New York, March 30, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Automotive Cables Global Market Report 2022" - https://www.reportlinker.com/p06248559/?utm_source=GNW
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The global automotive cables market is expected to grow from $4.23 billion in 2021 to $4.66 billion in 2022 at a compound annual growth rate (CAGR) of 10.1%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $6.19 billion in 2026 at a CAGR of 7.4%.
The automotive cables market consists of sales of automotive cables and related services used for data transmission and electrical connections in automotive.Automotive cables are flexibles and are made of aluminum alloy to reduce the weight of the cables in an automobile.
Automotive cables are used in lighting, in instrumental panel circuits in automobiles. These are used as battery cables, multimedia, coaxial cables, multi-core screened cables, sheathed ABS Sensor cables.
The main product types of automotive cables are copper core, aluminum core, and others.A copper core cable is a collection of two or more copper wires wrapped in a single sheath or jacket.
Automotive cables are sold through direct channels and distribution sales channels. The various applications include automotive primary wire and battery cable, brake cable, trailer cable, car speaker wire, and fusible link wire.
Asia-Pacific was the largest region in the automotive cables market in 2021. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
The increasing demand for automotive promotes the growth of the automotive cables market.Automotive cables are used in automobiles in starting, charging, lighting, signaling, and in instrument panel circuits.
For instance, battery cables in automotive are used to connect the battery to the car’s electrical system.The increasing demand for automotive will require automotive companies to increase their production and in turn, increase the demand for automotive cables.
According to the 2019 report by the U.S Bureau of Economic Analysis, auto manufacturing contributed $327.1 billion in GDP whereas $218.3 billion was contributed by vehicle retail sales in GDP. Also, 18.7 million electric vehicles are expected to be in use by 2030. Thus, the growth of the automotive cables market is positively impacted by the increase in the demand for automotive.
The growth of the automotive cables market is hindered by the growing availability of counterfeit auto parts including automotive cables.Cheap counterfeited cables are responsible for major revenue loss for authentic cable manufacturers.
Apart from being priced low, these cables also increase the risk of accidents because of their low quality.The availability of counterfeited cables forces genuine manufacturers to spend heavy amounts to stop the sale of counterfeited products.
According to the Federation of Indian Chambers of Commerce and Industry report, about 20% of all road accidents in India are attributed to counterfeit automotive parts with Rs 2,200 crore revenue being lost by the government due to these counterfeit products. Thus, the availability of counterfeit auto parts hampers the growth of the automotive cables market.
The companies in the automotive cables market are investing towards the substitution of copper with aluminum in battery cables to save manufacturing costs and reduce weight.Aluminum used is one-third the weight of copper and is less expensive than copper.
The replacement holds no significant difference in the performance of the cable.Following the trend in 2019, LEONI Kabel, a Germany-based cable and harnessing manufacturing firm, has started replacing copper with aluminum in its automotive cables.
Another company, Jaguar, a U.K based car manufacturer, has also started using aluminum in its cables.
In June 2019, TPC Wire & Cable Corp. (TPC), a USA-based provider of premium electrical wire and cable solutions, acquired EZ Form Cable Corporation for an undisclosed amount. Through the acquisition, TPC aims to strengthen its wire and cables solutions by utilizing wiring and cables solutions from EZ Form Cable Corporation’s portfolio. EZ Form Cable Corporation is a USA-based provider of RF connectors, coaxial cable, and coaxial cable assemblies.
The countries covered in the aircraft cables market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.
Read the full report: https://www.reportlinker.com/p06248559/?utm_source=GNW
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