The EV connector market is experiencing growth, driven in part by the increasing demand for high-end applications across various vehicle systems such as infotainment, body control and interior, passenger safety, and vehicle lighting, among others. The adoption of EVs all around the globe is increasing the requirement of connectors for battery management systems, engine management, and powertrain systems in EVs for monitors and managing the battery pack, ensuring data transfer and optimal performance, safety, and longevity.
The growing popularity of advanced audio systems, touchscreens, and connected car technologies necessitates reliable and high-bandwidth connectors to ensure seamless data transmission and system performance. This demand Favors high-density, miniature connectors and fiber optic cables. Automatic climate control, power windows, and advanced driver-assistance systems (ADAS) rely heavily on sensors and actuators connected through connectors. The market has seen increasing adoption of lightweight, low-profile connectors that facilitate space optimization and weight reduction. Airbags, seatbelt pre-tensioners, and other safety-critical systems require connectors with higher reliability and durability.
Flame-retardant materials and anti-vibration designs drive growth in this segment. LED headlights, taillights, and interior lighting systems demand connectors that can handle fluctuating currents and temperatures while ensuring minimal signal interference. Innovations in material science and design led to compact, heat-resistant connectors for this application. Increased emphasis on premium interiors with heated seats, ambient lighting, and other amenities fuels the demand for aesthetically pleasing and functional connectors. Various technologies have been developed in driver assistance systems over the last few years. New technologies, such as autonomous vehicle technology, are in the development phase. These technologies, including adaptive cruise control (ACC), lane departure warning system (LDWS), blind spot detection (BSD), and park assist, among others, have helped the automobile industry advance and promote passenger cars across the globe.
Several countries in Europe and North America have introduced regulations to make installing specific driver assistance systems in passenger cars and commercial vehicles mandatory. China, South Korea, Japan, and Russia are likely to follow the same trend. All these ADAS features heavily rely on connectors for data transfer. The functionality of lane keeping assistance, adaptive cruise control, automated emergency braking, and parking assist systems is dependent on connectors. As automotive OEMs continue to develop and deploy more advanced ADAS features, the demand for EV connectors is likely to increase. Thus, increasing focus on advanced technologies in vehicle and passenger safety would drive the EV connector market during the forecast period.
EV CONNECTOR MARKET, BY REGION, 2023–2030
The EV connector market is projected to grow at a CAGR of 27.1 % from 2023 to 2030 and reach USD 10.92 billion by 2030. The increasing number of ECLIs/domain controllers in vehicles, in conjunction with the rising penetration of ADAS technology and advanced infotainment systems in vehicles, is expected to bolster the growth of the global EV connector market during the forecast period. In addition, the advent of electrification of vehicles, paired with the increasing focus on body control and increasing customer experience, is anticipated to create lucrative opportunities in the EV connector market in the foreseeable future.
The major players in the EV connector market are TE Connectivity Ltd. (Switzerland), Aptiv PLC (Ireland), Yazaki Corporation (Japan), Molex LLC (US), and Sumitomo Electric Industry Ltd. (Japan), among others. These companies have established their presence across all major markets. The key strategies adopted by these companies to sustain their market position are deals, product launches, expansions, mergers & acquisitions, and joint ventures, among others. Asia Pacific is estimated to account for the largest market share in 2023, followed by Europe and North America.
In recent years, the Asia Pacific region has emerged as a hub for automobile production. China, India, Japan, and South Korea are driving the automobile market with the largest share in production and sales globally. In addition, the increasing purchasing power of the population and rising concerns over vehicle pollution have triggered the demand for electric and semi-autonomous vehicles in Asia Pacific. One of the key drivers for the Asia Pacific market is the increased demand for connected services and ADAS features, among others, particularly in China, Japan, and South Korea.
Key automotive manufacturers in this region, connector providers, and system integrators focus on developing and innovating advanced connectors to support reliable, safe, and performance-oriented connectors. Japan boasts a strong and established automotive industry, with leading manufacturers, such as Toyota, Honda, and Nissan, driving significant production volume. This translates to a steady demand for high-quality, reliable EV connectors for various vehicle components. Chinese OEMs are making developing advanced powertrain engines. For instance, in July 2023, Geely (China) and Renault (France) entered into an agreement to establish a company dedicated to the manufacturing and supply of hybrid powertrain engines. This was one of the major drivers of EV connectors for hybrid vehicles, as connectors help in the complex architecture of a hybrid powertrain, ensuring seamless communication and power transfer between its electric and gasoline engine components. Thus, rising production/sales of EV cars, rising focus toward ADAS and safety features by OEMs, and inclination towards high-end applications vehicles are expected to support market growth for EV connectors in Asia Pacific.
EV CONNECTOR MARKET, BY APPLICATION, 2023 VS. 2030 (USD MILLION)
Europe is expected to be a promising market for EV connectors. This region is home to some of the top Tier I suppliers in the connector sector, such as TE Connectivity Ltd., Rosenberger Group, Leoni, and Lumberg Holding. The presence of these companies would contribute to the growth of the European EV connector market during the forecast period. Additionally, the presence of automotive OEMs such as Volkswagen (Germany), Mercedes-Benz Group AG (Germany), Renault (France), Stellantis NV (Netherlands), and AB Volvo (Sweden) offers growth opportunities for the EV connector market in the region, as these automotive OEMs provide EV with advanced ADAS and various infotainment features in their vehicle models.
And they heavily rely on connectors. Thus, advancements in electric vehicle models with ADAS and safety features, along with infotainment, will support the market growth of EV connectors in Europe soon. The North American region is estimated to account for a considerable share of the EV connector market in 2023 in terms of value. This is attributed to the fact that North America is a regional hub for many renowned OEMs known for delivering quality and high-performance vehicles. OEMs in North America, such as Tesla, Inc. and GM, focus on developing faster, cleaner, and high-performance electric vehicles. BMW AG, Nissan Motor Co., Ltd., Volkswagen, and Mercedes-Benz Group AG are the leading OEMs in US that have launched electric vehicles in the region. All these OEMs offer advanced autonomous technology, ADAS and safety, infotainment, and BMS, among others, in their electric vehicle models. The presence of key EV connector providers such as Molex LLC (US), Amphenol Corporation (US), Kyocera Corporation (US), and Samtec (LIS), among others, will help drive the North.
Source: MarketsandMarkets
