Automotive Terminals Market Size - By Current Rating, By Terminals, By Vehicle, By Applications, By Sales Channel, Analysis, Share, Growth Forecast, 2024 - 2032

Automotive Terminals Market Size

The global automotive terminals market size was valued at USD 22.4 billion in 2023 and is projected to grow at a CAGR of 8.6% between 2024 and 2032, due to the growing demand for electric vehicles (EVs). As governments worldwide push for cleaner energy solutions and stricter emissions regulations, automakers are rapidly shifting toward EV production. These vehicles require advanced electronic systems, which in turn, depend heavily on automotive terminals to connect various components like battery management systems, telematics control units, power electronics, and sensors.
 

The rising consumer preference for EVs, coupled with increased investments in charging infrastructure, is significantly boosting the demand for terminals, further propelling market growth.
 

For instance, according to GMI, automotive telematics control unit (TCU) market size was valued at USD 11.3 billion in 2023 and is anticipated to register a CAGR of 13% between 2024 and 2032. Thus, the rapid shift to electric powertrain is anticipated to generate demand for EV terminals in the coming years.
 

Another key driver for the automotive terminals market is the increasing integration of advanced driver assistance systems (ADAS) in vehicles. As safety regulations tighten and consumer demand for smart vehicle technologies rises, automakers are incorporating more electronic components, sensors, and cameras that rely on terminals for connectivity. This trend is boosting the need for reliable, high-performance automotive terminals to support complex ADAS functionalities.
 

Automotive Terminals Market Trends

The growing trend in the automotive terminals industry is largely driven by the increasing demand for electric vehicles (EVs) and the need for advanced connectivity solutions. As manufacturers focus on enhancing battery performance and safety, innovative terminal systems are being adopted to streamline connections within battery modules. Additionally, the integration of advanced driver assistance systems (ADAS) requires reliable terminals for seamless communication between various electronic components.
 

The trend towards vehicle electrification and automation is also propelling the need for high-performance automotive terminals to support complex electrical architectures. Furthermore, as global automotive production increases, especially in emerging markets, the demand for efficient and durable terminal solutions is expected to rise.
 

For instance, in June 2023, Molex secured large-scale production from BMW Group for its next-generation electric vehicle class using the Volfinity Cell Contacting System (CCS) which represents an innovative terminal solution for electric vehicle battery modules. This innovative system enhances battery connectivity by providing a reliable interface that connects cells directly to the control board, eliminating complex wiring.
 

Developed through extensive collaboration since 2018, Volfinity features integrated cell monitoring and temperature measurement, aligning with BMW's safety standards. As electric vehicle adoption is projected to grow significantly, Molex aims to ensure quality and supply continuity through its global manufacturing network. This partnership highlights both companies' commitment to engineering innovation in the EV sector.
 

One significant challenge in the automotive terminals market is the high cost of advanced automotive electronics. As vehicles become increasingly electrified and integrated with sophisticated technologies, the components, including terminals, require advanced materials and manufacturing processes, leading to higher production costs. This can make it difficult for manufacturers to maintain competitive pricing, especially in markets where price sensitivity is high. Additionally, the rising costs of raw materials can further exacerbate this issue, impacting profit margins and leading to potential supply chain disruptions. As a result, companies must balance innovation and cost-effectiveness to remain viable in a rapidly evolving market?.
 

Automotive Terminals Market Analysis

Based on vehicle type, the market is segmented into passenger and commercial vehicles. In 2023, the passenger vehicle segment accounted for over 80% of the market share and is expected to exceed USD 30 billion by 2032. Passenger vehicles dominate the automotive terminals market primarily due to their widespread use and significant production volumes. The increasing demand for personal mobility and convenience has led to a rise in passenger vehicle sales, particularly in emerging economies where urbanization is accelerating.
 

Additionally, the shift towards electric and hybrid vehicles is fueling innovation in battery technologies and connectivity solutions, further driving the need for advanced automotive terminals. The integration of smart technologies and features in passenger vehicles, such as infotainment systems and advanced driver assistance systems (ADAS), also requires reliable terminals for seamless operation. Furthermore, the global automotive industry's focus on safety and compliance with stricter regulations necessitates high-performance terminals in passenger vehicles. This combination of factors ensures that passenger vehicles remain a dominant segment within the market, influencing manufacturers to prioritize this area for innovation and investment.
 

Based on the OEM, the automotive terminals market is divided into OEM and aftermarket. The OEM segment held more than 85% of the market share in 2023, due to their significant production volumes and investment in advanced technologies. They account for a substantial share of vehicle manufacturing, driving the demand for integrated terminal solutions as vehicles increasingly feature electrification and complex electronic systems. OEMs often establish long-term partnerships with terminal suppliers, enabling custom solutions and ensuring quality control throughout the supply chain.
 

Furthermore, as consumer preferences shift toward vehicles with enhanced safety and technological features, OEMs are positioned to lead the market by incorporating innovative terminal solutions into their offerings. This dynamic creates a robust ecosystem where OEMs influence market trends and drive growth in the automotive terminals sector?.
 

China automotive terminals market accounted for 60% of the revenue share in 2023 and is expected to exceed USD 10 billion by 2032, owing to its position as the largest automotive manufacturing hub globally. The country's robust production capabilities are supported by a vast network of suppliers and manufacturers, enabling cost-effective and efficient terminal production.
 

Additionally, China's strong emphasis on electric vehicle (EV) development and government incentives to promote EV adoption drive the demand for advanced terminal solutions in new vehicles. The rapid expansion of domestic automakers and the influx of foreign investments further stimulate innovation and competition in the market. Moreover, China's significant focus on research and development in automotive technologies positions it at the forefront of emerging trends, ensuring that it remains a critical player in the market?.
 

The North America automotive terminal market is experiencing robust growth, driven by the rising production of electric vehicles (EVs) and increasing demand for advanced connectivity solutions in modern vehicles. The region is a key hub for major automotive manufacturers, fostering innovation and competitive dynamics within the market. The shift toward EVs, along with the integration of advanced driver assistance systems (ADAS), necessitates sophisticated electrical architectures, thereby boosting the need for high-quality terminal solutions.
 

Additionally, stringent safety regulations are prompting OEMs to adopt reliable terminal technologies to ensure vehicle performance and safety. Strategic collaborations between automotive manufacturers and terminal suppliers are further enhancing the development of customized solutions, positioning the North American market for continued expansion in the coming years?.
 

The European automotive terminals market is poised for significant growth, driven by the increasing demand for electric vehicles (EVs) and stringent environmental regulations. As European countries prioritize sustainability, there is a strong push for electrification in the automotive sector, leading to higher production of EVs that require advanced terminal solutions. The region is home to several prominent automakers and a well-established supply chain, facilitating innovation and the development of cutting-edge connectivity solutions.
 

Automotive Terminals Market Share

TE Connectivity Ltd., Molex LLC, and Amphenol Corporation collectively held a substantial market share of over 35% in the automotive terminal industry in 2023. These industry leaders drive growth through innovative technologies and solutions tailored to automotive needs, focusing on efficiency, performance, and sustainability in terminal design. Their advancements in terminal technology enhance vehicle electrical systems and contribute to the overall functionality of modern vehicles.
 

As the automotive industry shifts towards electrification and advanced electronic systems, these companies are at the forefront of providing reliable and high-performance terminals that meet the evolving demands of consumers and manufacturers alike. Their efforts not only improve vehicle performance but also align with global trends towards sustainability and energy efficiency in transportation, shaping the future of the market.
 

Automotive Terminals Market Companies

Major players operating in the automotive terminal industry are:

• 3M Company
• Amphenol Corporation
• AVX Corporation
• Delphi Technologies
• Molex LLC
• Nexans S.A.
• Robert Bosch GmbH
• Sumitomo Electric Industries
• TE Connectivity Ltd.
• Yazaki Corporation
   

Automotive Terminals Industry News

• In June 2023, Molex secured a major production contract with BMW Group for its next-generation electric vehicle lineup, utilizing the Volfinity Cell Contacting System (CCS), which in an innovative terminal solution for electric vehicles. This advanced system improves battery connectivity by creating a direct link between the cells and the control board, thus simplifying the wiring process. Developed through extensive collaboration since 2018, Volfinity incorporates integrated cell monitoring and temperature measurement capabilities to meet BMW's safety criteria. With the anticipated surge in electric vehicle adoption, Molex is focused on maintaining quality and ensuring a reliable supply through its global manufacturing network. This collaboration underscores the commitment of both companies to drive engineering innovation in the electric vehicle sector.
   
• In January 2023, TE Connectivity launched new EV solutions kits that bundle all necessary high-voltage terminals and connectors for electric vehicle assembly into a single package. These kits include various models such as AMP+ HVA 280, AMP+ HVA 630, AMP+ HVP 800, and AMP+ HVP 1100, designed specifically for high-voltage applications. The offerings aim to simplify the ordering and assembly process for design engineers, ensuring they have all required components without the hassle of managing order quantities. Additionally, the kits feature advanced specifications and capabilities to support the growing demands of hybrid and electric mobility solutions?.
   

The automotive terminal market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and Volume (Units) from 2021 to 2032, for the following segments:

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Market, By Current Rating

• Below 40 ampere
• 41-100 ampere
• 100 ampere

Market, By Terminals

• Pin terminals
• Blade terminals
• Socket terminals
• Ring terminals
• Spade terminals
• Others

Market, By Vehicle

• Passenger cars
• Commercial vehicles

Market, By Application

• Engine control units (ECUs)
• Battery connections
• Lighting system
• Infotainment system
• Advanced driver-assistance systems (ADAS)
• Power distribution
• Sensors
• Others

Market, By Sales Channel

• OEM
• Aftermarket

The above information is provided for the following regions and countries:

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