|
Forecast Period
|
2026-2030
|
|
Market Size (2024)
|
USD 618.47 Million
|
|
CAGR (2025-2030)
|
6.9%
|
|
Fastest Growing
Segment
|
Commercial Vehicles
|
|
Largest Market
|
Northern Vietnam
|
|
Market Size (2030)
|
USD 920.89 Million
|
Market Overview
Vietnam automotive connectors market was
valued at USD 618.47 Million in 2024 and is expected to reach USD 920.89 Million
by 2030 with a CAGR of 6.9% during the forecast period. The robust growth is
primarily attributed to the ongoing electrification of vehicles, increasing
consumer demand for advanced driver assistance systems (ADAS), and the
government's strong focus on automotive industrialization. Vietnam’s strategic
location, competitive manufacturing costs, and trade agreements have attracted
significant investments from international automakers and component
manufacturers. The automotive sector, being a critical contributor to Vietnam’s
GDP, is witnessing strong policy support to promote local production of
electric vehicles (EVs) and hybrid systems, further necessitating the adoption
of advanced connector solutions.
Moreover, the rising demand for enhanced
vehicle safety, infotainment systems, emission control regulations, and
connected mobility is spurring innovation in connector design and
miniaturization. With more complex vehicle electronic architectures, connectors
have become essential to ensure reliable and secure data and power transmission
between subsystems. Vietnam’s consumer preference is shifting toward vehicles
equipped with advanced connectivity features, fueling growth in wire-to-board
and board-to-board connectors. The increase in passenger car sales, due to the
growing middle-class population and urbanization, also supports connector
demand, especially in body electronics and safety applications. In addition,
local OEMs such as VinFast are accelerating efforts in the EV space, leading to
a surge in demand for high-performance connectors to support high-voltage
applications. The Vietnam automotive connectors market is poised for
significant technological transformation, driven by the convergence of
electrification, autonomy, and connectivity trends. Integration of smart
features, digital cockpits, and increasing vehicle electrification will
continue to create substantial opportunities across different application
segments. As Vietnam evolves into a regional automotive manufacturing hub, its
connector market is expected to experience steady expansion in the coming
years.
Key Market Drivers
Increasing Vehicle Electrification and EV Development
The shift toward vehicle electrification is a primary
growth driver of the Vietnam automotive connectors market. Vietnam is
witnessing accelerated adoption of electric vehicles, spearheaded by local EV
manufacturer VinFast and supported by government policies aimed at reducing
carbon emissions. EVs and hybrid vehicles require a greater number of
connectors, especially high-voltage connectors for battery management systems,
electric motors, and onboard chargers. According to the Ministry of
Construction, EV sales have grown exponentially, rising from 8,000 units in
2022 to 37,800 in 2023, fueling the demand for connectors. These vehicles
rely heavily on wire-to-wire and wire-to-board connectors to manage electrical
subsystems, increasing the per-vehicle connector content.
Rapid Growth in Passenger Vehicle Sales and Automotive
Electronics
Vietnam’s growing urban population, increasing
disposable incomes, and expanding road infrastructure have driven a surge in
passenger vehicle demand. In April 2025, Vietnamese car sales reached 29,585
units, a 21% increase compared to April 2024. Passenger vehicles led the market
with 20,766 units sold, while commercial vehicle sales also declined. The
increasing adoption of infotainment systems, automatic climate controls, and
advanced body control modules in these vehicles is boosting the demand for
sophisticated connectors. Moreover, electronic content per vehicle is rising,
with a trend toward modular and smart vehicle designs that necessitate robust
data and signal transmission components. Connectors play a crucial role in
ensuring performance, reliability, and safety.
Government Policy Support and FDI Inflow in Automotive
Manufacturing
The Vietnamese government’s roadmap to position the
country as a regional manufacturing hub has led to a favorable investment
climate. Policies such as tax incentives for local manufacturers and EV
component production are attracting foreign direct investment. The
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
and EU-Vietnam Free Trade Agreement (EVFTA) further open export opportunities. Vietnam's national
industrialization strategy prioritizes the automotive sector, targeting an
annual production capacity of 466,400 vehicles by 2025 to satisfy 70% of
domestic demand and export 37,000 units. Vietnam also aims for 30% of
four-wheeled and 22% of two-wheeled vehicles to be electric by 2030, aligning
with its climate objectives.
As
major global OEMs and Tier-1 suppliers establish operations in Vietnam, the
demand for local connector manufacturing and advanced connector technologies
rises. For instance, Sumitomo Electric and Yazaki have expanded their
Vietnamese operations to support regional OEM needs, particularly for wiring
harness and connector solutions.
Download Free Sample Report
Key Market Challenges
High Dependency on Imported Connector Components
Vietnam’s automotive connector supply chain remains
heavily dependent on imports, particularly for precision components and
high-performance connector materials. Vietnam’s automotive industry is still in a
developmental stage with low localization rates. In 2023, about 70 percent of
vehicles sold were assembled domestically, yet only 20 percent of their
components were produced within Vietnam, reflecting a heavy dependence on
imported parts and raw materials. Local manufacturers face challenges in meeting the
technological standards required for advanced connectors used in electric and
autonomous vehicles. The lack of domestic production capabilities for certain
specialized connector components leads to increased costs and longer lead
times. This reliance on imported components also exposes the market to global
supply chain disruptions, fluctuating raw material prices, and geopolitical
risks, impacting overall production efficiency and scalability.
Complex Technological Requirements for High-End
Vehicles
The ongoing evolution in vehicle
technology—particularly the growth of EVs, ADAS, and autonomous
mobility—requires advanced, miniaturized connectors that support high data and
power throughput, durability, and thermal management. Vietnamese OEMs and Tier-2
suppliers often lack the R&D infrastructure or technical expertise to
manufacture connectors that meet these demanding specifications. Ensuring
electromagnetic compatibility (EMC), waterproofing, vibration resistance, and
performance under extreme temperatures remains a challenge for local firms. The
gap in advanced connector technology development could hinder the
competitiveness of domestic players and increase reliance on global brands.
Regulatory and Standardization Barriers
The lack of a unified regulatory framework for
automotive connectors and component testing in Vietnam presents a challenge for
manufacturers and suppliers. Variations in standards for safety, durability,
and environmental compliance make it difficult for companies to streamline
product development and ensure compatibility across OEMs. As vehicles integrate
more electronic systems, ensuring connectors meet ISO and automotive-specific
standards like IATF 16949 and IPC/WHMA-A-620 becomes increasingly vital. Many
small and mid-size enterprises (SMEs) struggle to invest in compliance and
testing infrastructure, delaying product approvals and market entry.
Key Market Trends
Rise of Vehicle Connectivity and In-Vehicle
Infotainment
The digital transformation in automotive design is
driving rapid growth in connected vehicle technologies and in-vehicle
infotainment systems. Vietnamese consumers are increasingly demanding smart
features such as navigation, voice command, touchscreens, and seamless
smartphone integration. This shift necessitates the use of advanced connectors
capable of supporting high-speed data transmission and minimal latency.
Ethernet connectors and optical fiber-based solutions are becoming prevalent,
especially in premium passenger vehicles. As vehicle connectivity becomes
standard, the demand for miniaturized yet high-bandwidth connectors is surging.
Growth in Safety and ADAS Integration
With road safety gaining national focus, OEMs are
integrating advanced driver assistance systems (ADAS) such as lane departure
warnings, blind spot detection, parking assist, and adaptive cruise control.
Each of these systems requires dedicated sensors and control modules
interconnected via automotive connectors. Wire-to-board and board-to-board
connectors enable reliable signal transmission between these components. In
2024, the Vietnam government launched initiatives to promote vehicle safety
norms, encouraging automakers to invest in ADAS features. This trend is
significantly contributing to the growth of safety-focused connector
applications.
Miniaturization and High-Density Connector Design
As vehicle platforms become more compact and
electronics-dense, the need for miniaturized connectors with high current
capacity is rising. Connector manufacturers are developing lightweight,
high-density products to reduce space and weight without compromising
performance. These connectors are being adopted for engine control modules,
body electronics, and EV charging systems. Hirose Electric and JAE are among
the global players advancing compact connectors in Vietnam. Additionally,
advanced sealing technologies for harsh environments are being incorporated
into miniaturized connectors, particularly in engine and under-hood
applications.
Segmental Insights
Vehicle
Type Insights
The Vietnam automotive connectors market
is segmented into Passenger Cars and Commercial Vehicles, reflecting the
country's evolving automotive landscape. Passenger Cars dominated the
market, contributing the largest share in 2024 due to the steady increase in
personal vehicle ownership, urbanization, and growing middle-class income
levels. As of 2024, over 600,000 passenger cars were sold in Vietnam,
and this figure is expected to continue rising as younger populations migrate
to urban centers and seek more comfortable, connected personal transportation
solutions. This growth in passenger car sales directly correlates with the
increased demand for advanced electronic systems, which require reliable
connectors for infotainment, ADAS (Advanced Driver Assistance Systems), and
powertrain management systems.
Connection
Type Insights
Wire to Board connections
lead the market and are expected to maintain this dominance throughout the
forecast period. These connectors are widely used in automotive electronic
control units (ECUs), dashboards, infotainment systems, and HVAC units,
providing a stable and compact solution for electrical signal transmission
between printed circuit boards and wire harnesses. Wire to Board connectors
offer design flexibility and reliability, especially as modern vehicles
incorporate a greater number of sensors, cameras, and communication systems.
With the rise in vehicle electrification and connected car systems in Vietnam,
the demand for efficient and high-performance Wire to Board connectors is
accelerating.
Download Free Sample Report
Regional Insights
The Northern Vietnam region leads the Vietnam automotive connectors market and holds the largest share as
of 2024. This dominance is primarily due to the region's status as the
country's industrial and manufacturing hub. Major automotive production
facilities, including those of VinFast, Hyundai Thanh Cong, and various joint
ventures with international OEMs, are concentrated in this region. The
proximity to key ports such as Hai Phong facilitates easy import and export of
raw materials and finished goods, supporting robust manufacturing operations.
Furthermore, Northern Vietnam benefits from an established supply chain network
and skilled labor availability, which has encouraged global Tier-1 and Tier-2
automotive component suppliers, including connector manufacturers, to set up
operations in the region. Government-backed industrial zones like the Hoa Lac
Hi-Tech Park and Thang Long Industrial Park further support production
scalability and infrastructure for electronics and automotive components. As a
result, the demand for high-precision and application-specific automotive
connectors is highest in Northern Vietnam, especially in passenger car
manufacturing and EV prototyping.
Recent Developments
- In April,
2024 – Sumitomo Electric Industries Ltd. received investment approval to
establish Sumiden Vietnam Automotive Wire in Hai Duong Province. With USD 100 million
in capital and projected employment of 8,000, the facility aims to become
Southeast Asia's largest automotive wire producer—an essential upstream stage
for connector assembly.
- In 2024, Sumitomo Corporation, in partnership with BRG Group,
will supply power to its smart city development in Hanoi, Vietnam, using solar
and biomass power generation from a nearby industrial park. The power supply
aims to cover 30-40% of the electricity needs for both the smart city and the
industrial park. Construction of the smart city is slated to begin in 2025,
with residents expected to start moving in from 2026.
Key Market Players
- Delphi Automotive
- Sumitomo Electric Industries Ltd.
- Molex Incorporated
- Yazaki Corporation
- Japan Aviation Electronics Industry,
Ltd.
- JST Mfg. Co., Ltd.
- AVX Corporation
- Amphenol Corporation
- Hirose Electric Co.,Ltd
- Foxconn Technology Group
|
By Vehicle Type
|
By Connection Type
|
By Application
|
By Region
|
- Passenger Car
- Commercial Vehicles
|
- 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
|
- North Vietnam
- South Vietnam
- Central Vietnam
|
Report Scope:
In this report, the Vietnam Automotive Connectors
market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- Vietnam Automotive
Connectors Market, By Vehicle Type:
o Passenger Car
o Commercial Vehicles
- Vietnam Automotive
Connectors Market, By Connection Type:
o Wire to Wire Connection
o Board to Board Connection
o Wire to Board Connection
- Vietnam Automotive
Connectors Market, By Application:
o Body Control & Interiors
o Fuel & Emission Control
o Safety & Security System
o Engine Control & Cooling System
- Vietnam Automotive
Connectors Market, By Region:
o North Vietnam
o South Vietnam
o Central Vietnam
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the Vietnam Automotive Connectors market.
Available Customizations:
Vietnam Automotive Connectors market report with
the given market data, TechSci Research offers customizations according to a
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).
Vietnam Automotive Connectors Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
want to confirm the date of release, please contact us at [email protected]