Automotive Connectors Market Size (USD 22.24 Bn) by 2033

Market Overview

The global automotive connectors market size is estimated to reach USD 22.24 billion by 2033, up from USD 10.26 billion in 2023, at a compound annual growth rate (CAGR) of 8.19% from 2024 to 2033.

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Automotive connectors are important component or tool in many automotive systems. They provide reliable connections between multiple electrical circuits while inhibiting interference that can affect the performance of the car. These connectors serve critical functions, facilitating power distribution, data transmission, and communication between various vehicle components.

The increasing adoption of electric vehicles (EVs) is driving the demand for specialized connectors capable of handling high voltages and supporting battery management systems. The integration of advanced driver-assistance systems (ADAS) and connected features in vehicles is fueling the need for high-speed data transmission connectors. Moreover, the emphasis on miniaturization, light weighting, and robustness of connectors is enhancing their appeal across various automotive applications.

Key Trends and Findings

• The automotive industry is experiencing a significant shift towards electrification, with electric vehicles (EVs) gaining traction globally. This trend is driving the demand for specialized connectors capable of handling high voltages and currents required for EV powertrains and battery management systems.
• The integration of ADAS technologies such as lane departure warning, adaptive cruise control, and automatic emergency braking is driving the demand for high-speed data transmission connectors. These connectors enable the seamless communication between sensors, cameras, and control units, enhancing vehicle safety and automation.
• The rise of connected vehicles is fueling the demand for connectors that support vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), and vehicle-to-everything (V2X) communication. These connectors facilitate data exchange between vehicles and their surrounding environment, enabling features such as real-time traffic updates, remote diagnostics, and over-the-air (OTA) software updates.
• The North American automotive connectors market is driven by technological innovation, stringent regulatory standards, and the presence of leading automotive manufacturers. The region is witnessing significant investments in electric and autonomous vehicles, driving the demand for advanced connectors.
• With the presence of major automotive manufacturers in countries such as China, Japan, and South Korea, the Asia-Pacific region is witnessing robust growth in the automotive connectors market. The shift towards electric vehicles, coupled with government initiatives to promote clean energy, is driving the demand for connectors in this region.

Market Drivers

Surge in Electric Vehicle Adoption

The transition towards electric vehicles (EVs) is anticipated to augment the growth of the automotive connectors market during the forecast period. As the automotive industry increasingly embraces electrification, the demand for specialized connectors personalized to the unique requirements of EVs experiences a surge. These connectors are essential components facilitating the operation of high-voltage systems, efficient battery management, and seamless charging infrastructure integration within electric vehicles.

Some of the developments taking place are as follows

• In July 2023, ABB unveiled a high-voltage connector for the heavy-duty electric vehicle sector. ABB's Harnessflex EVO Connector Interfaces, distinguished by their electric vehicle orange hue, are engineered to signify high-voltage wiring and components. These connectors not only provide robust cable-to-connector strain relief but also boast high mechanical performance, effectively safeguarding against debris intrusion.
• In November 2023, Aptiv entered into a partnership with the regional government to manufacture high-voltage connectors in Wuhan, located in central China. This collaboration aligns with the growing trend towards intelligent electric vehicles within the Chinese market.

The intricate nature of EVs necessitates advanced connector technologies capable of accommodating the increased demands and complexities associated with electric powertrains. Consequently, connector manufacturers are prompted to innovate and develop cutting-edge solutions to meet the evolving needs of the electric vehicle market. This surge in demand not only fuels the growth of the automotive connectors market but also highlights the importance of connectors in enabling the widespread adoption and advancement of electric mobility, driving forward the transition towards a more sustainable automotive ecosystem.

Market Restraints

Competition from Alternative Technologies to Limit the Market Growth

As the automotive industry evolves, alternative technologies like wireless connectivity and conductive charging are gaining prominence, posing a prominent restraint for traditional connectors. These innovative solutions offer alternatives to conventional connector-based systems, potentially diminishing the demand for traditional connectors in specific applications. Wireless connectivity, for instance, enables data transmission and power transfer without physical connectors, offering flexibility and convenience.

Similarly, conductive charging technologies eliminate the need for physical connectors by directly transferring power to the vehicle's battery through contact with a charging pad or strip. While these alternative technologies present advantages such as increased convenience, reduced maintenance, and enhanced aesthetics, they also pose challenges for traditional connector manufacturers by potentially limiting their market share and necessitating adaptation to changing industry dynamics. Consequently, connector manufacturers face the imperative to innovate and diversify their product offerings to remain competitive in an automotive landscape increasingly shaped by emerging technologies.

Market Opportunities

Introduction of ADAS

The implementation of Advanced Driver-Assistance Systems (ADAS) has significantly enhanced driving safety, fostering a secure driving environment. Through the collaboration of advanced sensors with a human-machine interface, ADAS safeguards vehicles against collisions, promoting both safety and driving comfort. Furthermore, technological advancements have bolstered the predictive capabilities of ADAS, enabling seamless collision prevention without requiring immediate driver intervention, thus reducing fatalities on highways. The integration of diverse sensor types and systems ensures the delivery of accurate information concerning road and vehicle performance conditions, driving continuous technological advancements in the field.

Molex has devoted significant resources to the advancement of sophisticated micro-connectors and has introduced specialized board-to-board connectors tailored for ADAS applications. This initiative by Molex is poised to facilitate the industry's efforts towards the miniaturization development of ADAS. Specifically, Molex has rolled out SlimStack board-to-board connectors, encompassing the floating FSB3 and FSB5 series, to cater to ADAS requirements.

Amphenol is well-prepared to tackle the forthcoming challenges of next-generation technology with its impeccable connector solutions. These solutions include HSBridge+ connectors featuring an automotive-grade USB Type C interface, USCAR-2 compliant connectors such as NETBridge™ Automotive Ethernet connectors, the HSD connector system equipped with shielded twisted quad cables designed for LVDS camera applications, compact 0.50mm square terminals, and high-speed HSC Connector Systems, providing comprehensive support for ADAS functionalities.

The automotive industry's advancement in Advanced Driver-Assistance Systems (ADAS) necessitates compact, high-speed connectors that offer reliability, stability, and efficiency. Currently, ADAS applications are transitioning through the development stages toward fully automated driverless operation. As artificial intelligence technology matures, various driving assistance modules will progressively integrate, leading to reduced reliance on human intervention and eventual realization of fully autonomous driving. In the evolving landscape, connectors capable of supporting the miniaturization requirements of automotive ADAS will witness heightened demand.

Key Segment Analysis

Connection Type Segment Analysis Preview

The wire-to-wire segment captured largest market share of 48.31% in 2023. The wire-to-wire connectors offer a versatile and reliable means of establishing connections between various vehicle components, facilitating seamless communication and power distribution. Their compatibility with a wide range of applications, from powertrain systems to infotainment and lighting, contributes to their widespread adoption across the automotive industry. Additionally, the inherent simplicity and ease of installation of wire-to-wire connectors make them a preferred choice for automotive manufacturers seeking efficient and cost-effective solutions. Furthermore, advancements in connector technology, such as enhanced durability, improved signal integrity, and miniaturization, have further bolstered the appeal of wire-to-wire connectors, driving their market dominance.

Vehicle Type Segment Analysis Preview

The passenger cars segment held largest market share of 72.89% in 2023. The sheer volume of passenger cars on the roads compared to commercial vehicles contributes significantly to the market share of this segment. Passenger cars represent a vast consumer market globally, with a continuous demand for automotive connectors driven by factors such as new vehicle purchases, maintenance, and technological upgrades. Additionally, the increasing integration of advanced technologies in passenger cars, including infotainment systems, ADAS features, and electric powertrains, further propels the demand for automotive connectors.

Regional Insights

Asia Pacific dominated the market with 35.82% of shares in the global automotive connectors market. The region is a powerhouse in the automotive industry, with countries like China, Japan, South Korea, and India leading in vehicle production and sales. The continuous growth of the automotive sector in this region drives the demand for automotive connectors, as vehicles increasingly incorporate advanced technologies and electronic systems.

According to India Brand Equity Foundation, in February 2022, the government selected 20 car manufacturers, which include Hyundai, Tata Motors Ltd, Mahindra and Mahindra, Suzuki Motor Gujarat, and Kia India Pvt. Ltd, to receive production-linked incentives (PLI) with the aim of boosting local vehicle manufacturing and attracting fresh investment. These 20 automotive companies collectively proposed an investment totaling approximately US$ 5.95 billion (Rs. 45,000 crore).

As per projections from NITI Aayog and the Rocky Mountain Institute (RMI), it is anticipated that India's electric vehicle (EV) finance sector will grow to approximately US$ 50 billion (Rs. 3.7 lakh crore) by the year 2030.

Furthermore, governments across the region are implementing policies and incentives to promote electric vehicles as part of efforts to reduce emissions and combat air pollution. This shift towards EVs drives the demand for specialized connectors for high-voltage systems, battery management, and charging infrastructure.

North America is expected to grow at a substantial CAGR of 7.38% during the forecast period. Many airports in the region are undergoing modernization projects to upgrade infrastructure and enhance passenger experience. This includes the adoption of advanced ground transportation solutions like electric and autonomous automotive connectors to improve efficiency and sustainability. Furthermore, stringent environmental regulations in the region are driving the adoption of cleaner and greener transportation technologies. This includes incentives for airports to invest in electric and hybrid automotive connectors to reduce emissions and comply with environmental standards.

Recent Developments by Key Market Players

• June, 2023: SAE International declared its intention to standardize the North American Charging Standard (NACS) connector developed by Tesla. This move aims to enable any supplier or manufacturer to utilize, produce, or implement the NACS connector on electric vehicles (EVs) and charging stations throughout North America. Notably, Ford Motor Company, General Motors, Rivian, and various EV charging firms have recently unveiled intentions to embrace the NACS connector, either through adaptors or forthcoming product lines.
• November, 2022: Molex Incorporated (Molex), a renowned manufacturer of automotive connector systems, revealed its plans to expand its Guadalajara, Mexico facility by establishing a second plant. This expansion aims to address the growing demand in the market by boosting production capacity for components utilized in electric vehicles (EVs).
• March, 2022: TE Connectivity (TE) introduced a ground-breaking Generation Y 68P Sealed Hybrid Inline Connector, revolutionizing manufacturing processes for OEMs. This innovative connector streamlines operations by minimizing the number of connections, simplifying supply chain logistics, and cutting costs. The Generation Y 68P serves as a comprehensive solution, seamlessly integrating signal, power, and data connectivity into a single connector.  The connector targets automotive industry's increasing electronic content in vehicles.
• October, 2020: JAE unveiled its latest connector line, the MX80 Series of Compact Waterproof Automotive In-line Connectors. Designed to cater to a range of vehicle applications including side view mirrors, actuating motor functions, indicator lights, and blind spot monitors, these connectors boast waterproof capabilities and a compact form factor suitable for both internal and external vehicle environments.
• July, 2019: Panasonic Corporation declared the commencement of full-scale mass production for its "Board to FPC Connector" (Series name CF1). This connector facilitates the reduction of components and assembly person-hours in vehicles while also enabling enhanced design possibilities for automotive LED lights and similar applications.

Market Companies

Some of the key players in automotive connectors market are Amphenol Corporation, Sumitomo Electric Industries, Ltd., Molex, JAE, TE Connectivity, HIROSE ELECTRIC CO., LTD., YAZAKI Corporation, Fischer Connectors, Aptiv, and Delphi Automotive, among others.

Market Segments

By Connection Type

• Wire to Wire
• Wire to Board
• Board to Board

By System Type

• Sealed Connection
• Unsealed Connection

By Application

• Body Control
• Safety and Security System
• Engine Control and Cooling system
• Fuel and Emission Control
• Infotainment
• Others

By Vehicle Type

• Passenger Cars
• Commercial Vehicles

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • U.K.
  • France
  • Germany
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • South-East Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC CountriesSouth Africa
  • Rest of Middle East & Africa