Market Trends of Cable Connector Industry
This section covers the major market trends shaping the Cable Connector Market according to our research experts:
Automotive Sector is Expected to Hold Significant Market Share
- The automotive sector is projected to witness a strong demand for connectors, aided by the adoption of highly advanced electronic systems, such as audio controls, driver assistance systems, diagnostic systems, cruise control, and infotainment systems. Moreover, the increasing popularity of electric vehicles is expected to boost the market's growth. Some of the significant market trends in the segment include innovations and design improvements to meet the quality and reliability standards of devices, demand for versatile miniature connectors, the popularity of RoHS - compliant, UL recognized, and IP -rated connectors, as well as intelligent connectors with EMI/RFI suppression features.
- New automotive technologies have altered the ways cars are wired. The critical electrical components are required to reliably transmit power, signal, and data in certified conditions. The hybrid electric and electric vehicle has expanded the vision for applying robust connector technology from race cars to robotics in the form of autonomous vehicles. This has led to a significant development in design, material, as well as cable connectors.
- Considering the growing demand for connectors that can fulfill the requirements of modern automobiles, the vendors offering cable connectors are increasingly focusing on developing innovative products. For instance, in December 2021, Hirose Electric developed a new wire-to-board connector, the GT50 Series. This small and robust product series has a 1mm pitch and heat resistance up to 125-degree celsius, making it ideal for use in automotive applications.
- The recent shift in the automotive industry's trend wherein electric vehicles are fast replacing the traditional ICE vehicles is also expected to support the growth of the studied market as these vehicles contain more sensors and electronic components, expanding the use cases for connectors. For instance, according to the International Energy Agency, the global number of battery electric vehicles in use has increased from 1.2 million in 2016 to 11.3 million in 2021.
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Asia-Pacific Expected to Witness the Fastest Growth Rate
- The continuous advancements in communication technologies and the growth of other end-user industries in the Asia Pacific region are among the significant factors boosting the development of the cable connectors market. Moreover, the support by IT and communications for automated processes in industrial applications have facilitated easier adoption among manufacturers.
- Sensor components, faster networks, flexible interfaces with high levels of reliability and secured hierarchical access, and error-correction options added to productivity, continued quality deliveries and minimized manufacturing costs in the region. Furthermore, with IoT at the center of new technological approaches for the development, production, and the entire logistics chain (otherwise known as intelligent factory automation), the adoption of cable connectors is expected to increase significantly in the region.
- For instance, according to the GSMA estimates, there will be 13.8 billion IIoT connections globally by 2025. Greater China is expected to account for around 4.1 billion connections or a third of the global market. In June 2021, the Chinese Ministry of Industry and Information Technology (MIIT) released its Industrial Internet 2021 Work Plan, detailing its goal to expand further the country's 5G network and the Industrial Internet of Things (IIoT). Such trends are also expected to create further growth opportunities as increased deployment of electronic components such as sensors and optic fiber cables will drive the demand for cable connectors.
- Furthermore, the growing number of data centers and rising demand for higher bandwidth drive the need for cables and connectors. China is highly focused on taking the lead over global peers in data center construction, with larger enterprises looking to scale up their data centers to ensure stability and reliability of data services, such as the application of 5G, wearable devices, the internet of things, and artificial intelligence spurs a burgeoning demand for computing power.
- The growth of the automotive sector is also expected to be a vital contributor to the development of the cable connectors market in the Asia Pacific region. For instance, according to the China Association of Automobile Manufacturers (CAAM), about 2.9 million battery electric vehicles will be sold in China in 2021.
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