The connector industry, as an important component of the electronic manufacturing industry, plays a crucial role in information transmission. Connectors are fundamental components for achieving electrical connections and are widely used in various fields such as communication, automotive, computer, and industrial equipment. With the continuous advancement of technology and the diversification of market demand, the technological level and product types of connectors are also constantly improving. According to Bishop&Associates, the global connector market is expected to reach $81.854 billion in 2023 and grow to $85.128 billion in 2024, with an annual growth rate of 4%. In the Chinese market, the connector industry is also showing strong growth momentum, with a market size of 24.977 billion US dollars in 2023, accounting for 30.51% of the global market share and ranking first.
1. The wide application of connectors in the field of consumer electronics
The consumer electronics industry is one of the most widely used fields for connector applications, covering multiple products such as mobile phones, computers, and wearable devices. With the popularization of 5G technology and the rapid iteration of smartphones, the demand for connectors continues to rise. According to IDC's forecast, global smartphone shipments will reach 1.21 billion units in 2024, a year-on-year increase of 4%. In smartphones, the number and variety of connectors are constantly increasing to meet higher data transmission and power requirements.
Taking BTB (board to board) connectors as an example, the BTB connectors inside smartphones are mainly used for connecting PCB boards. With the increase of functional modules, the single machine usage has increased from around 10 to 20-30. This change not only drives the growth of demand for connectors, but also puts forward higher requirements for the performance and quality of connectors. In order to adapt to market changes, connector manufacturers constantly innovate their technology and launch higher performance products to meet customer needs.
In the field of wearable devices, connectors also play an important role. With the popularity of smart bracelets, smartwatches and other products, the application scenarios of connectors are constantly expanding. Wearable devices typically require various types of connectors, such as I/O connectors, FFC/FPC flexible connectors, etc., to achieve data transmission and charging functions. According to IDC's statistics, the global shipment of wearable devices will reach 445 million units in 2023, a year-on-year increase of 28.4%. The rapid growth of this market has brought new opportunities to the connector industry.
2. The electrification and intelligence of automobiles drive the growth of connector demand
The automotive industry is the second largest application area for connectors, and in recent years, with the deepening trend of electrification and intelligence, the demand for automotive connectors has also been increasing. According to Bishop&Associates, the market share of automotive connectors is 21.9%. The rapid development of new energy vehicles, especially the popularity of electric vehicles, has driven an increase in demand for high-voltage connectors and high-speed connectors.
The electric drive system of new energy vehicles requires a large number of high-voltage connectors to ensure efficient energy transfer between the battery and the electric motor. Compared with traditional fuel vehicles, the number of connectors for new energy vehicles has significantly increased, from 500 to 800-1000. This change not only increases the performance requirements for connectors, but also promotes technological progress in the connector industry.
In addition, the rise of smart cars has also brought new growth points to the connector market. Smart cars are typically equipped with multiple sensors and control modules, which place higher demands on the speed and reliability of data transmission. High speed connectors are widely used in intelligent vehicles, mainly in fields such as sensors, information entertainment systems, and driving assistance systems. With the continuous development of autonomous driving technology, the market size of automotive connectors is expected to continue to expand.
3. Increased demand for semiconductor heat dissipation materials
With the surge in global computing power demand, the demand for heat dissipation materials in the semiconductor industry is also constantly increasing. The development of high-performance computing and artificial intelligence has led to an increasing power density of chips, and the problem of heat dissipation is becoming increasingly severe. According to the prediction of China Academy of Information and Communications Technology, the total computing power of global computing devices will exceed 3 ZFlops by 2025, and the heat released by chips during operation will have a significant impact on their performance.
In this context, innovation in heat dissipation technology has become an important direction for industry development. As an important component in semiconductor heat dissipation solutions, the heat spreader has a broad market space in the future due to its excellent thermal conductivity and thermal stress. With the popularity of high computing power chips, the demand for heat dissipation chips is expected to continue to grow. According to statistics from the China Business Industry Research Institute, the market size of liquid cooled servers in China is expected to reach approximately 10.9 billion yuan in 2023, a year-on-year increase of 49.3%, and is projected to reach 20.1 billion yuan by 2024.
The layout of the connector industry in the field of semiconductor heat dissipation materials is also constantly strengthening. The company actively develops semiconductor metal heat sink materials and plans to meet the growing market demand through technological innovation and market promotion. With the continuous advancement of technology, the localization process of semiconductor heat dissipation materials is also accelerating, bringing new development opportunities to the connector industry.
summary
The connector industry has shown broad market prospects in multiple fields such as consumer electronics, automotive electrification and intelligence, and semiconductor heat dissipation materials. With the continuous advancement of technology and the diversification of market demand, the application scenarios of connectors will continue to expand, bringing new growth momentum to the industry. In the future, the connector industry will continue to play an important role in the electronic manufacturing industry, promoting innovation and development throughout the industry.
