Development Trends of Automotive Wiring Harness Industry

What was the status of the entire wiring harness industry in the past year? What is the competitive landscape of the wiring harness industry and what is the future development trend of the wiring harness industry. This article’s Wiring Harness Engineering mainly shares the analysis of the competition landscape and development trends of the automotive wiring harness industry in 2023.
1-Overview of automobile wiring harness
1. Definition and classification
Automobile wiring harness is the carrier of automobile energy and various signal transportation. The central control component, the car control unit, the electronic and electrical execution unit, and the electrical devices are connected together to form the car’s electronic control system, which is the blood vessel and nervous system of the car. According to the layout in the car, the wiring harness can be divided into: body assembly wiring harness, engine wiring harness, instrument panel wiring harness, chassis wiring harness, ceiling wiring harness, door wiring harness, etc.

Material cost structure diagram of wire harness

Comparison
As the main carrier of power output in electric vehicles, high-voltage wiring harness is one of the key components for vehicle performance and safety. New energy vehicle systems include low-voltage wiring harnesses and high-voltage wiring harnesses. Among them, the high-voltage wiring harness system is a brand-new system under electrification, replacing the engine wiring harness of traditional vehicles, and mainly includes high-voltage connectors, high-voltage cables, charging sockets, etc.2-Automotive wiring harness industry industry chain
1. Industrial chain
The automotive wiring harness industry is characterized by intensive labor and a high proportion of upstream material costs. Because wiring harness packaging is difficult and transportation costs are high, wiring harness factories are often clustered with automobile manufacturers. Automotive wiring harnesses are customized. In the early stages of model development, the automotive wiring harness factory will collaborate with the OEM to develop the wire harness.

Average unit price of automotive wiring harness

Automotive wiring harness industry chain
Cost structure
From the perspective of raw material cost ratio, the main raw materials of wire harnesses are wires, sheaths and terminals, with copper accounting for the highest proportion in wires. According to the prospectus of Huguang Co., Ltd., the proportions of wires, sheaths, and terminals in wire harness raw materials are 32.54%, 20.53%, and 19.90% respectively.3 – Current status of automotive wiring harness industry
1. Market size
From the perspective of the scale of the automotive wiring harness market, since 2010, the scale of China’s automotive wiring harness market has shown an overall upward trend. As the new energy vehicle market continues to develop, the demand for high-voltage wiring harnesses has been boosted. According to Huguang’s prospectus, China’s automotive wiring harness market will reach 62.8 billion yuan in 2021.
Price
In terms of wiring harness prices, the average prices of wiring harnesses for low-end cars, mid-range cars, and high-end cars are 2,500 RMB, 3,500 RMB, and 4,500 RMB respectively. Due to the new addition of high-voltage wiring harnesses for new energy vehicles, the current average price of wiring harnesses is 5,000 RMB.4 – Competitive landscape of automotive wiring harness industry

Average unit price of automotive wiring harness

1. Global competition landscape
From the perspective of industry competition, the wiring harness industry is dominated by foreign-funded enterprises from Japan, South Korea, Europe and the United States. Relevant data shows that in 2021, the CR3 of global automotive wiring harness companies will be 71%, including Yazaki, Sumitomo and Aptiv, with market shares of 30%, 24% and 17% respectively.2. Major enterprises
Specifically, looking at the world’s major wire harness companies, Leoni, Aptiv, and Dekosmir support most German and American brands. Japanese brand wiring harnesses are mainly supplied by Japanese wiring harness manufacturers, such as Sumitomo Electric, Yazaki, etc. Some foreign-funded companies and domestic auto parts companies have established joint venture wiring harness companies to support joint ventures such as SAIC-Volkswagen and FAW-Volkswagen, and their market shares are generally low. Domestic wire harness companies, mainly Henan Tianhai, Shanghai Jinting, Liuzhou Shuangfei and Kunshan Huguang, have continued to expand the market in recent years and their market share is gradually increasing.
Analysis of key enterprises
Shanghai Jinting, Liuzhou Shuangfei, and Huguang Co., Ltd. are major domestic automotive wiring harness companies. According to the annual reports of each company, in 2021, Shanghai Jinting, Liuzhou Shuangfei, and Huguang Co., Ltd. achieved revenue of 1.282 billion yuan, 2.260 billion yuan, and 2.448 billion yuan respectively. The revenue scale of Liuzhou Shuangfei and Huguang is similar, but Liuzhou Shuangfei mainly focuses on commercial vehicles and small wiring harnesses, with lower profit margins. Kunshan Huguang mainly supplies complete sets of wiring harnesses to passenger cars and new energy customers. The value of each vehicle is large and the profit margin is relatively high.

Global share of automotive wiring harness companies

5 – Automotive Wiring Harness Industry Barriers
The main barriers to entry in the wire harness industry include supplier qualification barriers, technical barriers, financial barriers and management barriers. Wire harness companies need to strengthen comprehensive management and improve operational efficiency in terms of raw material procurement, production and processing, and market development.

6 – Development Trend of Automotive Wiring Harness Industry
1. High-voltage wiring harness opens new incremental market
In recent years, the penetration rate of new energy vehicles has accelerated. New energy electric vehicles eliminate the engine and engine wiring harness and are driven by electric motors. Fuel vehicles usually use 12V voltage, while new energy electric vehicles usually use 400V or higher driving voltage, and low-voltage wiring harnesses cannot meet the power transmission needs. Therefore, on the basis of low-voltage wire harnesses, new energy vehicles have new demands for high-voltage wire harnesses, which are mainly used in power batteries, drive motors, on-board chargers (OBC), DC/DC converters, high-voltage power distribution boxes, electric compressors and PTC Above, it is a new incremental market.
2. Accelerate the process of domestic substitution
In recent years, the domestic automobile market has developed rapidly, and excellent domestic brands such as Geely, Chery, Great Wall, Changan, and BYD are gradually emerging. The procurement rate of local parts and components of independent brands is relatively high, which brings development opportunities to domestic parts companies. With the improvement of simultaneous development and independent research and development capabilities, coupled with cost advantages and localized service advantages, local auto parts suppliers have begun to substitute imports in some auto parts fields. my country’s auto parts industry is in the process of gradually realizing domestic substitution.