Automotive Connectors Market Size

Automotive Connectors Market size was valued at USD 7.9 billion in 2022 and is anticipated to register a CAGR of over 7% between 2023 and 2032, attributed to the increasing demand for electric vehicles. According to the International Council on Clean Transportation, in 2022, the worldwide shift towards electric vehicles (EVs) marked a significant achievement, reaching a milestone of 10 million EVs sold annually—an impressive surge of 54% compared to the figures in 2021. The cumulative global EV sales amounted to 29 million by the conclusion of 2022. Notably, electric light-duty vehicles (LDVs) accounted for 99% of the total EV sales for the year, while electric heavy-duty vehicles (HDVs) constituted the remaining 1%.

EVs rely heavily on electronic components for propulsion, battery management, charging systems, and other functionalities. As the automotive industry transitions toward electrification, the demand for specialized connectors designed for electric vehicles is expected to increase, driving the growth of the automotive connectors industry.

Advancements in connectivity and communication technologies will help shape the market outlook over 2023-2032. The automotive industry is witnessing rapid advancements in connectivity and communication technologies, such as vehicle-to-everything (V2X) communication, in-car networking, and intelligent transportation systems. These technologies require sophisticated and high-performance connectors to facilitate reliable data transfer and communication between various vehicle components. The increasing focus on connectivity and communication is contributing to the growth of the automotive connectors market.

Quoting an instance, in October 2023, CEA-Leti unveiled a fresh research and development initiative aimed at advancing vehicle automation and collaboration. The initiative seeks to build upon recent breakthroughs in vehicular wireless communications to enhance reaction times, pedestrian detection, and overall vehicle performance.

Drawing insights from its involvement in three EU H2020 projects, CEA-Leti researchers have synthesized the institute's knowledge in vehicle-to-everything (V2X) communication technologies and standards. Their primary objectives encompass the assessment and demonstration of connected and cooperative vehicular systems, with a specific emphasis on enhancing automation and bolstering the safety of vulnerable road users, including pedestrians, workers, and cyclists.

However, supply chain disruption could significantly impact the automotive connectors market dynamics in the coming years. The automotive industry is highly dependent on a complex global supply chain. Any disruptions in the supply chain, such as shortages of raw materials, components, or logistical challenges, can impact the production of vehicles. These disruptions can have a cascading effect on the market, as manufacturers may face challenges in obtaining the necessary components to produce connectors, leading to delays and supply shortages.

COVID-19 Impact

The COVID-19 pandemic significantly impacted the automotive connectors market, causing disruptions in both supply and demand. Widespread lockdowns and manufacturing plant closures led to a decline in vehicle production, directly affecting the demand for connectors. Supply chain disruptions, including shortages of raw materials and logistical challenges, further hampered the industry. The economic uncertainty during the pandemic also resulted in cautious spending by consumers and businesses, exacerbating challenges for the market. Despite a gradual recovery, the lasting effects of COVID-19 continue to shape market dynamics in this sector.

Automotive Connectors Market Trends

Increasing demand for high-speed data connectivity will carve a healthy growth trajectory for the automotive connectors industry. As indicated by findings from a survey conducted by LexisNexis Risk Solutions, approximately 80% of individuals purchasing a car opted for a complimentary trial of the vehicle's connected services when presented by the dealer. Following the conclusion of their free trial, nearly 50% of these buyers transitioned to a paid subscription.

Automotive connectors capable of supporting high data transfer rates are becoming essential for applications such as advanced driver-assistance systems (ADAS), in-car infotainment, and vehicle-to-everything (V2X) communication. With the rise of connected and autonomous vehicles, there is a growing demand for high-speed data connectivity within vehicles, which will propel automotive connector sales through 2032.

Automotive Connectors Market Analysis

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Based on connection type, the wire-to-wire segment accounted for 50% of the market share in 2022. Wire-to-wire automotive connectors are witnessing high demand due to several factors. As modern vehicles become increasingly complex with advanced electronic systems, these connectors play a pivotal role in ensuring seamless communication and power distribution between various components. Wire-to-wire connectors provide a reliable and efficient means of interconnecting wires in a vehicle's electrical system. With the growing integration of technologies such as advanced driver-assistance systems (ADAS), infotainment, and electric powertrains, the need for robust wire-to-wire connectors has surged, contributing to their heightened demand in the automotive industry.

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Based on vehicle type, the commercial vehicles segment held over 55% of the automotive connectors market share in 2022, propelled by the increasing integration of advanced technologies in this sector. As commercial vehicles embrace features like telematics, GPS systems, advanced safety systems, and efficient power management, the demand for robust connectors to facilitate seamless communication and power distribution grows.

Automotive connectors enhance the reliability and performance of critical systems in commercial vehicles, contributing to improved efficiency and safety. The evolution toward electric commercial vehicles further amplifies the significance of connectors in managing power connectivity, solidifying their pivotal role in the ongoing technological transformation of the commercial vehicle industry.

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Asia Pacific automotive connectors market size dominated around USD 3.1 billion in 2022. The region's robust automotive sector, with a focus on innovation and technology, drives the demand for advanced connectors supporting features like autonomous driving, electric vehicles, and in-car connectivity. Additionally, stringent safety and emission regulations push automakers to invest in cutting-edge technologies, spurring the need for high-performance connectors. Asia Pacific's established manufacturing infrastructure and a concentration of major automotive players create a conducive environment for the growth and development of the automotive connectors industry in the region.

Automotive Connectors Market Share

Major companies operating in the automotive connectors industry are:

• Amphenol Corporation
• Aptiv
• HIROSE ELECTRIC CO., LTD.
• Molex
• Sumitomo Electric Industries, Ltd.
• TE Connectivity
• YAZAKI Corporation
  

HIROSE ELECTRIC CO., Ltd holds the largest market share, high-quality products, a diverse and innovative product portfolio, strong customer relationships, global presence, and the ability to meet the evolving demands of the automotive industry, such as the increasing need for connectivity and advanced electronic systems in vehicles. Also, providing reliable and technologically advanced solutions that comply with industry standards and regulations is crucial for success in the automotive connector market.

Automotive connectors Industry News

• In November 2023, Delphi Automotive initiated exclusive negotiations and presented a binding offer to acquire the Motorized Vehicles Division (MVL) of FCI Group in Versailles, France—a significant supplier to Delphi. Delphi aims to tap into the growth potential of electric and hybrid vehicle powertrains through this acquisition.
  

The automotive connectors market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) and Volume (Units) from 2018 to 2032, for the following segments:

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Market, By Connection type

• Wire to Wire
• Wire to Board
• Board to Board

Market, By System type

• Sealed Connection
• Unsealed Connection

Market, By Application

• Body control
• Safety and security system
• Engine control and cooling system
• Fuel and Emission Control
• Infotainment
• Others

Market, By Vehicle Type

• Passenger Vehicles
• Commercial Vehicles

Market, By Propulsion

• ICE
• Electric
• Hybrid

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Nordics
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia