Report : Automotive Electrical Connectors Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type (Cable Lugs, Battery Clamps, High Voltage Busbars, and Fuse Boxes), Vehicle Type [Passenger Cars, Light Commercial Vehicle (LCV), and Medium and Heavy Commercial Vehicle (M&HCV)], and Powertrain Type [Internal Combustion Engine (ICE), Electric Vehicle (EV), Plug-In Hybrid Electric Vehicle (PHEV), and Hybrid Electric Vehicle (HEV)]
According to the new research report titled “Automotive Electrical Connectors Market Forecast to 2028 – COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 2,286.97 million by 2028, registering a CAGR of 8.9% from 2021 to 2028.
The automotive industry is growing with the advancements in electronics and electrical systems of vehicles. The advent of connected cars, electric cars, and hybrid cars is accelerating the automotive industry's growth due to enhanced features in these vehicles. Automobile companies are offering maximum features for the customers to enhance their driving experience. The numerous developments in vehicles have increased the electrical system's count in vehicles as more connected technologies are integrated into vehicles. There is an increase in importance of automotive electrical connectors as they form an efficient connection for power transmission. Electrical connectors such as busbars and fuse boxes play a vital role in the automotive industry.
To distribute power effectively, specifically in electric vehicles, the demand for high voltage busbars is rising, which is driving the market. For instance, in March 2020, Royal Power Solutions, a supplier of automotive components, introduced a new connector and conductor product for electric vehicles and hybrid vehicles. The company introduced a new High-Power Lock Box (HPLB) connector and RigiFlex busbar with integrated HPLB terminals. Similarly, in March 2021, Furukawa Electric Co., Ltd started to deliver high-voltage power distribution component modules, such as busbars, for Toyota MIRAI Toyota MIRAI as well as other hydrogen fuel cell vehicles. The increasing electrification in vehicles creates a need for advanced connectors such as high voltage busbars and fuse boxes which is driving the market.
The COVID-19 outbreak is adversely affecting the world and is continuing to shatter several countries. The automotive original equipment manufacturers (OEMs) and the players in the electronic vehicle industry are the experiencing the hardest hit due to the pandemic. The outbreak is likely to pose a lasting impact on mobility as it has led to dramatic change in the consumer behaviors, macroeconomic environment, and regulatory changes. The market witnessed a downfall in the beginning of the pandemic, whereas with the increasing recovery of patients and decreasing numbers of COVID-19 confirmed cases, the market started to improve and witness an uptrend in case of the electric vehicle industry, as well.
Key Findings of Study:
The automotive electrical connectors market is segmented on the basis of type, vehicle type, powertrain type, and geography. By geography, the market is segmented into five major regions—North America, Asia Pacific (APAC), Europe, the Middle East & Africa (MEA), and South & Central America (SCAM). North America held the largest share of the market in 2020, followed by Europe and Asia Pacific. Further, the market in Asia Pacific is projected to witness the highest growth rate during the forecast period. Based on type, the automotive electrical connectors market is segmented into cable lugs, battery clamps, high voltage busbars, and fuse boxes. The cable lugs segment represented the largest share of the overall market in 2020. In terms of vehicle type, the automotive electrical connectors market is segmented into passenger cars, light commercial vehicle, and medium & heavy commercial vehicle. In 2020, the passenger cars segment accounted for the substantial market share.