Connector Market Size, Share & Industry Analysis, By Product Type (PCB Connectors, I/O Connectors, Circular Connectors, Fiber Optic Connectors, RF Coaxial Connectors, and Others), By End-User (Consumer Electronics, Telecommunications and Networking, Automotive, Energy and Utilities, Government and Defense, and Others), and Regional Forecast, 2024-2032

The global connector market size was valued at USD 83.55 billion in 2023 and is projected to grow from USD 87.03 billion in 2024 to USD 147.44 billion by 2032, exhibiting a CAGR of 6.8% during the forecast period. Asia-Pacific dominated the connector market with a market share of 45.21% in 2023.

A connector is a component that forms an electronic circuit through electric connections. They play a crucial role in routing signals and power between electronic systems in almost all fields, such as consumer electronics, telecommunications, automotive, and many others.

The market’s growth is expected to be driven by the proliferation of electronic devices and the increasing need for compact and reliable connectivity solutions. Market demand is increasing due to the trend toward automation and Industry 4.0 in industrial units. The latest Survey of Industry 4.0 adoption in 2022 shows that companies have progressed even further. With many initiatives in progress and some already completed, 72% of respondents to the survey say they are in the process of implementing Industry 4.0. Moreover, developing advanced communication networks fosters a growing potential for market share.

The growth of the connector industry has been significantly affected by the COVID-19 pandemic. As a result of the delays in production and the temporary closure of the transport system, global sales fell sharply during this period.

Connector Market Trends

Rapid Adoption of Automation and Industry 4.0 in Industrial Units is a Key Trend

The need for reliable and effective data transmission, control, and power distribution in connectors is growing as logistics and supply chain operations, and manufacturing facilities progressively rely on interconnection systems. Connectivity is essential for the continued development of Industry 4.0. When designing cutting-edge systems requires replacing conventional connectors with newer solutions. The need for connectors that can withstand the harsh industrial environment further increases the market expansion.

Connector Market Growth Factors

Proliferation of Electronic Devices and Wireless Communications to Aid Market Growth

The growth of the market is driven by an increase in the consumption of consumer electronics devices globally. A wide-ranging variety of consumer products requires connectors, including home appliances, computers, communication devices, such as smartwatches, smartphones, tablets, and other devices, and entertainment systems.

In addition, the use of connectors in wireless technologies, such as line cards, modems, routers, transmitters, base stations, and DC bricks, is widespread within the communications sector. Over the past few years, wireless communication has grown, providing opportunities for interconnectors in the industry. The demand will continue to rise as the use of connectors in all kinds of applications, including connected cars and HD video transmission, accelerates with the growing global commercialization of 5G.

RESTRAINING FACTORS

High Fluctuating Prices of Raw Materials to Hinder Market Expansion

For the insulation of cables and conductors, it is necessary to use various critical raw materials, including plastic-based components such as PVC scraps and Teflon-related materials, such as FEP, TFE, PTFE, and ETFE. Copper alloys are typically employed as electrode products for connectors because of their better malleability and conductivity. Beryllium copper, brass, and phosphor bronze are the alternatives. The base electrode metal is often filled with another inert metal, such as nickel, gold, or tin. Therefore, the market is unstable due to the fluctuations in these raw materials prices, and thus, the growth is hampered.

Connector Market Segmentation Analysis

By Product Type Analysis

Major Integral Role of PCB Connectors in Modern Electronics Boosted Segment Growth

Based on product type, the market is segmented into PCB connectors, I/O connectors, circular connectors, fiber optic connectors, RF coaxial connectors, and others.

In terms of market share, PCB connectors dominated in 2023 due to their integral role in modern electronic devices. These connectors are intended to facilitate data transfer and power distribution by securely connecting components on the PCBs. PCB connectors offer a compact and reliable solution as electronic systems become more complex, from smartphones to industrial equipment. They are a leading segment due to their flexibility, compatibility with different applications, and constant demand for contraction, which supports an increasing need for interconnected and higher-performing electronics.

The fiber optic connectors segment is anticipated to register the highest CAGR during the forecast period. Fiber optic connectors are vital for facilitating high-speed data transfer. These connectors ensure that optical fiber has access to rapid and reliable data transfer. These devices play a significant role in the telecommunications, data centers, and high-performance computing domains. They need a smooth connection with high bandwidths as the industry develops more efficient and swift communication technologies.

By End-User Analysis

Consumer Electronics Segment Dominated Due to Continuous Development of Technology and Changes in Consumer Preferences

Based on end-user, the market is categorized into consumer electronics, telecommunications and networking, automotive, energy and utilities, government and defense, and others.

In 2023, the consumer electronics segment held the largest connector market share in 2023. Connectors play a vital role in consumer electronics, facilitating various functions, such as charging, data transfer, audio/video connectivity, and more. The demand continues to evolve with technological advancements and changes in consumer preferences, driving innovation in connector design and implementation.

The automotive segment is expected to grow at the highest CAGR during the forecast period. The main drivers of this segment are the advances in automotive technologies such as autonomous driving, electric vehicles, advanced electronic cruise controls, climate control, and temperature monitoring. A need for reliable, standard, robust, and affordable connectors has arisen due to rapidly developing technologies in different vehicle components. Modern cars are equipped with highly networked, microprocessor-controlled systems that have undergone significant development. As a result, the reliability of electrical connections and equipment is becoming more important.

REGIONAL INSIGHTS

Based on geography, the market is fragmented into North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

Asia Pacific held a major market share in 2023. The region is the epicenter of the largest electronics production hub, with China and Japan at the forefront of technological innovation and manufacturing excellence. The demand for connectors across various sectors, including automotive, telecommunications, and consumer electronics, is driven by rapid urbanization and industrial development in Asia Pacific. Such factors have contributed to the growth of this market in the region.

Europe’s connector market growth is estimated to develop at the highest rate during the forecast period. Its reliance on connectors for data and power transmission is reinforced by the strong presence of industry in this region, especially in the automotive, government, and energy sectors. The demand for innovative connectors, which align with the industry's evolving needs, is driven by Europe's constant commitment to technical progress. In addition, the growth driver of the connector market is Europe's focus on sustainability, which is reflected in the growing uptake of electric vehicles.

North America is expected to register the second-highest growth rate in the market during the forecast period. This growth is attributed to a high mobile penetration rate, trade wars from China, growing adoption of 5G technology, the Internet of Things (IoT), and intelligent devices escalating the market demand in the region. According to the SIA State of Industry Report, nearly 115,000 jobs will be created in the U.S. chip industry. By 2030, there will be approximately 460,000 jobs compared to 345,000 at the end of this decade, representing a 33% increase.

The Middle East & Africa is expected to register a significant growth rate in the market during the forecast period. This growth is attributed to a proliferation of smartphones, a rise in e-commerce platforms, and digital transformation.

South America is poised for significant growth during the forecast period. Key factors contributing to this growth include the expansion of high-speed data transmission needs, the advent of 5G technology, and the proliferation of IoT. 

KEY INDUSTRY PLAYERS

Market Players Are Adopting Partnership, Merger & Acquisition, and Product Development Strategies to Boost Their Market Presence

The major market players operating in the market are offering advanced connectors to help users reliably transfer signals and power. The key players are prioritizing the acquisition of local and small firms for their business expansion. Moreover, players are also adopting strategies, such as mergers & acquisitions, investments, and strategic partnerships, further increasing product demand.

List of Top Connector Companies:

• TE Connectivity (Switzerland)


• Molex (U.S.)


• Amphenol Corporation (U.S.)


• Hongteng Precision Technology Co., Ltd. (Taiwan)


• Aptiv (Ireland)


• IRISO Electronics Co., Ltd. (Japan)


• Japan Aviation Electronics Industry, Ltd. (Japan)


• Yazaki Corporation (Japan)


• Rosenberger (Germany)


• HIROSE ELECTRIC CO., LTD. (Japan)

KEY INDUSTRY DEVELOPMENTS:

• October 2023: Molex expanded the range of solutions suggested by the Open Compute Project with the launch of the KickStart Connector System. This system is the OCP-compliant solution combining power circuits and low and high-speed signals into a single assembly.


• June 2023: TE Connectivity partnered with Tacterion, a Munich-based tactile sensor company. TE and Tacterion will develop solutions for connectors and components that combine reliable TE connections with TACTERION's superior sensing technology.


• March 2023: Amphenol introduced a reverse bayonet coupling connector that is easy to install in the field to simplify maintenance tasks. This connector is equipped with a UL94V0 hard plastic insert and user-friendly crimp contacts, which ensures easy, reliable site repairs with industry-standard crimping tools.


• March 2023: Hirose Electric introduced the IT14 Series, a board-to-board connector that can support high-speed 112-Gbps PAM4 data transmission.


• January 2022: TE Connectivity launched DBAS 9 connectors specially designed for severe space and military conditions. It provides designers with greater creative freedom under challenging applications, allowing them to configure more easily.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, leading product types, and end-users. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

REPORT SCOPE & SEGMENTATION