Connector Industry Forecast 2024

Description

Bishop & Associates has just released the 2024 "Connector Industry Forecast" update. This eightchapter report provides an in-depth, and detailed forecast of the worldwide connector industry. In addition to the detailed forecasts for each region of the world (North America, Europe, Japan, China, Asia Pacific, and ROW), an industry overview is included which provides current market trends, currency fluctuation effects, and industry sales performance, as well as an outlook narrative.

Worldwide and each regional forecast includes:

Computers & Peripherals

Mobile Computers
Desktops
Servers
Storage Equipment
Input/Output Equipment
Communication LAN Devices
Other Computer Equipment

Business/Office Equipment

Retail/POS Equipment
Imaging Systems
Other Business/Office Equipment

Instrumentation

Automatic Test Equipment
Analytical/Scientific Instruments
Other Instrumentation

Medical Equipment

Diagnostic & Imaging Equipment
Therapeutic Equipment
Other Medical Equipment

Industrial

Factory Automation and Machinery
Construction and Civil Engineering
Energy Markets
Other Industrial Equipment

Automotive

Body Wiring & Power Distribution
Powertrain
Comfort, Convenience & Entertainment
Navigation & Instrumentation
Safety & Security

Transportation (non-auto)

Commercial Vehicles
RVs & Power Sports
Commercial Air
Marine
Rail
Construction
Farm & Garden

Military/Aerospace

Telecom/Datacom

Carrier Network
Enterprise Network
Wireless Infrastructure
Subscriber Equipment
Other Telecommunications

Consumer

Personal/Portable Consumer
Home Video Equipment
Home Audio Equipment
Consumer White Goods
Other Consumer

2024 - Climbing Our Way Back to the Top!

After a year of strong single-digit growth, no one seemed surprised that the industry would decline in 2023. With industry sales performance based strongly on location and market sector, the European region grew 3.8%, while the Asia Pacific and Chinese regions declined, -7.3% and -5.7% respectively, 2023 offered several surprises. Considering that year-over-year bookings did not turn positive until the fourth quarter and year-to-date bookings remained negative throughout all of 2023, it is remarkable that the industry performed as well as it did overall. Another year highlighted by a host of natural and geopolitical developments, 2023 was a year marked by national, regional, and local conflicts and disasters. Even as material, overhead and labor prices rose, the industry managed to push on, showing remarkable resilience. Raging wildfires, drought, cyclones, storms, earthquakes, and massive flooding marked just a few of the natural disasters the world contended with.

Industry Sales Performance by Region

As indicated by the charts on the following page, growth and decline were not equal across all regions in 2023, nor will they be in 2024. The European region saw the greatest growth in 2023, growing +3.8%. With growth of +0.9%, the ROW region followed Europe. All other regions declined in 2023, with the greatest decline in Japan, where sales in US dollars decreased -9.5%, followed by Asia-Pacific with a decline of -7.3%. China, the largest region for electronic connector sales decreased -5.7%, while North America, the second largest region experienced a sales decline of -0.3%.

Forecast Assumptions

Forecasting is always difficult, especially during times of financial and geopolitical uncertainty. Projecting future business conditions in this environment is almost impossible. Consider the following economic headwinds, political challenges, and uncertainties.

Although still considered unstable, the economy has shown it is amazingly resilient. Driven by surprisingly strong, steady growth, many countries have seen inflation slowing, almost as quickly as it came upon us. According to the International Monetary Fund, "The baseline forecast is for the world economy to continue growing at 3.2 percent during 2024 and 2025, at the same pace as in 2023. A slight acceleration for advanced economies-where growth is expected to rise from 1.6 percent in 2023 to 1.7 percent in 2024 and 1.8 percent in 2025-will be offset by a modest slowdown in emerging market and developing economies from 4.3 percent in 2023 to 4.2 percent in both 2024 and 2025."
Highly unlikely that the Federal Reserve will cut interest rates anytime soon. According to Thomson Reuters, "the US Federal Reserve signaled it is still leaning toward eventual reductions in borrowing costs, but that cuts could be delayed as recent inflation numbers have strayed further from its two percent target." "Investors are now betting that the U.S. central bank will start cutting rates in November and that it will deliver at least one reduction in borrowing costs this year."
Although global supply chain issues have improved drastically, as quoted by Border States, "Ocean freight rates are on the rise based on strong demand and longer sailings driven by environmental and geopolitical issues in the Panama and Suez Canals." This, coupled with volatile fuel rates because of instability in OPEC+ countries, has affected shipping rates. Other issues like the collapse of the Francis Scott Key bridge (Baltimore, Maryland, US) in March has had some impact on the US supply chain, although near normal operations" resumed in late May.
Prompted by geopolitical worries and supply constraints, the price of gasoline has continued to rise and may potentially hinder efforts to tame inflation. After declining earlier in the year, oil prices have climbed in recent weeks, spurred by concerns over supplies and geopolitical risks, including wars in Ukraine and the Middle East. It is also important to remember that higher oil prices drive up not only transportation and production costs, but eventually pass through to the prices of other core products like food and energy.
A shortage of labor, in particular skilled laborers, such as electricians, plumbers, carpenters, machinists, welders, pipefitters, and steelworkers, even doctors, nurses, and pharmacists. A number of reasons are sited for this shortage including a decline in apprenticeship programs and shop classes, an increase in employees retiring, particularly Baby Boomers (generally classified by those born between 1946 and 1964 - according to Annuity.org, from 2021 to 2019, he number of retired workers increased from 45.1 million to 69.8 million) and not being replaced by younger workers, and a major shift in workers expectations, covering pay, hours, working location, and flexibility. In the US alone, according to the U.S. Chamber of Commerce, "right now we have 8.5 million job openings in the U.S. but only 6.5 million unemployed workers."
Increasing and prolonged political tensions: Israeli-Palestinian conflict over land and who controls it, a war between Russia and Ukraine that has gone on for two years, with no end in sight and that has increased already high tensions between NATO and Russia, heightened friction between China and Taiwan with the US bound by law to provide Taiwan with defensive weapons and US President Joe Biden announcing the US would defend Taiwan militarily - breaking with a stance known as strategic ambiguity and a major humanitarian crisis in Haiti as gangs have cut off relief efforts from the rest of the world, making it impossible to reach thousands of people suffering from malnutrition. China's continued military buildup, which includes rapid development of its nuclear, space and cyberspace capabilities. According to Heritage.org, "over the last 12 months, China built 100 new nuclear weapons-making it the fastest growing nuclear power on the planet. Beijing is on track to numerically match the U.S. nuclear arsenal by 2032."
Increased commodity prices. While most commodity prices remained flat, rising only 0.8% in 2023, versus 12.1% in 2021 and 4.8% in 2022, the prices for oil and copper are on the rise in 2024. In April of 2024, copper prices had increased 8.92% from the previous year and 7.44% from one year ago. Like copper, oil is up 5.35% from last month and 6.73% from one year ago.
Lack of affordable housing. As detailed by the Migration Policy Institute, "an estimated 1.6 billion people-one-fifth of humanity-lack access to adequate housing and basic services...and this number could rise to 3 billion by 2030. Over the last decade, housing prices have grown faster than incomes in most countries according to the Organization for Economic Cooperation and Development (OECD)." Although there are several reasons for the shortage, one of the most basic is the inability of the housing market to keep up with the growing population. The growth of profit-seeking investors, who purchase large numbers of houses and apartments, higher interests, and other factors such as material delays, shortages and increased material and labor costs, also impact the shortage.

There are also some interesting projections as to why we will see connector growth in 2024 and beyond, and what that growth will be. This report details the markets where Bishop anticipates growth, and which subsectors will drive that growth. This report provides projections over the next five years. Will the industry continue to grow, and which years may not be as strong as others?

These answers and more are revealed in the June 2024 "Connector Industry Forecast".

Product Code: F-2024-01

Chapter 1 - 2024 - Climbing Our Way Back to the Top!

Bookings Year-over-Year and Year-to-Date
Billings Year-over-Year and Year-to-Date
Industry Backlog Shrinks
Industry Backlog April 2023/2024
Connector Industry Book-to-Bill
Change in Backlog
Industry Sales Performance by Region
2022 and 2023 Connector Sales by Region with Percent Change
2023 and 2024F Connector Sales by Region with Percent Change
2023 and 2024F Change in Sales Dollars by Region
2022 and 2023 Connector Sales by Market Sector with Percent Change
2023 and 2024F Connector Sales by Market Sector with Percent Change and USD Delta
Change in Market Share
Market Share by Region 2014 through 2024F
Market Share by Region 1994 through 2024F
Industry Sales Performance by Month
Historical Sales Performance
Connector Industry Business Cycles Growth Cycles Highlighted
Historical Percentage Change in Connector Demand
2023 and 2024 YTD Currency Impact on Regional Industry Growth
Local Currency to One USD April 2023 versus April 2024
Industry Sales Performance April 2024 USD-vs-Local Currencies 2024 and Beyond Outlook
2024F Connector Forecast by Geographical Region with Percent Change
2024F Connector Forecast by Geographical Region with Change in US Dollars
Forecast Assumptions
Five-Year Outlook (2024-2029)
Five Year Forecast - Region Percent Year-Over-Year Change Sales
Five Year Forecast - End-Use Equipment Sector Percent Year-Over-Year Change Sales
Market Outlook and Comments
Computers-Peripherals Sector
Overview
Market Trends
Global Market Conditions
Some of the Overall Trends Affecting the Computer Market Sector
Trends by Subsector
2024F World Computer and Peripheral Connector Forecast - Market Share by Region
Business/Office Equipment Sector
Global Market Conditions
Trends by Subsector
Overall
2024F World Business/Office Equipment Connector Forecast - Market Share by Region
Instrumentation Sector
Worldwide Instrumentation Market by Sub-Sectors8
Worldwide Instrumentation Connector Sales Forecast - 2022, 2023, 2024F and 2029F with Five-Year CAGR
Automatic Test Equipment Sub-Sector
Analytical and Scientific Instruments
Other Instruments
Regional Sub-Sector Views
North America
North American Instrumentation Connector Sales Forecast 2024F through 2029F
Europe
Europe Instrumentation Connector Sales Forecast 2024F through 2029F
Japan
Japan Instrumentation Connector Sales Forecast 2024F through 2029F
China
China Instrumentation Connector Sales Forecast 2024F through 2029F
Asia Pacific
Asia Pacific Instrumentation Connector Sales Forecast 2024F through 2029F
ROW
ROW Instrumentation Connector Sales Forecast 2024F through 2029F
New Product Considerations
2024F World Instrumentation Connector Forecast - Market Share by Region
Medical Equipment Sector
Global Market Conditions
Worldwide Medical Connector Sales Forecast Update 2022, 2023, 2024F through 2029F with Percent Change and Five-Year CAGR
Worldwide Medical Market Sub-Sectors
Worldwide Medical Connector Market by Sub-Sector 2024F and 2029F
Diagnostics and Imaging Equipment Market
Therapeutic Equipment Market Conditions
Other Equipment Market Conditions
Regional Sub-Sector Views
North America
North America Medical Connector Sales Forecast Update 2022, 2023, 2024F, and 2029F with Percent Change and Five-Year CAGR
Europe
Europe Medical Connector Sales Forecast Update 2022, 2023, 2024F, and 2029F with Percent Change and Five-Year CAGR
Japan
Japan Medical Connector Sales Forecast Update 2022, 2023, 2024F, and 2029F with Percent Change and Five-Year CAGR
China
China Medical Connector Sales Forecast Update 2021, 2022, 2023F, and 2028F with Percent Change and Five-Year CAGR
Asia Pacific
Asia Pacific Medical Connector Sales Forecast Update 2021, 2022, 2023F, and 2028F with Percent Change and Five-ear CAGR
ROW
ROW Medical Connector Sales Forecast Update 2021, 2022, 2023F, and 2028F with Percent Change and Five-Year CAGR
2024F World Medical Connector Forecast Market Share by Region
Industrial Equipment Sector
Introduction and Market Definitions
Traditional Industrial Market - Main Market Segments
Industrial Internet of Things - IIoT Market Segments
Key Market Segments for the Industrial Connector Market
Outlook for the Global Industrial Market for Connectors
Industrial Connector Market Sales Performance by Region 2022-2024F
Industrial Connector Market Sales Performance by Sector 2023, 2024F and 2029F
2024F and 2029F - Five-Year CAGR Performance by Region
Industrial Connector Market Sales Performance by Market
Segment 2022, 2023, & 2024F With Percent Growth and Market Share
Industrial Connector Market Sales Performance by Market
Segment 2023, 2024F & 2029F With Percent Growth, Five-Year CAGR, and Market Share
Regional View
North America
Annual YoY Growth Rates and Forecast through 2028 of the NA Industrial Market for Connectors
Europe
Annual YoY Growth Rates and Forecast through 2028 of the European Industrial Market for Connectors
Japan
Annual YoY Growth Rates and Forecast through 2028 of the Japanese Industrial Market for Connectors
China
Annual YoY Growth Rates and Forecast through 2028 of the Chinese Industrial Market for Connectors
Asia Pacific
Annual YoY Growth Rates and Forecast through 2028 of the AP Industrial Market for Connectors
ROW
Annual YoY Growth Rates and Forecast through 2028 of the ROW Industrial Market for Connectors
2024F World Industrial Connector Forecast - Market Share by Region
Automotive Sector
Technology and Market Trends
Regional View
North America
Europe
Japan
China
Asia Pacific
ROW
2024F World Automotive Connector Forecast - Market Share by Region
Transportation - Non-Automotive
Commercial Vehicles
Civil Aviation
Rail
RV and Power Sport (Motorcycles, ATVs, and Other Similar Equipment) and Marine
2024F World Transportation Connector Forecast - Market Share by Region
Military/Aerospace Sector
Global Market Conditions
2024F World Military/Aerospace Connector Forecast - Market Share by Region
Telecom Equipment Sector
Global Market Conditions
Technology and Market Trends
Regional View
North America
Europe
Japan
China
Asia Pacific
ROW
2024F World Telecom/Datacom Connector Forecast - Market Share by Region
Consumer Electronics Market Sector
Global Market Conditions & Forecast
Current Nature of this Market and Connector Applications
Sub-Sector Performance
2024F World Consumer Connector Forecast - Market Share by Region

Chapter 2 - World Connector Forecast

World Connector Market Forecast - Year-to-Year Dollar Change
World Connector Market Forecast - Year-to-Year Percent Change
Top Six End-Use Equipment Categories
World End-Use Equipment Forecast - Summary
2023-2024F Percent Change and 2024F-2029F Five-Year CAGR
2024F and 2029F Market Share by Equipment Sector
World End-Use Equipment Forecast - Detail Computers & Peripherals
- Mobile Computers
- Desktops
- Servers
- Storage Equipment
- Input/Output Equipment
- Communication LAN Devices
Other Computer Equipment
Business/Office Equipment
- Retail/POS Equipment
- Imaging Systems
- Other Office Equipment
Instrumentation
- Automatic Test Equipment
- Analytical & Scientific Instruments
- Other Instruments
Medical
- Diagnostic & Imaging Equipment
- Therapeutic Equipment
- Other Medical Equipment
Industrial
- Heavy Equipment
- Industrial Automation & Process Control
- Building & Civil Engineering
- Energy Markets
- Machine Tools, Machinery & Robotics
- Other Equipment
Automotive
- Body Wiring & Power Distribution
- Powertrain
- Comfort, Convenience & Entertainment
- Navigation & Instrumentation
- Safety & Security
Transportation
- Commercial Air
- Commercial Vehicles
- Rail
- Heavy Equipment
- Recreation
- Commercial Marine
Military
Telecom/Datacom
- Carrier Network
- Enterprise Network
Mobile & Wireless Wireless Infrastructure
- Subscriber Equipment
- Cable-Equipment-Infrastructure
- Other Telecommunications
Consumer
- Personal/Portable Consumer Electronics
- Home Video Equipment
- Home Audio Equipment
- Consumer White Goods
- Other Consumer
Other Equipment

Chapter 3 - North American Connector Forecast

North American Connector Market Forecast - Year-to-Year Dollar Change
North American Connector Market Forecast - Year-to-Year Percent Change
Top Six End-Use Equipment Categories
North American End-Use Equipment Forecast - Summary
2023-2024F Percent Change and 2024F-2029F Five-Year CAGR
2024F and 2029F Market Share by Equipment Sector
North American End-Use Equipment Forecast - Detail
Computers & Peripherals
- Mobile Computers
- Desktops
- Servers
- Storage Equipment
- Input/Output Equipment
- Communication LAN Devices
- Other Computer Equipment
Business/Office Equipment
- Retail/POS Equipment
- Imaging Systems
- Other Office Equipment
Instrumentation
- Automatic Test Equipment
- Analytical & Scientific Instruments
- Other Instruments
Medical
- Diagnostic & Imaging Equipment
- Therapeutic Equipment
- Other Medical Equipment
Industrial
- Heavy Equipment
- Industrial Automation & Process Control
- Building & Civil Engineering
- Energy Markets
- Machine Tools, Machinery & Robotics
- Other Equipment
Automotive
- Body Wiring & Power Distribution
- Powertrain
- Comfort, Convenience & Entertainment
- Navigation & Instrumentation
- Safety & Security
Transportation
- Commercial Vehicles
- RV's & Power Sports
- Commercial Air
- Marine
- Rail
- Construction
- Farm & Garden
Military
Telecom/Datacom
- Carrier Network
- Enterprise Network
- Mobile & Wireless
- Wireless Infrastructure
- Subscriber Equipment
- Cable-Equipment-Infrastructure
- Other Telecommunications
Consumer
- Personal/Portable Consumer Electronics
- Home Video Equipment
- Home Audio Equipment
- Consumer White Goods
- Other Consumer
Other Equipment