Market Research Report
Connector Industry Forecast
|Connector Industry Forecast|
Published: November 29, 2021
Bishop & Associates, Inc.
Delivery time: Inquiry
Bishop & Associates' newest research report, the ‘Connector Industry Forecast’ looks at past sales and reviews total world connector sales in 2020, providing a comprehensive analysis by region and market sector of projected connector sales for 2021 through 2026. With connector sales broken down by region, market sector and sub-sector, this report provides a detailed analysis in US dollars of the world connector industry.2021 is turning out to be a year no one could have expected. Review the connector industry's extraordinary performance in this year of firsts, order your copy of the ‘Connector Industry Forecast’.
This eight-chapter report ‘Connector Industry Forecast’ 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, including connector confidence level, currency fluctuation effects, and industry sales performance, as well as an outlook narrative.
Worldwide and each regional forecast includes:
After what we thought would be one of the most challenging years ever, 2021 is showing to be even more surprising than 2020. Declining a mere -2.2%, 2020 started off with sales anticipated to grow 3.5%. As the pandemic exploded, affecting key economies like China and the US, we revisited our original forecast and sent the forecast spiraling downward $20 billion, reflecting a decrease of -30.8%.
By third quarter once again things had changed directions and sales moved from declining double-digits to positive year-over-year growth. This would allow 2020 to close with connector sales only declining -2.2%.
As we moved into 2021, we anticipated growth due to easy comparisons to 2020, but no one anticipated 11 straight months of double-digit growth and a year-to-date book-to-bill ratio of 1.14!
As the following charts indicate, growth and decline were not equal across all regions in 2020 or will they be in 2021. China, who came out of lockdown the earliest was the only region to see connector sales grow in 2020, increasing 3.6%. North America, who proved to the world that they could rapidly divert manufacturing capacity from one industry to another, saw connector sales drop 2.8%. The greatest decline was seen in Japan, where connector industry sales dropped 9.4% or over $460 million dollars.
Growth in 2021 is also going to vary drastically based on region. Although the ROW region is anticipated to show the greatest year-over-year growth from a percentage standpoint, from a US dollar standpoint, the greatest growth is anticipated to be seen in China, where sales dollars will increase by over $X.7 billion.
In addition to connector sales results varying by region, sales also varied remarkably by market sector in 2020. As the table below shows, the telecom/datacom market grew 1.5%, spurred by increased Internet activity and the drive towards 5G. In line with this growth, was the very slight decline in computers & peripherals. This market sector, which saw sales decline 7.2% from 2018 to 2019, showed a strong rebound linked directly to telecommuting of both business professionals and students.
The market sector showing the greatest decline was the automotive sector, where sales dropped a steep 7.0%. This was primarily due to auto plants being shuttered and most dealers being forced to close showrooms. In fact, in the US, 2020 was the fourth-largest annual decline in automotive sales since 1980. What is surprising is that the industrial market, tied heavily to automotive production, saw connector sales decline only 2.3% due to the repurposing of many off these factories. Also showing a steep decline was the transportation sector, where sales dropped 3.0%. What is unique about this decline is that not only was it spurred by travel restrictions placed worldwide, but also due to the unique problems facing the commercial aerospace industry in 2019 that rolled over into 2020.
Due to outstanding performance through the first nine months of 2021, Bishop is forecasting 2021 sales to grow by Y.Y% to $7X,XXX million. We anticipate the greatest percentage increase will occur in ROW, where sales will increase Y.Y%, followed by Europe where sales will increase Y.Y%. In US dollars, the smallest growth will be seen in the Japanese region, where connector sales will increase by $X11.8 million or Y.Y%. The Japanese region will be followed by ROW, where sales will only grow $8XX.3 million or Y.Y%.
Forecasting is always difficult. Projecting future business conditions in this environment is almost impossible. The following are the assumptions we are using to develop the connector industry forecast.