The global market for Connectors estimated at US$73.1 Billion in the year 2022, is projected to reach a revised size of US$114.6 Billion by 2030, growing at a CAGR of 5.8% over the analysis period 2022-2030. The demand for connectors is being driven by the rising adoption of connected devices and electronics in automobiles, consumer electronics, telecommunications equipment, computers, and other industries.

Connectors are electromagnetic or electro-mechanical devices used to join electrical circuits and create removable junctions between cables, wires, or electrical devices. They establish both physical and electrical connections between components and enable current flow for power and signal transmission. The growth in the connectors market is fueled by increasing deployment of connected devices across industry verticals, rapid advancements in consumer electronics, rising adoption of automotive electronics, and strong demand for renewable energy sources.

PCB Connectors, one of the segments analyzed in the report, is projected to record 5.6% CAGR and reach US$32.7 Billion by the end of the analysis period. PCB connectors are attached to printed circuit boards to connect a cable or wire to a PCB. They include card edge connectors, D-sub connectors, USB connectors, and other types. The growth is driven by rising adoption of consumer electronics and demand for miniaturized and high-speed connectors.

Growth in the RF Coaxial Connectors segment is estimated at 7.2% CAGR for the next 8-year period. These connectors are used to connect coaxial cables and facilitate signal transmission at high frequencies with low loss and controlled impedance. The growth can be attributed to increasing deployment of 4G/5G networks, rising adoption of connected and IoT devices, and strong demand for cable television and broadband services globally.

The U.S. Market is Estimated at $13.7 Billion, While China is Forecast to Grow at 7.3% CAGR

The Connectors market in the U.S. is estimated at US$13.7 Billion in the year 2022. China, the world's second largest economy, is forecast to reach a projected market size of US$24.9 Billion by the year 2030 trailing a CAGR of 7.3% over the analysis period 2022 to 2030. The U.S. and China, two leading producers and consumers of electronic products and automobiles globally, present lucrative opportunities for connector manufacturers. Market growth is supplemented by increasing adoption of connected devices, EVs, electronics components in automobiles, rising automotive sales, and technology upgrades of telecommunication networks in these countries.

Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 4.1% and 5.3% respectively over the 2022-2030 period. Within Europe, Germany is forecast to grow at approximately 5.4% CAGR driven by rising deployment of automation equipment, Industry 4.0, EV charging infrastructure, and 5G networks. Strong demand for renewable energy sources will also boost growth.

Key Trends and Drivers: 

Increasing Application in Consumer Electronics: Rising disposable incomes and technological advancements are resulting in growing adoption of consumer electronics worldwide. This is creating substantial demand for connectors used in smart wearables, smartphones, tablets, laptops, and related accessories.

Growth of Automotive Electronics: Increasing integration of electronics for infotainment, safety, powertrain and driver assistance is driving automotive connector adoption. Use of automotive Ethernet for intra-vehicle connectivity will also boost growth.

Demand for High-Speed Data Connectivity: Growing implementation of high-speed communication networks including 5G, LTE, VoIP is increasing the need for advanced connectors that can transfer data seamlessly at very high speeds.

Miniaturization Trends: Need for compact and lightweight connectors is driving innovation and product development among manufacturers. Development of MEMS, flex, and Nano connectors that take up less space will see demand.

Rising Renewable Energy Market: Growth in solar and wind energy is creating strong demand growth scenario for power connectors including solar connectors. Increase in energy storage and EV charging projects also require robust connectors.

Adoption of IIoT: Industrial Internet of Things along with Industry 4.0 and automation is increasing the use of connectors in manufacturing equipment, robots, control systems, sensors, and industrial networks.

Economic Outlook 

The global economic outlook is improving, and growth recovery, albeit on the lower side, is expected for this year and the next. The United States although witnessing slowing GDP growth in response to tight monetary and financial conditions, has nevertheless overcome the recession threat. Easing of headline inflation in Euro area is helping boost real incomes and is contributing to pick-up in economic activity. China is expected to see strong increases in GDP in the coming year as the pandemic threat recedes and the government sheds its zero-COVID policy. With optimistic GDP projections, India remains on-course to emerge into a US trillion economy by 2030, surpassing Japan and Germany.The upturn, however, remains fragile and a number of interlocking challenges continue to run in parallel, such as continued uncertainty around the war in Ukraine; slower than expected decline in global headline inflation; continuation of food and fuel inflation as a persistent economic problem for most developing countries; and still high retail inflation and its impact on consumer confidence and spending. Countries and their governments are showing signs of weathering these challenges, which helps lift market sentiments. As governments continue to combat inflation to get it down to more economically conformable levels by raising interest rates, new job creation will slowdown and impact economic activity. Stricter regulatory environment and pressure to mainstream climate change into economic decisions will compound the complexity of challenges faced.Although corporate investments can likely be held back by inflation worries and weaker demand, rise of new technologies will reverse partially this prevailing investment sentiment. Rise of generative AI; applied AI; industrializing machine learning; next-generation software development; Web3; cloud and edge computing; quantum technologies; electrification and renewables and climate technologies beyond electrification and renewables, will open up the global investment landscape. The technologies hold the potential to drive sizeable incremental growth and value to global GDP in the coming years. The short-term is expected to be a mixed bag of challenges and opportunities for both consumers and investors alike. There is always opportunity for businesses and their leaders who can chart a path forward with resilience and adaptability.