The electric vehicle (EV) connector market is projected to grow at a CAGR of 27.1% from 2023 to 2030 and reach US $10.92 billion by 2030, according to a new report by Markets and Markets. Global adoption of EVs is increasing the requirement of connectors for monitoring and managing the battery pack, data transfer, and ensuring optimal performance, safety, and longevity.
The growing popularity of advanced audio systems, touchscreens, and connected car technologies requires reliable and high-bandwidth connectors to ensure seamless data transmission and system performance. This demand favors miniature high-density connectors and fiber optic cables. Automatic climate control, power windows, and advanced driver-assistance systems (ADAS) rely heavily on connected sensors and actuators.
The market has seen increasing adoption of lightweight, low-profile connectors that facilitate space optimization and weight reduction. Airbags, seatbelt pre-tensioners, and other safety-critical systems require connectors with high reliability and durability. Flame-retardant materials and anti-vibration designs drive growth in this area. LED headlights, taillights, and interior lighting systems demand connectors that can handle fluctuating currents and temperatures while ensuring minimal signal interference.
Innovations in material science have led to the design of compact, heat-resistant connectors. Increased emphasis on premium interiors with heated seats, ambient lighting, and other amenities fuels the demand for aesthetically pleasing and functional connectors. New technologies that are currently in the development phase, such as autonomous vehicle technology, adaptive cruise control (ACC), lane departure warning system (LDWS), blind spot detection (BSD), and park assist, have helped the automobile industry advance and promote passenger cars across the globe.
Several countries in Europe and North America have already introduced regulations to make installing specific driver assistance systems in passenger cars and commercial vehicles mandatory, and China, South Korea, Japan, and Russia are likely to follow this trend. The functionality of lane keeping assistance, adaptive cruise control, automated emergency braking, and parking assist systems is dependent on connectors.
As automotive OEMs continue to develop and deploy more advanced ADAS features, the demand for EV connectors is likely to increase. Thus, increasing focus on advanced technologies in vehicle and passenger safety are expected drive the EV connector market during the forecast period.
Current major players in the EV connector market include TE Connectivity (Switzerland), Aptiv (Ireland), Yazaki (Japan), Molex (U.S.), and Sumitomo Electric Industry (Japan), among others. These companies have established their presence across all major markets via deals, product launches, expansions, mergers and acquisitions, and joint ventures, among others. Asia Pacific is estimated to account for the largest market share in 2023, followed by Europe and North America.
In recent years, the Asia Pacific region has emerged as a hub for automobile production. China, India, Japan, and South Korea are driving the automobile market with the largest share in production and sales globally. In addition, the increasing purchasing power of the population and rising concerns over vehicle pollution have triggered the demand for electric and semi-autonomous vehicles in Asia Pacific.
One of the key drivers for the Asia Pacific market is the increased demand for connected services and ADAS features, particularly in China, Japan, and South Korea. Key automotive manufacturers, connector providers, and system integrators in this region focus on developing and innovating advanced connectors to support reliable, safe, and performance-oriented connectors.
Japan boasts a strong and established automotive industry, with leading manufacturers such as Toyota, Honda, and Nissan driving significant production volume. This creates a steady demand for high-quality, reliable EV connectors for various vehicle components.
Chinese OEMs are also developing advanced powertrain engines. For instance, in July 2023, Geely (China) and Renault (France) entered into an agreement to establish a company dedicated to the manufacturing and supply of hybrid powertrain engines. This was one of the major drivers of EV connectors for hybrid vehicles, as connectors help in the complex architecture of a hybrid powertrain, ensuring seamless communication and power transfer between its electric and gasoline engine components.
Therefore, there is an increased production and sales of EV cars, rising focus toward ADAS and safety features by OEMs, and inclination towards high-end applications vehicles are expected to support market growth for EV connectors in Asia Pacific.
Europe is expected to be a promising market for EV connectors. This region is home to some of the top Tier I suppliers in the connector sector, such as TE Connectivity, Rosenberger, Leoni, and Lumberg Holding. The presence of these companies would contribute to the growth of the European EV connector market during the forecast period.
Additionally, the presence of automotive OEMs such as Volkswagen (Germany), Mercedes-Benz (Germany), Renault (France), Stellantis (Netherlands), and Volvo (Sweden) offers growth opportunities for the EV connector market in the region. These automotive OEMs provide EVs with advanced ADAS and various infotainment features in their vehicle models which rely heavily on connectors.
Finally, the North American region is estimated to account for a considerable share of the EV connector market in 2023 in terms of value. This area is a regional hub for many renowned OEMs known for delivering quality and high-performance vehicles. OEMs in North America, such as Tesla and GM, focus on developing faster, cleaner, and high-performance EVs. BMW, Nissan Motor, Volkswagen, and Mercedes-Benz are the leading OEMs in the U.S. that have launched electric vehicles in the region.
All these OEMs offer advanced autonomous technology, ADAS and safety, infotainment, and BMS, among others, in their electric vehicle models.
Filed Under: Technology News