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Automotive Wire Harnesses and Connectors Move to Center Stage

4 October 1999

Frost & Sullivan - Automotive Wire Harnesses and Connectors Move to Center Stage as Technology Advances

    SAN ANTONIO, Oct. 4 -- As automobiles become more
technologically advanced, manufacturers in the wire harness and connector
market must continually develop new technologies to remain competitive.
Considering the demand for rapid data transmission, companies that manufacture
cost-effective, low-weight, and technologically advanced wire harnesses and
connectors will increase their market shares.
    The rate of vehicle production is one of the primary determinants for unit
shipments of any automotive component. Although the automobile market has been
strong since 1994, this report anticipates a downturn in the market over the
forecast period from 1995 to 2005.
    According to strategic new research by Frost & Sullivan (http://www.frost.com),
North American Automotive OE Wire Harness and Connector Markets, the North
American market for wire harnesses generated an estimated $6.99 billion in
revenues in 1998. After a slight period of negative growth, the market is
projected to rebound to a compound annual growth rate of 0.9 percent through
2005, reaching $7.42 billion in revenues in that year.
    The wire harness and connector markets are being driven by the increased
electrical and electronic content of vehicles, such as safety, comfort and
convenience features, including navigation, information and entertainment
systems. The introduction of electrical and electronic systems like throttle
control, steering and braking are also expected to drive the market.
     As the number of applications for wire harnesses increases, so does their
complexity. However, in this market, it is often difficult to pass increased
costs to automobile manufacturers through higher prices. "Automakers need to
restrain vehicle prices while offering more and more features. Thus, they are
very price-sensitive, expecting their suppliers to provide better components
at lower costs every year," says Frost & Sullivan Transportation Analyst
Joerg Dittmer.
    Frost & Sullivan's North American Automotive OE Wire Harness and Connector
Markets study analyzes markets across the U.S., Canada and Mexico. With
up-to-date discussions of market drivers and restraints, and visionary
marketing, sales and R&D strategic recommendations, this report will help
companies overcome market hurdles and actualize current and future
technological opportunities.
    Frost & Sullivan presents Market Engineering Leadership Awards to
companies that make positive contributions to the automotive industry. The
1999 Market Engineering Product Innovation Award -- Wire Harnesses goes to
Origin Modular Interconnects. The 1999 Market Engineering Product Innovation
Award -- Electrical Connectors goes to an as-yet-unnamed joint venture being
formed by AMP and Motorola. The 1999 Market Engineering Customer Focus and
Sales Strategy Award is presented to Siemens Wiring Systems division of
Siemens Automotive. The 1999 Market Engineering Competitive Strategy Award is
given to Lear Corporation.
    Frost & Sullivan, an international market consulting company, monitors the
automotive industry for market trends, measurements and strategies. This
ongoing research is used to update online research including topics such as OE
wire harness and connectors, electronic control modules, OE lighting products
and sensors.
    Visit Frost & Sullivan's Web site at:  http://www.frost.com .

         Report:  5320-18    Date:  September 1999    Price:  $2,950