The cable core - connector trend forecast

At present, the connector industry, as the core part of the cable, is facing a series of challenges and opportunities. Global conflicts have put pressure on supply chains in terms of access to materials and open shipping lanes. Labor shortages continue to affect manufacturing, especially in North America and Europe. However, demand is strong in many markets. The implementation of 5G and sustainable energy infrastructure is creating new opportunities. Investing in chip manufacturing will soon bring the new facility into operation. The continuous development of new technologies is promoting innovation in the field of interconnection, and in turn, these new connector products are also making greater achievements in electronic design, which in turn is also promoting the development and progress of the cable & wire harness industry.

Several trends affecting connectors

SWaP

It is a top priority for connector design and specification in every industry. Product design has achieved amazing size reduction and performance leaps in high-speed interconnection, thanks to the outstanding contributions of component designers. The widespread use of portable, connected devices is transforming every product category and, gradually, the way we live our lives. In addition to small devices such as cable needed for various electronic products, large products such as automobiles, spacecraft and aircraft are also benefiting from this miniaturization trend. Smaller, lighter components not only help reduce the payload, but also open up the possibility of moving farther and faster.

Customization

While the long development times and high cost of custom components have led to the emergence of a thousand standardized, excellent, multifunctional COTS components, new processes such as digital modeling, 3D printing, and rapid prototyping allow designers to obtain perfect, uniquely designed parts in a fast way and without too expensive a burden.

Advanced material

Materials science is addressing market-specific needs and industry-wide adjustments, including weight reduction, reinforcement and durability; Bio compatibility and sterilization requirements, as well as the need for safer products for the environment and human health.

Artificial intelligence (AI)

With the arrival of generative AI models, AI technology is making waves in 2023. In 2024, the technology will be applied to component design to optimize performance, increase efficiency, test systems and designs, and explore new forms. At the same time, the extreme demand for high-speed performance required to facilitate these functions will put even more pressure on the connector industry to create even more powerful new products.

Trend forecasts for connectors are mixed

The global economy appears to be performing better in 2023 than most economists expected, setting the stage for strong economic growth in 2024. Bishop & Associates expects positive connector growth in 2024. Low to mid-single digit growth is the historical norm in the connector industry, with demand historically rebounding after a year of decline.

Report investigation

Global connector sales were essentially flat in 2023, although a surge in activity at the end of the year could signal an improvement in 2024. Bookings for November 2023 were up 8.5 per cent, led by transport, up 17.2 percent. Automobiles followed with 14.6 percent and industry with 8.5 percent. Four of the six regions reported year-on-year growth in orders, led by China. Even so, all regions continued to show negative results at the start of the year.

Observation display

1.Europe ranks fourth out of the six regions in terms of percentage growth in 2022, but first in 2023, with a projected growth rate of 2.5%.

2.Sales of electronic connectors vary by market sector. In 2022, the telecom/data communications market will see the largest percentage growth at 9.4 percent, driven by increased Internet activity and the continued push for 5G. In 2023, although nowhere near the growth seen in 2022, the telecom/data communications market will once again show the largest growth, growing by 0.8%.

3.In 2013, North America and Europe accounted for 42.7% of total sales, while the Asian market (Japan, China and Asia Pacific) accounted for 51.7% of global connector sales. In fiscal 2023, North America and Europe are expected to account for 45% of global connector sales, up 2.3 percentage points from 2013, while the Asian market is expected to account for 50.1%, down 1.6 percentage points.

Outlook for the connector industry

What is certain is that electronic products will continue to play a pivotal role in promoting the development process of the world. As technology continues to advance, interconnection will provide critical support for a variety of innovative applications and become an indispensable cornerstone of the digital age. Whether it is the popularity of smart devices, the expansion of the Internet of Things, or the advancement of artificial intelligence, interconnection technology will play a crucial role in this. We have reason to believe that in the New Year, the development of the cable industry will also get better and better.