to the European New Car Assessment Programme (Euro NCAP), by 2025, all new vehicles in the EU will be expected to include assisted driving technologies. This regulation is projected to substantially increase demand for vehicle connectors used in safety systems.
  • Rising Vehicle Electronics Content Vehicle electronics are becoming more complex, resulting in a greater demand for connectors. According to Deloitte, electronics might contribute for up to 50% of total automotive costs by 2030, up from 35% in 2020. This development is driving up demand for different types of automobile connectors.

Key Challenges

  • Rising Complexity in Vehicle ElectronicsModern vehicles contain a large number of electronic systems and modules, which complicates connector design. Automotive connectors must serve a variety of purposes, including power delivery and high-speed data transmission, necessitating specialized design and engineering. Ensuring connectivity and reliability across several electronic systems while preserving small and durable designs is a big problem.
  • Environmental Durability RequirementsAutomotive connectors are subjected to harsh temperatures, vibrations, and wetness. They must be constructed to survive these hostile environments while maintaining performance. The difficulty is to create connectors that are both durable and reliable, providing long-term performance even in harsh environments.
  • Cost Pressure and Market CompetitionThe automotive connection industry is extremely competitive, with cost pressures affecting manufacturers. There is an ongoing need for cost-effective solutions that do not sacrifice quality or performance. Balancing economic restrictions with the demand for high-performance, dependable connectors presents a considerable problem in this market.

Key Trends

  • Electric Vehicle (EV) GrowthAs electric vehicles become more popular, there is an increased need for specialist automotive connectors that can handle high currents and voltages. EV connectors must accommodate battery management systems, charging infrastructure, and high-performance drivetrains. As the EV market grows, innovations in connector design for efficient power transfer and thermal management become increasingly important.
  • Advancements in Autonomous DrivingAutonomous vehicles require high-speed, dependable connectors to handle data from a wide range of sensors, cameras, and communication devices. The trend toward faster data transmission rates and improved signal integrity is impacting connector development to ensure the smooth operation of autonomous driving technology.
  • Advancements in Autonomous DrivingAutonomous vehicles require high-speed, dependable interfaces to handle data from a wide range of sensors, cameras, and communications devices. The trend toward faster data transmission rates and improved signal integrity is impacting connector development to ensure the smooth operation of autonomous driving technology.
  • Wireless Connectivity SolutionsThe increased use of wireless technology in automobiles, such as wireless charging and communication systems, is affecting connector design. While wireless solutions eliminate the need for traditional connectors, they also spur innovation in connector technology to enable hybrid and future hybrid systems.

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Global Automotive Connector Market Regional Analysis

Here is a more detailed regional analysis of the global automotive connector market

Asia Pacific

  • The Asia Pacific region continues to dominate the global automotive connector market, owing to its large automotive production capacity and quick technological improvements. According to the International Organization of Motor Vehicle Manufacturers (OICA), the area will account for more than 55% of worldwide motor vehicle manufacturing in 2022, with China, Japan, and India taking a significant portion. China alone manufactured 27.02 million automobiles, demonstrating the enormous demand for automotive connectors generated by such large-scale production. Furthermore, the expansion of electric cars (EVs) in the region, with China’s new energy vehicle sales hitting 6.89 million units in 2022—an amazing 93.4% increase from the previous year—expands the demand for specialized high-voltage connectors and advanced wiring systems.
  • Technological improvements and supportive government initiatives are also driving the industry forward. Japanese automakers’ large R&D investments, reaching nearly $21 billion in 2022, prioritize the development of innovative technologies such as driverless and connected vehicles, which require cutting-edge connectivity. India’s Automotive Mission Plan 2016-26 intends to develop the country into a global manufacturing hub, potentially raising the automotive industry’s worth to USD 282.8 Billion by 2026 and, as a result, increasing connector demand.
  • The Asia-Pacific automotive connector market will surpass other regions due to rising vehicle electrification and the growth of in-car infotainment systems.

North America

  • North America is emerging as the fastest-growing region for automotive connectors. Several key elements are propelling North America’s automotive connectors market forward. The spike in electric vehicle (EV) adoption is an essential variable, with EV sales in the United States nearly doubling from 2021 to 2022, totaling over 800,000 units, accounting for around 5.8% of all new vehicle sales. This rapid growth in EVs, which are distinguished by complicated high-voltage systems and extensive wiring needs, has greatly increased demand for specialized connectors. Furthermore, strict safety and emissions rules, such as the requirement for rearview video systems in all new vehicles, are driving manufacturers to build high-performance connectors that can survive harsh automotive environments.
  • The development of autonomous and connected car technology accelerates industry growth. The U.S. Department of Transportation’s programs, including the Automated Vehicles Comprehensive Plan, emphasize the growing need for comprehensive sensor and communication systems in self-driving vehicles, opening up prospects for improved connectivity solutions. Furthermore, forecasts indicate that by 2025, nearly all new automobiles sold in the United States will be connected, increasing demand for dependable connectors for data transmission and power delivery. This combination of technological developments and supportive laws has established North America as a fast-expanding powerhouse for automotive connectors.

Global Automotive Connector MarketSegmentation Analysis

The Global Automotive Connector Market is Segmented on the basis of Type, Application, Vehicle Type, And Geography.

Automotive Connector Market, By Type

  • Board-to-Board
  • Wire-to-Connectors
  • Wire-to-Board Connectors

Based on Type, the market is bifurcated into Board-to-Board, Wire-to-Connectors, and Wire-to-Board Connectors. Wire-to-board connectors dominate the automotive connector market because they may link electrical components within a vehicle. They are widely employed in a variety of applications, including power distribution, body electronics, and safety systems. Board-to-Board connectors, on the other hand, are expanding the most rapidly. This is mostly due to increased electronic content in automobiles, particularly advanced driver assistance systems (ADAS), infotainment, and electric powertrains. These connectors are essential for high-speed data transmission and enabling sophisticated functionality in tight places.

Automotive Connector Market, By Application

  • Body Electronics
  • Engine Control & Cooling System
  • Safety and Security System

The automotive connection market is divided into three main categories based on how they're used1. Body Electronics This is the largest segment right now. It covers everything techy inside your car, like your sound system, climate control, lights, and even your power windows. These systems need lots of connectors to do all their different jobs. 2. Engine Control & Cooling System This segment covers the connectors that help keep your car running smoothly. That includes things like engine control, fuel injection, and cooling systems. These connectors play a crucial role in making sure your car performs well and efficiently. 3. Safety and Security System This segment is growing the fastest. It covers connectors for driver assistance systems like adaptive cruise control, lane departure warning, and even autonomous driving. These systems are essential for keeping you safe on the road, and they need high-quality connectors that can handle fast data transmission and ensure a reliable connection.

Automotive Connector Market, By Vehicle Type

  • Passenger Cars
  • Commercial Vehicles
  • Electric Vehicles

Based on Vehicle Type, the market is segmented into Passenger Cars, Commercial Vehicles, and Electric Vehicles. Passenger cars is anticipated to dominate the automotive connection market due to higher manufacturing volumes than commercial vehicles and electric vehicles. However, electric vehicles are experiencing the most rapid rise. The growing global use of electric vehicles (EVs) is driving the need for specialized connectors capable of handling high voltage, high current, and quick charging. The complicated electrical architecture of EVs needs a greater variety of connectors for battery management systems, power electronics, and other components.

Automotive Connector Market, By Geography

  • North America
  • Europe
  • Asia Pacific
  • Rest of the World

When it comes to the global market for automotive connectors, different regions have different strengths and challenges. Asia Pacific is the undisputed kingpin, thanks to its booming automotive industry and a growing middle class that's eager to get behind the wheel. This region also boasts a robust supply chain and cost-effective manufacturing, making it a hub for automotive connector production. North America is a rising star in the automotive connector market. The growing popularity of electric vehicles, stricter emission regulations, and cutting-edge self-driving technology are driving up demand for specialized connectors. As more and more electric cars roll off production lines and vehicles become more sophisticated, the need for high-performance connectors in this region is only going to increase.

Key Players

The “Global Automotive Connector Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are TE Connectivity Ltd, Aptiv PLC (Formerly Delphi Automotive PLC), Yazaki Corporation, Amphenol Corporation, Sumitomo Wiring Systems Ltd, Molex, LLC, J.S.T. Mfg Co., Ltd, KYOCERA Corporation (formerly known as Kyocera Connector), KOREA ELECTRIC TERMINAL CO., LTD., and Japan Aviation Electronics Industry, Ltd. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Automotive Connector Market Recent Developments

  • In March 2024, Siemens introduced the 400 kW SICHARGE D, adding to its EV charging lineup for IEC markets. This high-power charger can dynamically charge up to four vehicles at the same time, making it perfect for highway charging and a variety of other applications. Its comprehensive capabilities appeal to a wide range of cars, reinforcing Siemens’ commitment to worldwide EV infrastructure development.
  • In August 2023, Y-EMEA increased its production capacity with the acquisition of a 67,000 square meter facility in Egypt’s Fayoum investment free zone. Yazaki Egypt is investing strategically in the automobile business by increasing the manufacturing of wire harnesses and electrical systems.
  • In April 2023, Schneider Electric launched the EVlink Home Charger in Sydney, NSW, with an improved design for easy installation and cost-effectiveness. The new anti-tripping gadget ensures continuous car charging, providing homeowners with peak performance and modernizing at-home EV charging for a more convenient and dependable experience.

Report Scope

REPORT ATTRIBUTESDETAILS
Study Period

2021-2031

Base Year

2024

Forecast Period

2024-2031

Historical Period

2021-2023

Unit

Value (USD Billion)

Key Companies Profiled

TE Connectivity Ltd, Aptiv PLC (Formerly Delphi Automotive PLC), Yazaki Corporation, Amphenol Corporation, Sumitomo Wiring Systems Ltd, Molex, LLC, J.S.T. Mfg Co., Ltd, KYOCERA Corporation (formerly known as Kyocera Connector), KOREA ELECTRIC TERMINAL CO., LTD., and Japan Aviation Electronics Industry, Ltd.

Segments Covered

Type, Application, Vehicle Type, And Geography.

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