On the whole, the connector has a wide range of applications, a large market space and a stable overall growth. The connector industry has four characteristics: global competition, rapid technological update, continuous improvement of industry concentration, and close relationship with the prosperity of subdivided downstream fields.
1. Global competition
In addition to special fields such as military industry, the competitors facing domestic connector manufacturers are giants in the global connector field. In order to realize the nearest service to customers and save the transportation cost and time cost caused by transportation, connector manufacturers generally invest and build factories around the world. The competitors facing domestic connector manufacturers are relatively powerful multinational companies, including TE, Amphenol, Molex and so on.
2. Fast technology update
Due to the rapid update of downstream products and technologies, the speed of connector technology updates must also keep up with the downstream rhythm. In the field of automobiles, communications, and consumer electronics, there are frequent upgrades, and the trend of high-speed and miniaturization is significant. Connector manufacturers must update their technologies in time to meet customer needs.
3. Industry concentration continues to increase
In 2016, the global connector market reached US$54.164 billion, of which China, Europe, North America, and Japan were at the forefront of the global connector market. The development trend of the market's gradual concentration makes it difficult for small and medium-sized connector manufacturers to enter the supply chain of brand enterprises.
4.Widely applications, the prosperity of each segment is closely related to the downstream
The application fields of connectors are very extensive, and the overall scale has maintained a steady growth trend. The downstream areas that companies in the connector industry focus on are different. Except for a few comprehensive large-scale enterprises that are involved in almost all the downstream industries of connectors, there are only a few areas that other connector companies are involved in. The growth rate of such enterprises is It is closely related to the downstream prosperity.