Wire Harness Market - By Product (Engine, Dashboard/Cabin, Battery, Chassis, Body & Lighting, HVAC), By Material (Metallic, Optical Fiber), By Propulsion (IC Engine, Electric), By Transmission, By End User & Forecast, 2024 – 2032

Wire Harness Market Size

Wire Harness Market was valued at USD 95.5 billion in 2023 and is estimated to register a CAGR of over 4% between 2024 & 2032. This growth is driven by the need for efficient and reliable electrical systems in various industries such as automotive, aerospace, and electronics.
 

For instance, in September 2023, Samvardhana Motherson International Ltd (SAMIL), an auto components manufacturer, inaugurated a new wiring harness facility in the United Arab Emirates (UAE). The plant, located in Ras Al Khaimah Economic Zone (RAKEZ), spans 11,000 square meters and represents an initial investment of approximately 10 million euros. As companies expand their manufacturing capabilities to meet increasing consumer demands, the demand for wire harnesses, which play a critical role in organizing and transmitting electrical signals, is escalating. Moreover, the automotive harness system is the backbone of modern vehicles, seamlessly integrating wires, connectors, and components to power crucial functions. Its innovation drives automotive technology forward, enhancing performance, efficiency, and safety in today's vehicles.
 

The wire harness market is witnessing a significant upsurge in demand, fueled by the expanding production scales of leading companies. As these industry giants ramp up their manufacturing operations to meet burgeoning market demands, the need for efficient and reliable wiring solutions becomes paramount. Additionally, with advancements in technology and the integration of smart features in modern machinery, the reliance on sophisticated wiring systems continues to grow. Consequently, the wire harness industry is experiencing a surge, presenting ample opportunities for manufacturers to innovate and cater to the evolving needs of industries worldwide. For instance, in March 2024, Elite Harness expressed intent to renovate a current facility located at 1515 North A Street in the northern part of Wellington with a $14 million investment. The company will produce wiring harnesses and customized cables utilized across various sectors in the new plant.
 

The expanding aerospace industry, driven by growing air travel demand, space exploration endeavors, and defense spending, is a key driver of market growth. Aerospace applications demand highly reliable wiring solutions capable of withstanding extreme conditions, stringent safety standards, and stringent weight constraints. Wire harnesses play a crucial role in aircraft electrical systems, avionics, and onboard electronics, ensuring seamless communication and power distribution. As aerospace companies strive for innovation and efficiency, the demand for advanced, lightweight, and high-performance wire harnesses continues to rise.
 

While the wire harness market shows promising growth prospects, it also faces several restraints that could impede its expansion. One significant challenge is the volatility in raw material prices, particularly copper and aluminum, which are key components of wire harnesses. Fluctuations in commodity prices can disrupt production costs and margins for manufacturers. Additionally, stringent regulatory standards and compliance requirements pose another restraint, especially in industries like automotive and aerospace, where safety and quality standards are paramount. Moreover, the increasing complexity of wiring systems due to advancements in technology and integration of smart features demands higher precision and customization, adding to production challenges and costs. Lastly, competition from alternative technologies, such as wireless connectivity solutions, presents a potential threat to the traditional market. Overall, navigating these restraints requires strategic adaptation and innovation within the wire harness industry.
 

Wire Harness Market Trends

The wire harness industry is witnessing notable trends driven by rising contracts and the growing demand for wireless harness solutions across diverse sectors. With industries increasingly embracing automation and connectivity, the demand for wire harnesses is evolving to accommodate these evolving needs. One prominent trend is the shift towards wireless harness solutions, driven by the need for greater flexibility, reduced installation complexity, and enhanced reliability. This trend is particularly pronounced in sectors such as automotive, aerospace, and consumer electronics, where wireless connectivity offers advantages in terms of space-saving and adaptability.
 

Additionally, rising contracts from OEMs and expanding applications in emerging sectors like renewable energy and healthcare further propel market growth. As technology continues to advance, the market is poised for dynamic transformation to meet evolving industry requirements. Citing an instance, in April 2024, DLA Aviation released a solicitation aiming to establish a long-term contract for wiring harnesses utilized in C-130 aircraft. This contract, spanning five years, would entail DLA issuing periodic delivery orders.
 

Wire Harness Market Analysis

Based on product, the market is divided into engine harness, dashboard/cabin harness, battery wiring harness, chassis wiring harness, body & lighting harness, HVAC wiring harness, and others. In 2023, the engine harness segment was valued at over USD 13 billion in 2023. Engine harnesses serve as vital conduits for transmitting electrical signals and power within engines, ensuring their efficient and reliable operation. In sectors like automotive, aerospace, marine, and industrial machinery, engine harnesses play a pivotal role in powering propulsion systems, controlling vital functions, and maintaining operational integrity. As these industries witness continued growth and innovation, driven by factors such as electrification, efficiency enhancements, and regulatory compliance, the demand for high-quality engine harnesses remains robust. Manufacturers must continually adapt to meet evolving industry requirements and capitalize on this demand.
 

Based on the material, the market is categorized into metallic and optical fiber. The metallic segment is anticipated to register a CAGR of over 4% from 2024 to 2032. Metallic wire harnesses offer robustness, conductivity, and durability, making them indispensable across various industries. In automotive, aerospace, and industrial applications, metallic wire harnesses ensure reliable electrical connections, withstand harsh environmental conditions, and comply with stringent safety standards. As industries continue to advance technologically, the demand for high-performance metallic wire harnesses persists. Moreover, the rise of electric vehicles and renewable energy solutions further amplifies this demand, necessitating innovative approaches in metallic wire harness design and production to meet evolving industry needs and sustainability goals.
 

Asia Pacific dominated the global wire harness market with a major share of over 45% in 2023. Countries like China, Japan, India, and South Korea are witnessing robust growth in the automotive, electronics, and aerospace sectors, leading to increased demand for wire harnesses. Rapid urbanization and the expansion of manufacturing facilities further fuel this demand. Additionally, the region's growing consumer electronics market and rising investments in renewable energy projects contribute to the sustained growth of the market. As Asia-Pacific economies continue to flourish, the demand for wire harnesses is poised to escalate, presenting lucrative opportunities for manufacturers and suppliers in the region.
 

The wire harness industry in the U.S. is buoyed by a diverse array of industries, including automotive, aerospace, telecommunications, and electronics. With the automotive sector witnessing a surge in electric vehicle adoption and technological advancements, the demand for specialized wire harness solutions is escalating. Additionally, ongoing infrastructure projects, such as smart grid implementations and renewable energy initiatives, further drive market demand. As U.S. industries continue to innovate and modernize, the need for reliable, high-performance wire harnesses remains paramount, positioning the country as a significant contributor to the global market.
 

Wire Harness Market Share

Sumitomo Electric Industries, Yazaki Corporation and Furukawa Electric held significant market share of over 15% market share in 2023. These leading companies' concerted efforts to enhance wire harness industry demand involve strategic investments in research and development, innovative product designs, and expanding manufacturing capabilities. By focusing on customer-centric solutions, improving product quality, and optimizing supply chain efficiency, companies aim to meet the evolving needs of industries and capitalize on the growing demand for wire harnesses in various sectors.
 

Moreover, they are focusing on expanding globally and through acquisitions to secure a strong market position. They're also innovating with new product lines and collaborating with automakers to meet the growing demand for complex wiring systems in electric and hybrid vehicles.
 

Wire Harness Market Companies

Major players operating in the market are:

• Amphenol Corporation
• Furukawa Electric
• Kromberg & Schubert
• Lear Corporation
• Leoni AG
• Manitou Group Gear
• PKC Group (Motherson)
• Sumitomo Electric Industries
• TE Connectivity
• Yazaki Corporation
   

Wire Harness Industry News

• In November 2023, Yazaki Corporation (Yazaki) and NEC Corporation collaborated on a demonstration experiment employing the "NEC Digital Robot Planning Solution" to automate motion planning for multiple robots using AI in automotive wire harness manufacturing.
   
• In June 2023, Auxo Investment Partners, a private investment firm, revealed its acquisition of SOS Manufacturing. SOS Manufacturing specializes in producing custom wire harnesses, cable assemblies, and comprehensive box builds for clients across various sectors including computing, agriculture, aerospace, appliances, electronics, automotive, and food processing industries.
   
• In May 2023, CNH Industrial Reman provided dealers with a cost-effective alternative for equipment repair via its Electrical Wire Harness Repair and Return Program. The initiative involved taking malfunctioning wire harnesses and repairing them directly at the point of failure rather than resorting to remanufacturing or prompting customers to buy new parts.
   

The wire harness market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and shipment (Units) from 2021 to 2032, for the following segments:

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Market, By Product

• Engine harness
• Dashboard/cabin harness
• Battery wiring harness
• Chassis wiring harness
• Body & lighting harness
• HVAC wiring harness
• Others

Market, By Material

• Metallic
• Optical Fiber

Market, By Propulsion

• IC Engine Vehicle
• Electric Vehicle

Market, By Transmission

• Electric Wiring
• Data Transmission

Market, By End User

• Automotive
• Aerospace & defense
• Telecommunication
• Power & Energy
• Construction equipment
• Agricultural equipment
• Medical equipment
• Others

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

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