Automotive Terminals Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Automotive Terminals Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Automotive Terminals Market is expected to register a CAGR of over 7% during the forecast period.

• Automotive Terminals are an electromechanical device that is used to connect load or charger with the cell or batteries.
• Automotive terminals are available in different sizes, shapes, and specifications. Terminal designs and sizes also depend on the end-use in the automobiles.
• The increase in safety concerns among consumers, coupled with safety-related initiatives from the government agencies, has elevated the requirement for a reliable terminal in various vehicle systems.
• Terminals are placed under the hood of automobiles and must have the capacity to withstand high as well as sub-zero temperatures and shocks. Thus, reliability and durability concerns are some functional challenges that hinder the growth of the market. The automotive terminals market has major applications in the powertrain systems, followed by safety and infotainment systems.

The sales of electric vehicles in the past few years have witnessed significant growth due to the need for addressing future energy requirements. The EV market is coming up as an integral part of the automotive industry. In 2017, the global Electric vehicle sales were 1 million units which were increased to 2 million units in 2018, therefore driving the growth of the automotive terminals market.

Another factor driving the growth of the market is growing concern of improving safety and security of vehicles among automakers and government; as a result, automakers have started installing dedicated electronic control units (ECUs) at every critical level of the vehicle system, including powertrain, steering, and braking systems. For instance, the usage of ECUs, such as electric power steering ECU unit and anti-lock braking systems (ABS) ECU unit has been significantly increased to approximately 4-5% annually, during the past three years (2016-2019).

Other safety and security features, such as airbags and central-locking system, have been predominantly installed in more than 60% of all new vehicle sales in 2019.

In addition to this, ADAS features, such as adaptive cruise control, parking assist, lane departure warning and assist system, blind-spot detection, night vision system, adaptive front lighting system, etc., have been gradually penetrating in vehicles globally, majorly in the European (EU) and North American region, and countries, like China and Japan.

Europe ranks top in implementing safety features in vehicles, while the Americas and Asia-Pacific follow the footprints of Europe. Euro NCAP has released few protocols on safety features, like autonomous emergency braking, driving monitoring and child occupant protection, in 2019, and is anticipating mandating these features in EU vehicles by 2020-2025. With growing regulations toward vehicle safety standards across every region, the adoption of safety and security systems in automobiles are expected to increase, which in turn, will result in the demand for and usage of terminals during the forecast period.

The increasing demand for electric and semi-autonomous vehicles in Europe is simultaneously impacting the usage of automotive terminals. For instance, the share of electric vehicles in the regional market has increased by approximately 30% over the past few years and is expected to grow over the next five years, owing to the growing environmental concerns. Thus, the region is expected to witness high demand for automotive terminals during the forecast period.

Asia-Pacific region market is expected to grow at a faster pace during the forecast period owing to development in infrastructure, increased vehicle sales, and government regulations regarding safety devices in the vehicles. Furthermore, China is leading the market in terms of revenue due to its massive use of electronic components in the vehicles followed by Japan, Korea, and India.

The growing number of self-driving vehicles in North America and the demand for next-generation vehicles will enhance the growth of the market over the forecast period.

The automotive terminals market is highly fragmented due to the presence of many regional players. However, some of the major players, like TE Connectivity, Sumitomo Electric Industries, Ltd., Lear Corporation, PKC Group, FurUnited Kingdomawa Electric have captured significant shares in the market. These companies are focusing to expand their terminals business globally, to capture the growing trend of advance electronics and safety systems in vehicles.

• In June 2018, Honda announced that the company has agreed to invest USD 750 million in Cruise, GM’s self-driving car company. The wiring harness of the cruise has 4,0.85 wires and 1,066 connectors.

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