Automotive Connectors Market Size

Automotive Connectors Market Size

Automotive Connectors Market size was valued at USD 7.9 billion in 2022 and is anticipated to register a CAGR of over 7% between 2023 and 2032, attributed to the increasing demand for electric vehicles. According to the International Council on Clean Transportation, in 2022, the worldwide shift towards electric vehicles (EVs) marked a significant achievement, reaching a milestone of 10 million EVs sold annually—an impressive surge of 54% compared to the figures in 2021. The cumulative global EV sales amounted to 29 million by the conclusion of 2022. Notably, electric light-duty vehicles (LDVs) accounted for 99% of the total EV sales for the year, while electric heavy-duty vehicles (HDVs) constituted the remaining 1%.

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EVs rely heavily on electronic components for propulsion, battery management, charging systems, and other functionalities. As the automotive industry transitions toward electrification, the demand for specialized connectors designed for electric vehicles is expected to increase, driving the growth of the automotive connectors industry.
 

Advancements in connectivity and communication technologies will help shape the market outlook over 2023-2032. The automotive industry is witnessing rapid advancements in connectivity and communication technologies, such as vehicle-to-everything (V2X) communication, in-car networking, and intelligent transportation systems. These technologies require sophisticated and high-performance connectors to facilitate reliable data transfer and communication between various vehicle components. The increasing focus on connectivity and communication is contributing to the growth of the automotive connectors market.
 

Quoting an instance, in October 2023, CEA-Leti unveiled a fresh research and development initiative aimed at advancing vehicle automation and collaboration. The initiative seeks to build upon recent breakthroughs in vehicular wireless communications to enhance reaction times, pedestrian detection, and overall vehicle performance.
 

Drawing insights from its involvement in three EU H2020 projects, CEA-Leti researchers have synthesized the institute's knowledge in vehicle-to-everything (V2X) communication technologies and standards. Their primary objectives encompass the assessment and demonstration of connected and cooperative vehicular systems, with a specific emphasis on enhancing automation and bolstering the safety of vulnerable road users, including pedestrians, workers, and cyclists.
 

However, supply chain disruption could significantly impact the automotive connectors market dynamics in the coming years. The automotive industry is highly dependent on a complex global supply chain. Any disruptions in the supply chain, such as shortages of raw materials, components, or logistical challenges, can impact the production of vehicles. These disruptions can have a cascading effect on the market, as manufacturers may face challenges in obtaining the necessary components to produce connectors, leading to delays and supply shortages.