Report Summary:
2023 has proven to be a year of worldwide conflict and declining connector sales. Are sales anticipated to decline in all regions and market sectors in 2023 or will some fare better? Will growth return in 2024?
- How is the connector industry anticipated to perform in 2023? In 2024? What factors are predicted to contribute to the decline of sales in 2023? Will these same factors affect growth or decline in 2024?
- Which regions, market sectors and subsectors are predicted to show the greatest growth in 2023, in 2024 and in 2028? Which market sectors and subsectors, if any, are anticipated to grow or to contract?
- What outside factors are contributing to connector growth or decline in 2023? In 2024? What factors may affect growth beyond 2023?
- In what way are currency fluctuations impacting connector sales? How is connector backlog changing during the second half of 2023?
Bishop & Associates' newest research report, the ‘ Connector Industry Forecast 2023-2028’ looks at past sales and reviews total world connector sales in 2022 and anticipated performance in 2023, providing a comprehensive analysis by region and market sector of projected connector sales for 2023 through 2028. With connector sales broken down by region, market sector and subsector, this report provides a detailed analysis in US dollars of the world connector industry.
2023, unlike the previous two years, is turning out to be a year of worldwide conflict and declining connector sales. Will these unusual times continue into 2024 and beyond, or will we witness growth more in line with historical performance? Be prepared for what lies over the horizon, order your copy of the Connector Industry Forecast.
Additional Details:
This eight-chapter report 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, currency fluctuation effects, and industry sales performance, as well as an outlook narrative.
Worldwide and each regional forecast includes:
Computers & Peripherals
- Mobile Computers
- Desktops
- Servers
- Storage Equipment
- Input/Output Equipment
- Communication LAN Devices
- Other Computer Equipment
Business/Office Equipment
- Retail/POS Equipment
- Imaging Systems
- Other Business/Office Equipment
Instrumentation
- Automatic Test Equipment
- Analytical/Scientific Instruments
- Other Instrumentation
Medical Equipment
- Diagnostic & Imaging Equipment
- Therapeutic Equipment
- Other Medical Equipment
Industrial
- Factory Automation and Machinery
- Construction and Civil Engineering
- Energy Markets
- Other Industrial Equipment
Automotive
- Body Wiring & Power Distribution
- Powertrain
- Comfort, Convenience & Entertainment
- Navigation & Instrumentation
- Safety & Security
Transportation (non-auto)
- Commercial Vehicles
- RVs & Power Sports
- Commercial Air
- Marine
- Rail
- Construction
- Farm & Garden
Military/Aerospace
Telecom/Datacom
- Carrier Network
- Enterprise Network
- Wireless Infrastructure
- Subscriber Equipment
- Other Telecommunications
Consumer
- Personal/Portable Consumer
- Home Video Equipment
- Home Audio Equipment
- Consumer White Goods
- Other Consumer
2023 - A Year of Worldwide Conflict and Declining Connector Sales!
After a year of strong double-digit growth, no one expected the connector industry to perform as well as it did in 2022. Although not in the double-digit range, growth in 2022 was a solid 7.8%. Entering 2022 with a robust backlog allowed for all regions, except for Japan, and market sectors to show growth, albeit at different levels.
A year marked by challenges, changes, and opportunities, 2022 was for many a year that showed us just how resilient we could be. We climbed our way out of one of the worst health pandemics ever faced. We were faced with flooding in all parts of the world and the worst drought in over 40 years in other parts. Wildfires that burned for weeks and heatwaves, earthquakes, and hurricanes that killed thousands and caused billions of dollars in damages. Yet, after each of these challenges we picked ourselves up, kept a positive attitude, and tended to business! Just like the way the connector industry responded after a devasting 2020.
Industry Sales Performance by Region
As would be expected, growth and decline were not equal across all regions in 2022 nor will they be in 2023. The North American region saw the greatest growth in 2022, growing 14.6%. With growth of 11.7%, the ROW region followed North America. This region includes Central and South America, Brazil, and South Africa. Asia Pacific, which includes Taiwan, South Korea, India, and Singapore as well as a list of others, followed ROW with growth of 7.1%, followed by Europe with growth of 6.5%. China, the largest region for electronic connector sales increased 6.1%. Japan, who continues to struggle to bring sales back to their high of $6.4 billion in 2012, showed the least growth in 2022, with sales declining -2.0%.
Forecast Assumptions
Forecasting is always difficult, especially during times of financial and geopolitical uncertainty. Projecting future business conditions in this environment is almost impossible. Consider the following economic headwinds, political challenges, and uncertainties.
- Economic markets are still unstable. Although the Federal Reserve announced in early November that they would hold rates steady as they evaluate progress on taming inflation, they did leave the door open to future increases. This contrasts with their announcement in September that one more increase in rates was likely to occur in 2023 to keep inflation at bay. This is important because US interest rates tend to drive global rates and strengthen the US dollar, which causes many other currencies to depreciate.
- World GDPs are slowing in all economies. According to The Conference Board, "global real GDP is forecasted to grow by 2.9% in 2023, down from 3.3% in 2022", with a further decline to 2.5% in 2024. "Growth forecasts for 2024 are generally strongest in emerging Asian economies and weakest in Europe and the US."
- Although global supply chain issues have improved drastically, with ocean and truck freight capacities improving, we still are faced with several obstacles driven by issues such as labor shortages and global conflicts. In the latest CNBC Supply Chain Survey, conducted in October among logistics executives from companies like DHL Global Forwarding Americas, ITS Logistics, SEKO Logistics, C.H. Robinson, and Kuehne + Nagel, it was determined that the freight market will remain stagnant through the balance of 2023, and that "little to no growth will occur during the first half of 2024".
- Continued fluctuation in petroleum prices. Although at the present time, prices seem to have dropped about $0.30 per gallon when compared to this time last year, there is no guarantee how long these prices will remain in effect. The fact that Saudia Arabia the world's second-largest oil supplier, decided to slash production by one million barrels a day since July, means less oil available and in turn potentially higher prices. The fact we are now entering the time of year where demand drops for gasoline is good for the consumer, but demand for diesel by farmers and truckers, as well as jet fuel for the rebounding travel industry, will add to the price of goods.
- Low unemployment rates, driven by the ongoing labor shortage, with studies still showing that by 2030, we will be an estimated 85 million workers short globally! Continued low unemployment rates worldwide, driving a continued and prolonged shortage of workers in key areas like transportation and service industries. Through September 2023, unemployment in the US stood at 3.8% and in China at 5.0%. In the Euro area through August, it was 6.4%.
- Increasing political tensions: Israeli-Palestinian conflict over land and who controls it, a war between Russia and Ukraine that has gone on for over a year, with no end in sight, deepening friction between China and Taiwan with the US trying to maintain dominance in Asia Pacific, possible repeated confrontation between Armenia and Azerbaijan, stalled nuclear talks with Iran, political gridlock and rampant gang violence in Haiti, with cholera spreading and governmental services collapsing. China's continued military buildup, which includes rapid development of its nuclear, space and cyberspace capabilities. According to Defense.gov, "DOD officials estimate that the Chinese had more than 500 operational nuclear warheads as of May 2023." "China has also focused on expanding its naval capabilities to project power by sea. It has the largest navy in the world, in terms of number of ships and submarines, with a total battle force of 370 ships and submarines. That includes 140 major surface combatants, according to the report."
- A global housing shortage is causing home prices and rents to climb substantially, drastically affecting the percentage of income devoted to housing. In some countries like Germany, this has reached disastrous proportions. Earlier in 2023, a study by the Eduard Pestel Research Institute "found there to be a shortage of more than 700,000 apartments in Germany, especially in the affordable segment". Germany is not the only country where rentals are a scare commodity, many other European countries are facing the same dilemma, and even those that have found housing, in many countries like the United Kingdom, this housing is substandard, with many in a state of dangerous disrepair. The United States is also facing a housing shortage, due to rising material costs, labor shortages, and supply chain issues. Although this problem existed long before COVID, rising interest rates have caused buyers to watch their purchasing power plummet, as well as their ability to own a home.
There are also some interesting projections as to why we will see connector growth in 2024 and beyond and what that growth will be. See the markets where Bishop anticipates growth and which subsectors will drive that growth. Look at projections over the next five years. Will we continue to grow, or will some years not be as strong as others? All this and more revealed in the December 2023 Connector Industry Forecast.