The future of the connector market

With the popularity of 4G networks, the rise of 5G networks and the development of the consumer electronics industry, the demand for network products in the communications field has promoted the development and production of connector products. As an indispensable electronic component in electronic equipment, the connector is mainly used to bridge the connection in the circuit or encourage communication between different circuits. It is widely used in consumer electronics, automotive, data communication, industry, Medical, aerospace and military fields.

The global production focus of connectors has been shifting to mainland China. The overall level of connector manufacturing in China has been rapidly improved. The connector market has expanded year by year, making it the largest connector consumer in the world. Data show that in 2010-2017, China's connector industry sales revenue increased year by year. In 2017, the connector industry sales revenue reached 248.391 billion yuan, an increase of 8.32%; according to the forward-looking industrial research institute, the connector industry sales revenue in 2018 is about 260.29 billion yuan.

Figure 1 Sales revenue and growth of China's connector manufacturing industry in 2010-2018 (unit: 100 million yuan, %)

At present, connectors are mainly used in the fields of automobiles, communications, aerospace, military equipment, computers, industry, household appliances and the like. Among them, automotive connectors accounted for the largest proportion, accounting for 23% of the global connector market; communications followed closely, accounting for 21%; consumer electronics, industrial sector accounted for more than 10%.

Figure 2 Distribution of global connector applications

The downstream market for connector manufacturing is vast. With the continuous development of connector applications in the automotive industry, computer communications industry, and consumer electronics industry, the market capacity of the connector industry will continue to expand. For example, electronic signal transmission adapters are widely used in smart mobile communications, audio-visual equipment, PCs, smart wearable devices and various types of electronic terminal products. The connector industry has been able to maintain rapid development under the strong demand of the terminal consumer market. In particular, the emergence of mobile intelligent terminals has changed the way people live and play, and has also promoted the improvement of electronic signal transmission adapter products in technology and market, and promoted the rapid development of the connector industry.

For the A/V connector market, with the expansion of the market share of next-generation mobile communications and A/V products, the future development prospects are still promising. However, with the demand for versatility in fashion and single products, A/V connectors need to be developed in the direction of light weight, small pitch, multiple functions, long life and high reliability.

The market demand for mobile phone connectors mainly comes from the upgrading of mobile phone products. Especially in the 5G commercial trend, 5G mobile phones will usher in large-scale popularization, which will bring new growth momentum to the mobile phone connector market. Among them, the demand for battery connectors, SIM card connectors, and FPC connectors is expected to rise rapidly. Konnra Electronics is also stepping up the development of new FPC connectors.

In the automotive connector market, demand from new energy vehicles will be the main driver of future growth. The data shows that in 2017, China's new energy vehicle connector market is about 2.78 billion yuan. In the future, with the accelerated popularization of new energy vehicles, the market size is expected to exceed 8.1 billion yuan by 2023. Among the new energy automotive connectors, the Konnra connector is represented by a 3.00mm pitch KR3000 connector and a 4.20mm pitch KR4200 connector, as well as related wiring harnesses.

The market prospect of the rail transit connector is also promising. The judgment is based on the fact that the country is vigorously supporting rail transit construction. For example, the “Thirteenth Five-Year Development Plan for Railways” proposes that by 2020, the national railway operating mileage will reach 150,000 kilometers, of which high-speed railway 30,000 kilometers. In this context, according to the forecast of the Prospective Industry Research Institute, the market demand for rail transit connectors in 2018-2020 is about 3.085 billion yuan; in 2020-2023, the demand for rail transit connectors in China is about 2.136 billion yuan.