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Overview
5G Connector Market size is forecast to reach $3.58 billion by 2025 growing at a CAGR of 9.5% during 2020-2025. The growth of the 5G connector market is driven by the transition of traditional network structure in the telecom industry with 5G technology, owing to the increasing need for connectors for the upgraded cellular towers. Moreover, the demand for high-speed network and the growth of machine to machine communication is highly influencing the 5G connector market growth. Additionally, the increasing investment by major countries such as China, U.S, and the U.K for 5G technology will further enhance the overall market demand for 5G connector industry during the forecast period.
Key Takeaways
- North America dominates the 5G connector market owing to increasing adoption of 5G technology across the entire network infrastructure across U.S.
- The need for high-speed network and the need for higher LTE frequency has led to the upgradation of the telecom sector that enhances the requirement of the 5G connector market.
- The growing need for upgradation in the equipment in the data center will increase the demand for high-performance backplane and mezzanine connectors which will interact with the power distribution and will create opportunities for the 5G connector market.
- Rapid development in the telecom industry is opening up new opportunities for RF coaxial connectors which is further strengthening the opportunities of companies, thereby driving the demand of 5G connector industry.
Product Type - Segment Analysis
RF connector segment held the
largest share in the 5G connector market in 2018. The adoption of 5G technology
in applications such as telecom, macro cells and so on has highly fueled the
need for RF coaxial connectors. For instance, in cellular infrastructure, the
transition of the traditional network to the 5G network will lead to the need
for advanced structures that will raise the need for RF connectors for
connecting mobile switches and base stations. Moreover, the upgradation of macro
cell towers will also enhance the need for 5G RF connectors that will drive the
growth of this market.
Application - Segment Analysis
Telecom
infrastructure has been the primary market for 5G connector. The adoption of 5G
technology has led to the transformation in the area of wireless communication.
the roll-out of 5G network will upend the cellular infrastructure and will
offer increased speed and system capacity, that will allow designers to choose and utilize multiple higher LTE frequency
bands, including millimeter-wave frequencies. With the rapid implementation of
5G network in the telecom industry will also require the need for the number of
cellular antennas that will further embrace the multiple-output (Massive MIMO)
technology.
Additionally,
the adoption of 5G will also enhance the requirement for the upgradation of the existing cellular network infrastructure that will lead to the developments of
new base stations and towers which will expand the requirement of miniature RF
connectors and cable assemblies. These development in the telecom infrastructure
will thus create opportunities for the 5G connectors market.
Geography - Segment Analysis
North America dominated the 5G
Connector market with a share of more than 35%, followed by APAC and Europe. The
presence (headquarters) of major companies such as Amphenol Corp., WL Gore and
Associates and others in North American countries are set to boost the 5G
connector market in North America. For instance, in 2019 the major countries
such as the U.S and the UK announced the plans the acceleration of 5G network across
the entire network industry which will also lead to the deployment of
connectors for 5G applications in these countries. Moreover, in 2019 Germany’s he
Next Generation Mobile Networks (NGMN) Alliance announced the recommendation of
the RF cluster connector for 5G deployment that will make this connector
suitable for the deployment of 5G technology. Also, the ongoing investments in
India by the major telecom operators such as Airtel, Reliance Jio and Vodafone
Idea will also enhance the use of connectors for 5G applications. Thus, these
driving trends will further fuel the growth of the 5G connector market.
Drivers – 5G Connector Market
- Upgradation of the Cellular infrastructure
The rising need
for high-speed data communication has led to the upgradation of the cellular
infrastructure, which leads to the inclusion of 5G technology. As 5G network
along with IoT provides high network capacity that will further enable the intelligent
cities to be connected energy grids, individual vehicles, and communication
networks. Furthermore, the roll-out of 5G technology for cellular
infrastructure will also lead to the implementation of 5G-ready antennae,
sensors, fiber optics, and high-speed interconnects that will raise the supply
of 5G connectors. Thus, the rising supply of or board-to-board and
board-to-filter RF interconnections along with 5G applications such as
antennas, sensors and so on will drive the demand of 5G connector market growth.
- Deployment of fiber network
The
deployment of fiber network will lead to the dependency of the 5G network
which will create opportunities for numerous companies. Companies such as Bulgin introduced the
latest waterproof and dustproof 4000 and 6000 Series Buccaneer connectors,
which handles high data rates while protecting equipment from the harsh
conditions that can impact mobile networks and connected applications. Moreover,
with the implementation of fibre network, 5G will be able to reform the
technology being sued today with the increasing interaction from mobile,
laptop, AR/VR, IoT, and so on. These interactions of 5G technology will
provide the interconnection of billion devices also enhancing the connection
through printed-circuit-board, sliver series connectors and so on which will
further boost the adoption of 5G connector market.
Challenges – 5G Connector Market
- Formation of Complex Structure & Stringent Rules
As technology is getting advanced
and the adoption of technologies such as 5G, IoT and so on are highly increasing
in various applications. Thus, the rising roll-out of 5G technology in
applications such as telecom, industrial and so on have also fueled the formation
of complex structures. With the deployment of 5G, the test fields are getting more
complicated as the interconnected chips become larger, and more heterogeneous
that makes the system more complex. Furthermore, the 5G works at higher frequencies
which are based on stringent rules that change with the application. Moreover,
the international standards organization for 5G NR (New Radio Standards), is currently
working for testing this standard. Also, the 5G technology does not offers production-grade
solution for testing devices that offers traditional RF connectors. Due to this,
there is an enhancement of a complex environment for testing devices based on
certain standards or rules that hampers the growth of the 5G connector market
size.
Market Landscape
Technology launches, acquisitions and R&D
activities are the key strategies adopted by players in the 5G Connector market.
In 2018, the market of Fuel Card has been consolidated by the top five players
accounting for xx% of the share. The market for 5G Connector top 10 companies
are Amphenol SV Microwave, WL Gore and Associates, San-tron Inc., CommScope,
Sensorview, Pasternack Enterprises Inc., SAGE Millimeter Inc., Millimeter Wave
Technologies, Huber+Suhner, and Radiall.
Acquisitions/Technology Launches
- In January 2019, Amphenol RF introduced the new 2.2/5 connector series. The latest connector series is typically lightweight that accommodates with thick, low loss cables up to a half-inch. Additionally, the new connector series are designed in such a way that they make connectors ideal for both indoor and outdoor use. Thus, the introduction of the latest series 2.2/5 connectors are though critical for 5G technology, but will further create opportunities for 5G connectors market.
- In November 2019, according to China Academy of Information and Communications Technology (CAICT), the investment to launch 5G technology is expected to be CNY900 billion to CNY1.5 trillion between 2020 and 2025. This investment will lead to the cause positive impact on the employment of 5G and will also set to drive the 5G connector market.