Market Trends of Automotive and Transportation Connector Industry
This section covers the major market trends shaping the Automotive & Transportation Connector Market according to our research experts:
Increasing Electronic Components in Automobiles
Safety and security systems such as adaptive cruise control, ant-theft alarm system, lane departure warning, keyless entry, braking systems, and autonomous driving systems help in avoiding fatal accidents as well as provide greater security. Such advanced features are integrated within vehicle using considerable number of electronic components. Connectors play an essential role in delivering proper power distribution to these components. Manufacturers are investing into developing superior connector technology at low price to withstand harsh operation conditions such as high/low temperature, wear and tear, and dirt. Increasing vehicle electrification among different vehicle segments has boosted the demand for connectors. Further growing awareness regarding eco-friendly mobility has plunged sales of electric vehicles, thereby driving demand for automotive connectors. It is anticipated that over 150 hybrid electric vehicle models are going to be launched during the forecasted period, which creates an immense opportunity for manufacturers of connectors.
Regulations also play an important role in shaping the market. The proposed ban on internal combustion engine (ICE) vehicles in different countries led to increasing adoption of electric vehicle. For example Norway has set 2025 as the target year for ban on ICE vehicles. China has announced ban by 2030. This amplifies the scope of vehicle electrification, thereby increasing the demand for automotive and transportation connectors market during the forecasted period.
Europe Is Expected to Lead Automotive and Transportation Connector Market
The German automotive industry is one of the largest, with a turnover of over EUR 435.3 billion in 2019. The export value was EUR 217.8 billion, Europe remains the primary market for these export vehicles. Other leading importers of German manufactured vehicles are North and South America. Volkswagen group topped a ranking of the leading manufacturer based on global sales, with almost 11 million units sold worldwide in 2019. In 2019 3.6 million passenger cars were sold in Germany, which was a slight year on the increase from 2018. German automotive and transportation connectors manufacturers are expected to see higher growth during the forecasted period after the slow growth in 2020. Germany ranked 1st in the world for car exports and in terms of automotive technology export. With the increase in the shortage of natural resources and costs, manufacturers are looking to produce low-cost products around the world. The Cost-effectiveness of the highly advanced manufacturers is expected to propel the market towards growth during the forecasted period. Manufacturers are taking advantage of growing automobile. Raising consumer confidence, improving quality, durability, and advancement of technology together, these factors are expected to drive the market for automobile and transportation connectors toward exponential growth in the future.
