Swift Growth of Automotive Wires for the HVAC Application Segment
The Heating ventilation & air-conditioning (HVAC) segment is projected to grow at a significant rate of 7.3%, in terms of value, during the forecast period in the automotive wires market. This high growth rate is due to increasing penetration of HVAC systems in passenger and commercial vehicles. The HVAC segment is estimated to create incremental opportunity worth US$ 1 Bn between 2017 and 2027.
The chassis & safety application segment holds majority share in the automotive wires market. This is due to the high usage of automotive wires in the chassis & safety application. It is projected that the chassis & safety application segment will be the most significant segment and is estimated to grow at a CAGR of 5.5%, in terms of value, during the forecast period.
Conventional Fuel Vehicles to Dominate the Automotive Wires Market
Conventional fuel vehicles are the traditional market for automotive wires and hold majority share in the automotive wires market. The global automotive production in 2017 was more than 97 million and the passenger car segment captures 75% of the share in the global automotive production. This rising production of passenger vehicles and commercial vehicles will give a boost to the market for automotive wires during the forecast period.
The automotive wires market is also being driven by the growing demand for hybrid and electric vehicles. The production and sales of hybrid and electric vehicles has increased significantly owing to the subsidies being offered by government agencies to strengthen the green initiative to reduce carbon emissions. Along with this, hybrid and electric vehicles have high content of electrical and electronics systems due to which per vehicle wire consumption is high in hybrid and electric vehicles as compared to conventional fuel vehicles.
Demand for Copper Wire is Projected to Increase at a Significant CAGR in the Automotive Wires Market
Copper wires are the most prominent material type in the automotive wires market. The market size for copper wires is projected to grow at a significant CAGR of 6%, in terms of value, during the forecast period. The pure copper sub-segment of the copper wire segment is projected to grow at relatively high CAGR of 7.5%, in terms of value, during the forecast period.
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Asia Pacific: Prominent Region in the Automotive Wires Market
The Asia Pacific (excluding Japan) region is the most prominent market for automotive wires. The Asia Pacific region held more than 40% share in global vehicle production in 2017. Increasing demand from the automotive industry is expected to fuel the growth of automotive wires within the region. Increase in population and increased disposable income of consumers will move the consumers in favour of premium, mid-size and sports utility vehicles, which in turn, will lead to increased vehicle production and further increase the usage and adoption of automotive wires.
The automotive wires market in APEJ region is estimated to grow at a significant CAGR of 6.8% and will represent a total incremental opportunity of US$ 4.8 Bn, in terms of value, during the forecast period.
The manufacturers in the automotive wires market are looking to expand through strategic interventions, including collaborations, acquisitions, expanding production capacity and launching advanced products in the automotive wires market. In 2017, Leoni AG announced its plan to open a new production facility in Nis, Serbia. The facility will produce wires and harnessing solutions for one of its premier client “BMW”. Also, in 2017, Leoni expanded its manufacturing facility in Pune, India. The company inaugurated its novel electron beam accelerator process, which facilitates the production of high-performance wires & cables.
In 2017, Yazaki Corporation established its new wholly owned subsidiary called Yazaki Serbia Doo in Serbia. The new company is dedicated to providing automotive wire solutions in the region. In March 2017, Samvardhana Motherson Group acquired the PKC Group. The PKC group is one of the market leaders in wire solutions for automotive segment.
In 2016, Essex Magnet Wire, a division of Superior Essex Inc. and Furukawa Electric Co., Ltd. (“Furukawa Electric”) announced its interest to form a joint venture to supply a new type of winding high-voltage wire (HVW), primarily to the automotive industry.
Some of the key players operating in the automotive wires market are LEONI AG, Sumitomo Electric Industries, Ltd., Fujikura Ltd., Delphi Automotive Plc, PKC Group, Furukawa Electric Co., Ltd, Yazaki Corporation, General Cable, Lear Corporation, Draka, Samvardhana Motherson Group, Allied Wire & Cable, Inc., Coroplast Fritz Müller GmbH & Co. KG., Kromberg & Schubert, Acome, Yura Corporation, and Kyungshin Corporation.
About the Report
FMI has published an exclusive forecast report for the automotive wires market between 2017 and 2027. The foremost objective of this report on automotive wires market is to pitch spearhead insights on market scenario, demand generators and technological advancements in automotive wires market. Also, the study on automotive wires market addresses key dynamics, which are expected to diversify the sales and future prominence of automotive wires market.
The report on automotive wires market starts with an executive overview under which product definitions have been provided. The report further proceeds with taxonomy of the automotive wires market. Also, the report outlines insights on dynamics in the automotive wires market, including drivers, restraints, opportunities and trends as well as value chain. Value chain analysis of automotive wires market has also been included in the report to help readers clearly understand the product framework map in automotive wires market.
The automotive wires market has been analyzed with respect to segments, such as material type, vehicle type, application and region. The material types in this report on automotive wires market include copper, aluminium, and others (nickel, etc.). By vehicle type, the segmentation includes conventional fuel vehicles, electric vehicles and hybrid vehicles. Application studied in this automotive wires market report include chassis & safety, body, heating ventilation & air-conditioning (HVAC), engine, and sensors. The automotive wires market has been evaluated across primary regions, such as North America, Latin America, Western Europe, Eastern Europe, Japan, Asia Pacific Excluding Japan (APEJ) and Middle East and Africa (MEA).
Additional Questions Answered
The report also provides answers to other important questions related to automotive wires market, such as -
- Why is the sales of pure copper automotive wires outpacing the sales of oxygenic copper automotive wires?
- Which vehicle type will hold largest volume share in the automotive wires market?
- At what rate is the sale of automotive wires for Chassis & Safety application expected to grow during the forecast period?
- What will be the growth rate of automotive wires market in APEJ?
- Which player held the maximum share in the automotive wires market in 2016?
The report offers in-depth assessment of the automotive wires market, which is based on a tested & proven research methodology, which involves comprehensive primary and secondary research approaches. These research methods have helped in arriving at important numbers for the automotive wires market. Data collected on the automotive wires market by these researches goes through several validation funnels, examination and re-examination, prior to being included in the report.
Credibility of the statistics evaluated and data acquired on the automotive wires market bases itself on the unique nature of FMI’s research methodology, which ensures greater accuracy and provision of authentic data. Intelligence obtained from opinion leaders and industry experts in the automotive wires market has been extrapolated, meanwhile contemplation of data allowed analysts to develop this analytic and insightful report on the automotive wires market.
Key Segments Covered in Automotive Wires Market Report
On the basis of material type, the Automotive Wires market can be segmented into:
- Oxygenic Copper
- Pure Copper (Oxygen Free)
- Copper Silver (CuAg)
- Copper Magnesium (CuMg)
- Copper Tin (CuSn)
- Others (Nickel, etc.)
On the Basis of vehicle type, the Automotive Wires market can be segmented into:
- Conventional Fuel Vehicles
- Passenger Vehicle
- Commercial Vehicle
- Electric Vehicles
- Hybrid Vehicles
On the Basis of application, the Automotive Wires market can be segmented into:
- Chassis and Safety
- Conventional Chassis
- Semi-forward Chassis
- Full-forward Chassis
- Door & Window
- Heating Ventilation & Air-Conditioning (HVAC)
On the Basis of Region, the Automotive Wires market can be segmented into:
- North America
- Latin America
- Western Europe
- Eastern Europe
- Asia Pacific Excluding Japan (APEJ)
- Middle East & Africa (MEA)