The COVID-19 pandemic played a substantial role in the changes seen among various markets within the engineering field, and the electrical connector market was no exception. Despite the changes 2020 brought, the interconnects industry is seeing rising demand, leaving the challenges of a worldwide pandemic behind.
The overall outlook for the interconnects industry has shifted greatly, as global production is once again picking up speed following the pandemic. Along with this increase in production, specific market sectors significantly impact the trajectory of sales for connectors
Current Trajectory of Connector Sales
Orders for electrical connectors were up 71.5% in April 2021 compared to a 19.4% decrease in 2020, according to recent data from Bishop & Associates, Inc. (a market research firm that specializes in the global electronic connector market). That same study showed that sales were up 43.4% in 2021, compared to a 17.2% decrease in 2020. This growing demand for electrical connectors is directly related to specific markets, including renewable energy, construction and infrastructure expansion, and automotive.
Connectors for Renewable Energy Applications
There is no doubt that the generation of interest in renewable energy continues to grow. This interest has led to expanding applications and an increase in the renewable energy electricity trade. Advancements in efficient, available renewable power and the distribution of this power have led to a rising demand for high-capacity interconnection lines, which drives the electrical connector market. And applications for renewable energy go beyond massive power grids — hybrid and electric vehicles (HEV/EV) and net metering for solar homes also impact the industrial connector market.
Construction and Expanding Infrastructure Connectors
The building and construction segment is expected to expand at the highest CAGR (Compound Annual Growth Rate) of 5% over the forecast period, driving increased demand for electrical connectors, according to Grandview Research. Keep in mind that building and construction are not limited to new construction but the refurbishment of existing construction as well.
Another key aspect of this growth lies in the expansion of infrastructure taking place in many developing countries. The growing infrastructure includes transportation and expansions in power generation, smart grids, and electrical distribution. In particular, updates and expansions to transportation infrastructure will include rail signaling and rail tunneling, requiring reliable railway connectors.
Connectors for Automotive/EV Applications
The automotive sector, which is expected to experience a strong demand related to various factors, is heavily influencing the post-pandemic demand for connectors. These factors include:
- More stringent quality and reliability standards
- Development of highly advanced electric systems
- Hybrid and electric vehicles (HEV/EV)
- Autonomous vehicles
Reliability and quality standards are a few challenging aspects of the automotive market. This requirement has driven a demand for designs involving smart connectors with EMI/RFI suppression, versatile miniature connectors, and UL-recognized and RoHS-compliant connector solutions.
The adoption of advanced electronic systems such as system diagnostics, driver assistance, and infotainment have also greatly influenced the automotive connector market. Infotainment, in particular, will have a positive impact on the need for communication connectors.
The demand and interest in HEV/EV and autonomous vehicles are rapidly expanding, increasing pressure on engineers to develop harsh environment connector solutions that are efficient, reliable, and lightweight (a 20% to 30% weight reduction).
Connectors for Miniature Applications
Although connectors for miniature applications may not be a specific market segment, there will be a strong demand for them. Applications for miniature connectors are found in diverse industries, including medical technology, mobile devices, industrial automation, aerospace, and defense.
PEI-Genesis: Your Partner in the Growing Connector Market
The global market for cables and connectors was valued at USD 78,510 million in 2019 but is expected to reach USD 120,940 million by the end of 2026 (growing at a CAGR of 6.3% in 5 years), according to data from Absolute Reports. The key to meeting the demand for cables and connectors is an emphasis on high performance, reliability, and efficiency.
At PEI-Genesis, we are committed to helping you find the reliable and efficient interconnect solution required to meet the needs of your application. Our massive inventory of off-the-shelf components and dedication to building customized solutions allows us to consistently stay on top of market demand for cable and connectors.
