Global Automotive Wiring Harness Prospective Analysis
Automotive wiring harness market around the world has seen a tremendous increase from 2009-2012, as the demand for copper has been fostered in the automotive sector with market valued at $24.3 Billion in 2009, rebounded in 2010 due to excessive demand from the Chinese consumption, coupled by increase in copper prices, the market has sharply risen by 27.7% valued at $31.9 Billion. In the year 2011, the Market has seen an extended support for increase in copper prices and improved automotive electronization. Back in 2012, Market further enhanced its output with demand rising from North America, Japan and in terms of Electrical Vehicles, the wiring market growth stood at 10.5% in that year. Year 2013 has seen a slump in demand due to sluggish economic growth recorded in the European Union formulated less demand for automotives, which has drastically reduced the growth registering a mere 3.3% growth in demand for Wiring Harness. Year 2014 has witnessed, European economy could not meet the expectations, Chinese automotive market declined month by month, American Market seen a major push with economy bouncing back, low copper prices and depreciation in Japanese Yen. Under all these circumstances the global wiring harness market is projected to further slowdown with growth rate touching all time low at 2.6%.
It is forecasted that in 2015 the copper prices will further go down, Chinese Automotive market growth is further slashed by 5%, European market continues to tumble, leaving American market solely performing better than the rest. Thus, global automotive wiring harness growth will witness a decline, as there will be lawsuits filed against the wiring harness price manipulation continuously. The wiring harness suppliers will be pushed to lower the prices to meet the market price as well automakers expectations. The market growth is expected to decline to 1.3% with a share at $43.5 Billion.
In 2014, Chinese government has penalized three Japanese wiring harness supplying majors in the name of antimonopoly that has lead those companies to pull out the operations from China and primarily focus on North American and South Eastern Markets, The companies were SEI, YAZAKI, Furukawa Electric. YAZAKI for example has recruited a large number of employees for its American Operations, which made up the total employ strength up over 20% by the end of June 2014. It also focused on expanding operation big way in countries like Thailand, Philippines and Vietnam in South East Asia.
Delphi, on the other hand, continued to invest in China. It has setup a new production facility in Tianjin and focused on expanding the production capacity in its Wuhan Plant.
The future of Automotive Wiring harness depends on the market performance of all major economies, if the production increases, Copper availability at affordable price and with substantial employment generated in the American and European countries, will lead the demand for automotives to surge ahead touching new high predicted to be $71-$80 Billion by 2020.
Know more about Automotive Technology: www.automotive–technology.com/
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