Know everything about connector issues
Connectors are one of the fundamental components in modern industry and information society, offering a wide range of types and models.
Connectors serve as devices for transmitting and exchanging electrical current or signals between different electronic components within or between electronic systems. They are crucial and foundational components in circuit systems. Connectors come in various types and complex structures, which can be classified based on the transmission medium, frequency, power, and application environment. For instance, they can be categorized as electrical connectors, microwave and radio frequency connectors and optical connectors according to different media. Furthermore, they can be divided into high-voltage connectors and low-voltage connectors based on power requirements.
D-Sub/D-Shaped Connectors
1. BOM Cost Composition
The connector is composed of clear structural components, with the contact being the core part. Structurally, the connector mainly consists of four major parts: contacts, insulators, housings, and accessories. As the core part of the connector, the contacts are generally composed of male contacts and female contacts, which achieve electrical connection through their mating. The male contacts usually take the form of pins or blades, made of materials such as brass and phosphor bronze. The female contacts, also known as sockets, have higher requirements for structural elasticity. The role of the insulator is primarily to ensure insulation between the contacts and between the contacts and the housing. The housing serves as the outer shell of the connector, providing mechanical protection for the internal pins and insulators of the connector. It also plays a role in positioning, ensuring precise connection between the plug and socket, thus requiring high precision. The accessories consist of structural attachments and mounting attachments. Among them, structural components account for the highest proportion of costs in the connector. According to the RIKODA prospectus, structural component costs (such as shells, pins, and sockets) account for approximately 42% of the total cost, while metal material costs (copper materials, alloy materials, etc.) account for 17%. Plastic materials (plastic parts, plastic particles), wires (cables, electronic wires), and components (relays, sensors, fuses, PCBs, etc.) account for 15%, 11%, and 6% of the cost respectively.
D-Sub/D-Shaped Connectors
2. Production methods
Stamping and injection molding are crucial steps in connector production, determining the maximum production capacity. Connector terminals and metal parts are formed through copper material stamping and then undergo electroplating. The plastic housing is molded by injecting plastic pellets. In most cases, the electroplating process is outsourced, while injection molding and stamping serve as the main bottlenecks that limit production capacity. Prior to Dingtong Technology's listing, the utilization rate of stamping equipment remained above 90%, while the utilization rate of injection molding equipment remained above 100%, becoming the primary constraining factor for the company's capacity expansion.
The global connector market offers vast opportunities and has shown a stable growth trend in recent years. According to data released by Bishop & Associates, the global connector market size has increased from $45.8 billion in 2010 to $78 billion in 2021, with a compound annual growth rate of 4.96% during the period from 2010 to 2021, representing a year-on-year growth of 24.4%. The market size of connectors is expected to continue expanding due to the growth in end markets and technological advancements. According to Bishop & Associates, it is projected that the global connector market will exceed $90 billion by 2023.
Benefiting from rapid developments in downstream industries such as communication, automotive, and consumer electronics, China's connector market has experienced high-speed growth in recent years. Since October 2020, both the sales and order volume of connectors in China have achieved double-digit year-on-year growth. According to data released by Bishop & Associates, the market size of China's connector market reached $25 billion in 2021, with a year-on-year growth of 23.76%, accounting for 32.05% of the global market share, making it the largest sales market for connectorsworldwide.
The automotive and communication sectors are the main application areas in the connector market. According to statistics from Bishop & Associate, communication currently represents the largest end-use application for connector products, accounting for 23.1% of the global connector market in 2020. The automotive industry follows closely behind at 22.6%, ranking second. Other significant sectors include consumer electronics at 13.3%, industrial at 12.3%, and rail transportation at 6.9%. The remaining applications primarily consist of industries such as defense, aerospace, and energy, representing 21.8% of the market share.
Among downstream applications, rapid iterations of smartphones and computers, as well as the booming development of emerging industries such as electric vehicles, the Internet of Things, and drones, are driving the growth of the connector industry.
Looking at the industry chain, the upstream segment of connectors includes metals such as gold, nickel, and copper, as well as plastic materials and electroplating services. It also encompasses precision components for connectors. The midstream segment consists of design and manufacturing companies, including electrical connectors and fiber optic connectors. Due to the variety of connectors and their diverse downstream markets, domestic connector enterprises in China currently focus on a few specific segments. Consequently, there is a higher number of midstream manufacturers, resulting in intense competition. The downstream application areas are extensive, including communication, automotive, consumer electronics, as well as military and aerospace sectors.
Connectors serve as the bridge in electronic circuits, enabling electrical connections and signal transmission between devices and components, components and cabinets, and systems and subsystems. The performance and quality of connectors directly impact the reliability and operational efficiency of the entire system.
With the diversified development of industries such as communication, automotive, consumer electronics, industrial control, and rail transportation, the demand for connectors to perform well in complex working environments has increased. The connector industry is also characterized by narrow spacing, integration, high-speed, and high-frequency capabilities.
