Automotive Electronics Market Surge in China and Europe Drives Connector Demand

As the global push towards sustainability intensifies, the automotive electronics market, especially in China and Europe, is experiencing rapid growth due to the increasing adoption of electric vehicles (EVs).

This shift is creating a significant demand for connectors, crucial for the seamless operation of advanced vehicle electronics.

Electric Vehicle Boom

Electric vehicles are gaining widespread acceptance, driven by strict environmental regulations and growing consumer awareness.

Both China and Europe are investing heavily in infrastructure and technology to support the transition from traditional vehicles to EVs, leading to a surge in demand for automotive electronics.

Connector Demand Surge

The advanced electronics in EVs need strong and reliable connectors.

These components are essential for battery management systems, in-car entertainment, and advanced driver-assistance systems (ADAS), driving a significant increase in demand.

The connector industry is seeing notable growth. Year-to-date, new orders have increased by 8.4%, and sales have risen by 3.7%, resulting in an additional $498 million in industry backlog for 2024.

Backlog and Book-to-Bill Ratio

In April, the industry shipped $1,625 million in connectors per week, ending with a $21,515 million backlog.

The backlog has been recovering since May 2022, with a book-to-bill ratio above 1.0 throughout 2024, showing strong demand.

Future Market Outlook

With orders up 8.4% and sales up 3.7% year-to-date, the demand for connectors is expected to rise to 5.8%.

Some factors contributing to the rise in demand include:

• Leadership in China and Asia Pacific: These regions are leading growth in orders and sales.
• Increased Backlog: An additional $498 million in backlog from the end of 2023.
• Consistent Book-to-Bill Ratio: Maintained above 1.0 in 2024.

The automotive electronics market, particularly in the EV sector, is on an upward trajectory in China and Europe, driving increased demand for connectors.

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