February 24, 2024

Growing Demand from Automotive Industry to Promote Growth of Cable Assembly Market


Cable assembly refers to groups of cables that are bundled and terminated together to serve a specific purpose. They are used across various industries such as automotive, IT & telecommunication, healthcare, consumer electronics, defense & aviation, and others. Cable assembly offers numerous advantages such as ease of installation, flexibility of design, customizable configurations, enhanced connectivity, and improved productivity. Rising demand from automotive, industrial machinery, and healthcare devices is fueling the growth of the cable assembly market.

The global Cable Assembly Market is estimated to be valued at US$ 167.40 Bn in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The cable assembly market is witnessing considerable growth owing to increasing demand from the automotive industry. Growing production of electric vehicles and autonomous vehicles is propelling the demand for cable assemblies. Rising focus on connectivity solutions and integration of advanced driver assistance systems (ADAS) in vehicles is further promoting the market growth. Additionally, increasing adoption of robotic-based technologies across end-use industries is augmenting the demand. Manufacturers are focusing on providing customized solutions based on specific industry and connectivity requirements. Innovation in materials used for cable insulation is also contributing to the market expansion. Growing investments by leading players to expand their product portfolios and geographic reach through strategic partnerships are some key trends observed in the cable assembly market.

Key players: Key players operating in the Cable Assembly market are Amphenol Corporation, Molex LLC, TE Connectivity Ltd., Belden Inc., Prysmian Group, Carlisle Interconnect Technologies, Nexans SA, L. Gore & Associates Inc., Panduit Corp., Fischer Connectors, JST Manufacturing Co., Ltd., Samtec Inc., L-com Inc., 3M Company, and Smiths Interconnect.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is low given the requirement for high initial investments and established distribution networks of existing players.

Bargaining power of buyers: The bargaining power of buyers is high due to the presence of a large number of players and substitutes in the market. Buyers can negotiate for better pricing and quality.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are a few major raw material suppliers while many small suppliers exist. Suppliers cannot influence pricing much.

Threat of new substitutes: The threat of new substitutes is low as cable assemblies have limited substitutes and are an integral part of various devices.

Competitive rivalry: The competitive rivalry is high owing to the presence of numerous global and regional players competing on pricing and quality.

Key Takeaways

The global Cable Assembly Market is expected to witness high growth, exhibiting CAGR of 6.5% over the forecast period, due to increasing adoption of internet of things across various industries. The market size for 2023 is estimated to be US$ 167.40 Bn.

Regional analysis: North America dominates the cable assembly market and is expected to exhibit significant growth over the forecast period. This is attributed to the presence of major players and early adoption of advanced technologies in the region. Asia Pacific is expected to witness the fastest growth owing to rapid industrialization and rising demand from the electronics and telecommunication industries from China, Japan, and India.

 

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it