|
Forecast Period
|
2026-2030
|
|
Market Size
(2024)
|
USD 167.7
Million
|
|
CAGR (2025-2030)
|
4.5%
|
|
Fastest Growing
Segment
|
Passenger Cars
|
|
Largest Market
|
Western
|
|
Market Size (2030)
|
USD 194.5
Million
|
Market
Overview
The Saudi Arabia Automotive
Connectors Market was valued at USD 167.7 Million in 2024 and is expected to
reach USD 194.5 Million by 2030 with a CAGR of 4.5% during the forecast period. The automotive connectors market in Saudi Arabia is experiencing
notable development, driven by the rapid transformation of the automotive
sector toward electrification and digitalization. As vehicles become more
reliant on electronics for performance, safety, and comfort, the demand for
reliable and efficient connectors has intensified. These components play a
critical role in establishing secure electrical pathways between various
systems, including powertrains, infotainment, lighting, and driver-assistance
technologies. The growing adoption of electric and hybrid vehicles further
contributes to this demand, as such vehicles require specialized connectors to
support high-voltage systems, battery management, and charging infrastructure.
The government's commitment to modernizing the transport sector and its push
for sustainable mobility have added momentum to this evolving market landscape.
Technological innovation is another major catalyst shaping the
automotive connectors market in the country. With increasing implementation of
intelligent transport systems, advanced driver-assistance systems (ADAS), and
vehicle-to-everything (V2X) communication, connectors must now offer higher
durability, speed, and reliability. Trends such as autonomous driving and the
integration of 5G and IoT within vehicles have introduced new requirements for
connector designs that support high data transmission and withstand harsh
automotive environments. These innovations offer opportunities for
manufacturers to develop more compact, lightweight, and heat-resistant
connectors that align with the evolving architecture of modern vehicles. At the
same time, in alignment with Vision 2030, Saudi Arabia has invested over USD 5 billion in developing local automotive manufacturing capabilities. This includes partnerships with global manufacturers like Lucid Motors and Hyundai, aiming to produce over 300,000 vehicles annually by 2025. Such investments not only enhance domestic production but also stimulate the demand for automotive connectors, as a growing vehicle base requires parts and components.
Market
Drivers
Adoption of Electric Vehicles (EVs)
The rapid growth of electric vehicles in Saudi Arabia is a major driver
for the automotive connectors market. EVs require specialized connectors for
their battery management systems, powertrains, and charging systems. These
connectors must handle high voltages and ensure safety and efficiency. As the
adoption of electric vehicles increases in response to environmental concerns
and government incentives, the demand for robust and reliable connectors in
these systems grows. The push for sustainable transportation and the
integration of EVs into the automotive ecosystem is creating significant market
opportunities for connector manufacturers. The Saudi Electric Vehicle Charging
Infrastructure Development Initiative (SEVCIDI), launched in 2021, set a target
of installing 50,000 charging stations across the nation by 2025. This
ambitious initiative is supported by substantial investments, including a USD 1.41
billion allocation specifically for charging infrastructure through 2025. The
expansion of charging infrastructure is crucial for the adoption of electric
vehicles (EVs), thereby increasing the demand for automotive connectors.
Government Initiatives and Policies
Saudi Arabia's Vision 2030 initiative is transforming the country’s
automotive landscape by encouraging the adoption of clean energy technologies,
including electric and hybrid vehicles. The government's regulatory support,
infrastructure development for EV charging stations, and financial incentives
for electric vehicle manufacturers are significant drivers of market growth.
These initiatives are not only fostering the adoption of green technologies but
also supporting the domestic automotive sector, which in turn increases the
demand for automotive connectors required for new vehicle models and systems. Saudi
Arabia's Public Investment Fund (PIF) has committed USD 40 billion towards
developing the EV infrastructure and manufacturing capabilities. This includes
investments in domestic EV manufacturing and the establishment of the Electric
Vehicle Infrastructure Company (EVIQ), which plans to establish 5,000 fast
chargers across the Kingdom by 2030. These efforts are expected to
significantly boost the EV ecosystem, driving the demand for automotive
connectors.
Growing Demand for Vehicle Electrification
As automakers move towards electrification, vehicle powertrains are
becoming more reliant on electronic systems. The demand for power electronics
and the associated connectors for energy storage, electric motors, and other
critical systems is increasing. Vehicle electrification includes battery
management systems, inverters, charging connectors, and other components that
require specialized connectors to ensure safe, efficient energy flow. The
rising trend towards electric and hybrid vehicles is directly driving the
demand for connectors designed to handle the electrical demands of these
systems. The Saudi government has set an ambitious goal for electric vehicles (EVs) to comprise 30% of Riyadh's vehicle fleet by 2030. This initiative is part of the broader Clean Mobility Saudi Arabia plan, which aims to achieve net-zero emissions by 2060. To support this transition, the government plans to install 5,000 EV charging stations nationwide by 2025, significantly boosting the demand for EV-related aftermarket products and services.
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Key
Market Challenges
Technological Complexity
As automotive technology becomes more advanced, connectors are required
to handle more complex electrical and data systems. This creates a challenge
for manufacturers to design connectors that are small, lightweight, yet capable
of carrying high amounts of power or data without compromising reliability or
safety. These increasingly sophisticated designs require careful material
selection, as well as precision engineering to meet the demands of modern
vehicles, creating higher production costs and design hurdles for
manufacturers.
Stringent Safety and Regulatory Standards
The automotive sector operates under strict safety standards and
regulations. Connectors used in vehicles must meet high safety requirements to
prevent failures that could result in accidents or system malfunctions. These
standards often vary across different regions, adding complexity to the
manufacturing and compliance processes. Meeting these regulations while
ensuring high levels of performance in diverse conditions remains a significant
challenge for connector manufacturers, who must continuously innovate to stay
ahead of evolving safety norms.
Key
Market Trends
Rise of Electric Vehicle (EV) Infrastructure
As the adoption of electric vehicles continues to grow, so does the
infrastructure required to support them, including EV charging stations and
battery management systems. This trend is shaping the demand for automotive
connectors specifically designed to handle the unique needs of EVs, such as
high-voltage systems, battery charging, and energy transfer. The development of
more sophisticated charging infrastructure requires connectors that can ensure
fast, efficient, and safe charging processes. This trend is expected to
continue expanding as governments and private sectors invest in EV
infrastructure.
Growth of Autonomous Vehicles
The autonomous vehicle market is gaining momentum, with manufacturers
investing heavily in self-driving technologies. Autonomous vehicles require a
wide array of sensors, cameras, and processors that demand reliable and
high-speed connectors to function effectively. These systems rely on connectors
to ensure seamless communication between different vehicle components. As the
industry moves closer to fully autonomous driving, the need for sophisticated
connectors capable of handling real-time data and ensuring system integrity
will become increasingly important. Saudi Arabia has forged strategic
partnerships with major international companies to exceed the production
capacity of 600,000 electric cars annually. For instance, Lucid Motors,
partially owned by the PIF, has opened the first electric vehicle manufacturing
plant in King Abdullah City. Such collaborations are pivotal in accelerating
the EV industry's growth, thereby increasing the need for advanced automotive
connectors.
Segmental Insights
Connection
Type Insights
The automotive connectors market is segmented by connection type into
wire to wire connection, board to board connection, and wire to board
connection. Each of these connection types plays a crucial role in ensuring
that automotive systems function properly and efficiently. Wire to wire
connections is commonly used in various automotive applications where
electrical circuits need to be connected directly to one another. This
connection type typically involves two or more wires being connected using
terminals, connectors, or other methods to ensure stable electrical flow. Wire
to wire connections is essential in numerous systems, including powertrains,
lighting systems, and infotainment setups, where multiple electrical components
need to communicate with one another without interference. Board to board
connections are primarily used in automotive applications where two or more
printed circuit boards (PCBs) need to communicate with each other. This type of
connection involves the direct linking of PCB pins or pads to connect
electrical signals and power to various components mounted on the boards. Board
to board connections are found in more complex automotive systems, such as
control units, sensors, and infotainment systems, where multiple electronic
boards need to interact seamlessly to manage complex functionalities. This
connection type requires high precision and ensures that the data transfer
between boards is efficient and stable.
Wire to board connections is used when a wire needs to be connected to a
PCB or a similar surface-mounted connector. This connection type is widely used
in automotive electronics, particularly in systems where power or signal needs
to be transmitted from a wire to a specific component on a board. It is
commonly found in engine control units, safety systems, and various vehicle
modules, providing the necessary electrical links for optimal vehicle
performance. Wire to board connectors are designed to handle high current and
ensure a secure, stable connection that minimizes electrical failure and signal
loss. Each of these connection types serves a unique purpose in automotive
systems, with specific applications depending on the system’s complexity and
electrical requirements.
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Regional
Insights
In 2024, the Saudi Arabia automotive connectors market is chiefly led by the Eastern and Western regions, each playing a crucial role in shaping the demand and growth of this sector. The Eastern region’s strong industrial base, fueled by its extensive oil and manufacturing activities, creates substantial demand for automotive connectors used in both passenger and commercial vehicles. The presence of numerous factories and assembly units in this region accelerates the consumption of advanced connectors that support vehicle electrical systems, including power distribution, sensor integration, and communication modules. Harsh environmental conditions, such as high temperatures and dust, necessitate connectors with high durability and reliability, pushing manufacturers and suppliers to focus on robust designs suited for these challenges. The steady expansion of infrastructure and transportation projects also contributes to increased vehicle sales and, consequently, higher aftermarket needs, driving the growth of the connectors market.
The Western region’s automotive connectors market thrives due to its strategic importance as a religious tourism hub and urban center. The constant flow of pilgrims and tourists creates demand for reliable transportation services, prompting the need for vehicles equipped with sophisticated electrical systems that require specialized connectors. Urbanization in the region’s key cities results in greater vehicle density and diversified automotive usage, which fuels the demand for connectors tailored to various vehicle types and applications. The market benefits from well-established logistics networks and access to import routes, facilitating timely distribution of connectors and related components. Consumer preferences in this region show a tendency toward vehicles with advanced electronic features, increasing the need for high-performance connectors that support infotainment, safety systems, and electric drivetrains. These combined influences position them as key contributors to the overall expansion and technological advancement within the automotive connectors sector, reflecting the evolving demands of the Kingdom’s automotive industry.
Recent
Developments
- In May 2024, ENNOVI launched the ENNOVI-MB2B multi-row board-to-board
(BTB) connector platform, designed specifically for electric vehicles (EVs).
This connector features a snap-in design that allows multiple units to be
stacked together without soldering, accommodating varying pin counts
efficiently. The connectors use miniPLX press-fit terminals and IndiCoat
plating, supporting a wide range of automotive applications with high
durability and temperature resistance.
- In 2024, Molex introduced the MX-DaSH family of data-signal hybrid
connectors. These connectors integrate power, signal, and high-speed data
connectivity into a single system, catering to both wire-to-wire and
wire-to-board configurations. Designed to facilitate the shift towards zonal architecture,
they are tailored to meet the diverse needs of emerging applications requiring
dependable data transmission.
- In March 2024, Japan Aviation Electronics Industry, Ltd. (JAE) commenced
manufacturing and sales of the "KW1E Series," a high-voltage fast
charging connector. Developed in collaboration with a production partner in
Europe, this connector aims to enhance the efficiency and safety of charging
stations, supporting the growing demand for electric vehicles.
- In February 2024, the Saudi Public Investment Fund (PIF) established Alat, a conglomerate focusing on semiconductors, advanced industries, and smart technologies. This initiative aims to bolster local manufacturing capabilities, including automotive connectors, aligning with Vision 2030's goal to diversify the economy and reduce reliance on oil exports.
Key
Market Players
- TE Connectivity Ltd.
- Amphenol Corporation
- Molex LLC
- Yazaki Corporation
- Sumitomo Electric Industries, Ltd.
- Aptiv PLC
- Japan Aviation Electronics Industry, Limited (JAE)
- Hirose Electric Co., Ltd.
- Kyocera Corporation
- Rosenberger Hochfrequenztechnik GmbH & Co. KG
|
By Vehicle Type
|
By Connection Type
|
By Application
|
By Region
|
- Commercial Vehicle
- Passenger Cars
|
- Wire to Wire Connection
- Board to Board Connection
- Wire to Board Connection
|
- Body Control & Interiors
- Fuel & Emission Control
- Safety & Security System
- Engine Control & Cooling System
|
- Northern & Central
- Eastern
- Western
- Southern
|
Report
Scope:
In this
report, the Saudi Arabia Automotive Connectors Market has been segmented into
the following categories, in addition to the industry trends which have also
been detailed below:
·
Saudi Arabia Automotive Connectors Market, By Vehicle
Type:
o
Commercial Vehicle
o
Passenger Cars
·
Saudi Arabia Automotive Connectors Market, By Connection
Type:
o
Wire to Wire Connection
o
Board to Board Connection
o
Wire to Board Connection
·
Saudi Arabia Automotive Connectors Market, By Application:
o
Body Control & Interiors
o
Fuel & Emission Control
o
Safety & Security System
o
Engine Control & Cooling System
·
Saudi Arabia Automotive Connectors Market, By
Region:
o
Northern & Central
o
Eastern
o
Western
o
Southern
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies presents in the Saudi Arabia Automotive
Connectors Market.
Available
Customizations:
Saudi
Arabia Automotive Connectors Market report with the given market data,
TechSci Research offers customizations according to the company’s specific
needs. The following customization options are available for the report:
Company
Information
- Detailed analysis and profiling of additional
market players (up to five).
Saudi
Arabia Automotive Connectors Market is an upcoming report to be released soon.
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release, please contact us at [email protected]