The connector is a necessity for the modular design of complex products. It is used for electrical connection and signal transmission. It originated from the field of military fighters. It is easy to mass-produce, easy to maintain, easy to upgrade, and flexible in design. It is widely used in communication. Industrial and consumer products and other fields. At present, the main application areas of connectors are automobile, communication, consumer electronics and industry, with a total proportion of 71%. With the gradual improvement of the informationization and intelligentization level of the manufacturing industry, the connector will develop in the direction of functionalization, miniaturization and intelligence. This is also an important direction for connector companies to continuously innovate and enhance their competitiveness.
The global connector market has shown a steady growth trend. In 2017, the global market size was 62.1 billion US dollars, with a compound growth rate of 5.46% in the past 5 years. China, North America and Europe are the main markets for connectors, with the largest market in China, accounting for 28% of the global market.
The military industry market is relatively closed, the space is growing steadily, the gross profit is maintained at a high level; the foreign-invested manufacturers in the automobile industry are dominant, the domestic new energy vehicles provide opportunities for cornering overtaking; the urban rail transit in the rail transit sector is developing rapidly, and the domestic substitution is expected to accelerate; communication and data The 5G and data center markets in the transmission field are growing rapidly, and domestic manufacturers are expected to move toward the high end. We forecast that the demand for connectors for military, automotive, rail transit, and communications will increase by 20% and 5% in the next three years (including 35% of new energy vehicles), 10%, and 25%.
The global connector industry presents four characteristics of global competition, rapid technology update, increasing industry concentration, and close proximity to the downstream sector. Compared with the global market, domestic connectors still have a large gap with foreign giants such as Tyco Electronics and Amphenol, in terms of industrial concentration, high-end products, and technological innovation capabilities. In the future, domestic connector companies will increase their concentration and industrial upgrading. It is the trend of the times, industry mergers and acquisitions will continue, communications and new energy vehicles have become the focus of the development of various connector companies.