Connectors, an electronic component, are becoming increasingly important in the automotive industry. It is understood that a typical light car has about 1500 connection points, and each car in the future will use 600 to 1000 electronic connectors, which is far greater than the number used today. Relevant data also show that from 2009 to 2014, the compound annual growth rate of the automotive connector market increased by 11%, and reached a market value of nearly 12 billion US dollars. It is expected that the output value of automotive connectors will exceed 16 billion US dollars in 2019, and maintain a compound annual growth rate of 7%.

As for the Chinese market, under the trend of automotive electronics and the growing demand for new energy vehicles, the market potential of automotive connectors is gradually becoming prominent, and the market size will maintain rapid growth. Some industry players even assert that automotive connectors have become the fastest-growing market segment in the field of auto parts.
Automotive electronics to be the main growth engine

As people have increasingly stringent requirements for driving comfort, safety, and entertainment, more electronic systems are used in automobiles. Functions such as infotainment, ABS, electronic ignition system, airbags and parking sensors have gradually become standard configurations. Based on people's pursuit of more precise car control and higher entertainment, the automotive electronics market will undoubtedly continue to be hot.

Molex, a well-known manufacturer of electronic connectors, once pointed out in relevant industry reports that domestic and foreign engineer groups in component suppliers, general contractors and original equipment manufacturers will collaborate on the entire supply network to continuously expand electronic connectors. The scope of application of products, such as the use of electronic products in automotive powertrains, infotainment systems, assisted driving, safety systems and green energy. Relevant data also show that 10 years ago, the average cost of automotive electronic equipment accounted for about one-fifth of the total manufacturing cost. Today, that number has jumped to 30% to 35% or more. According to Deloitte's estimates, the scale of global automotive electronics will reach US$234.8 billion in 2016, of which the scale of China's automotive electronics market will increase by 12.7%, exceeding US$74 billion.

The strong demand for automotive electronics has had a very direct impact on connectors, which have become the main growth engine of the market. Of course, this is based on the importance of connectors for automotive electronics: as a bridge connecting circuits, connectors play the role of clearing circuits and connecting currents in automobiles, which is especially necessary for automotive electronics. Connector market analysis company Bishop&Associates breaks down automotive connectors into five vehicle electrical systems: body wiring and power distribution systems; powertrain systems; comfort, convenience and entertainment systems; navigation and instrumentation; safety and security systems. Among them, the infotainment system is a rapidly popular application. According to IHS AutomoTIve, the number of vehicles with display and audio infotainment systems worldwide will increase from 14.4 million in 2014 to 25.4 million in 2020, with a compound annual growth rate (CAGR) of 12%. With the popularization of entertainment driving concepts, not only car audio, but also functions such as GPS navigation and positioning, wireless mobile communication, network data transmission and anti-theft security are constantly being introduced into cars, and the integrated multimedia functions on cars are becoming more and more powerful.

With the advent of the era of intelligent vehicles, driver assistance systems have attracted more and more attention from Chinese car owners. For example, the development of a series of driving assistance systems such as adaptive cruise control, side view assist system, automatic emergency braking, and automatic parking requires more high-quality connectors to optimize vehicle performance and experience, while improving the hardware of automotive electronic systems Safe and reliable level. At the same time, it is expected that the highway guidance function will be realized in 2020, so as to realize the high degree of automatic driving on the highway; the realization of fully automatic driving will be realized after 2025. The advent of the era of autonomous driving will continue to detonate the connector market.

What cannot be ignored is the demand brought by new energy vehicles. Although affected by state subsidies, the field of new energy vehicles has experienced some fluctuations in the near future, but under the general trend of energy conservation and environmental protection, it will undoubtedly become the mainstream of the future automobile market. In fact, the new energy vehicle connector market has become a must for domestic connector companies. Specifically, the demand for connectors of new energy vehicles can be roughly divided into two aspects: on the one hand, it needs more automotive electronic equipment. It is reported that the cost of automotive electronics in new energy vehicles has reached 47%, and with the With the gradual increase in the output of new energy vehicles, the output value of automotive electronic bicycles will continue to increase; on the other hand, the development of new energy vehicles requires the cooperation of the entire supporting facilities, among which charging piles are the top priority, and connectors as its upstream components will naturally be Hence the growth.

Connector manufacturers position themselves as high-end routes

Generally speaking, the requirements for future connectors are nothing more than faster, smaller, smarter, and more environmentally friendly. As far as the current automotive industry is concerned, the development of autonomous driving, Internet of Vehicles, and new energy vehicles has brought more stringent requirements to it. Therefore, no matter for traditional or emerging connector suppliers, it is necessary to improve their core technology capabilities and come up with products that meet new needs in order to seize more market share in the new era.

Infotainment systems, as well as automotive safety and navigation systems, are major trends in the automotive electronics industry. Since many of these systems have not yet been standardized, they are driving the need for a range of custom interconnect solutions, most importantly in High reliability in harsh environments. While the trend toward connected vehicles is becoming more and more prominent, the need for high-durability electrical and electronic systems is also growing. Mr. David Ho, vice president of sales in the Asia-Pacific region of Molex, once made it clear in an interview with the media: If any company can skillfully integrate electronic components and assemblies into China's automotive electronics solutions, then the company will be in a favorable position.

As far as the company is concerned, it has developed a variety of interconnection solutions for connected cars, for example: its CMC series hybrid connectors provide a high-density, cost-effective sealed modular connection system for heavy-duty, Powertrain and body electronics applications, and in-vehicle networking applications; while for in-vehicle infotainment and networking systems, it also offers HSAutoLink™ II components with I/O options for USB 2.0 and 3.0, LVDS, Ethernet, audio/ Video Bridging (Audio-Visual Bridging, AVB) and improved HDMI, DVI, and DisplayPort; also, considering that standard crimp connectors cannot provide the high ampacity or environmental conditions required for vibration, thermal shock, and automotive applications It has also developed advanced crimp connectors to solve these problems.

In addition, as mentioned above, the Chinese government has invested a lot of money to encourage the development of new energy vehicles, and there are indeed more and more electric vehicles and electric buses driving on the streets. For connector suppliers, this is not just an opportunity, but also a challenge. For example, since electric vehicles and hybrid vehicles use large-capacity lithium batteries, their operating voltage range has jumped from 14V in traditional vehicles to 400V-600V, so the demand for high-reliability and high-stability connectors for signal transmission is increasing. According to industry insiders, with the rapid development of new energy, the potential safety hazards and efficiency issues brought about by the scale of new energy are increasing. In order to meet the needs of the development of new energy vehicles, many connector design manufacturers have developed a variety of connectors suitable for Products and solutions for new energy vehicles, however, which solution will win in the end remains to be verified by the market.

Summary: All in all, the transformation of the automotive industry is bringing more growth momentum to the connector market, which will undoubtedly stimulate the automotive connector market to continue to rise in the future. However, while the relevant companies are "gripping their hands" to win more market share, they must also face up to the changes that have occurred and will occur in the market. It is time to rethink their own future layout and product positioning!