Connector Market

Global Connector Market Size (2024 to 2029)

The global connector market, valued at $86.07 billion in 2023, is projected to reach $136.06 billion by 2029, with a growth rate (CAGR) of 7.9% from 2024 to 2029.

Connectors are indispensable components that facilitate the transmission of data, signals, and power between devices or systems. Connectors provide a physical and electrical interface between two devices or systems, enabling data transfer, signals, and power. Connectors are designed to suit specific applications and environments and come in various shapes, sizes, and types. Circular connectors, rectangular connectors, PCB connectors, fiber optic connectors, and RF connectors are common types of connectors. Connectors are indispensable components in a variety of industries, including telecommunications, automotive, aerospace, and consumer electronics. They serve a crucial role in enabling reliable and efficient device-to-system communication. The connector market is a dynamic industry that facilitates connectivity between diverse devices and systems. 

MARKET DRIVERS

Increasing demand for sophisticated connectivity solutions in emerging technologies such as 5G, the Internet of Things (IoT), and artificial intelligence (AI) presents an opportunity for the connector market. As these technologies continue to advance and become more pervasive, the demand for connectors that can support high-speed data transfer rates and advanced features such as low latency, high reliability, and power efficiency increases. This presents a substantial opportunity for the connector market to develop and supply innovative connectors that meet these specifications.

An additional opportunity for the connector market is the expanding use of automation in a variety of industries. As the prevalence of automation systems increases, the demand for connectors that can support these systems and facilitate reliable communication between machines and systems increases. This presents an opportunity for connector manufacturers to create connectors specifically designed for automation applications. The increasing adoption of consumer electronics such as smartphones, laptops, and wearables creates a demand for smaller and more compact connectors, which presents a growth opportunity. This presents an opportunity for connector manufacturers to create miniature connectors that are compatible with these devices. Lastly, the growing emphasis on sustainability and environmental stewardship presents an opportunity for connector manufacturers to produce energy-efficient, recyclable, and environmentally responsible connectors. 

Increasing demand for high-speed connectivity solutions is the most influential factor driving the connector market. As technology develops and becomes more prevalent, the demand for quicker and more reliable connectivity solutions increases. This increases the demand for connectors supporting advanced technologies such as 5G, the Internet of Things (IoT), and artificial intelligence (AI). The automotive and transportation industry is also a major driver of the connector market, as it relies increasingly on sophisticated connectivity solutions to enable features such as autonomous driving, vehicle-to-vehicle communication, and in-vehicle entertainment systems. This is fueling the demand for reliable connectors that can withstand harsh environments. The increasing adoption of automation in various industries is another factor driving the connector market, as automation systems require reliable machine-to-machine and machine-to-system communication. This increases the demand for connectors supporting automation systems and facilitating efficient data transfer.

MARKET RESTRAINTS

The connector market faces several obstacles that could limit its development and expansion. The availability of low-cost alternatives to connectors, such as wireless communication technologies, is one of the primary constraints. Wireless communication technologies, such as Wi-Fi, Bluetooth, and cellular networks, are gaining popularity and replacing connectors in various applications. This is due to the fact that wireless technologies provide a more flexible and cost-effective solution than connectors, particularly for mobile-centric applications. However, the ongoing trade tensions and political instability among the world's leading economies represent a significant constraint. This has led to increased market uncertainty and volatility, which may have a negative effect on the connector market. In addition, the connector market is extremely competitive, with numerous competitors competing for market share. This can result in price conflicts and margin pressure, hindering the growth and profitability of connector market participants.

Impact of COVID-19 on the global connector market

The COVID-19 pandemic has had significant short- and long-term effects on the connector market. Here are a few ways the pandemic has affected the connector market. First, many industries have slowed due to the pandemic, which has decreased the demand for connectors. For instance, the demand for automotive connectors has decreased due to the pandemic's impact on the automotive industry. Second, the pandemic has caused economic uncertainty, leading to decreased capital expenditures and new project investments. This has affected the scale of the connector market, particularly in construction and infrastructure-related industries. Third, remote work has increased as a result of the pandemic, which has decreased the demand for certain types of connectors, such as those used in office networks and data centers. Fourth, the pandemic has altered consumer behavior, which has affected the demand for consumer electronics and connectors. For instance, the shift towards remote work and online learning has increased demand for laptops, tablets, and other devices, which has increased demand for the connectors used in these devices.

REPORT COVERAGE:

This research report on the global connector market has been segmented and sub-segmented into the following categories.

Connector Market - By Connector type:

• Rectangular
• Circular
• Fibre optic
• RF

The rectangular connectors segment is expected to account for the dominating share of the global connector market during the forecast period, whereas the circular connectors market is growing faster. Rectangular and circular connectors are two of the most prevalent connector designs and are utilized in a wide variety of applications. Rectangular connectors are frequently used in applications requiring multiple connections, such as computers, industrial apparatus, and automotive systems. Due to their rugged design, rectangular connectors are frequently used in severe environments and are available in a variety of sizes and configurations.

On the other hand, the circular connectors segment is expected to witness a steady growth rate during the forecast period. Circular connectors have a circular shape and are frequently used in applications that require a secure and impenetrable connection, including military and aerospace systems, medical equipment, and marine applications. Circular connectors are also available in a variety of sizes and configurations, and they are suitable for use in severe environments. In addition to these two connector types, other connector types, such as fiber optic connectors, RF connectors, and board-to-board connectors, are extensively used in a variety of applications.

Connector Market - By End-user: 

• Automotive
• Aerospace
• Defense
• Industrial machinery
• Telecommunications
• Consumer electronics
• Medical devices

The automotive segment is predicted to grow at a promising CAGR in the global market during the forecast period. Applications for connectors in the automotive industry range from in-vehicle electronics and infotainment systems to powertrain and safety systems. The aerospace and defense industry utilizes connectors for critical applications such as avionics systems, communication apparatus, and weapon systems. Connectors are utilized in a variety of industrial apparatus applications, including robotics, automated assembly lines, and control systems. Connectors play a vital role in the telecommunications industry, where they are utilized in mobile devices and networking apparatus. With applications ranging from smartphones and laptops to home entertainment systems, the consumer electronics industry is a significant user of connectors.

Connector Market - By Application:

• Data and Communication
• Power Supply
• Lighting

With the increasing demand for high-speed data transmission and connectivity, the data and communication sector is leading with prominent share of the global connectors market. Connectors are essential components for data transmission in data centers, networking apparatus, fiber optic networks, and other applications. In recent years, there has also been a rise in demand for connectors in the power supply market, particularly in light of the increasing popularity of renewable energy and electric vehicles. Connectors play a crucial role in power distribution and control, and the demand for dependable and efficient power supply solutions is anticipated to continue to drive the expansion of this market segment. Thus, the dominant segment in the implementation of connectors can depend on factors such as market trends, technological advancements, and industry and application-specific requirements.

Connector Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

The North American market for connectors is one of the largest, with demand coming from a variety of industries, including automotive, aerospace, defense, and telecommunications. The demand for the connectors market in Europe is escalating with an increasing number of industries such as automotive, healthcare, and others.

The Asia-Pacific connector market is expanding swiftly, with growing investments from government authorities. 

KEY MARKET PLAYERS

TE Connectivity, Amphenol Corporation, Molex LLC, Yazaki Corporation, Aptiv PLC, JAE Electronics Inc., Hirose Electric Co. Ltd., Sumitomo Wiring Systems Ltd., HARTING Technology Group, Smiths Interconnect

RECENT HAPPENINGS IN THE MARKET

• In March 2021, TE Connectivity announced the release of its new STRADA Whisper backplane connectors. These connectors are intended for use in high-speed data centers and telecommunications infrastructure.
• In April 2021, Molex announced in May 2021 that it would acquire Fiber Guide Industries, a manufacturer of fiber optic products and solutions, to expand its capabilities in the optical fiber market.
• In June 2021, HARTING Technology Group announced the release of its new Han S connector series, which is compatible with existing Han connectors and designed for use in severe environments.
• In July 2021, Samtec announced that it had acquired RF Industries' connector business, which encompasses the production of coaxial connectors and cable assemblies.