Also known as a cable harness or wiring assembly, a wire harness is a grouping of cables, wires, and sub-assemblies that transmit electrical power or signals. The wire harness assembly market is expected to take a significant hit in 2020 due to the coronavirus pandemic in three different ways. By creating market and supply chain disruption, by directly affecting demand and therefore production, and its financial impact on markets and firms. However, despite these difficulties and roadblocks, the entire industry is expected to see a four to four and a half percent compound annual growth rate in 2020.
Wire Harness Market Size
As of 2018, the estimate of the global market size for wire harness manufacturers was $131.8 billion. Major market drivers have been the telecom sector with the growing popularity of internet protocol and video on demand technology. Another major contributor has been the automotive industry as the number of electronic components used in vehicles continues to rise. Plug-in hybrid vehicles are also growing at a much faster rate than in previous years. As these drivers continue to expand some analysts are expecting substantial growth in the wire harness assembly market despite the difficulties caused by the Covid-19 pandemic in the first half of 2020.
Wire Harness Market Share
The wiring harness market is highly fragmented with a variety of players occupying the market share. The market share also varies pretty substantially by region with Asia seeing almost 40% of the entire market dominated by wire harness manufacturers. North America comes in next with about 25% market share, Europe with about 20%, and both Latin America and the Middle East at about 10%. As the internet and rise of electronic technologies sweep the globe experts believe that the market share will only continue to increase in the next few years. Some have said they expect between a 5 and 10% increase in market share through the year 2025.
Wire Harness Market Growth
As mentioned earlier the exponential growth of the internet and electronic technologies, especially electric vehicles, are spurring the wiring harness assembly market to great gains. Players like Lear, Yazaki, LEONI AG, Heltronics, etc. stand to make significant gains this year. Some industry analysts are predicting a four to four and a half percent growth rate while others are confidently stating that it could be as much as 10% over the next five years. It is safe to assume that with massive growth in the electronics industries around the globe the wire harness assembly industry will continue to grow. This is despite a massive market downturn due to the coronavirus pandemic in early 2020. In fact, it could strengthen the industry a bit more as many people stay home more than usual, leading to an increased demand for high-speed internet. The wire harness assembly market is definitely one to watch out for as the years go by. It is a quickly expanding market that continues to see exponential growth year after year. If you have been considering a lucrative investment opportunity now just might be the time to jump right in.
