ST. CHARLES, IL — According to the recent Bishop and Associates report, "Connector Industry Forecast," all end-use connector-related equipment sectors are recording growth and are forecast to improve further in 2004. The most promising growth lies in medical equipment, with a 12.4% growth expected in 2004 (see Fig.). Computer and peripheral equipment sales have returned to double-digit growth after declining for the first time in 2002. Unit sales were up 11.0% in 2003, and the 2004 forecast is for another 11.0% increase. The projection for connector sales is 9.1% in the computers and peripherals sector in 2004.
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Automotive has continued to achieve low single-digit growth driven by customer promotion programs. Increased electronic content in each vehicle has been a market driver for connectors. A projected automotive connector growth of 5.2% is expected for 2004. The military/aerospace sector of the connector industry has enjoyed the best sales growth in years. Growth has been driven by the war on terrorism and the military build-up prior to the wars in Afghanistan and Iraq. Connectors in this sector are projected to grow 6.6% in 2004.
In addition, the report finds that telecom and wireless equipment sales are accelerating, while enterprise network equipment also is achieving growth. Carrier equipment is the laggard, but this sector has bottomed and sales are improving modestly. A projection of telecom connectors is expected to grow 4.5% in 2004, after declines of -35.7% and -29.5% in 2001 and 2002. Further, the report projects that connectors will achieve growth in all end-use equipment sectors in 2004. Bishop and Associates is projecting the world connector market will increase in volume by $11.4 billion from 2002 to 2007. This represents a compound average growth rate (CAGR) of 8.3%. North America is projected to have the lowest growth of 4.7%, while China is expected to enjoy the highest CAGR of 19.8%.
