Analysis by Vehicles (Passenger Vehicles, and Commercial Vehicles); Cable (Controller Area Network {CAN}, Controller Area Network Flexible Data-Rate {CAN-FD}, Flexray, Ethernet, Low Voltage Differential Signaling (LVDS), and Coaxial Cables); and Application (Powertrain, Body Control & Comfort, Infotainment & Communication, and Safety & ADAS) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
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The global automotive data cables market is estimated to garner a revenue of around USD 20 Billion by the end of 2035 by growing at a CAGR of ~10% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of nearly USD 7 Billion in the year 2022. The growth of the market can be attributed to the increasing sales of automobiles, which in turn is also expected to boost the demand for automotive data cables. Although the number of vehicles sold globally was nearly 66 million in 2022, however, this number is less than the approximately 67 million vehicles sold in 2021. Also, by the end of 2023, it's predicted that 70 million cars will have been sold.
In addition to these, factors that are believed to fuel the market growth of automotive data cables include the rise in the number of people connected to the Internet of things (IoT). Moreover, the connected vehicle requires a lots of data transmission. Globally, there were around 237 million linked automobiles in 2021, and by 2025, there should be almost 400 million. On the other hand, market growth is also expected on the account of rising sales of electric and luxury cars. Since their introduction to the market in 1999 and 2010, respectively, about 5.4 million hybrid electric vehicles and more than 1.4 million plug-in electric vehicles have been sold in the United States. Furthermore, by 2027, it's anticipated that approximately 19,000 premium automobile units would be sold in Germany.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~10% |
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Base Year Market Size (2022) |
~ USD 7 Billion |
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Forecast Year Market Size (2035) |
~ USD 20 Billion |
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Regional Scope |
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Growth Drivers
Rising Use of Vehicle Telematics–telematics uses cable installation to bring information about vehicle location, danger warnings, traffic status, and others by using vehicle telematics. About 45% of Americans expressed the need to have a blind spot warning system, while roughly 51% said they want a backup warning from the car.
Rising Popularity of Autonomous Vehicles – The cables are appropriate for various applications in an autonomous vehicle involving control, comfort, power, safety, and sensors Self-driving technology is projected to be installed in every ten automobiles globally by 2030.
Increasing Number of Connected Vehicles– High data transfer rates are necessary for connectivity inside the car, between vehicles, and with the environment, which is facilitated by the networks of the cables. Connectivity solutions are urgently needed since people want their cars to accomplish all of the same tasks as their laptops and mobile devices. More than 2 billion connected cars are anticipated to exist globally by 2030.
Higher Integration of ECU in Automobiles – All of the car's electronic components that are currently also connected digitally are controlled by the automotive electronic control unit (ECU). Therefore, data cables help with faster data transmission for infotainment and other features. In today's vehicles, there may be 100 ECUs or more, managing everything from the basic operations such as the engine and power steering to more advanced ones.
Rise in the Number of Electric Vehicles – Electric vehicles are completely dependent on charging cables for channeling power and data throughout the vehicle. Almost 6 million electric cars were sold worldwide in 2022, and 2 million electric cars were sold in the first quarter.
Challenges
The global automotive data cables market is segmented and analyzed for demand and supply by cable into controller area network (CAN), controller area network flexible data-rate (CAN-FD), flexray, ethernet, low-voltage differential signaling (LVDS), and coaxial cables. Out of the six types of cables, the controller area network flexible data rate (CAN-FD) segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the faster data transmission abilities of CAN-FD over other cables, followed by higher bandwidth requirements. A conventional CAN allows a maximum payload of 8 bytes per frame which often comes with speed restrictions. However, CAN FD enhances the effective data rate by permitting longer data fields of up to 64 bytes per frame. Furthermore, the segment is expected to grow at a CAGR of approximately 13% over the projected time frame.
The global automotive data cables market is also segmented and analyzed for demand and supply by vehicles into passenger vehicles, and commercial vehicles. Amongst these two segments, the commercial vehicles segment is expected to garner a significant share. The growth of the segment is expected on the account of the rising use of various services, such as online food ordering, online shopping, and others. These all services need commercial vehicles and all the advanced technologies that are associated with the vehicles. The commercial vehicle uses telematics for keeping an eye on driver conduct and vehicle schedules. Also, it aids in vehicle tracking and provides an expected arrival time for customer orders. As of March 2020, about 38% of American consumers had ordered food via a food delivery app. By March 2021, 47% of Americans had used a food delivery app. Furthermore, as of 2023, there are more than 2 billion online shoppers worldwide that makeup up around 27% of the global population.
Our in-depth analysis of the global automotive data cables market includes the following segments:
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By Vehicles |
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By Cable |
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By Application |
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The Asia Pacific automotive data cables market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be attributed majorly to the increasing demand for luxury and electric cars in the region. Around 1 million electric car sales were reported in Japan in 2020. Furthermore, in India, up until March 2022, almost 24,000 premium vehicles were sold. In addition to this, given the increasing demand for premium vehicles in China in 2021, German automakers imported roughly 840,000 BMW and Mini vehicles into the country. Besides this, the market growth in the region is also attributed to the rising adoption of ADAS systems. Out of the total number of car sold worldwide, around 52% of cars in Japan have an ADAS system, followed by nearly 30% in Mainland China.
The North America automotive data cables market, amongst the market in all the other regions, is projected to hold the second largest share during the forecast period. The market growth in the region is expected on the account of the rising use of vehicle telematics for reducing oil consumption by vehicles. Almost 40% of the oil used in the United States in 2020 was used by light-duty cars. Furthermore, a rise in the number of vehicles connected to Internet of Things (IoT) is anticipated to augment the market growth in North America. Over 84 million connected vehicles were driving on American roadways in 2021. By 2035, their number is anticipated to exceed 305 million, making the US the largest market for connected vehicles.
Further, the Europe automotive data cables market, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The market growth in Europe is ascribed to the rising concern for vehicle and road safety that are often detected by sensors present in automotive safety systems. These systems are run by telematics and transmit the data to the user. In order to increase vehicle and traffic safety, the European Commission introduced the new Vehicle General Safety Regulation, under which, automated braking, lane-keeping systems, speed assistance, and reversing detection with cameras and sensors are some of the general safety regulations. The regulations become effective in July 2022 and must be observed through July 2024. Considering the strict rules and regulations for road safety, vehicle manufacturers are expected to implement advanced features to enhance the safety of the vehicle.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Increasing use of electric control units, rising demand for ADAS systems, rising sales of electric cars, and rising need for vehicle telematics are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~10% over the forecast period, i.e., 2023 – 2035.
Ans: The risk of cyber-attacks in the autonomous vehicle, the rising complexity of electrical components, and the high prices of cables are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Furukawa electric co., LTD., Belden Inc., Champlain Cable Corporation, Prysmian Group, Condumex Incorporated, Coroplast Fritz Müller GmbH & Co. KG, BorgWarner Inc., COFICAB Group, NXP Semiconductors, Sumitomo Electric Industries Ltd., and Acome Groupee
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by vehicles, cables, application, and by region.
Ans: The commercial segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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