Industry analysis | connector industry (a)
The connector is the core component of the electrical connection of the whole circuit system. Its function is to connect, disconnect or change by means of electric / optical signals and mechanical forces. In the electronic information, the rapid development of today, the connector as an indispensable electronic device components, is widely applied in the fields of automobile, communication, aerospace, military equipment, computer, industrial and household appliances etc..
Connector product classification standard is more, can be classified according to their appearance structure, working frequency, application, installation, special performance and other aspects, taking into account the technical development of the connector and the actual situation, standard and universal and related technologies, will generally be divided into the following categories: connectors, low-frequency circular connectors rectangular connectors, printed circuit connectors, RF connectors and fiber optic connectors.
As a bridge connector circuit in the system of communication, with easy maintenance, easy to upgrade and other characteristics, also can simplify electronic product assembly process, improve the design and production flexibility, so as to enhance the degree of automation of the whole system and reduce the cost.
Three functions of connector
二、Connector industry chain
Connector as basic electronic components, upstream is metal, chemical products, semiconductor materials, downstream terminal products of automobile, communications equipment, computers, industrial equipment and other fields, after years of development, the whole industry chain has been relatively clear, downstream products is relatively clear.
Connector industry chain and main production process
三、Global connector Market
The global connector market growth continued for nearly 40 years, according to Bishop & Associate data show that the global connector market growth from 59 billion 400 million yuan in 1980 to 364 billion 300 million yuan in 2016, the compound growth rate of 5.2%, nearly ten years of slowdown, the compound growth rate of 2.6%. Although the connector market has been temporarily declining since 2014, the ensuing economic recovery and technological upgrading will continue to drive the industry forward rapidly.
According to the classification of downstream industries, connectors mainly include automobiles, communications, consumer electronics, military and industrial sectors. The scale growth and technological innovation of downstream industries are the main factors driving the growth of connector market. Among these downstream industries, the largest proportion of automotive connectors, accounting for 23% of the global connector market, followed by communications. And with the increase of automotive electronics, and 4G, 5G network layout, automotive and communications connector will still have great room for development. And in the field of consumer electronics, with the development of wearable devices, VR\AR technology breakthrough, the future of connector size will be considerable.
According to the technical characteristics of connectors, connectors can be divided into application and standard type. Among them, the application connector mainly includes automobile connector and military connector. This type of connector is basically custom designed, which requires strong design power from connector manufacturers. There will be no consumption of electronic connectors, several models, production for several years. Military custom connectors, both for high-end small batch. The production of automotive connectors is slightly larger than that of the military, but the quality and design requirements have not decreased. For application connectors, rapid design, large-scale and high-quality production is the core competitiveness. In recent years, the international leading connector (TE, Amphenol, Molex) have been applied to the connector Market tilt.
Another type of market, accounting for the largest proportion of standard connectors. Standard connectors require less design and are designed to be fixed. A model connector can be used in several locations and will remain unchanged for many years. The main competitive point of this kind of connector lies in cost control and quality control under mass production. Therefore, standardized connector manufacturers mainly compete in line capacity, production and management. China's Ling electrical company is the leader of such connector manufacturers.
Connector industry features
Compared with the semiconductor industry, the cycle is strong
The upstream industry of connectors is mainly metal, electroplating, plastic and other raw materials, while the downstream industries are widely distributed in automotive, communications, consumer electronics, aerospace, military and other fields, serving customers in many industries. The periodicity and seasonality of different industries are different. In general, the market of connectors is not big.
Connector and downstream industry growth synchronization
Connector is the connecting bridge between electronic components, and its technological innovation direction and manufacturing standard also adapt to the development of downstream industries. As the downstream market puts forward more sophisticated requirements, the connector standards will increase, and when the downstream market scale changes, the demand for connectors will also increase and decrease.
Technical threshold is relatively low, stability is king
Connectors, as electronic components, are at the bottom of the value of the supply chain. In cars, for example, 300-500 connectors are needed on a car, but its value is only one percent of the value of the car. Connectors are part of the low technology threshold in the whole supply chain. Compared to other core components, connector technical threshold is low, but as the junction of each part of electronic components of the hub, the stability requirements are extremely high.