Bishop and Associates has just released a new ninechapter research report
analyzing the World Distribution Market for Connectors. This 300-page report
provides a comprehensive analysis of the distribution market for connectors
through both the POP and POS channels. POP and POS sales are provided for the
years 2006 through 2011, with a forecast for the year 2016.
Connector Sales to Distributors Top $11 Billion
The world connector industry achieved sales of $48,355 million in 2011. Sales
to distributors accounted for $11,069 million or 22.9% of the total. In North
America, sales to distributors accounted for almost 35.9% of the total. In
Europe, sales to distributors totaled $3,815 million, or 33.8% of all
connector sales.
Distribution's share of the connector market has remained steady in the 22 -
23% range. In our opinion, distribution's share of the total market will
increase slightly over the next five years, as customers in fast-growing
economies embrace the value proposition that distributors provide.
HIGHLIGHTS
Connector manufacturers' sales to distributors have grown faster than the
overall market during the fiveyear period of 2006 - 2011 in five of the six
regions of the world. Europe is the only exception.
For the first time, POP sales generated more than 10% of total connector
sales in each region of the world.
POP represented more than 30% of total sales in Europe and North America.
The Automotive and Transportation markets represent two of the
fastest-growing market sectors, and together generate more sales than any
other sector.
PCB connectors are still the best-selling connector type. Application
Specific and Heavy Duty connectors are two of the fastest-growing lines. Both
are used extensively in the Automotive and Transportation markets.
The level of connector sales through logistics and other purchasing
programs increased dramatically during the 2006-2011 timeframe. This may have
been the most significant factor in eroding distribution margins, which fell
3.1 percentage points.
Distributor margins were highest in Europe and lowest in China.
Bishop & Associates, Inc.
Bishop & Associates, Inc. incorporated in 1985 as a market research firm specializing in the global electronic connector market. A staff of associates conducts ongoing research to provide our clients with in-depth and up-to-date market information.
Table of Contents
Table of Contents
Chapter 1 - Overview of the World Connector Market Through the Distribution Channel
World Distribution Channel - All Commodities
2009 Top 20 Global Distributors of All Electronic Components
2009 Top 15 Global Distributors of Interconnect Products
Types of Distributors
Breadth of the Products or Product Lines Sold
The Path to Market or Sales Methods Employed
Geographic Area Served
Other
Inventory
Categories
Inventory Management
Performance
Monthly Levels of Annual Turnover Rate
Monthly DSO
European Inventory Turns - All Electronic Components
European Inventory Turns - Connectors
European Inventory Turns - All Electronic Components and Connectors
Margins
Value-Added Programs
Franchises
North America
North American Top 10 Global Connector Suppliers Based on DTAM
Europe
European Top 10 Global Connector Suppliers Based on DTAM
Asia
Asia Top Ten Global Connector Suppliers Based on DTAM
Chapter 2 - Analysis of the World Electronic Connector Market Through the Distribution POP Channel
POP as a Factor of Total Connector Sales
Total World Connector Sales and POP Sales with Percent Change 2004-2009
2009 and 2014 Total World and POP Sales with 5-Year CAGR and POP
as Percent of Total Sales
2006-2010F Total World Sales and POP Sales with POP as Percent of Region,
POP, and Total Sales
World Distributor POP Connector Market by Region
World Distributor POP Connector Market Year-Over-Year Growth 2006-2011
What Happened in 2009, by Region
North America
North American Market Year-to-Year POP Growth 2004-2009
Europe
European Market Year-to-Year POP Growth 2004-2009
Japan
Japanese Market Year-to-Year POP Growth 2004-2009
China
Chinese Market Year-to-Year POP Growth 2004-2009
Asia Pacific
Asia Pacific Market Year-to-Year POP Growth 2004-2009
ROW
ROW Market Year-to-Year POP Growth 2004-2009
Regional Summary
2004-2009 World Distributor POP by Region with Percent Change
Worldwide Distributor POP Connector Market By Region: 2016 Forecast and
Five-Year CAGR
2011-2016 Distributor POP Connector Five-Year CAGR
Worldwide Connector Market by Region: Percent of Total by Year and Region
World Connector Market - Geographic Regions - Percent of Total Sales
POP - End-Use Equipment Sectors
World Distributor POP Connector Market by Equipment Sector
World Distributor POP Connector Market - Top 5 Equipment Sectors - 2009
World Distributor POP Connector Market By End-Use Equipment 2004-2009
World Distributor POP Connector Market By End-Use Equipment: 2016 Forecast
and Five-Year CAGR
2011-2016 Connector Five-Year CAGR, Ranked by Growth
World Distributor POP Connector Market by End-Use Equipment; Percent of
Total by Year and Equipment Sector
World Distributor POP Connector Market: Top Five End-Use Equipment
Sectors, Percent of Total Sales
2006 Worldwide Distributor POP Connector Market By End-Use Equipment
2005 Worldwide Distributor POP Connector Market By End-Use Equipment
2006 Worldwide Distributor POP Connector Market By End-Use Equipment
2007 Worldwide Distributor POP Connector Market By End-Use Equipment
2008 Worldwide Distributor POP Connector Market By End-Use Equipment
2009 Worldwide Distributor POP Connector Market By End-Use Equipment
2010F Worldwide Distributor POP Connector Market By End-Use Equipment
2014F Worldwide Distributor POP Connector Market By End-Use Equipment
POP - Product Categories
World Distributor POP Connector Market by Product Category
World Distributor POP Connector Market: Top 5 Product Categories 2009
World Distributor POP Connector Market By Product Category 2006-2011
World Distributor POP Connector Market By Product Category - 2016 Forecast
and Five-Year CAGR
2011-2016 Connector Five-Year CAGR, Ranked by Percent Growth
World POP Connector Market by Product Category: Percent of Total by Year
and Product Category
World Distributor POP Connector Market - Top Five Product Categories -
Percent of Total Sales
2006 Worldwide POP Distributor Connector Market By Product Category
2005 Worldwide POP Distributor Connector Market By Product Category
2006 Worldwide POP Distributor Connector Market By Product Category
2007 Worldwide POP Distributor Connector Market By Product Category
2008 Worldwide POP Distributor Connector Market By Product Category
2009 Worldwide POP Distributor Connector Market By Product Category
2010F Worldwide POP Distributor Connector Market By Product Category
2014F Worldwide POP Distributor Connector Market By Product Category
The World Distribution Market for Connectors published by Bishop & Associates, Inc. in April 30, 2012. This report price starts from US $ 3950.
The contents of this page may be different from the latest version. Please contact us for details.
Press Release
Global Distribution Market for Connectors Top $11 Billion - Dramatic Changes in POP and POS Trends
May 1st, 2012
Global Information Inc. would like to present a new market research report, "The World Distribution Market for Connectors" by Bishop & Associates, Inc..
This second edition of the report presents worldwide DTAM (Distributor Total Available Market) data for the distribution sales channel. It includes both POP (Point of Purchase) and POS (Point of Sale) figures for the years 2006 through 2011. It also includes a projection for DTAM in 2016, with CAGR (Compound Annual Growth Rate). All data is broken out by region, market sector, and connector type, and provides a comprehensive look at sales and market trends for all aspects of interconnect distribution sales. It also includes information on the suppliers with the highest sales through the distribution channel, as well as the distributors with the highest connector sales.
The report presents a very positive picture of electronics distribution in general. After a significant drop in both sales and operating income in 2009, the connectors industry has recovered nicely and has far exceeded 2008 levels in both areas. Inventory levels have stabilized, indicating that suppliers should have a steady order flow, dependent primarily on the strength of the market. This is a refreshing change from the demand swings suffered during the post-recession period of the first quarter of 2009 through the end of 2010. At the beginning of that period, distributors were forced to take every measure they could in order to bring their inventories into line with the diminished sales levels. By the third quarter of 2010, however, distributors inventories were unable to support a spike in demand that resulted in product shortages.
The most common measure of inventory levels is the actual inventory value divided by the daily sales average at cost and is referred to as inventory days on hand (DOH). In the first quarter of 2009, average DOH stood at 47 days. By the end of that year, DOH had fallen to less than 38 days. This drop magnified the severity of the soft market for suppliers as their sales to distributors were reduced by the value of 10 days of inventory in addition to the slowdown in overall sales. The end result was that connector POP fell -24.3% in 2009. That was 2.3% more than the overall connector market, which fell -22%. Distributor sales of connectors to the end market fell even more dramatically, with POS off -24.7%. Neither POP nor POS for connectors returned to 2008 levels until 2011.
The report indicates some dramatic changes in both POP and POS trends on almost every level. POP sales grew at a faster rate than the overall connector market in 2011 and now represent an even larger share of the overall market. In 2011, POP represented the largest share of total connector sales in any year, with the exception of 2008. Strong demand, coupled with rising levels of distributor inventories, drove supplier sales to distributors to their highest level that year. As indicated earlier, the reverse effect drove POP share down by almost a full percentage point the following year.
Regionally, POP share of the total market in North America exceeded that of Europe for the first time. POP sales dollars grew at a slightly higher rate than those of Europe. The overall connector market in Europe, however, grew at an even faster rate. The combined result was a 2.7% swing in share percentage, which is the largest percentage swing since 2006.
Surprisingly, the region with the lowest percentage of growth for both POP and POS was China. Distribution share of that market is the second lowest in the world and has remained relatively flat since 2008. Conversely, the Asia Pacific region outside of China and Japan was the fastest-growing region for both POP and POS. Distributions share of that market now stands at an all-time high.
The market sector with the fastest DTAM growth, factoring in both actual and percentage of sales, was the non-automotive transportation market. Several distributors, such as TTI and Arrows Power & Signal Division, have focused on this market segment, with apparently positive results. Some of the other high-growth sectors, such as medical and office equipment, reflect the success of the vertical market strategies employed by several of the larger distributors. Growth in the military/aerospace market continues to lag behind the other sectors, and for the first time represented less than 10% of total DTAM in 2011.
The one area where there were no real surprises was in the types of connectors sold by distributors. PCB connectors have consistently represented the largest share of distribution sales. This continued to be the case in 2011. Growth across the various product lines was also very consistent last year. Heavy-duty connectors represent the one category that did stand out in terms of growth. This category, which has traditionally been one of the slowest growing, has obviously benefitted from the growth in the non-automotive transportation market and grew at a rate 1% higher than any other. Telephone/telecom connectors, which had historically been one of the fastest growing product categories, slipped from that position in 2010 versus 2009 and actually achieved the lowest percentage of growth in 2011.
