Connectors for Factory Automation Market Size Forecast to Reach $87.4 Billion by 2026

September 24 17:56 2021
Connectors for Factory Automation Market Size Forecast to Reach $87.4 Billion by 2026
Connectors for Factory Automation Market
Growing Demand for Automation, Industrial Internet of Things (IIOT) and Other Technologies Set to Drive the Connectors for Factory Automation Market.

Connectors for Factory Automation Market Size is forecast to reach $87.4 billion by 2026, at a CAGR of 8.5% during forecast period 2021-2026. Increasing adoption of connectors with growing automation technologies in industries such as automotive, food & beverage, semiconductor & electronics and other industries is poised to drive the connectors for factory automation market. Adoption of Internet of Things (IoT) and automation technologies in industries and the need for increased throughput or productivity, quality, robustness have been creating opportunities for connectors. Integration of superior connector products in automotive parts such as powertrain, safety and body electronics, coupled with increasing trend for connected cars and growing production of passenger cars and commercial vehicles has been fueling the connector for factory automation market growth.

Connectors for Factory Automation Market Segment Analysis – By Connector Type

The PCB Connector segment held 37% in 2020. High adoption of chip-to-package connectors in semiconductor and electronics industry is poised to fuel the market growth owing to increasing investments in semiconductor and electronics. Growing trend for miniaturization in semiconductor & electronics industry has been pushing manufacturers to adopt connector and cable assemblies with higher I/O densities which is set to drive the demand of the market. Increasing investments in aircrafts, unmanned aerial vehicles and on military expenditure have created opportunities for chip to package connectors in aerospace and military applications owing to their high signal density, high power requirements, high electric performance, stringent shock and vibration requirements. Wire-to-board connectors have features such as they can be tested to automotive levels on shock, vibration and temperature cycling for reliability. They also have high durability and flexibility. This type of connections is used to bring power and signals onto a PCB and they are specifically designed for LED lighting, and others which set to boost the market growth in factory automation.

Connector for Factory Automation Market Segment Analysis – By Technology

Semiconductors and Electronics is expected to witness a highest CAGR of 9.4% the forecast period, owing to Increasing investments and funds for semiconductors which has been providing opportunities for adoption of automation technology and further set to drive the demand of connectors in semiconductor industry. Implementation of automation technology in semiconductor and electronics industry to incorporate progressive levels of factory control software components, automated material handling systems, and real-time process tool control to meet the growing and changing needs of semiconductors and electronics. With growing trend for miniaturization in semiconductor and electronics, there is requirement of high precision which tend create opportunities for automation technology. Growing adoption of automation technology in this industry set to drive connectors market.

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Connector for Factory Automation Market Segment Analysis – By Geography

Connector for Factory Automation market in Europe region held significant market share of 36% in 2020. The investments are rising for electric, connected and autonomous vehicles and this in turn reflects on connector demand. The connectors are used in them require reduced weight and increased current handling such as U.K. automotive industry has more than 30 manufacturers and 2,500 component providers as per Society of Motor Manufacturers and Traders (SMMT). Germany is a major exporter of industrial robots. As per the Europe Commission data, the stock of industrial robots in Europe grew 400% over the past 25 years with Germany having over 40% of those currently in use. With rising demand for industrial robots due to factory automation, the requirement of connectors also will tend to rise. The industrial automation in Spain is majorly due to use of industrial robots. Italy has the second largest manufacturing industry in Europe which is growing slowly whereas the industrial automation industry is increasing steadily. Foreign investments in Italy has now been ranked 8th globally and 4th in the EU in the “2019 FDI Confidex Index”.

Connector for Factory Automation Market Drivers

Rise in Government Initiatives and Investment

Government initiatives and investments on smart grid infrastructure in countries such as China and India have created opportunities for connectors in factory automation. Countries in Europe have been planning to invest in automation technologies in industries. For instance, in 2019, U.K. government had invested $40 million to use industrial digital technologies to transform manufacturing productivity. By 2030, the government has also planned to raise productivity by 30% by investing more in projects that support automation which drives the connectors market in future. In addition, India has planned to invest $44.9 billion on smart grid infrastructure during the period 2018-2027. Increasing investments set to create ample opportunities for connectors for factory automation during forecast period 2021-2026.

Growing demand for automation, Industrial Internet of Things (IIoT) and other technologies set to drive the connectors for factory automation market:

Smart connectors can assist such applications by retrieving real-time data and working on analytics on board while the factory floor machines operate. They also allow to create an interface with any field system, acquiring relevant data for monitoring automated machines operations and the related processes and these factors escalate the market growth. As IoT technology in industries mostly depend on sensors and connectors, there is increasing adoption of connectors. Many companies have been focusing on development of advanced connectors which can be sustainable at harsh environments. Implementing automation and IIoT technologies provide opportunities for connectors in various applications such as machine tools, manufacturing machinery, RFID readers, smart infrastructure and electric motors.

Connectors for Factory Automation Market Challenges

Miniaturization of Connectors

In many industries such as oil and gas, automotive, transportation, and others, space is the major constraint which has made manufacturers to focus on development of connectors with small size, low weight and low power. The miniaturization trend has set challenges for connector suppliers, as they have to produce more compact units while simultaneously delivering the high levels of performance as traditional connectors. With increasing automation technologies in factories, there has been high demand for miniaturization of connectors with high quality, and reliability. Production of small connectors with these features is the major challenge that is hampering the growth of the market.

Connectors for Factory Automation Market Landscape

Product launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Connectors for Factory Automation market. Connector for Factory Automation top 10 companies include TE Connectivity Ltd., Amphenol Corporation, Prysmain Group, Fujitsu Ltd., Siemens AG, Mitsubishi Electric Corporation, Molex Inc., Nexans S.A., Huawei Technologies Co., Ltd., Volex Plc

Acquisitions/Product Launches

In 2019, Amphenol SV Microwave has launched a in New Mesa, AZ to foster additional machining capabilities and assembly operations.

In 2019, Nexans announced to supply pre-terminated and factory-tested turbine cables as well as the full scope of T-connectors terminating the dynamic inter-array cables to Wind Float Atlantic.

Key Takeaways

There is increasing adoption of connectors along with the development of advanced connectors which can be sustainable at harsh environments. Implementing automation and IIoT technologies provide opportunities for connectors in various applications such as machine tools, manufacturing machinery, RFID readers, smart infrastructure and electric motors which are major factors propelling the market growth.

Crimping Termination segment is growing at a significant CAGR of 8.05% in the forecast period as it is the most commonly used termination method for connectors owing to its features such as fast, clean and mechanically strong.

Semiconductors and Electronics sector is expected to witness a highest CAGR of 9.43% the forecast period, owing to Implementation of automation technology in semiconductor and electronics industry to incorporate progressive levels of factory control software components, automated material handling systems, and real-time process tool control to meet the growing and changing needs of semiconductors and electronics.

Increased dependence of oil and gas companies on automation in order to complete processes without any delay has been propelling the market growth. Additionally, initiatives to digitize oil fields are being implemented, and this has led to investing in instrumentation in order to increase productivity and complete projects within defined budgets and timelines.

Related Reports:

A. Assembly Line Factory Automation Market

https://www.industryarc.com/Report/19254/assembly-line-factory-automation-market.html

B. Smart Factory and Industrial Automation Market

https://www.industryarc.com/Report/19013/smart-factory-and-industrial-automation-market

For more Automation and Instrumentation Market reports, please click here

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