Automotive Connector Market Size, share, and Segmentation, By Product (PCB, IC, RF, Fiber Optic, Other), By Connectivity (Wire to Wire, Wire to Board, Others), By Vehicle Type (Passenger Car, Commercial Vehicle), By Application (CCE, Powertrain, Safety & Security, Body Wiring & Power Distribution, Navigation & Instrumentation), By Region And Global Forecasts 2023-2030

Automotive Connector Market Report Scope & Overview:

The Automotive Connector Market size was valued at USD 6.5 billion in 2022 and is expected to grow to USD 11.68 billion by 2030 and grow at a CAGR of 7.6 % over the forecast period of 2023-2030.

Electrical connections between various car systems and components are made safe and dependable by automotive connectors. The proper operation of crucial automobile systems, such as engine management, safety systems, and infotainment, depends on this reliability. Connectors make the installation and maintenance of automobile systems much easier. They facilitate quick and simple plug-and-play connections, cutting down on the time and labour needed for component installation, repair, and replacement.

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Automotive connectors are available in a variety of types and combinations to meet a range of needs. Engineers may choose the best connector for a given task because to this flexibility, which makes it simpler to adapt to shifting vehicle designs and technological advancements.

Connectors are created to adhere to strict safety requirements. To provide a safe connection, they integrate features such locking mechanisms, which lowers the possibility of loose or unconnected wires, which could cause mishaps or malfunctions. A lot of automobile connectors are made to survive adverse environmental circumstances, such as exposure to moisture, dust, extremely high or low temperatures, and vibrations. Because of their robustness, connections can operate effectively in a variety of driving conditions. By enabling several wires to be joined at a single location, connectors make wiring harnesses for cars less complicated. This lessens the complexity of the wiring, lowers the possibility of wiring mistakes, and increases overall vehicle reliability. When something goes wrong, connectors make it simpler to identify and resolve problems.

MARKET DYNAMICS

KEY DRIVERS: 

• Increasing advancement in automotive system

• Enhanced safety and security in vehicles

• The rise in development of automotive industry

High-voltage connectors are more in demand as the automotive industry moves towards electric vehicles (EVs) and hybrid vehicles to accommodate battery packs, electric motors, and charging systems. Autonomous vehicles depend on a sophisticated set of sensors and control systems, which call for connectors that can send data fast and reliably, fostering the expansion of high-speed data connectors. automobile connector producers are constantly looking for ways to increase productivity, save costs, and guarantee a steady supply chain in order to fulfil the demands of the automobile industry. Concerns about liability and safety recalls: When connector-related problems result in a safety recall, this can lead to more scrutiny and advancements in connector testing, quality control, and design. The market for automotive connectors now holds the greatest market share in safety & security applications, and this share is expected to increase over the next years. Airbags, car immobilizers, the Antilock Braking System (ABS), and other modern safety systems need connectors. Additionally, there is a considerable need for automobile connectors for safety systems due to the rise in car theft.

RESTRAIN:

• Rising awareness of eco-friendly vehicles

• Reliability And Durability Standards

Meeting reliability and durability standards is one of the top priorities for manufacturers in the market. These days, vehicles come with powerful electrical components to manage vital systems like airbags and GPS, among others. Both low-frequency and high-frequency solutions can be handled by the connector solutions. Because a breakdown in one of these systems could have disastrous consequences, electronic components used in critical systems must be dependable and long-lasting.

OPPORTUNITY:

• The number of heavy-duty trucks is rising.

The need for more effective and efficient transportation has encouraged automakers to create and market cutting-edge vehicles that operate well in all weather conditions. As a result, this has made it possible for producers of automotive components to create better and more effective parts for use in automobiles. The global market for automotive connections is anticipated to develop as a result. The demand for more complex and specialised connectors to support automotive advances like electrification, autonomous driving, and higher connectivity is driven by technological advancements in the industry. Specific connectors and standards are frequently required by regulatory requirements for car safety, emissions, and performance, which has an impact on connector design and adoption. The requirement for secure and dependable electrical connections in vital automotive components like airbags, engine control, and brake systems is a major force behind the creation and application of automotive connectors. Electric and hybrid vehicles, which need specialised connectors for high-voltage systems and batteries, have been developed as a result of the automobile industry's commitment to lowering emissions and increasing fuel efficiency.

CHALLENGES:

• Scarcity of skilled workforce

• The rapid expansion of vehicle electrification

Electric circuits are connected with connectors, which are electromechanical parts. Connectors are used in the automotive sector to join electrical components and cables in-vehicle equipment. Connector demand has increased as a result of the rapid expansion of vehicle electrification. The market is also primarily driven by the rise in demand for security requirements in cars. Additionally, as car theft rates rise, there is a greater demand for vehicle security systems, which supports the expansion of the automotive connections market.

IMPACT OF COVID-19

One of the industries most negatively impacted by COVID-19 is the automotive industry because of how the global lockout has impacted vehicle production.

After the pandemic, the industry is anticipated to experience significant expansion as a result of the numerous businesses that have begun interacting with customers and making alluring offers.

The COVID-19 pandemic has made the automotive industry reevaluate its operations.

IMPACT OF RUSSIAN UKRAINE WAR

The state of the global economy has and will continue to have an impact on company and operating results. The COVID-19 epidemic, the military war between Russia and Ukraine, supply chain interruptions, and inflationary cost pressures have all affected the world economy. See "COVID-19" and "Russia-Ukraine Military Conflict".

The Automotive Connector Market in scope, fluctuations in currency exchange rates may significantly affect our performance. Our net sales were down $723 million in fiscal 2022 compared to fiscal 2021 as a result of currency translation. In the fiscal year 2023, we anticipate that translation will still have a detrimental effect on our operating results. In fiscal 2023, we anticipate that translation will reduce our net sales by about $1 billion.

IMPACT OF ONGOING RECESSION

Even if new automobile manufacturing has recently surged, it's unlikely that the recession will have a significant impact on the used car market. Business Car recently stated that historically, prior recessions have not resulted in a significant decline in used car prices, so we shouldn't anticipate the same with this recession.

This is due to consumers switching from buying new to used cars due to tighter finances during the crisis, which raises demand. Therefore, even though new car production has recently increased, prices have also gone up; individuals who can afford new cars may decide to do so, but used car prices are unlikely to decrease significantly due to the higher MSRP of new automobiles.

Auto sales will gradually increase again. "Around a million extra light vehicle sales are anticipated in the US over 2022, bringing the total to around 14.8 million in 2023. According to Paul Waatti, manager of industry analysis at AutoPacific, "Consistent signals of improvement in supply chains helping to normalize inventory levels and an expanding electric vehicle (EV) or electric car  market share are attributing to the strong gain. However, despite that gain, AutoPacific predicts that sales will probably continue to be a little below 2021 levels.

KEY MARKET SEGMENTS

By Product

• PCB

• IC

• RF

• Fiber Optic

• Other

By Vehicle Type

• Passenger Car

• Commercial Vehicle

By Connectivity

• Wire to Wire

• Wire to Board

• Others

By Application

• CCE

• Powertrain

• Safety & Security

• Body Wiring & Power Distribution

• Navigation & Instrumentation

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REGIONAL ANALYSIS

Asia Pacific held a 37.5% share of the global market, dominating in 2021. Asia is home to some of the world's top producers of electronic parts for both commercial and passenger vehicles, including China, Taiwan, and Japan. Due to the region's access to low-cost labor, improved production facilities, and quick supply of raw materials, it serves as a major export hub for many kinds of automobile parts.

The majority of vehicles are electrified in North America. Over 27.0% of the total was accounted for by the region. Due to the increasing use of advanced driver assistance systems (ADAS) in commercial vehicles, Europe is the second-largest market. The European Union has mandated that big commercial vehicles have ADAS features like lane departure warning signals and autonomous breaking.

REGIONAL COVERAGE:

North America

• USA

• Canada

• Mexico

Europe

• Germany

• UK

• France

• Italy

• Spain

• The Netherlands

• Rest of Europe

Asia-Pacific

• Japan

• South Korea

• China

• India

• Australia

• Rest of Asia-Pacific

The Middle East & Africa

• Israel

• UAE

• South Africa

• Rest of the Middle East & Africa

Latin America

• Brazil

• Argentina

• Rest of Latin American

KEY PLAYERS:

The major players are Hirose Electric Co. Ltd, Japan Aviation Electronics Industry, Ltd, Delphi Automotive, Amphenol, Molex, ERNI International AG, TE Connectivity, Sumitomo Electric, China Auto Electronics Group Limited., Yazaki Corporation and other players listed in the final report.

Delphi Automotive​​​​​​​​​​​​​​-Company Financial Analysis

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RECENT DEVELOPMENTS

• Nov 2022: Molex Incorporated (Molex), a producer of automotive connection systems, announced the development of a second factory and the expansion of its Guadalajara, Mexico, location. The company will enhance production capacity for parts used in electric vehicles (EVs) to keep up with increased demand.

• Apr 2022: According to Aptiv PLC (Aptiv), its smart facility in Anting, Jiading District, Shanghai, is still running, using "closed-loop" manufacturing for about 80% of its output capacity. In addition to connector system products like plug-ins, seals, terminals, and plastic housings, Aptiv's connector plant also produces high-voltage power distribution units, electric vehicle chargers, high-voltage charging sockets, high-voltage connectors, special wire harnesses, and automotive electronics like wireless charging and multimedia interfaces.

• Mar 2022: Yazaki, Sumitomo, Lear, Stahlschmidt, and TE Connectivity, along with other global automotive suppliers, inked eight investment agreements worth a combined MAD 1.7 billion with Morocco's Ministry of Industry and Trade, resulting in the creation of close to 12,000 direct employment. The eight investment agreements are a component of the localization of connectors, terminals, cables for electric vehicles, plastic parts, and other precision mechanics and automation trades in the cabling ecosystem's development of deep integration and move upmarket.