The Global Press Fit Connectors Market is estimated to be valued at US$ 8.92 Bn in 2024 and is expected to exhibit a CAGR of 4.9% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the press fit connectors market are Positronic, TE Connectivity Corporation, Amphenol ICC, Dietze Group, Autosplice, Fujitsu Limited, SAMTEC, Inc., Molex, LLC (Koch Industries, Inc.), Aptiv PLC, Diehl Stiftung & Co. KG, Sumitomo Electric Industries, Ltd., AVX Corporation, PROVERTHA Connectors, Cables and Solutions GmbH, Mill-Max Mfg. Corp.
The growing demand for connected and autonomous vehicles has increased the application of press fit connectors in automotive electronics. Press fit connectors help in reducing weight and installation time in electric vehicles.
The Press Fit Connector Market Size is witnessing increasing globalization with key players expanding their manufacturing and distribution footprint across regions to cater to the growing demand. For instance, TE Connectivity recently expanded its press fit connector manufacturing facility in Hungary.
Market Drivers
The major driver for the press fit connectors market is the increasing electronic content in automotive industry. Modern vehicles now contain hundreds of electronic control modules that require quick and reliable interconnect solutions. Press fit connectors have emerged as the preferred technology due to their toolless assembly and strong mechanical coupling. Stringent fuel efficiency and emission norms are also driving automakers to adopt lighter and more compact electronics which press fit connectors help enable. The growth of EVs and autonomous driving functions will further drive connector demand in coming years.
Impact of Geopolitical Situation on the Growth of Press Fit Connectors Market
The current geopolitical tensions arising due to the war between Russia and Ukraine is impacting the growth of the press fit connectors market. There has been disruptions to the supply chain as manufacturers face shortage of raw materials like copper, aluminum and steel, which are key components in the manufacturing of press fit connectors. The sanctions imposed on Russia by other nations has also resulted in higher prices of these raw materials globally. This has increased the production costs for press fit connector manufacturers considerably. It is estimated that costs have risen 15-20% in developed regions like Europe and Americas. The demand has also been impacted as consumer spending reduces due to inflation triggered by rising commodity prices and uncertainty in business environment. Manufacturers in Europe are facing the dual challenges of higher input costs and lower demand from key sectors like automotive and electronics which are major end users of press fit connectors. Going forward, manufacturers need to diversify their supplier base and look at alternate sources of raw materials outside of Russia and Ukraine to improve resilience to geopolitical risks. Collaboration with local players in different regions can help gain more control over supply chain. Investment in automated production facilities can reduce dependence on labor from conflict regions to some extent.
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