Connectors Market Intelligence

Industry Outlook & Drivers

Global Market Outlook on Connectors

APAC would continue to dominate the global connector market, with China being the largest connector manufacturing region.Increased demand for connectivity, convenience, and advanced product features is resulting in increased electronic content in the end-use devices and thereby driving the demand for connectors, globally. Telecommunication and automotive are expected to be the predominant end-use demand market for connectors

Global Connector Market Maturity

APAC is expected to remain the largest connector market, globally. This is predominantly driven by the presence of large number of connector manufacturers in China. The high growth in the region is expected to be offset by the contraction of connector market in Japan

Global Connector Market Growth Trend & End-use

• The global connector market is expected to grow at a CAGR of 2–3 percent in the upcoming years.
• This growth is expected to be primarily driven by the increased electronic content in automotive production. Other high growth industries include telecommunication, industrial, and military applications
• The global connectors market was estimated to be around $60.11 billion for the year 2017 and witnessed an increase of 11 percent as compared to the previous year
• The connector market is expected to reach $72.26 billion by 2020, growing at a CAGR of 2–3 percent in the forecast period. The growth of connector market is expected to be driven by the Automotive and the Telecom industry, which are expected to witness positive growth in the forecast period
• The connector market is expected to witness continued consolidation primarily driven by an increased interest by Chinese companies on overseas acquisitions

Global Connectors Driver and Constraints

Driver

• Demand for connectivity, convenience, and advanced product features is resulting in increased electronic content in the end-use devices. Increased functionality of applications is resulting in rapid advances in the new product development and thereby driving the demand for connectors
• Increased convergence of product is resulting in more electrical devices offering broad-based functionality. E.g., the increased convergence of connectors used in consumer electronics, mobile devices, and other infotainment devices
• Growing demand for electronic content in automotive industry at consumer level especially in North America, Europe, and China is driving the demand for connector market

Constraints

• Rapid innovation in the technology industry is resulting in the price erosion of products in the end-use industries, which in turn is resulting in pricing pressure on the connector manufacturers
• Volatility in the raw material prices such as copper and gold coupled with the rising labor wage rates in the developing nations is resulting in increased pressure on the manufacturer's profit margins
• Slowdown of the economic activity especially in Europe, China, and Japan is another constraint for the connector market. In addition, lower demand from computer, industrial, and consumer sectors due to cautious consumption by businesses and individuals is expected to affect the growth of overall connector industry