A global market review of vehicle electrical wiring ... - Just-Auto.com

A global market review of
vehicle electrical wiring
systems - forecasts to 2010 -
2 nd edition
2005 edition

Page i
A global market review of vehicle
electrical wiring systems - forecasts
to 2010 - 2 nd edition
2005 edition
by Matthew Beecham
January 2005
Published by
Aroq Limited
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Page iii
Table of contents
Single-user licence edition............................................................................................................. ii
Copyright statement.................................................................................................................. ii
Table of contents ........................................................................................................................... iii
List of tables .................................................................................................................................... v
List of figures ................................................................................................................................. vi
Acknowledgements ...................................................................................................................... vii
just-auto.com’s research portfolio .............................................................................................viii
Incredible ROI for your budget – single and multi-user licences.............................................viii
just-auto.com membership ........................................................................................................... ix
Chapter 1 Introduction.................................................................................................................... 1
Good connections ..................................................................................................................... 1
Report coverage........................................................................................................................ 1
Chapter 2 The market ..................................................................................................................... 2
Market trends ............................................................................................................................ 2
Multiplexing ............................................................................................................................... 4
Fibre optics................................................................................................................................ 6
Flexible printed circuit (FPC) boards......................................................................................... 7
AUTOSAR................................................................................................................................. 7
Market players........................................................................................................................... 9
Market shares ......................................................................................................................... 11
Global market.......................................................................................................................... 11
West European market ...........................................................................................................12
North American market ...........................................................................................................15
Japanese market..................................................................................................................... 17
Market forecasts...................................................................................................................... 19
Chapter 3 Manufacturers.............................................................................................................. 21
Alcoa Fujikura ......................................................................................................................... 21
Delphi Corp ............................................................................................................................. 23
Intedis...................................................................................................................................... 24
Lear ......................................................................................................................................... 25
Leoni ....................................................................................................................................... 26
Sumitomo Wiring Systems...................................................................................................... 27
Valeo....................................................................................................................................... 30
Yazaki ..................................................................................................................................... 32
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Page iv
Online sources of information ..................................................................................................... 37
Free email newsletters............................................................................................................ 37
Other research reports............................................................................................................ 37
Global news and feature articles............................................................................................. 37
Search the web ....................................................................................................................... 37
Your feedback ............................................................................................................................... 38
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Page v
List of tables
Table 1: Main wiring harness manufacturers’ business activities ................................................... 10
Table 2: Vehicle wiring harness market values: Western Europe, Japan, North America, 2000 -
2010 (€ms)................................................................................................................ 20
Table 3: Alcoa Fujikura Ltd’s automotive facilities worldwide, 2004 ............................................... 21
Table 4: Sumitomo Electric Industries’ automotive wire harness manufacturing facilities worldwide,
2004.......................................................................................................................... 27
Table 5: Valeo’s Electronics and Connective Systems Branch operations worldwide, 2004.......... 30
Table 6: Yazaki’s wire harness operations worldwide..................................................................... 33
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Page vi
List of figures
Figure 1: Global market shares for vehicle wire harnesses, 2004 (% of volume)........................... 12
Figure 2: West European market shares for vehicle wire harnesses, 2004 (% of volume) ............ 15
Figure 3: North American market shares for vehicle wire harnesses, 2004 (% of volume) ............ 17
Figure 4: Japanese market shares for vehicle wire harnesses, 2004 (% of volume)...................... 19
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Page vii
Acknowledgements
The author would like to especially thank the following companies for their
assistance in producing this report:
○
○
○
○
Delphi Packard Electric
Intedis
Lear
Yazaki
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Chapter 1 Introduction Page 1
Chapter 1 Introduction
Good connections
The amount of electrical and electronic content per vehicle continues to grow
as installation of powered accessories and new features increases. Systems
such as ABS, navigation and control systems for engines, transmission and
exhaust emissions require computers and software. At the same time, many
vehicle functions, which had previously been hydraulically or mechanicallyactivated
are being replaced by electrical/electronic actuation resulting in a
higher number of circuits and electromechanical and electronic controls and
switches per vehicle.
Electrical distribution systems are networks of wiring and associated control
devices that route electrical power and signals throughout the vehicle. Wire
harness assemblies consist of raw, coiled wire, which is automatically cut to
length and terminated. Individual circuits are assembled together on a jig or
table, inserted into connectors and wrapped or taped to form wire harness
assemblies.
Report coverage
In this second edition review of vehicle electrical wiring systems, we extend the
analysis in chapter two by providing market share data for West Europe, North
America, Japan and worldwide, plus market value forecasts for wiring
harnesses through 2010. Chapter three provides brief profiles of the major
manufacturers, namely Alcoa Fujikura, Delphi, Intedis, Lear, Leoni, Sumitomo
Wiring Systems, Valeo and Yazaki.
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Chapter 2 The market Page 2
Chapter 2 The market
Market trends
In 1960 the wiring loom of an upmarket car contained about 200 connectors.
Today the figure is nearer 1,800. In 1960, the same car contained about 200
metres of wiring – now it is more like 2.5 kilometres with over 800 wires. Many
vehicle functions that had previously been hydraulically or mechanically
activated are being replaced by electrical/electronic activation.
Wiring looms are heavy too. The average loom per vehicle carries around 80
pounds of copper wire and insulation. And that could double over the next five
years as the avalanche of multimedia and safety devices descend on
tomorrow’s car. A great deal of the vehicle’s electrical systems and wiring are
positioned within the cockpit area; some 40% of the wiring harness in a midrange
car is located in the cockpit.
The production of a wire harness is also labour intensive. Wire harnesses used
to be produced at plants near vehicle assembly lines. In a bid to reduce
production costs, Japan’s Yazaki Corp led the shift to overseas production by
using low-cost labour in Southeast Asia. North American and European
manufacturers soon followed, relocating production to nearby developing
countries of Mexico and Eastern Europe. Yazaki is in the throes of transferring
its wire production from its Elcom plant in ElPaso, Texas to its Arnecom plant
in Monterey, Mexico, affecting 108 jobs. Wire production will cease at the
Elcom plant by June 2005. Component production for wire harnesses will
remain at the Elcom facility.
Alcoa Fujikura is also investing in low-wage countries. The company recently
opened a factory in Zip El Porvenir, Honduras to produce electrical distribution
systems for various automotive manufacturers located in the Caribbean basin.
The new facility employs 500 people.
Sumitomo Electric Industries and Sumitomo Wiring Systems recently invested
substantial sums in Eastern Europe. The partners have set up a new company
to produce automotive wires and cables in Kisber, Hungary. The new business
effectively strengthens Sumitomo Wiring Systems’ wiring harness business in
© 2005 All content copyright Aroq Ltd. All rights reserved.

Chapter 2 The market Page 3
Europe. Production began in October 2004. Prior to this, the partners were
sourcing wires from local producers. Sumitomo Wiring Systems has also set
up a new subsidiary in Vietnam to produce automotive wiring harnesses.
Sumidenso Vietnam Co Ltd began production in December 2004, creating 380
jobs. Sumitomo Wiring Systems owns an 80% stake in the new venture while
Hanoi Electronics Corp owns the rest. Sumitomo expects this business to
generate sales of ¥1.9bn in 2005 rising to ¥5.3bn in 2006. In early 2004,
Advics established a new subsidiary in Tianjin, China to supply the growing
need for local brake supplies.
For manufacturers, the increase in the content and complexity of electrical and
electronic components requires a broader overall design perspective. This shift
in design philosophy is, as Lear Corp describes it, “moving from the wire itself
to the wire ends”, reflecting a view that design should include both the wiring
and the electromechanical and electronic devices to which they are connected.
In an exclusive interview with just-auto.com, Tom Russell, Vice President of
Advanced Products for Lear, said: “There are two main factors driving change
in the vehicle electrical and electronic distribution systems market. The first
relates to the cost pressures that are inherent in the industry. This is driving us
to offer more creative solutions providing added value for the consumer. The
second aspect driving the market is consumers’ insatiable demand for added
features to cars such as memory seats and GPS.”
As the complexity of the wiring harness design moves into uncharted territory
that inevitably impacts on the supplier’s design and development capabilities.
“When you think about the conventional wiring system architecture, adding a
device means adding a new wire,” said Russell. “But we are now seeing more
and more inter-connects which are basically protocol based. That means as
you add more devices you’re also adding electronic modules. So if you are a
wiring harness manufacturer, you need to better understand vehicle
electronics as well as electrical distribution. For Lear, that is an advantage
because we play in both ends of that game.”
“The key is to be flexible,” added Len Tedesco, Vice President of Electrical and
Electronic Engineering, North America for Lear. “We understand both levels of
technology from the simple state of joining wires together to the more complex
high speed communications and wireless systems. Although wireless systems
are still costly, we see it as playing a major role in the future.”
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