Connectors usually refer to electromechanical components that connect conductors (wires) with appropriate mating components to achieve current or signal connection and disconnection, and electrical connections are made between devices and components, components and mechanisms, and systems and subsystems. And signal transmission device. Also known as connectors, plugs and sockets, its birth was conceived from the manufacturing technology of fighter jets.
Connectors are easy to mass produce, easy to maintain, easy to upgrade, and improve design flexibility. They are widely used in various fields such as aerospace, communication and data transmission, new energy vehicles, rail transit, consumer electronics, energy, and medical care. According to 2016 statistics, the top four application areas of connectors are automotive (23%), communications (21%), consumer electronics (15%), and industry (12%), occupying a total of 71% of the market share, followed by It is transportation (7%), military aviation (6%), and other fields such as medical, commercial and office equipment, which together account for 16%.
We expect that with the further improvement of manufacturing informatization and intelligence, the application proportion of connectors in automobiles, national defense and military industries, and high-end equipment manufacturing will further increase, and the future market space will continue to expand. At the same time, affected by periodic and phased investments in downstream markets such as communications, the future growth rate of the connector industry will also show certain volatility. We believe that the global connector industry’s compound annual growth rate will be around 5% in the next five years.
However, in general, the connectors produced in my country are mainly low-end and middle-end connectors, and the high-end connectors have a relatively low share. The top manufacturers in the domestic market share are still mainly foreign companies such as Amphenol. In 2016, my country's connectors The top 3 manufacturers are Amphenol, Tyco and Hon Hai Precision, with AVIC in the sixth place. Foreign companies mainly control high-end civilian products such as rail transit and new energy vehicles. Chinese manufacturers have a monopoly in the military products field, and they also occupy a relatively high proportion in low-end markets such as consumer electronics.
my country's connector industry occupies a monopoly position in the military industry, and military connector manufacturers are mainly AVIC Optoelectronics and Aerospace Electrical Appliances. In the field of consumer electronics, connector companies represented by Luxshare Precision and Derun Electronics have successfully entered the first-tier consumer electronics companies, such as Apple and Huawei, occupying a relatively high share in the consumer electronics connector market. In the communication field, although most connector manufacturers can produce communication connectors, the market share of domestic manufacturers is still very low compared to the 25 billion-level communication connector market.
The automotive field is similar to the communications field. Three-invested connector companies (sino-foreign joint ventures, Sino-foreign cooperative enterprises, and wholly foreign-owned enterprises) account for 80% of the market share, and domestic enterprises only account for 20%. In the field of rail transit, due to the high technical requirements of EMUs, the localization rate is only about 20%. From the perspective of the overall environment of the military, benefiting from the acceleration of military expenditure growth and the release of orders after the implementation of military reforms, military products will continue to grow steadily. With the rapid development of national defense information construction, the growth rate of military connectors is expected to continue to be higher than the average growth rate of the military industry.
At present, electronic systems have already accounted for a considerable proportion of the cost of various weapon platforms or equipment, and with the rapid advancement of national defense informatization, weapon platforms and integrated electronic information system equipment continue to integrate and develop organically, and the proportion of value is still Continue to improve. The connector is an indispensable electronic component for military or aerospace systems, and is widely used in many fields such as electronic information, weapons, aviation, aerospace, and naval vessels.
From the perspective of competition, domestic listed companies engaged in military connectors are mainly concentrated in military industry groups, mainly AVIC Optoelectronics and Aerospace Electrical Appliances. In addition, private companies such as Kingsignal and Quanxin Co., Ltd. also have a small amount of supply. Among them, Jonhon Optronics military connectors account for more than 50% of its operating income, mainly for aviation, weapons, electrical engineering, ships and other fields; aerospace electrical appliances military connectors account for more than 60% of its operating income, mainly supporting aerospace, electrical engineering, etc.
The high-end connector market in the traditional automotive field and the communications field is still dominated by foreign countries. This part of the high-end market has a lot of room for domestic improvement. At present, my country's leading enterprises, AVIC Optoelectronics, etc. are also continuing to develop into the high-end market. The 56G high-speed backplanes currently developed have been supplied to Huawei in a small range. Our leading domestic companies, AVIC Optoelectronics, other R&D and innovation investments continue to increase, and are expected to break through the high-end market in the future. The connector industry has obvious advantages in scale, and international giants have frequently acquired mergers and acquisitions.