Impact of COVID-19 on Automotive Wiring Harness Market
A wiring harness is defined as a bundle of wires that performs numerous activities within a vehicle, such as sending signals, data, and power using data transmission and electrical lines.
The demand for high-speed data transmission wiring harnesses has also increased in recent years, and this trend is projected to continue as the number of technological features grows.
During the forecast period, the global automotive wire harness market is expected to increase at a CAGR of 4.1 percent, from USD 47.0 billion in 2021 to USD 57.4 billion in 2026.
Back in 2020, the global pandemic outbreak impacted the growth of the Automotive Wiring industry like every other business.
Many original equipment manufacturers’ production lines have been shut down, impacting the automotive wiring harness market. However, as lockdowns in numerous nations are gradually lifted, demand for automobiles has climbed marginally, indicating that the market will continue to grow in the future years.
To know more about the impact of covid-19 on this bustling industry, keep reading.
Impact of COVID-19
The worldwide supply chain was negatively affected by the COVID-19 outbreak. Components and raw material supplies were hampered by the suspension of car production and the sealing of country borders.
The automobile wiring harness industry was also affected due to this in the year 2020. Compared to Asian countries, the impact was more noticeable in European and North American countries, with severe shutdowns and a greater Covid-19 impact.
Current Market Trend
Even though the Covid-19 outbreak influenced worldwide automobile manufacturing and sales in 2020, sales of electric vehicles rose.
It had a good impact on the wire harness business as well. Aside from increased electric vehicle sales, this market is likely to benefit from increased R&D efforts and growing demand for vehicle weight reduction.
The market is likely to be further boosted by increased demand for lighter and shorter wiring harnesses and advancements in lightweight aluminum.
After a drop in vehicle production and sales in the first half of 2020, a substantial comeback in vehicle production was recorded, by the end of 2020, along with the recovery of major reliant industries on vehicle manufacturing worldwide.
This helped mitigate the impact of the epidemic on output for that year. The recovery is projected to last until 2022-2023, with experts predicting that production will not reach 2019 levels before the end of 2022 or the first six months of 2023.
This recovery is likely to be aided by increased vaccine production and immunization rates, which will allow enterprises to reopen more swiftly. It will positively impact the demand for automobile wire harnesses during the forecast period.
Growth of Asian-Pacific Countries in Automotive Wire Harness Industry
The Asia-Pacific region contributed to over 55% of the worldwide automotive wire harness market in terms of value in 2021. The market’s growth was aided by increased car production in China, Japan, and India.
China is expected to be the market leader in Asia-Pacific automotive wire harnesses during the forecast period. China is the world’s largest automobile producer. As a result, the Chinese market for automobile wiring harnesses is expected to expand rapidly.
Post-Pandemic Forecast
Thanks to global customer preference for personal transportation, rising demand for automated vehicles, and security, the market’s prospects are bright.
More automotive cars will be launched to counteract the economic downturn and stabilize revenue due to the impact of COVID-19 hitting the global transport economy. This opens up a huge income and job-generating opportunity in this sector.
Some of the key determinants for the market’s evolution include a greater emphasis on safety, increasing demand and adoption of electric and hybrid vehicles, and growing automotive technology. However, issues like reliability and durability could stifle the market’s expansion.
With the rise in automation-related incidents, both consumers and authorities are increasingly interested in standard safety features. Therefore, they are attempting to improve their vehicles’ safety systems projected to boost the wire harness business.
Custom Wiring Harness in South Florida
If you want to customize a wiring harness for your automobiles and are looking for authentic wiring suppliers with top-quality harnesses that are durable for your automobiles or boats, American Auto Marine Wiring can end your hunt in South Florida.
AAMW has been in the wiring harness business for over 40 years and has wired some award-winning, high-performance cars. They are well-reputed in the business and will never disappoint you with their services.
If you live in South Florida, get your services at 1414 SW 13 CT Pompano Beach, FL 33069, or visit their website: https://www.customwiring.com. You can also dial (954) 782-0193 for further inquiry.