Market for automotive connector suppliers

Author：Danny / time：2018-08-21 / The number of clicks：524

According to statistics, the annual compound growth rate of automobile production has declined to only about 2% in 2010. However, there is a continued increase in the growth rate of automotive connectors, and even its annual compound growth rate is slightly higher than the growth rate of automobile production. In fact, before the rapid development of the automotive connector market, people in related industries predicted the considerable value of the automotive connector market. From the development in recent years, by looking at the only reason the automotive connector supplier manufacturers want to develop the Chinese automobile market in 2005, which led to the gradual decline of their prices and affected the continuous upward trend of automotive connectors. However, the rebound in the US dollar exchange rate has further increased the overall value of the automotive connector. No one doubts the market’s capability to grow steadily  and its positive future trends, especially for connector companies that want to shift from desktop computers to automotive connectors, since the automotive connector market is still a high profit area.

Although the automotive connector market has a lot of opportunities as a whole, the manufacturers do not just enter blindly. The result of entering the automotive connector market with disappointment will eventually lead to the decline of the enterprise itself. If you want to discuss the future business opportunities of connector suppliers, you have to investigate the future market size and compound growth rate. If the market is too small, there is no need to enter the market to participate in vicious competition. If there is high growth, there will be opportunities for timely entry.

From statistics, one can see that Europe, North America, and Japan occupy the market with a 32%, 25%, and 20% compound growth rate in automotive connectors respectively in 2009. Since these three markets almost share the entire market for automotive connectors, the automotive connector market in Europe, North America and Japan is saturated, and local suppliers can fully meet their supply and demand needs, if there is no corresponding new competitive industry to participate in, then it is not easy to enter a closed supply chain in the region. From the global situation, although Europe, North America, and Japan are irreplaceable market in the automotive connector market, however, in the other regions, such as mainland China, there is continued growth, and the different countries' car factories have moved to mainland China to try to seize the business opportunities here. However, since manufacturers in the region face the problem of language barrier, coupled with issues on management quality, the result is a relatively weak consumption power of the secondary regions, directly affecting the price of the product. In general, the phalanx of the second region that occupied China has been transformed into a foreign supplier seeking a connector supplier or joint venture.

Despite all these, the automotive connector market has a promising future. There are boundless business opportunities. What is important is how suppliers and producers can seize the opportunity to achieve maximum benefits.