Connectors Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, Japan, India, Germany - Size and Forecast 2024-2028

Connectors Market Forecast 2024-2028

The connectors market size is estimated to increase by USD 26.67 billion and grow at a CAGR of 6.48% between 2023 and 2028. The market's expansion is contingent upon several factors, including the miniaturization of electronic devices, the consolidation of market players, and the growth of the telecommunication sector. Challenges faced by the market encompass issues related to the reliability and durability of connectors, rising wage rates, and heightened competition, as well as regulatory constraints concerning plating solutions. Our report examines historical data from 2018-2022, besides analyzing the current market scenario. The global market is characterized by its dynamic nature and features a multitude of international and local participants. Mergers and acquisitions (M&A) have played a pivotal role in restructuring this industry, enabling major players to broaden their product portfolios across various regions. By adopting this strategy, companies can achieve global expansion while adhering to international standards, thereby meeting the diverse needs of customers worldwide.

What will be the Size of the Connectors Market During the Forecast Period?

Connectors Market Forecast 2024-2028

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Market Dynamics and Customer Landscape

The Market plays a critical role in facilitating various industries such as automotive, aerospace, telecommunications, and electronics. Quick connectors offer efficient wire-to-wire, wire-to-board, and board-to-board connections, enhancing electronic and electrical systems' performance. With a focus on safety, security, and reliability standards, connectors are integral components in applications like body control, engine control, and airbags. The advent of IoT and 5G technology drives demand for high-speed data connectors and miniaturized connectors, catering to the evolving needs of smartphones, radar equipment, and GPS navigation systems. In the automotive industry, connectors enable the production of electric vehicles, adhering to stringent durability standards. Robust connectors are essential in aerospace and defense sectors, ensuring the resilience of critical electronic components in harsh environments. 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. 

Driver- Consolidation of market players

The global market is a dynamic landscape with numerous international and local players. Mergers and acquisitions (M&A) have been instrumental in reshaping this industry, allowing large players to expand their product lines across regions. This strategy facilitates global expansion and ensures compliance with international standards, meeting diverse customer expectations. M&A activities significantly impact market shares and sales, enabling companies to gain footholds in new regions through acquisitions of regional players. This consolidation enhances market growth, particularly benefiting sectors such as automotive, aerospace, telecommunications, and electronics. The market encompasses various connector types, including quick connectors and high-speed data connectors, catering to diverse applications such as vehicle production, IoT, and telecommunications.

Trends- Advent of advanced connector technology

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 manufacturing. 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 market. Thus, such advancements will drive the growth of the market during the forecast period.

Challenge- Increase in wage rate and competition

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 these products, 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 ones, 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.

Connectors Market Segmentation by End-user, Type, and Geography

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. 

End-user Segment Analysis

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. 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. Thus, such factors will generate demand during the forecast period.

Type Segment Analysis

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. 

Regional Analysis

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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.

Who are the Major Connectors Market Companies?

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.

• 3M Co.: The company offers connectors such as backplane connectors, boardmount connectors, and storage connectors.

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.  

Segment Overview

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. 

• End-user Outlook 
  • Automotive
  • IT
  • Telecom or datacom
  • Consumer electronics and others

• Type Outlook 
  • PCB connectors
  • I/O rectangular
  • Application-specific
  • Fiber optic connectors and others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil 
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is thriving amidst the rapid evolution of electronic and electrical systems, particularly in the telecommunications, automotive, and aerospace sectors. With the demand for high-speed data transmission and connectivity, connectors like RCA cables and quick connectors play pivotal roles. The automotive industry relies on robust connectors for radar equipment and GPS navigation systems, while the aerospace and defense sectors require miniature connectors for communication systems and airbags. The emergence of 5G technology and IoT drives growth in the telecommunications sector, fueling demand for connectors like the IT14 Series and GTC-E Series. As industries embrace renewable energy and electric mobility, connectors become essential components in powering self-driving cars and facilitating connectivity in healthcare applications. Amidst economic cycles, the connector market continues to innovate, providing reliable and durable solutions for various industries.

Moreover, the market is witnessing significant growth fueled by advancements in technology and increasing demand across various sectors. Connectors like RCA cables and quick connectors play crucial roles in connecting electrical appliances and facilitating quick installations. Patchcords and copper conductors ensure efficient transmission of data and power, adhering to reliability and durability standards. As industries embrace IoT and electronic fabrication, the need for high-speed data connectors and miniaturized connectors becomes paramount. The rise of 5G networks and electric vehicles further drives demand for connectors with robust physical interfaces and compatibility with renewable energy sources. In sectors like healthcare, connectors such as I/O connectors and DBAS 9 connectors facilitate connectivity and data exchange, enhancing efficiency and patient care. As the market continues to evolve, connectors remain indispensable components in powering and connecting various technologies and applications.

In the realm of IoT (Internet of Things), quick connectors serve as crucial components, providing a physical interface for seamless connectivity. These connectors ensure efficient data transmission by securely linking conductors, facilitating the integration of IoT devices. Their role in streamlining connections underscores their significance in enabling the proliferation of interconnected systems. 

The Market is witnessing rapid growth driven by advancements in technology across various sectors. Connectors like the RCA cable and quick connectors play critical roles in facilitating seamless communication and connectivity. As vehicles become increasingly electrified, connectors are essential components in vehicle production, ensuring efficient power distribution and data transmission. In the realm of IoT, connectors enable the integration of diverse devices and systems, supporting the interconnectedness of smart devices. Male and female connectors form the backbone of connectivity in electronic systems, including those used in the healthcare sector for medical devices and equipment. Innovations like the DBAS 9 connector cater to evolving industry needs, while adherence to standards like the OSI model ensures compatibility and interoperability. In a rapidly evolving landscape, connectors continue to play a pivotal role in enabling connectivity and driving technological progress across industries.

Connectors Market Scope
Report Coverage	Details
Page number	184
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 6.48%
Market Growth 2024-2028	USD 26.67 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	6.18
Regional analysis	APAC, Europe, North America, South America, and Middle East and Africa
Performing market contribution	APAC at 58%
Key countries	US, China, Japan, India, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
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
Market dynamics	Parent market analysis, Market forecasting, 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.
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.

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What are the Key Data Covered in this Connectors Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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