EV Connector Market

[289 Pages Report] The global EV connector market is projected to grow from USD 2.0 billion in 2023 to USD 10.9 billion by 2030, registering a CAGR of 27.1%. Increased awareness about environmental concerns and the desire for sustainable transportation options are driving consumer interest in electric vehicles. Also, the global EV market is experiencing explosive growth, fueled by government incentives and advancements in battery technology. This surge in EV production directly translates to a higher demand for EV connectors in the electric vehicle. Additionally, the growing focus on road safety and the rise of autonomous driving technologies are propelling the demand for advanced driver-assistance systems (ADAS) like lane departure warning, blind-spot monitoring, and automatic emergency braking. These systems rely heavily on a network of sensors and actuators connected by reliable and high-performance EV connectors. Advancements in lighting technology, such as adaptive headlights and LED technology, are leading to increased demand for more compact connectors. Along with ADAS and advanced lighting systems, Battery management systems (BMS) require numerous amount of connectors to monitor and manage the complex battery pack, while high-voltage systems necessitate special connector designs for safety and efficiency.

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Market Dynamics:

Driver: Advancements in infotainment systems and in-vehicle connectivity

Consumers expect a seamless and interactive driving experience, which has led to the integration of advanced in-vehicle connectivity features that include touchscreens, multimedia interfaces, navigation systems, and internet connectivity. EV connectors play a vital role in facilitating the electrical and data connections necessary to power and interconnect in-cabin systems. As electric vehicles evolve to become not just modes of transportation but connected environments, the demand for EV connectors capable of handling high-speed data transmission and supporting diverse in-vehicle communication networks continues to rise. In addition to in-vehicle connectivity, the demand for advanced infotainment systems contributes to the growing need for EV connectors in electric vehicles. Infotainment systems comprise a wide range of multimedia features, including audio systems, video displays, and smartphone integration. Connectors enable the seamless integration of these components, supporting the efficient transmission of power and data. As consumers seek more personalized infotainment experiences in their vehicles, manufacturers are challenged to incorporate innovative technologies, supporting the demand for EV connectors that continue with the evolving requirements of modern EV infotainment systems.

The development of V2X communication, which includes vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication, is a crucial aspect of the connected vehicle landscape. V2X communication relies on a complex network of sensors, antennas, and communication modules, all interconnected by connectors. These connectors exchange critical information for enhanced safety, traffic management, and overall driving experience. As electric vehicles become integral components of smart transportation ecosystems, the demand for connectors that enable reliable V2X communication is expected to grow, contributing to increased connectivity and intelligence of the electric vehicle fleet.

Restraint: Fluctuations in raw material prices

EV connectors are made from a combination of materials chosen for their specific properties to meet the electrical and mechanical requirements of the connectors. The primary materials used in automotive connectors include metals, plastics, alloys, and coatings.

The prices of metals, particularly copper and aluminum, can significantly impact production costs. The rising prices of these materials will increase the overall cost of manufacturing EV connectors. Manufacturers may find it challenging to maintain profit margins, especially if they cannot pass these increased costs onto customers, such as automotive OEMs. Such volatility in material prices can lead to supply chain disruptions as well. Spikes in prices or shortages can disrupt the production schedules of connector manufacturers, leading to delays in delivering components to automotive OEMs. This, in turn, affects the overall manufacturing efficiency in the automotive industry.

Raw material prices influence the competitive landscape of the EV connector market. The global fluctuations in raw material and commodity prices make products less competitive and have an adverse effect on profit margins. The manufacturers of automotive connectors depend upon Tier II suppliers for raw materials such as brass, copper, aluminum, and plastic connectors such as nylon 6 and Polybutylene Terephthalate (PBT). Furthermore, any deviation in the quality and price of raw materials affects profitability, which becomes a challenge for the manufacturers of automotive connectors. Manufacturers that can efficiently manage and mitigate the impact of material cost fluctuations may gain a competitive advantage. Pricing strategies become crucial, as companies must balance competitive pricing with the need to cover production costs, especially during volatile raw material prices. Thus, an increase in the prices of raw materials directly affects the profit margins of manufacturers, restraining the EV connector market.

Opportunity: Growing incorporation of Electrical/Electronic (E/E) architecture

The Electrical/Electronic (E/E) architecture serves as the intricate network of electrical and electronic components and systems that govern the functioning of the electric vehicle. E/E architecture in electric vehicles is particularly complex due to the unique characteristics and requirements associated with electric propulsion systems, such as battery management systems, thermal management systems, and motor controllers, among others.

The advancement of E/E architecture, driven by trends such as electrification, connectivity, autonomous driving, and advanced driver assistance systems (ADAS), has increased the complexity of in-vehicle networks and electronic systems. This has generated the need for EV connectors to support high-speed data transfer for reliable communication between electronic components, whereas high-voltage connectors are required to transfer power between the vehicle's batteries, motors, and other electrical components. Sensors for various applications, including environmental monitoring, parking assistance, and collision avoidance, create opportunities for EV connectors to accommodate diverse sensor technologies used in modern electric vehicles.

Connectors support highly complex and reliable connections between sensors, ECUs, and actuators in extreme high-vibration/high-temperature environments. The evolution toward more centralized networked E/E architectures will reduce the number of ECUs while the number of sensors and actuators will continue to increase. Wiring topologies will evolve from multiple separate point-to-point connections to a smaller number of one-to-many connections. Thus, ECUs will increasingly need to accommodate connections with multiple sensors and actuators. This will necessitate hybrid connector interfaces, whereby signal and power connections are accommodated in a single connector housing. Thus, the above-mentioned parameters with the development of E/E architecture in electric vehicles, will support the growth of the EV connector market in the near future.

Challenge: Rapid shift from conventional to modular connector designs

With the rise of electric vehicles, there is an increased focus on improving energy efficiency and reducing overall vehicle weight. This has driven the manufacturers to integrate components more seamlessly and compactly, often opting for integrated systems that minimize the need for extensive wiring and connectors. As EV architectures evolve, there is a trend towards centralizing power distribution and utilizing advanced power electronics, reducing the reliance on traditional EV connectors. The move toward simpler and more integrated designs in EVs can restrain the demand for standalone connectors, particularly as manufacturers seek to optimize space, reduce weight, and streamline production processes. The electric drivetrains and power distribution systems in EVs contribute to changes in connector requirements. Advanced technologies, such as battery management systems, ADAS, and in-vehicle connectivity, have altered the EV connector ecosystem.

The ongoing evolution of EV technology poses a challenge to conventional connector manufacturers, requiring them to adapt to the specific demands of electric powertrains and energy storage systems. Modular vehicle architectures have implications for connector design and usage. Modular designs allow for more flexibility and ease of assembly, contributing to efficient manufacturing processes. Connectors that support modular architectures enable automakers to adapt and upgrade vehicle components more easily. As a result, the shift in automotive design and manufacturing practices toward EVs is impacting the demand for EV connectors in the automotive sector.

Market Ecosystem

Battery Management System is expected to be the fastest growing market during the forecasted period.

Battery management systems play an important role in ensuring the performance of the battery and its useful lifespan. It monitors key operational parameters, such as the current, voltage, and internal temperature of the battery. It reduces the stress on the battery by delivering the right amount of power needed by the motor of the electric vehicle. The main functions of battery management systems include power optimization, ensuring minimal damage, and controlling the charging and discharging of the battery. EV connectors in BMS of EVs perform several critical functions, such as cell monitoring, temperature sensors, voltage sensing, communication with vehicle control systems, and power distribution. The EV connectors of BMS are used to link the monitoring circuitry of each cell to the BMS. These connectors enable the BMS to monitor the voltage, temperature, and other parameters of each cell individually. Thus, the rise in the production/sales of EVs will drive the demand for EV connectors. Automotive OEMs around the globe are also focusing on increasing the production of EVs. For instance, In June 2023, Toyota Motor Corporation (Japan) announced it would launch next-generation BEVs globally and a full lineup by 2026. Connector manufacturers such as Hirose Electric Co., Ltd.(Japan), TE Connectivity (Switzerland), Japan Aviation Electronics Industry, Ltd. (Japan), and Amphenol Corporation offer various high-voltage connectors and connector series that are used in a battery management system. All these factors are expected to augment revenues for the battery management systems segment of the EV connector market during the forecast period.

The BEV segment is expected to have the largest share of the EV connector market.

The BEV segment is expected to hold a larger share of the EV connector market during the forecast period. BEVs require a higher number of EV connectors compared to conventional gasoline vehicles. This is due to the complex electrical systems of BEVs, which involve high-voltage batteries, electric motors, and numerous sensors and actuators. EV connectors are crucial for transmitting power and data between various components within the BEV, ensuring efficient and reliable operation. Electric vehicles (EVs) have become increasingly popular in the automotive sector in recent years. These new vehicle models require strong battery management systems (BMS) to monitor the conditions of battery cells to bring out the full potential of the battery component. According to the IEA, BEV car sales increased from 4.6 million units in 2021 to 7.3 million units in 2022. Thus, the rising number of BEVs on the road directly translates to an increased demand for EV connectors to drive market growth.

Asia Pacific is the largest market for EV connectors during the forecast period.

The Asia Pacific region is projected to be the largest EV connector market by 2030. Asia Pacific leads the global EV market, with China alone accounting for more than half of global EV sales. This rapid adoption, driven by government incentives, rising fuel costs, and increasing environmental awareness, fuels the demand for EV-specific connectors. Leading automotive manufacturers in this region, such as Toyota Motor Corporation (Japan), Honda Motor Co., Ltd. (Japan), and Hyundai Motor Company (South Korea), are leveraging the growth of EVs in the region. As of April 2023, Toyota aims to launch ten new battery electric vehicle models by 2026. In electric vehicles, EV connectors enable safe, efficient, and reliable operation by performing several functions, such as power transmission, data communication, safety, and others. Thus, the growing number of EVs in the region will support the market growth of EV connectors.

The EV connector market in North America is expected to show significant growth opportunities in the near future. The region is home to major Tier I suppliers in EV connectors, such as TE Connectivity Ltd. (Switzerland), Molex (US), and Amphenol (US), among others. Thus, the presence of top EV connectors provides a region that will support the growth of the EV connector market in the foreseeable future.

Key Market Players

The EV connector market is dominated by established players such as TE Connectivity Ltd. (Switzerland), Aptiv PLC (Ireland), Yazaki Corporation (Japan), Molex LLC (US), Sumitomo Electric Industries Ltd. (Japan) and others. These companies manufacture and develop new connectors. These companies have set up R&D facilities and offer best-in-class products to their customers.

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Scope of the Report

This research report categorizes the EV connector market based on System type, Propulsion Type, Connection Type, Application, Voltage, Component and Region.

Based on System Type:

• Sealed Connector System
• Unsealed Connector System

Based on Propulsion:

• BEV
• PHEV
• FCEV
• HEV

Based on Connection Type:

• Wire-to-Wire Connection
• Wire-to-Board Connection
• Board-to-Board Connection
• Other Connection Types

Based on Application:

• ADAS and Safety System
• Body Control and Interiors
• Engine Management and Powertrain
• Infotainment System
• Battery Management System
• Vehicle Lighting (Interior And Exterior)
• Other Applications

Based on Volatge:

• Low Voltage
• Medium Voltage
• High Voltage

Based on Component:

• Terminal
• Housing
• Lock
• Other Components

Based on the region:

• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• North America
  • Canada
  • US
• Europe
  • Netherlands
  • France
  • Germany
  • Norway
  • Austria
  • Sweden
  • Switzerland
  • UK
  • Spain
  • Denmark

Recent Developments

• In November 2023, Japan Aviation Electronics Industry, Ltd. released the MX81 Series, a non-waterproof compact connector for in-vehicle electronic devices such as ECUs, lighting, sensors, and other in-vehicle applications.
• In September 2023, Yazaki Corporation (Yazaki) announced that Yazaki Egypt had purchased an area of 67,000 square meters in the Fayoum investment-free zone to expand the production of wire harnesses and electrical systems.
• In August 2023, Sumitomo Electric Wiring Systems announced investing approximately USD 10.0 million in manufacturing harnesses, becoming the first tier 1 automotive company to establish operations in Tabasco, Mexico.
• In April 2023, Hirose Electric Co., Ltd. and TraceParts partnered to release more than 10,000 ready-to-use 3D models for Hirose’s PCB mountable connectors.
• In March 2023, KYOCERA AVX added new four- and five-position models to its 9176-700 Series of IDC connectors for 18–24AWG wire, designed to fulfill the demand requirements of automotive, transportation, industrial, lighting, and medical applications.

Frequently Asked Questions (FAQ):

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