Automotive Electrical Distribution System Market Size

The global automotive electrical distribution system market size was valued at USD 45.7 billion in 2024 and is projected to grow at a CAGR of 7.2% between 2025 and 2034. The increasing adoption of electric and hybrid vehicles is significantly driving the demand for the market. This trend is primarily due to the enhanced reliance of these vehicles on sophisticated electrical components for power management, energy efficiency, and vehicle functionality.

EV and HEV necessitate advanced battery management systems (BMS) to optimize charging and discharging processes, thereby ensuring the longevity and efficiency of the battery pack. Furthermore, electronic control units (ECUs) are essential for monitoring and controlling various systems within these vehicles, including energy regeneration, power distribution, and motor control.

For instance, in September 2024, Minda Corporation entered into a technology licensing agreement with Sanco Connecting Technology, a Chinese company specializing in EV connection systems. This partnership aims to enhance Minda Corp's offerings in the rapidly growing EV market, particularly focusing on Electrical Distribution Systems (EDS).

The rising demand for ADAS is significantly driving the growth of the automotive electrical distribution system market. This growth stems from the increased need for advanced electrical components that support the functionality of these systems. ADAS technologies, including adaptive cruise control, lane-keeping assistance, automatic parking, collision avoidance, and automatic emergency braking, rely on complex networks of sensors, cameras, radar, and other electronic devices to process data in real time.

These systems require precise and reliable electrical connections to operate seamlessly, thereby directly increasing the demand for electrical distribution components such as wiring harnesses, connectors, control modules (ECUs), and fuses and relays.