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The connectors market size is estimated to grow at a CAGR of 6.48% between 2023 and 2028. The market size is forecast to increase by USD 26.67 billion. The growth of the market depends on several factors such as the miniaturization of electronic devices, the consolidation of market players, and the growth in the telecommunication sector. Our report examines historical data from 2018-2022, besides analyzing the current market scenario.
This report extensively covers market segmentation by end-user (automotive, IT, telecom or datacom, and consumer electronics and others), type (PCB connectors, I/O rectangular, application-specific, and fiber optic connectors and others), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Connectors Market Forecast 2024-2028
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Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The global connectors market consists of many international as well as local players. Mergers have played an important role in the transformation of this market, as many large players have acquired smaller regional players. These mergers and acquisitions (M&A) allow the product line of the manufacturers to expand across the globe. Moreover, the strategy of global expansion through mergers and acquisitions (M&A) has an impact on the macro level and micro levels; companies must provide many global products and services to meet the expectations of the customers in accordance with international standards.
Moreover, M&A leads to major shifts in market shares and sales for the companies involved. By opting for a merger with a regional player, which has a major share in a particular region, the international players that acquire the local players can gain a market share in that region easily. Hence, consolidation among market players will have a positive impact on the global connectors market growth during the forecast period.
The connectors market advancements along with the growth of its end-users. For example, with the growth of the telecom sector, the speed of transmission has increased considerably; consequently, the connectors used in these transmission devices and networks should adapt to these changes. Hence, market players are keeping a close watch on the latest technologies and factors that can affect the growth of the market.
In addition, one of the most rapidly advancing technologies is the semiconductor technology used in the manufacture of connectors. It ensures high-speed data communication in the devices. Furthermore, there are attempts to develop single Tb/s channels in the future, for which massive amounts need to be invested in R&D in the global connectors market. Thus, such advancements will drive the growth of the market during the forecast period.
Wage rates have risen across the globe, which has reduced the profitability of market players. In addition, with the gain in the cost of manufacturing connectors, manufacturers face a decline in profit margins, which have, in turn, adversely impacted their investments in R&D. However, as most original equipment manufacturers (OEMs) demand low-cost, reliable connectors, companies are shifting to new raw materials that are cheap and reliable.
However, choosing such raw materials without conducting proper research on them leads to inferior-quality connectors. Furthermore, there are many steps taken in operational processes, such as switching of raw materials ratio to reduce the cost. These changes are done to lower the operation cost without any preliminary research and may result in quality issues. Thus, such factors may impede the growth of the market during the forecast period.
The automotive segment will account for a major share of the market's growth during the forecast period.?The advancements in automotive technologies such as driverless cars, EVs, high-tech cruise controls, climate control, and audio controls are the primary drivers in this segment. The rapid growth in the technology used in various automotive devices has led to the need for trustworthy, standard, robust, and affordable connectors.
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The automotive segment was valued at USD 20.34 billion in 2018. The contact systems are a crucial part of all connectors as they establish connections with wires or boards, according to the type of connection. These contact systems play an important role in deciding the cost of connectors. The automotive sector has the demand for high safety requirements at the lowest cost. To ensure this, manufacturers are trying to reduce the package space and weight of components, which also gives rise to the need to reduce the size of the connectors. Thus, such factors will generate the demand for connectors during the forecast period.
Based on type, the market has been segmented into PCB connectors, I/O rectangular, application-specific, and fiber optic connectors and others. The PCB connectors?segment will account for the largest share of this segment.?PCB connectors are utilized to install electrical connections between the PCB and other electronic components or systems. They deliver a secured and dedicated connection while permitting easy installation and removal. The growth of this segment is mainly attributed to factors such as the increasing use of electronic devices, penetration of the Internet, and the reduction in raw material prices. Furthermore, the increased collaboration of PCB connector designers with EMS players has led to the reduced design risk and development of cost-effective solutions, which increased the adoption of PCB connectors in the electronics and electrical industries. Thus, such factors are expected to drive market growth during the forecast period.
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APAC is estimated to contribute 58% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The growth of the connectors market in APAC is mainly attributed to developing countries such as China and India. China is a major manufacturer of connectors and plays an important role in the global connectors market. These two countries are witnessing rapid urbanization and industrialization, which is paving the way for total economic transformation.
Furthermore, APAC is the biggest consumer of semiconductor devices and contributes to more than 50% of the total revenue in the semiconductor industry owing to the presence of predominant players. Low-end smartphones, which are sourced from contract electronics manufacturers in China, are anticipated to be one of the main growth drivers for the semiconductor industry during the forecast period.
In 2020, the outbreak of COVID-19 has had a varied impact on the growth of the regional connectors market. The demand for connectors increased in H1 2020 with the growing teleworking culture and the rising need for remote access technologies and online connectivity. On the other hand, the shutdown of manufacturing units and disruptions in supply chain operations slowed down the growth of the regional market. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities. Hence, such factors are expected to drive market growth in this region during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ABB Ltd., ALLIED ELECTRONICS CORP., AMETEK Inc., Amphenol Corp., Aptiv Plc, Elcom International Pvt. Ltd., Hon Hai Precision Industry Co. Ltd., Huawei Technologies Co. Ltd., Koch Industries Inc., METZ CONNECT GmbH, Nexans SA, Prysmian Spa, Rosenberger Hochfrequenztechnik GmbH & Co. KG, TE Connectivity Ltd., Yazaki Corp., HIROSE ELECTRIC Co. Ltd., J.S.T. MFG. Co. Ltd., Japan Aviation Electronics Industry Ltd., and Luxshare Precision Industry Co., Ltd
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The connectors market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Connectors Market Scope |
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Report Coverage |
Details |
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Page number |
184 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.48% |
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Market Growth 2024-2028 |
USD 26.67 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.18 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 58% |
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Key countries |
US, China, Japan, India, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
3M Co., ABB Ltd., ALLIED ELECTRONICS CORP., AMETEK Inc., Amphenol Corp., Aptiv Plc, Elcom International Pvt. Ltd., Hon Hai Precision Industry Co. Ltd., Huawei Technologies Co. Ltd., Koch Industries Inc., METZ CONNECT GmbH, Nexans SA, Prysmian Spa, Rosenberger Hochfrequenztechnik GmbH & Co. KG, TE Connectivity Ltd., Yazaki Corp., HIROSE ELECTRIC Co. Ltd., J.S.T. MFG. Co. Ltd., Japan Aviation Electronics Industry Ltd., and Luxshare Precision Industry Co., Ltd |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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