In the rapidly evolving world of automotive technology, staying abreast of new trends and demands is crucial. This is where our comprehensive Automotive Connector Market study proves invaluable. With an analysis backed by proprietary research methodologies and wealth of industry insights, it provides a robust outlook on the current landscape of the market.
This report provides a clear understanding of the value chain, drawing upon trends and growth patterns of the industry. Recognizing and understanding these market shifts is key in repositioning unique business strategies. Crucially, the report emphasizes the rising adoption of advanced technological features such as navigation and infotainment systems, which require reliable connectors. With safety concerns escalating, the requirement for automotive connectors in vehicle safety systems such as seatbelts and airbags is burgeoning, driving market growth.
The study also focuses on geographical trends with an in-depth analysis of market dominants like Asia-Pacific and fast-growing regions including Europe. The report unveils insights about industry leaders' investments in these regions, catering to the rising demands for automotive connectors. Additionally, it showcases the seminal role of product innovations and the increasing adoption of hybrid vehicles in fueling market growth.
The COVID-19 pandemic negatively impacted the market, as there was a slight decline in vehicle sales due to several vehicles and component manufacturing facilities shutting down temporarily. However, with the gradual removal of lockdowns in several countries, the demand for vehicles has slightly increased. Therefore with the increase in demand, key players are also increasing their manufacturing facilities to increase production.
Over the long term, the market is expected to be primarily driven by technological advancements and innovations in systems. Rising adoption of navigation and infotainment systems, among others, have become standard features in most cars across the world. To connect these systems, central electronic control unit automotive connectors are required.
The increase in safety concerns among consumers, coupled with safety-related initiatives from government agencies, has elevated the requirement for a reliable connector in various vehicle systems. For instance, safety systems like seatbelts, airbags, and brakes used in vehicles require a connection system comprising a retainer and safety restraint system connector. Thus, the increasing demand for automotive safety systems has a direct influence on the demand for automotive connectors, in turn driving the growth of the market.
Asia-Pacific is expected to hold a dominant share of the market during the forecast period. The strong automotive industry and rising electric and hybrid vehicles, coupled with government initiatives, are anticipated to support demand across the region during the forecast period. However, key players are also investing in the region due to the increase in the demand for automotive connectors in the market.
For instance, in September 2021, Lear Corporation (Lear) announced the signing of a definitive agreement for a joint venture with Hu Lane Associate Inc., a Taiwanese manufacturer of automotive connector products. It will immediately broaden Lear's vertical integration capabilities by engineering and manufacturing a portfolio of connection systems products for current and future vehicle architectures offered by global automakers.
Automotive Connector Market Trends
Increasing Advancement in Infotainment ystemThe increasing incorporation of advanced security features in automobiles, as well as the rising demand for electric vehicles (EVs), is the primary factor driving the market growth. Furthermore, the increasing sophistication of automotive sensors and infotainment systems has increased the global demand for automotive wiring harnesses and connectors. Plastic optical fiber (POF) is replacing copper cables in automobiles to improve data transmission and design flexibility while also reducing overall vehicle weight. POF requires automotive connectors to function properly.
In addition to this, the evolution of air conditioning systems and HVAC systems, owing to technological proliferation, is expected to favorably impact connectors' growth during the forecast period. Major players in the market are manufacturing the connectors and entering acquisitions to meet the features in the vehicles.
For instance, in February 2021, JAE Electronics developed MX79A Automotive Infotainment Connectors for use in automotive navigation systems, advanced driver assistance systems, backup cameras, and in-vehicle entertainment. Additionally, in June 2021, Lear Corporation, a global automotive technology leader in seating and e-systems, signed a joint development agreement with IMS Connector Systems GmbH, a technology company based in Löffingen, Germany, specializing in high-speed Ethernet solutions for automotive applications.
Furthermore, memory and data storage connectors are used in advanced automotive systems to support Wi-Fi networks in automated vehicles. This, combined with the increasing adoption of hybrid vehicles, is fueling market growth. Furthermore, product innovations such as adaptive front lighting, cruise control, park assistance, and departure warning systems, as well as the incorporation of machine learning in self-driving vehicles, are expected to propel the market in the coming years.
Europe is Expected to Capture a Larger Market Share During the Forecast PeriodEurope leads the way in implementing vehicle safety features, with the Americas and Asia-Pacific following in its footsteps. Growing demand for vehicle electrification in the region, as well as supportive government measures aimed at the development of the country's automotive industry, are expected to create a positive outlook for the growth of automotive connectors during the forecast period.
Furthermore, active developments to meet growing consumer demand, particularly from manufacturers in the electric vehicle industry, are focusing on developing innovative solutions. With increased awareness of vehicle safety and security features, connector manufacturers are anticipated to focus on developing features to meet the demand.
For instance, in September 2021, TE Connectivity (TE) acquired ERNI Group AG (ERNI). The acquisition of ERNI complements TE's broad connectivity product portfolio, particularly in high-speed and fine-pitch connectors for factory automation, automotive, medical, and other industrial applications. Additionally, in January 2021, HARTING Technology Group expanded its IX Industrial® line of miniature data connector products with new cable assemblies intended for infotainment and passenger information systems and other product variants. This solution is ideal for infotainment and passenger information systems in trains and buses. The connector is significantly smaller and lighter than the comparable circular connectors commonly used in railway applications.
As a result of the advancement of the automotive industry, connectors are expected to grow significantly in the European market during the forecast period.
Automotive Connector Market Competitor AnalysisThe automotive connector market is a moderately consolidated market due to the major players, like TE Connectivity Ltd, Yazaki Corporation, J.S.T. Mfg Co. Ltd, Amphenol Corporation, Aptiv PLC, and Sumitomo Wiring Systems Ltd, capturing significant shares in the market. These companies are focusing on expanding their connector business globally to capture the growing trend of advanced electronics and safety systems in vehicles.
For instance, in April 2021, TactoTek and Amphenol ICC announced that they were collaborating to develop automotive-grade in-mold connectors for TactoTek IMSE technology. Amphenol ICC will bring new technology products to customers with transformational technologies like TactoTek’s IMSE combined with Amphenol ICC’s automotive-grade MicroSpace connector platform and Duflex crimp technology.
Additionally, in March 2021, KYOCERA launched 0.4mm-Pitch 8152 series electronic connectors for automotive applications. It conforms to high-speed transmission standard MIPI D-PHY (2.5 Gbps), PCI Express Gen2 (5Gbps), and Gen3 (8Gbps). The frame is shielded for a robust design and EMI reduction suitable for demanding automotive applications.
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Table of Contents
1.2 Scope of the Study
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1.2 Comfort, Convenience, and Entertainment
5.1.3 Safety and Security
5.1.4 Body Wiring and Power Distribution
5.1.5 Navigation and Instrumentation
5.2 Vehicle Type
5.2.1 Passenger Car
5.2.2 Commercial Vehicle
5.3.1 North America
18.104.22.168 United States
22.214.171.124 Rest of North America
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
184.108.40.206 Rest of Asia-Pacific
5.3.4 Rest of the World
220.127.116.11 South Africa
18.104.22.168 Other Countries
6.2 Company Profiles*
6.2.1 TE Connectivity Ltd
6.2.2 Yazaki Corporation
6.2.3 J.S.T. Mfg Co. Ltd
6.2.4 Molex Incorporated (Koch Industries Inc.)
6.2.5 Amphenol Corporation
6.2.6 Luxshare Precision Industry Co. Ltd
6.2.7 Aptiv PLC
6.2.8 Hirose Electric Co. Ltd
6.2.10 Lumberg Holding
6.2.11 Sumitomo Wiring Systems Ltd
A selection of companies mentioned in this report includes:
- TE Connectivity Ltd
- Yazaki Corporation
- J.S.T. Mfg Co. Ltd
- Molex Incorporated (Koch Industries Inc. )
- Amphenol Corporation
- Luxshare Precision Industry Co. Ltd
- Aptiv PLC
- Hirose Electric Co. Ltd
- Lumberg Holding
- Sumitomo Wiring Systems Ltd