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Asian electronics growth boosts connector demand

Posted: 01 Mar 2011 ?? ?Print Version ?Bookmark and Share

Keywords:connector demand? electronics manufacturing? Asian manufacturers?

The global connector industry represented approximately $40 billion in net revenue for 2010. Emerging from a predominantly doom-and-gloom period, we are seeing opportunities to seamlessly and efficiently design, manufacture and sell electronic products in countries worldwide.

The recent recession precipitated government stimulus initiatives to bolster automotive sales in North America and Europe, and incentives in Asia to encourage purchasing of consumer and other electronic products, all of which contributed to positive momentum. While unemployment rates in North America and Europe continue to constrain demand, Asia has taken a lead role in the global economic recovery.

In global markets, large multinational companies along with a growing base of Asian manufacturers are driving the major engagements and uptick in electronics manufacturing.

Brian Krause

Krause: Demand for advanced product features, high-speed, convenience and connectivity is driving connector design and markets.

We have seen positive market dynamics, with growth potential in nearly every sector, including the automotive, data, telecom, consumer electronics, industrial, medical and military. Although it is yet to be seen if the aggressive pace can be sustained in every geographic sector, the current economic outlook is favorable for steady growth in the connector industry. While many products in the connector market are mature, some with 25-30-year life spans, there is also a constant demand for new product solutions, which is the lifeblood of innovation. Characterized by rapid advances in technology and new product development, the highly competitive connector industry is substantially driven by the increased functionality of applications in which connector products are used.

Technology spurs demand
Rapid technological advances have spurred demand for faster, smaller, and more reliable mobile devices. Consumer demand for advanced product features, high-speed, convenience and connectivity is driving connector design and markets. High-density, micro-miniature technologies are expanding to markets such as data and mobile phones, leading to smaller devices and greater mobility. The proliferation of smartphones is driving increased connector content, as is the introduction of other next-generation electronics products for home usefrom backlit LCD and 3D televisions to feature-rich cameras. In LCD panels, for example, trends include emerging 3D technology, LED backlighting, and an increasing use of these high definition displays in public domains. Advances in HDMI and MicroHDMI are meeting growing consumer needs to bridge high definition television with cameras and mobile phones.

Even in challenging economic times consumers are choosing to spend their discretionary income on an interesting array of devices, all of which incorporate connectors. Competition among major manufacturers of the popular tablets and smartphones has yielded positive market penetration and year-over-year sales, especially in Asian markets. It's widely recognized that opportunities for electronics manufacturers and OEMs will increase as disposable income in countries such as China and India increase.


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