According to a research report recently released by the international market research organization Markets and Markets, the compound annual growth rate of the global electric vehicle cable market from 2021 to 2026 will be as high as 26.9%, during which the market demand is expected to increase by US$9.2 billion.
The main factor driving market growth is that fuel price fluctuations have increased the demand for electric vehicles and increased the pressure on automakers to comply with emission standards. In addition, the continued growth in the demand for electric vehicles may trigger the growth of the electric vehicle cable market during the forecast period.
The heavy investment of electric vehicle cable manufacturers in research and development activities to develop high-efficiency electric vehicle cables for automobiles will also drive market growth. In particular, the development of electric vehicle charging infrastructure in emerging countries will promote the growth of electric vehicles, which in turn will drive the demand for electric vehicle cables.
According to the type of electric vehicles, including pure electric vehicles, plug-in hybrid electric vehicles, hybrid electric vehicles and fuel cell electric vehicles, fuel cell electric vehicles (hydrogen power) will become the fastest growing segment of the market during the forecast period .
Fuel cell electric vehicles are more efficient than traditional internal combustion engine vehicles and do not produce exhaust emissions-they only emit water vapor and warm air. This type of car uses a propulsion system similar to that of an electric car, in which energy stored in the form of hydrogen is converted into electricity through a fuel cell. The demand for electric vehicle cables is directly proportional to the increase in the output of fuel cell electric vehicles. Therefore, the disposable income levels of advanced economies, especially emerging economies such as India, Brazil, and China, are continuously increasing, which is driving the fuel cell electric vehicle manufacturing industry, which is expected to trigger the growth of the wiring harness industry in this field.
In terms of cable voltage levels, the high-voltage cable market is expected to become the fastest growing part of the electric vehicle cable market. The high-voltage cables in electric vehicles transmit power between the batteries and various systems of the entire electric vehicle. The high-voltage cable is used to connect the charging port and the battery, the internal wiring of the battery, the battery, the engine and other electrical components to carry current power. High-voltage cables are mainly used for battery applications in electric vehicles. Therefore, the market demand for high-voltage cables in key applications of electric vehicles will increase.
From a single market perspective, due to favorable government policies such as 100% government-approved foreign direct investment, more streamlined manufacturing and import licensing and approval policies, and compliance with World Trade Organization (WTO) policies, India’s The compound annual growth rate of the automotive industry is higher than most countries in the region.
At the same time, in the Asia-Pacific region, various government initiatives, such as faster adoption and manufacture of (hybrid) electric vehicles (FAME), will promote the popularization of electric vehicles and promote the sales of electric vehicle cables in India. The recovery of economic activity and the government's many measures may promote the growth of the electric vehicle market in India, thereby driving the growth of the electric vehicle cable market.
