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Industrial Connectors Market - Forecast(2024 - 2030)
Industrial Connector Market Overview
Industrial
Connectors market size was valued at $5.3 billion in 2020, and it is estimated to grow at a CAGR of 6.9%
during 2021-2026. The growth is mainly attributed to the increasing adoption of
IoT and automation technologies in industries is set to drive the market
growth. Integration of superior connector products in automotive parts such as
powertrain, safety and body electronics is set to propel the market growth.
Additionally, increasing trend for connected cars and the adoption of connectors in
automotive sector is set to propel the market growth. The growing
demand for safety systems thus has a direct effect on the demand for industrial
connectors, which in turn drives market growth. Circular
connectors are widely used to enable maximum connectivity of the electric or
signal transmission in various applications particularly HDMI cables and Electronic peripherals. For instance, total net generation of electricity in
United States reached 310,710 thousand MWh on March 2021 with a 1% increase
from March 2020 and is expected to elevate in forecast period owing to high
electricity demands. This will provide significant growth in the demand of
circular connectors to enable maximum connectivity in data streams further propelling its
market growth in North American Market.
Report Coverage
Key Takeaways
- Europe dominated the Industrial Connectors market in term of revenue in 2020 owing to the presence of major number of players.
- Adoption of advanced technologies such as IoT, automation technologies in industries and stringent regulations to use advanced equipment is poised to propel the market growth.
- Increasing adoption of Industrial Connectors in data centers with growing trend of 5G technology is set to drive the market.
- Designing of miniaturized
connectors is the major challenge that hampers the market growth.
Industrial Connector Market, By Region, 2020
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Industrial Connector Market Segment Analysis – By Type
PCB Connector held
the major market share of 28.8% in 2020. PCB wire to board type of connectors
are used in connecting a wire to a printed circuit board (PCB), enabling
connectivity between circuits. High adoption of wire-to-board PCB connectors in
industries such as aerospace, military, consumer electronics, medical, telecom
and data communication application set to drive the demand of PCB connectors in
factory automation. They can be tested to automotive levels on shock, vibration
and temperature cycling for reliability. They also have high durability and
flexibility. This type of connections are used to bring power and signals onto
a PCB and they are specifically designed for LED lighting, and others which set
to boost the market growth.
Industrial Connector Market Segment Analysis – By Industry Vertical
Semiconductor
& Electronics is the fastest growing segment in Industrial Connectors market
and estimated to grow at a CAGR of 9.0% during forecast period 2021-2026. In
semiconductor and electronics industry, connectors are used in applications
such as drives, relays and switches, cable assembly sets, fabrication and
packaging, test sockets, printed circuit boards (PCBs) and others. In this
industry, all outputs of a circuit rely on the performance of the connectors
used. The demand for faster, better and cheaper electronic devices drive all
component manufacturers to constantly upgrade their offerings which escalate
the demand for connectors. Implementation of automation technology in
semiconductor and electronics industry to incorporate progressive levels of
factory control software components, automated material handling systems, and
real-time process tool control to meet the growing and changing needs of a
semiconductors and electronics.
Industrial Connector Market Segment Analysis – By Geography
APAC dominated the Industrial Connectors market in 2020 with a market share of 39.4%, followed by North America and Europe owing to the presence of large number of players. In addition to these, high adoption of automation technologies in industries which drives the market growth. For instance, ABB which is one of the leading company in Europe invests in development of advanced products including connectors for various applications is set to drive the market growth.
Industrial Connector Market Drivers
Increasing adoption of connectors in data centers
With rapid industrial growth towards data centers, industrial
connectors are causing high demands in the market. With the help of industrial
connectors, companies have been able to improve their Ethernet capabilities,
thus improving the data connectivity in their organization. Adoption of
Ethernet connectors in data centers provides high speed transmission of massive
amounts of data which helps in enhancing work productivity. With the help of
such connectors, data centers are able to meet the high end and data heavy
applications offering high performance, thus acting as a major driver for the
growth of industrial connectors market.
Growing demand for 5G and Government initiatives
The
adoption of wireless technologies such as Wi-Fi, Bluetooth and others coupled
with implementation of automation technology in industries have been fueling
the connectors market. According to the National Cable and Telecommunications
Association, the number of connected devices are anticipated to reach 50.1
billion by the end of 2020. Growing number of connected devices in
telecommunication industry is poised to fuel the market growth. Many government
initiatives have been implemented in countries such as India, China, and
Brazil, in order to improve the network infrastructure. For instance, the
Chinese and Indian governments suggested that their countries should actively
promote the 5G development plans and launch the technology by the end of 2020. These
kind of initiatives are increasing the demand for connectors.
Industrial Connector Market Challenges
Designing and Operation failures
Designing of
miniaturized connectors is the major challenged faced by industrial connectors
OEMs. Design engineers face problems in balancing the compact designs of
connectors along with offering high performance levels. Designing of
miniaturized high voltage power connectors without compromising with the
durability offered device robustness in the harsh environments is the major
issue faced by in industrial connectors’ manufacturers market. Additionally,
repeated connector connection and disconnection causes wear and tear issues, thus
causing operation failures and this hampers the market growth.
Industrial Connector Market Landscape
Technology launches, Acquisitions,
Collaboration, and R&D activities are key strategies adopted by players in
the Industrial Connectors market. Industrial Connectors top 10 companies include
Molex Incorporated, TE Connectivity, Amphenol Corporation, Aptiv (Delphi
Connection Systems), JST Mfg. Co. Ltd., Hirose Electric Co. Ltd., Rosenberger
Hochfrequenztechnik GmbH, Harting Technology Group, Foxconn Technology Group,
Sumitomo Electric Industries Ltd., Japan Aviation Electronics Industry Ltd. and
Yazaki Corporation and others.
Acquisitions/Technology Launches
- In March 2020, Amphenol ICC launched ix industrial connectors in collaboration with its technology partners Hirose Electric and Harting Technology Group. With a mechanically strong 10 position connector design and IEC 61076-3-124 compliant, these connectors were designed to meet the next generation industrial Ethernet requirements.
- In February 2020, Binder USA LP had launched eight contact male/female M16-X cable connector named M16-X415 series in order to offer high speed data transmission along with an IP67 rated ingress protection to resist harsh environments.