Electronic connectors market to reach US$ 89.6 bn by 2018: Report

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The global electronic connectors market is projected to reach $89.6 billion by 2018, primarily driven by technology developments, improving world GDP, growth in shipments of smartphones and other portable computing devices, and emerging opportunities from non-traditional end user industries, such as medical and alternative energy.

Robust demand from developing countries also augurs well for the market, says Global Industry Analysts. In a new research report, the firm says Asia-Pacific represents the most prominent region, with dollar sales waxing at a CAGR of about 9 per cent over the analysis period. Steady economic growth, stronger production activities across key end use industries, robust demand for consumer electronics and automobiles, undeterred pace of industrialisation, mass exodus of automotive and electronics manufacturing activity to developing countries such as China and India, among others, remain truly powerful drivers.

Telecommunications industry represents the fastest growing end-use market for electronic connectors. Growth in demand from telecom industry, especially for multifiber connectors, will be driven by increase in adoption of 40/100 GbE network technologies.

In Europe, the electronic component supply chain has had a roller coaster ride with the market hitting

the steepest trough in 2008 and 2009, when the heat of the recession practically dried up inventory as manufacturers aggressively followed lean manufacturing practices to cope with depressed demand. 2010 witnessed a strong rebound, with bullish market sentiments triggering the steepest rise in inventory levels in the distribution market. The increase in inventory holding levels was also partially triggered by fears of possible disruptions in raw material/components supply from Japan in the post tsunami and earthquake period. As a result, manufacturers of industrial equipment, automobiles expanded their inventories over proportionally resulting in a spurt in new orders for electronic connectors, which remain a critical part of the electronic component supply chain.

In coming years, deceleration in inventory stocking levels will impact new orders both as a result of the market’s natural inventory correction trend and by the changing economic outlook caused by the ongoing European debt crisis.

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