Automotive Terminal Market

The Global Automotive Terminal Market was valued at USD 11.69 Billion in 2016 and is projected to grow at a CAGR of 10.03% during the forecast period, to reach USD 27.14 Billion by 2025. In this study, 2016 has been considered the base year, and 2017–2025 the forecast period, for estimating the size of the automotive terminal market.

The report analyzes and forecasts the market size, by value (USD million), of the automotive terminal market. The report segments the automotive terminal market and forecasts its size, by region, application, current rating, on-highway vehicle, off-highway vehicle, and electric vehicle type. The report also provides a detailed analysis of various forces acting in the market including drivers, restraints, opportunities, and challenges. It strategically profiles key players and comprehensively analyzes their market shares and core competencies. It also tracks and analyzes competitive developments such as joint ventures, mergers & acquisitions, new product launches, expansions, and other activities carried out by key industry participants.

The research methodology used in the report involves various secondary sources such as National Highway Traffic Safety Administration (NHTSA), GENIVI Alliance, Japan Automobile Manufacturers Association (JAMA), European Automobile Manufacturers Association (ACEA), Canadian Automobile Association (CAA), and Korea Automobile Manufacturers Association (KAMA). Experts from related industries, automotive terminal suppliers, and manufacturers have been interviewed to understand the future trends in the automotive terminal market. The market size of the individual segments was determined through various secondary sources such as industry associations, white papers, and journals. The vendor offerings were also taken into consideration to determine the market segmentation. The bottom-up approach has been used to estimate and validate the size of the global automotive terminal market. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all the segments and sub segments.

The figure given below illustrates the break-up of the profile of industry experts who participated in primary discussions.

To know about the assumptions considered for the study, download the pdf brochure

The ecosystem of the automotive terminal market consists of manufacturers such as TE Connectivity (Switzerland), Delphi (UK), Furukawa Electric (Japan), and PKC Group (Finland) and research institutes such as Colorado Off-highway Vehicle Coalition (COHVCO), Japan Automobile Manufacturers Association (JAMA), European Automobile Manufacturers Association (ACEA), Canadian Automobile Association (CAA), and Korea Automobile Manufacturers Association (KAMA).

Target Audience

• Automotive terminal manufacturers
• Infrastructure development companies
• Automobile organizations/associations
• Compliance regulatory authorities
• Government agencies
• Information Technology (IT) companies & system integrators
• Investors and Venture Capitalists (VCs)
• Raw material suppliers for automotive terminal
• Traders, distributors, and suppliers of automotive terminal

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Scope of the Report

Automotive Terminal Market, By Region

Automotive Terminal Market, By Application

Automotive Terminal Market, By Current Rating

Automotive Terminal Market, By On-Highway Vehicle

Automotive Terminal Market, By Off-Highway Vehicle

Automotive Terminal Market, By Electric Vehicle

• • North America
  • Europe
  • Asia Pacific
  • Rest of the World (RoW)
  • Body Control & Interiors
  • Safety & Security
  • Cooling, Engine & Emission Control
  • Infotainment
  • Lighting System
  • Battery System
  • Below 40 Ampere
  • 41–100 Ampere
  • Above 100 Ampere
  • Passenger Cars (PC)
  • Light Commercial Vehicle (LCV)
  • Heavy Commercial Vehicle (HCV)
  • Construction Vehicle
  • Agricultural Vehicle
  • Battery Electric Vehicle (BEV)
  • Hybrid Electric Vehicle (HEV)
  • Plug-In Hybrid Electric Vehicle (PHEV)

Available Customizations

MarketsandMarkets offers the following customizations for this market report:

• Detailed analysis and profiling of additional market players (up to 3)
• Detailed analysis of automotive terminal application for off-highway vehicle market
• Detailed analysis of automotive terminal for aftermarket

Increasing use of terminals that operate below 40 Ampere current rating are driving the global automotive terminal market close to $27 billion by 2025

The market share of automotive terminals below 40 Ampere is estimated to be the largest. These terminals are used in most of the power electronics in vehicles. This segment is projected to grow at a CAGR of 9.89% during the forecast period. The growth of the automotive terminal market depends on the factors mentioned below:

• Increasing sales of mid-size and luxury class vehicles in developing countries
• Increasing demand for vehicles with advanced electronics
• Expansion of leading OEMs and automotive component suppliers in low-cost countries and developing economies
• Innovation and development in the field of automotive artificial intelligence

The ecosystem of the automotive terminal market includes global automotive terminal manufacturers such as TE Connectivity (Switzerland), Delphi (UK), Furukawa Electric (Japan), and PKC Group (Finland). These original equipment manufacturers (OEMs) account for more than 80% share of the global automotive terminal market. These OEMs have long-term supply contracts with global automakers such as General Motors (US), Daimler (Germany), FCA (UK), BMW (Germany), and Tata Motors (India). It is therefore difficult for the new entrants and local manufacturers of terminals to compete in the automotive terminal market. TE Connectivity offers more than 1000 varieties of terminals that are used in vehicles more than any other competitor.

Market Dynamics

Drivers

• Increasing demand for automotive safety system supported by government mandates
• Increasing number of electrical systems in the vehicle

Restraints

• Terminals that are capable of handling vibration requirements
• Highly consolidated automotive terminal market

Opportunities

• Energy efficient E-Mobility
• Future perspective of connected, autonomous and semi-autonomous vehicles

Challenges

• Design issues with high voltage terminals
• Long term reliability challenge for battery terminals

Critical Questions:

• Compliance like Restrictions on Hazardous Substances (RoHS) is restricting terminal manufacturers to limit the use of hazardous raw material for manufacturing terminals. How this will impact overall pricing of terminals?
• The ecosystem of the automotive terminal market is dominated by few key players. How competitors and new entrants will strategize their growth? 
• Where will all these developments take the industry in the mid to long term?

The Global Automotive Terminal Market is estimated to be USD 12.64 Billion in 2017 and is projected to grow at a CAGR of 10.03% during the forecast period, to reach USD 27.14 Billion by 2025. Some of the major growth drivers for the market are the increasing demand for automotive safety systems supported by government mandates and increasing number of electrical systems in the vehicle. The evolution of connected, autonomous, and semi-autonomous vehicles, as well as energy-efficient E-mobility, can create new revenue generation opportunities for automotive terminal manufacturers. However, design issues with high voltage terminals and long-term reliability of battery terminals can pose a challenge for automotive terminal manufacturers.

The global automotive terminal market is segmented by application, current rating, on-highway vehicle, off-highway vehicle, electric vehicle, and region. The report discusses six automotive terminal applications, namely, Body Control & Interiors, Safety & Security System, Cooling, Engine & Emission Control, Infotainment, Lighting System, and Battery System. Cooling, Engine & Emission Control segment accounted for the largest share in the automotive terminal market. This segment is driven by factors such as increasing electronic content for cooling and other applications such as engine controls and treatment of emitted gases.

The battery system segment is estimated to be the fastest growing market for automotive terminals, by application. It is followed by the lighting system, infotainment, body control & interiors, safety & security system, and cooling, engine & emission control. The battery system segment is estimated to experience significant growth due to the increasing number of battery packs in a vehicle for carrying out multiple applications.

The above 100 Ampere segment of the automotive terminal market is expected to grow at the highest CAGR during the forecast period. It is followed by 41–100 Ampere and below 40 Ampere segment. The below 40 Ampere segment is estimated to account for the largest share in the automotive terminal market, following its wide applications in vehicle electronics.

The extensive study has been done on four key regions, namely, Asia Pacific, Europe, North America, and the Rest of the World (RoW).

The Asia Pacific market is forecasted to hold the largest market share and is estimated to grow at a significant CAGR during the forecast period. The market growth in the region can be attributed to the increase in vehicle production and government mandates regarding the active and passive safety of vehicles. Increasing investment in infrastructure, construction activities, and increasing vehicle sales are also projected to drive the growth in this region.

Some of the major restraints for the global automotive terminal market are a highly consolidated market and terminals that are capable of handling vibration requirements. The advantages of mechatronics systems over traditional mechanical systems help to offer friendly operations and make the systems cost-effective for the end-user.

Some of the major players in the global automotive terminal market are TE Connectivity (Switzerland), Delphi (UK), Furukawa Electric (Japan), and PKC Group (Finland). The last chapter of this report covers a comprehensive study of the key vendors operating in the automotive terminal market. The evaluation of market players is done by taking several factors into account, such as new product development, R&D expenditure, business strategies, product revenue, and organic and inorganic growth.

The increasing number of electronic content in various vehicle applications such as engine management, safety system, body control, infotainment, lighting system and battery system to create tremendous growth opportunities for supply-side players.

Cooling, Engine & Emission Control

The cooling system is basically used to prevent overheating of a vehicle’s engine. Engine control unit serves various functions, which include regulating and maintaining the amount of fuel and air in the fuel injection part. Emission control system limits the discharge of noxious gases from the internal combustion engine and other components. These electronics applications require the maximum number of automotive terminals for their operations compared to other applications.

Safety & Security System

Various advanced technologies such as airbags, anti-lock braking system, steering control systems, and electronic stability control have enhanced the safety and security systems of a vehicle. Governments and transportation authorities of various developed and developing countries have mandated the installation of active and passive safety technologies in vehicles. The trend is expected to continue in the future. Thus, the use of factory fitted electronic components has increased over the years, which, in turn, requires several connection systems comprising various terminals.

Body Control & Interiors

The body controls are the electronic control units that monitor and control all the systems of the vehicle body. Terminals play a key role in body control and interiors. The body control and interiors consist of the wiper motor, switches, doors, mirrors, power windows, cluster, electric seats, active suspensions, and HVAC system, among others.

Infotainment

The infotainment system, also known as in-vehicle infotainment, consists of audio and video entertainment, navigation systems, Bluetooth connectivity, and Wi-Fi. It is used for enhancing driver and passenger experience. The infotainment systems consist of several electronic devices, which require various automotive terminals. The in-vehicle infotainment market is driven by the high installation rate of infotainment system in mid and premium segment cars. Additionally, the increasing application in entry-level vehicles will drive the market in developing countries.

Lighting System

The lighting system of an automobile comprises various lighting and signaling devices or components fixed to the front, sides, and rear of the vehicle. The lighting system of vehicles consists of the headlamp, tail lamp, fog lamp, and daytime running lamp. The lighting market for automotive is mainly driven by the increasing vehicle production and increasing lighting applications, especially in passenger cars. Additionally, factors such as passenger and pedestrian safety regulations and increased demand for luxury, comfort, and ambience are driving technological advancements in the automotive lighting industry.

Battery System

The main purpose of the battery pack in a vehicle is to supply the necessary power to the starter motor and ignition system while cranking to start the engine. It also supplies additional power when the demand is higher than the alternator’s capacity and acts as an electrical reservoir. Battery system in a vehicle includes the battery, battery cable, voltage regulator, battery terminals, main fuse block, starter motor, alternator, charging system wiring harness, and accessary fuse block. In this section, only the battery terminals that are attached to the battery are considered.

As electric content in cars has increased steadily in the last two decades, vehicle electronics has become a key product differentiator for automakers in recent years. In developing countries, the adoption of advanced safety features in vehicles is fueled largely by the regulatory bodies and consumer interest. Increasing adoption of advanced safety features, in turn, increases the number of electronic devices in the vehicle. Hence, the number of wiring harnesses that connect electrical devices has been increasing year-on-year. The addition of cameras and other safety-related sensors, along with multiple terminals needed for battery packs used in electrified powertrains, is driving the growth of the terminal market.

Critical Questions would be:

• Vehicles are getting smarter and smarter day by day with advanced electronics. How it is creating opportunities for the supply side?
• How increasing vehicle electrification will help terminal manufacturers to grab new revenue opportunities?
• In which regions, companies can create new revenue pockets for short as well as long term? 

To speak to our analyst for a discussion on the above findings, click Speak to Analyst