The cable assembly market comprises cable and connectivity products that can be customized according to specific applications through connecting, joining and organizing several individual electrical conductors together. Cable assemblies aid in providing mechanical support, protection as well as electrical connectivity between various electronic components. With advancements in the automotive industry, developments of autonomous vehicles, electric vehicles and advanced driver-assistance systems has augmented the demand for cable assemblies. The global automotive industry is increasingly deploying cable assemblies in areas such as powertrain, safety systems, vehicle body electronics and other applications.

The Global Cable Assembly Market is estimated to be valued at US$ 167.40 Bn in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023 to 2030.

Key Takeaways

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. The increasing demand for electric vehicles, autonomous driving technologies and advanced driver-assistance systems are fueling the demand for cable assemblies in the automotive industry. Cable assembly manufacturers are also expanding their global footprint to capitalize on the opportunities in developing markets across Asia Pacific, Latin America, Middle East and Africa.

Market drivers

One of the key drivers for the cable assembly market is the rapid adoption of autonomous driving technologies by automakers globally. Automotive OEMs are integrating advanced technologies such as adaptive cruise control, blind spot detection, automatic emergency braking and lane departure warning in their vehicles. This is augmenting the demand for specialized cable assemblies that can withstand high temperatures and offer high bandwidth capabilities. Additionally, the burgeoning electric vehicle market is another major factor propelling the need for cable assemblies. EVs require extensive cabling infrastructure for electrical component integration and battery management systems. Stringent regulations regarding fuel-efficiency and vehicle safety are also catalyzing the deployment of cable assemblies in new automotive designs.

Impact of geopolitical situation on Cable Assembly Market growth
The current geopolitical conflicts across various regions are expected to impact the growth of the global cable assembly market. Rising tensions between major economies like US, China and Russia have disrupted global supply chains for electronic components. This has adversely affected the production and availability of critical raw materials for cable assemblies. Moreover, political instability and regional conflicts in countries like Ukraine and Middle East have discouraged investments and expansion plans of cable assembly manufacturers in those markets. For instance, the ongoing Russia-Ukraine war has impacted the supply of raw materials like copper and aluminum from the region. It has also damaged production facilities of some cable assembly vendors. To deal with such challenges, cable assembly companies will need to diversify their supplier base, establish multiple manufacturing units across different geographies and keep adequate buffer stock of critical components. Adopting localized production models can help mitigate geopolitical and trade risks for OEMs and cable assembly vendors in the long run.

Geographical regions of Cable Assembly Market concentration
In terms of value, North America represents the largest regional market for cable assemblies, accounting for over 30% share of the global market in 2023. Presence of major electronics and telecom industries, rapid 5G infrastructure rollout and increasing adoption of electric vehicles are fueling the demand for custom cables and assemblies in the region. Asia Pacific is another key geographical concentration area, led by countries like China, Taiwan, South Korea and Japan. Availability of low-cost manufacturing facilities and proximity to electronic component suppliers have helped Asia Pacific emerge as the largest cable assembly production base globally. Europe is also among the top three markets, driven by well-established automotive and industrial sectors in Germany, UK and Nordic nations demanding cabling solutions.

Fastest growing region in Cable Assembly Market
The fastest growing regional market for cable assemblies is expected to be South America through the forecast period till 2030. Favorable government policies targeting industrial automation, expansion of telecom infrastructure and rising electronics exports from countries like Brazil, Argentina are contributing to the growth of cable assembly demands in the region. Additionally, increasing foreign investments in South America from US, China and Europe for electrical vehicle production is anticipated to open new avenues. cable assembly market companies aiming to tap into early growth opportunities shall explore partnership options with local OEMs and enhance their geographic footprint through cost-effective manufacturing units in countries like Brazil, Mexico and Colombia.

About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials,  etc

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