Automotive Connector Market - Forecast(2024 - 2030)

The Automotive Connector Market size is estimated to reach $ 11.40 Billion by 2030, after growing at a CAGR of 21.6% during 2024-2030. The Electric Vehicle (EV) connector market is witnessing rapid growth driven by the global shift towards sustainable transportation. Automotive Connectors are pivotal components enabling the charging of electric vehicles, encompassing various types such as AC connectors, DC connectors, and wireless charging connectors. Escalating concerns about environmental degradation propel the market, stringent government regulations promoting electric mobility, and technological advancements enhance charging infrastructure. Moreover, the increasing adoption of EVs by consumers and businesses alike further boosts the demand for Automotive Connectors. Additionally, with consumers demanding quicker and more convenient charging solutions, there's a notable trend toward developing fast-changing technologies. Manufacturers are investing in research and development to enhance charging speeds while maintaining safety standards. Ultra-fast DC chargers, capable of providing significant mileage in a short charging duration, are gaining traction. Additionally, advancements in battery technology complement fast charging solutions, ensuring compatibility and efficiency. Moreover, the integration of smart connectivity features within Automotive Connectors is another notable trend. This includes features such as data monitoring, remote accessibility, and payment processing capabilities. Smart connectors enable users to monitor charging status, schedule charging sessions during off-peak hours for cost-efficiency, and remotely control charging processes via smartphone applications. Moreover, integrating payment systems directly into connectors simplifies the billing process for EV charging services, enhancing user experience and expanding the adoption of EVs.

The report: “Automotive Connector Market– Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Automotive Connector market.

By Connector Type: AC Connectors, DC Connectors

By Voltage:  Medium Voltage, Low Voltage, High Voltage

By Propulsion: BEV, HEV, PHEV, FCEV, Petrol, Diesel, Others

By Application: Battery Management System, Body Control and Interiors, Infotainment System, Engine Management and Powertrain, Vehicle Lighting, ADAS, and Safety System, Others

By Geography:  North America, South America, Europe, APAC and RoW

• The APAC region Automotive Connector Market held the largest share of 40.2% in 2023, This robust presence underscores the region's pivotal role in driving the adoption and growth of electric vehicles, reflecting evolving consumer preferences and government initiatives towards sustainable transportation solutions

• Governments and private companies are investing heavily in EV charging infrastructure to support the growing number of electric vehicles. This expansion of charging infrastructure is driving the demand for Automotive Connectors for public charging stations and home charging units. 

• Manufacturers in the Automotive Connector market is focusing on developing advanced connector technologies to meet the evolving needs of electric vehicle charging infrastructure. This includes innovations in connector design, materials, and compatibility with fast-charging systems. 

 

                          

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By Propulsion, the BEV segment is expected to have the largest share of over XX% in 2023. The demand for Automotive Connectors is surging as electric vehicles (EVs) revolutionize transportation. BEVs, with their intricate electrical systems, require a higher quantity of connectors than traditional gasoline vehicles. These connectors are crucial for seamless power and data transmission among components like electric motors, high-voltage batteries, and sensors. Meeting this demand is essential for ensuring the reliable and efficient operation of BEVs, driving innovation and growth in the Automotive Connector market. For instance, in 2023, the demand for Battery Electric Vehicles (BEVs) surged, constituting a notable portion of the United States' new light-duty vehicle sales. This increase from 12.9% in 2022 to 16.3% in 2023 underscores a growing preference for electric propulsion, reflecting a shift towards cleaner and more sustainable transportation choices among consumers.

Charging Level, the Level 3 Charging segment is expected to have the largest share of over XX% in 2023. This momentum is driven by escalating demand for rapid charging solutions, underscoring the pivotal role of Level 3 Charging in accommodating the burgeoning EV ecosystem. For instance, in 2023, The introduction of Teal Electrification Systems' 30 kW Level Three DC Fast Charger, capable of enduring extreme temperatures down to -40 degrees Celsius, is set to drive a surge in demand for robust Automotive Connectors. As consumers seek reliable charging solutions, the market anticipates heightened interest in resilient, cold-resistant connectors.

Battery Management Systems dominated the Automotive Connector Market with a value share of approximately XX% in 2023. Battery Management Systems (BMS) are pivotal in optimizing battery performance and prolonging its lifespan in electric vehicles. By monitoring vital parameters like current, voltage, and internal temperature, BMS ensures precise power delivery to the motor, minimizing stress on the battery. Essential functions include power optimization, damage mitigation, and control over charging/discharging. In Automotive Connectors, BMS facilitates cell monitoring, temperature sensing, voltage measurement, communication with vehicle control systems, and power distribution. The growing dominance of BMS is driving demand within the Automotive Connector market, reflecting the industry's focus on efficiency and longevity. For instance, in May 2023, Sensata Technologies launched the c-BMS24X Battery Management System with Advanced Software Features for Industrial Applications and Low Voltage Electric Vehicles, boasting advanced software features for industrial applications and low-voltage electric vehicles, underscoring the growing demand for high-performance solutions in the EV sector. With capabilities to enhance vehicle range, uptime, and battery health, the system targets applications with up to 24 cells in series and 2000+A continuous current. This innovation is likely to drive a surge in demand for Automotive Connectors, as manufacturers seek compatible and efficient components to integrate with sophisticated battery management systems. These are the factors propelling the market growth.

The APAC Automotive Connector Market held the largest share of 40.2% in 2023. The Asia Pacific region's rapid embrace of electric vehicles, fueled by government incentives, rising fuel costs, and growing environmental awareness, is spurring a surge in demand for EV-specific connectors. Leading automotive manufacturers in APAC are prioritizing the development and integration of these connectors to support the expanding EV market. This trend underscores a pivotal shift towards sustainable transportation solutions in the region. For instance, In March 2023, the Indian government announced a grant of Rs. 800 crores to state-owned oil marketing companies (OMCs) to set up 7,432 public fast-charging EV stations across the country. The Ministry of Heavy Industries has also sanctioned the construction of 2,877 EV charging stations across multiple states, as well as 1,576 stations across 16 highways and 9 expressways. The surge in China's electric vehicle (EV) charging infrastructure, with 716,000 new charging piles added in Q1 2024, marks a 13.2% increase year-on-year. With a total of approximately 9.31 million charging piles by March, this robust growth underscores the escalating demand for Automotive Connectors across the Asia-Pacific region. As EV adoption continues to rise, the APAC Automotive Connector Market is poised for significant expansion, catering to the burgeoning need for efficient charging solutions.

With growing concerns about climate change and environmental pollution, governments worldwide are implementing regulations and incentives to promote electric vehicle adoption. This surge in EV sales directly correlates with an increased demand for charging infrastructure and Automotive Connectors. For instance, according to the Ministry of Road Transport and Highways, electric vehicle (EV) sales in India reached 1.53 million units in 2023, which is a 50% increase from 2022. This accounts for 6.4% of all automobile sales. Additionally, for instance, the International Energy Agency In 2023, electric car registrations in the United States surged to 1.4 million, marking a 40% increase from 2022. Although the growth rate was slower than in previous years, demand for electric vehicles remained robust. This trend underscores the continued momentum toward electric mobility, driven by factors such as environmental concerns and technological advancements.

The increasing demand for fast-charging electric vehicle connectors is directly related to the growing number of electric vehicles globally. As the popularity of electrical and hybrid electric vehicles continues to rise. For instance, JAE introduced the KW11 Series CCS Type-1 fast charging connectors for EVs in August 2023, and demand for fast-charging Automotive Connectors has surged. This rise is driven by the increasing adoption of electric vehicles and the need for efficient charging infrastructure. The KW11 Series' compliance with fast charging standards ensures compatibility and reliability, meeting the growing demand for rapid charging solutions in the EV market.

High installation costs for EV charging points pose a significant obstacle to the expansion of the EV charging connector market. This challenge stems from the extensive infrastructure needed to facilitate electric vehicle charging. Addressing this issue requires innovative solutions to reduce installation expenses, such as streamlining permit processes, incentivizing private investment, and implementing standardized charging infrastructure. Overcoming this hurdle is crucial for fostering widespread adoption of electric vehicles and promoting sustainable transportation alternatives.

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Automotive Connector market. Major players in the Automotive Connector Market are, Sumitomo Corporation, Tesla, Inc., Yazaki Groupe, Siemens AG, Schneider Electric, Fujikura, Robert Bosch GmbHAmphenol Corporation, Huber+Suhner, TE Connectivity, and Others.

 In March 2024, Siemens unveiled the 400 kW SICHARGE D, enhancing its EV charging lineup for IEC markets. This high-power charger facilitates dynamic charging for up to four vehicles simultaneously, ideal for highway charging and diverse use cases. Its robust capabilities cater to a broad range of vehicles, bolstering Siemens' commitment to advancing EV infrastructure globally.

 In Augst 2023, Y-EMEA expanded its production capacity with a 67,000 sqm acquisition in Egypt's Fayoum investment-free zone. This move by Yazaki Egypt focuses on scaling up wire harnesses and electrical systems production, marking a strategic investment in the region's automotive sector.

 In April 2023, Schneider Electric introduced EVlink Home charger in Sydney, NSW, featuring an enhanced design for seamless installation and cost-effectiveness. New anti-tripping device ensures uninterrupted car charging, providing homeowners with optimum performance, revolutionizing at-home EV charging for a convenient and reliable experience.