Automotive Data Cables Market size is set to surpass USD 9 billion by 2027, according to a new research report by Global Market Insights Inc.
The major force impacting the market is the industry-wide imperative to design smarter, connected cars with sophisticated in-vehicle communication systems. Automotive data cables are an indispensable component for offering in-vehicle media, infotainment, and connected systems. Automotive OEMs across the market are integrating advanced electronic systems with the power train, control systems, and passenger compartment. The growing technological developments and integrations in new generation vehicles are pushing enterprises across the automotive market to leverage sophisticated automotive data cables.
The automotive data cables market is facing severe challenges amid the ongoing COVID-19 outbreak due to limited vehicle production, restrictions on vehicle movement, and supply chain disruption. The sales of passenger cars have also taken a substantial hit, which is expected to moderately hamper the industry growth.
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Increasing sales of connected vehicles with sophisticated ADAS technologies are expected to propel the uptake of automotive data cables
The growing advancements in ADAS systems from prominent automotive players, such as Audi, BMW, and Mercedes Benz, are contributing to the automotive data cables market demand. Recent developments in the automotive market have increased the usage of advanced connected technologies. The need to ensure granular over air system technology and security updates is driving enterprises to adopt advanced automotive data cables. Additionally, the rising adoption of connected and electric vehicles across geographies is fueling the market revenue.
Demand for high bandwidth across connected automotive will augment the ethernet cables market
The ethernet cables segment is anticipated to grow at a CAGR of more than 7% through 2027. The demand for increasing bandwidths is fueling automotive OEMs to invest in high-speed data transmission to smoothen in-vehicle connectivity continually. Premium car manufacturers are looking for high-speed data connectivity. Ethernet cables offer higher bandwidth and low latency for automotive applications, specifically ADAS and infotainment systems. Similar innovations and developments from market players will contribute to automotive data cables market outlook.
Browse key industry insights spread across 250 pages with 227 market data tables and 29 figures & charts from the report, “Automotive Data Cables Market Size By Cable Type (Controller Area Network [CAN], Controller Area Network Flexible Data-Rate [CAN-FD], FlexRay, Ethernet, Low Voltage Differential Signaling (LVDS)/High Speed Data (HSD), Coaxial Cables), By Vehicle Type (Passenger Vehicles, Commercial Vehicles), By Application (Powertrain, Body Control & Comfort), Infotainment & Communication, Safety & ADAS), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Industry-wide emphasis on smart logistics and telematics for commercial vehicles to boost the market demand
The commercial vehicle segment is anticipated to expand at an exponential growth of around 10% CAGR from 2021 to 2027 driven by the increasing use of connected vehicle technologies by fleet owners across the globe. Major truck manufacturers in the automotive industry are integrating advanced communication systems into their vehicles, boosting the demand for automotive data cables. Mercedes-Benz, Volvo, and Scania have been early movers in integrating fleet telematics, creating new market avenues.
Rising popularity of touch-based controls and comfort features will trigger the market growth of body control & comfort segment
The body control & comfort segment held above 15% of the automotive data cables market share in 2020. The demand for sophisticated touch-based controls combined with energy-efficient motors is continuously on the rise as car users seek modern technologies to adjust driving environment and to increase comfort during the drive. To accommodate the increasing number of functions on a shrinking central Body Control Module (BCM), OEMs are deploying high-speed CAN-FD bus and ethernet cables for scalable data transmission architecture.
Presence of premium vehicle OEMs and favorable government initiatives to drive European market growth
Europe automotive data cables market revenue is projected to account for around 25% share in 2027 owing to the presence of high-end automotive manufacturers including Audi AG, BMW AG, Ferrari, Mercedes-Benz, and Volkswagen AG in the region. The vehicles manufactured by these companies are equipped with numerous high-end systems such as voice-activated navigation system, rotary dial gear selector, rain-sensing wipers, remote engine ignition, and climate control, which require high-speed data transmission. The adoption of these high-end vehicles in European countries is a major driving force behind the expanding regional market.
Expansion of automotive data cables production facilities in untapped markets is the key go-to-market strategy for vendors
The companies operating in the industry are emphasizing on geographic expansion for the development of integrated solutions. For instance, in September 2020, Furukawa Automotive Systems Inc. expanded its operations by setting up a new automotive cable production facility in Vietnam. This was a part of the company’s long-term strategy to strengthen its hold in Southeast Asian automotive data cables landscape. Earlier, in May 2018, Furukawa established a facility in the Philippines.
Some of the key players operating in the automotive data cables market include ACOME Group, Amphenol Corporation, Belden Incorporated, Champlain Cable Corporation, Coficab Group, Condumex S.A. de C.V., Coroplast Fritz Muller GmbH & Co. KG, Delphi Automotive PLC, Furukawa Electric Industries Ltd., Gebauer & Griller Kabelwerke GesmbH (GG Group), General Cable Technologies Corporation, HUBER+SUHNER AG, ITC Thermo Cable GmbH, Lear Corporation, Leoni AG, Prysmian Group, SALCAVI S.p.A., Sampsistemi S.r.l, Sumitomo Electric Industries, Waytek, Inc., and Yazaki Corporation.