Industrial Connector Market Share, Growth & Forecast [2031]

Report Description

Industrial Connector Market Outlook 2031:

The global industrial connector market size was valued at USD 8.37 Billion in 2022 and is likely to reach USD 16.17 billion by 2031, expanding at a CAGR of 7.9% during 2022 – 2031. The growth of the market is attributed to the increasing demand for advanced and durable connectors across various industries.

Rapid surge in the production of electric vehicles (EV) is resulting in boosting the global industrial connectors market. Industrial connectors are crucial for powering and charging electric vehicles and ensuring a secure and efficient flow of electrical energy. Thus, the increasing demand for electric vehicles and associated charging infrastructure is boosting the need for technologically advanced industrial connectors.

• According to the International Energy Agency, over 2.3 million electric cars were sold during the first quarter of 2023, a 25% increase than in the same period of the previous year. Furthermore, over 14 million additional sales are projected to take place by the end of 2023.

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Increasing emphasis on miniaturization and high-density connectivity facilitates the utilization of these connectors across various industries, such as manufacturing, automotive, energy, and telecommunications. Industrial connectors enhance operational efficiency by ensuring a stable and uninterrupted flow of power and data, contributing to the overall reliability of industrial processes. Additionally, this improved production process is beneficial for a wide array of sectors to ensure seamless working in manufacturing activities.

The COVID-19 pandemic hampered the market. The disruptions caused by the pandemic, including supply chain interruptions and prolonged shutdown of manufacturing industries, led to delays and shortages in the production and delivery of industrial connectors. Moreover, a decrease in industrial activities during lockdowns and economic uncertainties have resulted in a temporary reduction in new projects, which significantly decreased the demand for connectors in various sectors.

Artificial Intelligence (AI) Impact on the Industrial Connector Market

Emergence of artificial intelligence is expected to propel the market. The integration of AI technologies led to the development of smart connectors that autonomously monitor and optimize connectivity within industrial systems. Moreover, these intelligent connectors facilitate predictive maintenance and identifying potential issues before they escalate.

Industrial Connector Market Dynamics

Major Drivers

Increasing emphasis on energy efficiency is expected to drive the market. Industries and businesses across the globe are prioritizing sustainability, which is growing the dependability of industrial connectors that help in energy conservation. These connectors are designed to optimize the efficiency of industrial processes by ensuring a streamlined and secure flow of power and data. Moreover, the rising investment toward energy-efficient solutions for reducing environmental impact and operational costs boosts the market.

• As per the report published by the International Energy Agency, global investment toward energy efficiency is rising rapidly among governments, households, and various industries, investing around USD 560 billion in 2022.

Rising industrial automation is anticipated to propel the global industrial connector market. These reliable connectors act as essential links in automated systems, facilitating the seamless transmission of signals and data between various components.

The increasing automation across industries, from manufacturing to logistics, demands advanced connectors for high-speed data exchange and stable power connections, thereby propelling the market. For instance, EAGLE TECHNOLOGIES, a major provider of automation technology, predicts that industrial automation is expected to reach around USD 297 billion by 2026, raising global productivity by 0.8 to 1.4% yearly. Furthermore, the demand for industrial connectors in creating interconnected networks is expected to increase, due to the rising adoption of Industry 4.0 practices and the industrial Internet of Things (IIoT).

Existing Restraints

High cost of industrial connectors is expected to hinder the market. The high costs impact the budget considerations of companies, potentially slowing down the adoption of advanced and efficient industrial connectors. Moreover, different industries and applications often require specialized connectors, leading to raised costs associated with adapting connectors to specific needs, thereby affecting the market.

Emerging Opportunities

Ongoing advancements in connector technology are expected to create immense opportunities for the players competing in the market. Connectors are being widely used in edge computing to optimize processing and quick responses. They are contributing to the efficiency of decentralized computing environments within edge computing architectures. Moreover, the increasing adoption of collaborative robots (cobots) in industrial settings boosts the demand for connectors to facilitate connectivity and communications between humans and robots.

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Scope of Industrial Connector Market Report

The report on the Global Industrial Connector market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Industrial Connector Market Segment Insights

Type Analysis

Based on type, the industrial connector market is divided into rectangular connectors, circular connectors, and valve connectors. The circular connectors segment is further segmented into M8, M9, M12, M16, M23, M27, and others. The rectangular connectors segment is expected to hold a major share of the market during the forecast period, due to their modular and adaptable design. They cater to a broad spectrum of industrial needs, which allows for flexible configurations and easy customization.

The sealed and rigid design of these connectors provides a high degree of protection against environmental factors, such as moisture, dust, and vibrations. Moreover, rectangular connectors are compact and their high density makes them ideal for limited-space applications, which contributes to the segment growth.

The circular connectors segment is anticipated to register robust growth during the forecast period, as these connectors facilitate secure and efficient connections to reduce the risk of disruptions in industrial processes. Furthermore, the high adoption of circular connectors in control & monitoring systems to power distribution systems propels the segment.

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Usage Analysis

On the basis of usage, the market is classified as data, power, and signal. The data segment is further fragmented into RJ45, sub-D, single pair ethernet, and others. The data segment is expected to hold a key market share during the projected period, due to the growing demand for efficient and reliable data transmission solutions in various industrial settings.

The rise of Industry 4.0 and the industrial Internet of Things (IIoT) is facilitating the utilization of data connectors for seamless and robust data connectivity. The growing adoption of automation technologies necessitates the utilization of superior data connectors in automation parts, such as safety and body electronics and powertrains, which further boosts the market.

End-use Industry Analysis

Based on end-use industry, the market is segregated into semiconductor & electronics, automotive, pharmaceutical, food & beverage, oil & gas, chemical, metal & mining, and others. The semiconductor & electronics segment is expected to expand at a significant CAGR during the forecast period, owing to the rising demand for advanced electronics and semiconductor-based technologies.

Industrial connectors are important in the intricate wiring and connectivity within semiconductor equipment, ensuring the seamless transmission of signals. Moreover, the growing need for semiconductors is expected to propel the market.

• A report published by the Semiconductor Industry Association on November 1, 2023, revealed that global semiconductor sales reached around USD 134.7 billion during the third quarter of 2023. This is an increase of 6.3% compared to the second quarter of 2023; however, a decrease of 4.5% compared to the third quarter of 2022.

The automotive segment is projected to register a considerable CAGR during the forecast period, due to the increasing trend of vehicle electrification. This has led to a rise in demand for power connectors, highlighting the need for lightweight and compact connectors in the industry. Rapid increase in the production of electric vehicles (EVs) across the globe is creating a huge demand for industrial connectors to utilize in the manufacturing process. For instance,

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Regional Outlook

In terms of region, the global industrial connector market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asis Pacific is expected to dominate the market, due to the rapid expansion of the automotive and electronics industries. However, industrial connectors are majorly used in manufacturing processes, supporting the connectivity requirements of modern vehicles, electronic devices, and smart technologies. Moreover, the availability of low-cost labor and raw materials makes this region an attractive location for manufacturers, which further boosts the market.

The market in Europe is anticipated to expand at a rapid pace in the coming years, owing to the growing demand for renewable energy sources. The region is focusing on sustainability and energy efficiency in industrial operations, resulting in the growing demand for eco-friendly and energy-efficient connectors. Moreover, the strong presence of thriving manufacturing sectors that rely heavily on high-performance connectors contributes to industrial connectors market growth.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Industrial Connector Market
• Historical, Current, and Projected Market Size in Terms of Value and Volume
• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
• Industry Drivers, Restraints, and Opportunities Covered in the Study
• Recent Industry Trends and Developments
• Competitive Landscape & Strategies of Key Players
• Neutral Perspective on Global Industrial Connector Market Performance