Automotive Connectors Market (By Product: PCB, Fiber Optic; By Connectivity; By Vehicle; By Application: Powertrain, Navigation & Instrumentation) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

Automotive Connectors Market Size and Forecast 2024 to 2033

The global automotive connectors market size was estimated at around USD 6.92 billion in 2023 and it is projected to hit around USD 13.27 billion by 2033, growing at a CAGR of 6.73% from 2024 to 2033. The automotive connectors market plays a crucial role in the ever-evolving automotive industry, as these components enable the transmission of data, power, and signals between various electronic systems in a vehicle. With the growing adoption of advanced technologies such as electric vehicles (EVs), autonomous driving systems, and connected cars, the demand for reliable and efficient connectors is rapidly increasing.

Key Pointers

• Asia Pacific led the global market with the largest market share of 41% in 2023 and is projected to grow at the fastest CAGR of 10.03% over the forecast period.
• North America held the largest revenue share of 26% share in 2023.
• Europe captured the maximum market share of 31% in 2023.
• By Product, the fiber optic segment is estimated to expand the fastest CAGR of 9.63% from 2024 to 2033.
• By Connectivity, the wire-to-wire segment captured the maximum market share of 33% in 2023.
• By Vehicle, the passenger car segment dominated the market, capturing 74% of the revenue in 2023
• By Vehicle The commercial vehicle segment is estimated to expand the fastest CAGR of 7.32% from 2024 to 2033.
• By Application, the safety and security segment captured the maximum market share of 26% in 2023.

What are the Growth Factors of Automotive Connectors Market?

The growth of the automotive connectors market is driven by an increasing adoption of electric vehicles (EVs) and hybrid vehicles, which require advanced electronic systems for efficient power distribution and data transmission. Additionally, the rise of autonomous driving technologies and connected vehicles has amplified the need for reliable connectors to support critical functions such as navigation, communication, and safety features. Stringent government regulations promoting vehicle safety and emissions reduction also contribute to market expansion, as modern vehicles integrate more sensors, cameras, and advanced driver-assistance systems (ADAS), all of which depend on high-performance connectors for seamless operation.

What are the Trends in Automotive Connectors Market?

• Rise of Electric Vehicles (EVs): The increasing production of electric and hybrid vehicles demands advanced connectors for power distribution and data management, boosting market growth.
• Growth in Autonomous Driving: The development of autonomous vehicles requires sophisticated connectors to support advanced driver-assistance systems (ADAS), sensors, and control units.
• Connected Cars: As vehicles become more connected, the need for high-performance connectors to support in-car communication, infotainment systems, and real-time data sharing has surged.
• Miniaturization of Components: Automotive connectors are becoming smaller and more compact to accommodate the growing number of electronic systems without adding significant weight.

What are the Key Challenges Faced by Automotive Connectors Market?

• High Cost of Advanced Connectors: The integration of complex electronic systems, especially in electric and autonomous vehicles, increases the cost of advanced connectors, which can impact affordability.
• Durability and Reliability Concerns: Automotive connectors must withstand harsh environments, including extreme temperatures, vibrations, and exposure to moisture, posing challenges to their durability and long-term reliability.
• Technological Complexity: As vehicles incorporate more sophisticated systems like ADAS and autonomous driving technologies, the design and manufacturing of connectors become increasingly complex.
• Stringent Regulatory Standards: Meeting global safety and environmental regulations requires continuous innovation and testing, which can slow down product development and increase costs for manufacturers.

Which Region Dominates the Automotive Connectors Market?

Asia Pacific led the market with the largest revenue share of 41% in 2023 and is projected to grow at the fastest CAGR of 10.03% over the forecast period. China, Taiwan, and Japan are major producers of automotive electronic components, benefiting from access to raw materials, low-cost labor, and advanced manufacturing facilities. China, a global car manufacturing hub, is playing a significant role in market growth due to its mass production capabilities, supportive government policies, and robust infrastructure.

What is the Contribution of North America to Automotive Connectors Market?

North America dominated the global automotive connectors market with a 26% share in 2023. In the U.S., the market is expected to grow at a CAGR of 3.63% over the forecast period. The post-COVID-19 surge in car purchases, particularly among working professionals, has positively impacted the market.

Europe accounted for 31% of the global market in 2023, with Germany and the UK contributing significantly to regional growth. Advancements in Germany's automotive sector have increased demand for connectors. Additionally, several European countries plan to transition to electric vehicles, phasing out petrol/diesel cars, which is expected to further fuel regional market growth.

Product Insights

The fiber optic segment is projected to grow at the fastest CAGR of 9.63% during the forecast period. Key factors driving this growth include enhanced safety in transmission, compact size, and flexible design options. As automobile manufacturers continue to improve the features integrated into vehicles, the performance and quality of connectors become essential. Fiber optics enhance communication speed and sensing capacity, which boosts the performance of vehicle security features, thereby contributing to market expansion.

Connectivity Insights

In 2023, the wire-to-wire segment held a market share of 33%. These connectors are widely used for power distribution and data transmission due to their ability to ensure seamless power flow and communication between electrical components.

Meanwhile, the wire-to-board segment is expected to register a CAGR of 5.53% over the forecast period. These connectors facilitate the transfer of commands between electronic devices and printed circuit boards (PCBs). The "others" category, which includes board-to-board connectors, is utilized for connecting multiple PCBs.

Vehicle Insights

The passenger car segment dominated the market, capturing 74% of the revenue in 2023. The rising sales of passenger cars in densely populated and developing nations like China and India are driving this segment. Customers are increasingly seeking vehicles equipped with enhanced safety and security features.

The commercial vehicle segment is anticipated to witness the fastest CAGR of 7.32% from 2024 to 2033. Stringent government safety regulations for commercial vehicles and the growing industrial sectors worldwide are expanding supply and distribution networks, increasing the demand for commercial vehicles and positively impacting market growth.

Application Insights

In 2023, the safety and security segment held the largest market share at 26%. Technological advancements have introduced numerous safety features in vehicles, such as adaptive front lighting, adaptive cruise control, park assistance, and lane departure warning. These features rely on a range of electronic components, sensors, and ECUs.

The navigation and instrumentation segment is projected to grow at the fastest CAGR of 8.94% during the forecast period. Enhanced GPS accuracy and the integration of advanced software such as Apple CarPlay and Android Auto have driven the adoption of navigation systems in both commercial and passenger vehicles.

Who are the Top Manufactures in Automotive Connectors Market?

• TE Connectivity
• Aptiv PLC
• Amphenol Corporation
• Yazaki Corporation
• Molex Incorporated
• Sumitomo Electric Industries, Ltd.
• Hirose Electric Co., Ltd.
• JST Manufacturing Co., Ltd.
• Kyocera Corporation
• Rosenberger Group

Recent Developments

• January 2024: Amphenol Corporation, a leading provider of sensor, interconnect, and antenna solutions, announced the acquisition of PCTEL. This acquisition is expected to enhance growth opportunities by combining the strengths of both organizations.
• November 2023: Molex Incorporated, a specialist in electronics and connectors, expanded its global manufacturing footprint by opening a new campus in Poland, aimed at enhancing production capacity and meeting increasing market demands.
• February 2021: KYOCERA launched the 0.5mm-Pitch 5652 Series, a board-to-board floating connectors series for automotive and other applications. These connectors come in a variety of stacking heights, providing flexibility for diverse applications.

Automotive Connectors Market Segmentation:

By Product

• PCB
• IC
• RF
• Fiber Optic
• Other

By Connectivity

• Wire to Wire
• Wire to Board
• Other

By Vehicle

• SMEs
• Large Enterprises

By Application

• CCE
• Powertrain
• Safety & Security
• Body Wiring & Power Distribution
• Navigation & Instrumentation

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa (MEA)