Market prospects of automotive connectors

The market size continues to grow

As the largest application field of connectors worldwide, automotive connectors account for over 20% of the market share. From a global perspective, from 2019 to 2021, the global market size of automotive connectors increased from 15.21 billion US dollars to 17.047 billion US dollars, with an average annual compound growth rate of 5.87%. The growth of the domestic market is more significant, with the scale increasing from 3.293 billion US dollars to 4.303 billion US dollars during the same period, with an average annual compound growth rate of 14.31%. In the future, with the continuous development of the automotive industry, especially the rise of new energy vehicles and intelligent connected vehicles, the market size of automotive connectors is expected to further expand. It is expected that the global automotive wiring harness market will reach 376.3 billion yuan by 2026, and is expected to increase to 448.4 billion yuan by 2030. The market size of high-voltage and high-speed wiring harnesses will continue to grow with the penetration of electrification and intelligence.

Technological changes drive demand growth

1. Development of new energy vehicles: The electrification level of new energy vehicles is higher, and the demand for connectors far exceeds that of traditional fuel vehicles. Moreover, new energy vehicles often use high-voltage connectors, which pose higher requirements for the connectors' high insertion and extraction frequency, current carrying capacity, heat resistance, sealing and waterproofing, and seismic resistance, driving the synchronous increase in the value of on-board connectors. For example, the compound annual growth rate of new energy vehicle related products (including high-voltage connectors, etc.) such as Wall Nuclear Materials has been over 30% in the past three years, fully reflecting the strong growth trend of connector demand in the new energy vehicle field.

2. Trend of automotive intelligence: The development of intelligent cockpit and intelligent driving requires higher data reliability and transmission speed, and the amount of transmitted data continues to increase, driving the continuous growth of the value of high-speed connectors per vehicle. According to the Forward Industry Research Institute, the value of high-speed connectors for L3 level autonomous driving vehicles is estimated to be 1200 yuan per vehicle, which is twice that of L2 level vehicles. With the continuous improvement of automotive intelligence, the market demand for high-speed connectors will experience explosive growth.

In summary, the global connector market is facing unprecedented opportunities and challenges for development. Faced with this trend, connector companies need to keep up with the market pace, constantly innovate and upgrade products and technologies to meet market demand and promote industry development. At the same time, we will strengthen international cooperation and exchanges to promote the sustained and healthy development of the global connector market. In the future development, we have reason to believe that the global connector market will show even broader prospects and infinite possibilities.

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