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Domestic substitution of imports, hundreds of billions of connector industry chain is rising

Date:2022-03-23


    Domestic substitution of imports, hundreds of billions of connector industry chain is rising
    In recent years, with the rapid development of China's economy and the continuous improvement of the level of science and technology, the trend of domestic substitution of imports in a number of industries has become more and more obvious. Among them, the connector industry chain as a key basic parts industry, is experiencing an unprecedented change. According to relevant data, in the next few years, China's connector market size will exceed 100 billion mark, the pace of domestic substitution of imports is also accelerating.
    First, the current situation and challenges of the connector industry chainConnector is an indispensable part of electronic equipment, widely used in communications, automotive, consumer electronics, industrial equipment and other fields. Although the domestic connector industry started late, but with the progress of technology and market demand, the technical level and production capacity of domestic connectors gradually increased. However, the current domestic connector market still faces some challenges:
    Technical barriers: The design and manufacture of connectors involves a number of technologies, including material science, precision machining, surface treatment, etc. Domestic enterprises still have gaps in high-end products and technological innovation.
    Market share: At present, international giants such as TE Connectivity, Molex, etc. dominate the high-end connector market, and domestic brands still need to improve their market share and brand influence.
   Quality control: some domestic connectors still need to improve the quality stability and reliability, especially in high temperature, high humidity and other harsh environments.
    Second, policy support and market opportunities:In support of domestic substitution of imports, national and local governments have introduced a series of policy measures to promote the development of the connector industry. For example:
    Industrial policy: the government encourages enterprises to increase investment in research and development, enhance the ability of independent innovation, to support the development and production of high-end connectors.
    Financial support: through the establishment of a special fund to support the technological transformation and equipment upgrading of connector enterprises to reduce the financial pressure on enterprises.
    Market access: simplify the market access process, encourage more enterprises to enter the connector industry, enhance the vigor of market competition.Under the guidance of the policy, domestic connector enterprises have ushered in unprecedented development opportunities. Especially in emerging fields such as 5G, Internet of Things and electric vehicles, the demand for connectors has increased significantly, providing a broad market space for domestic enterprises.
    Third, the rise of domestic connector enterprises:With the growth of market demand, more and more domestic connector enterprises began to emerge. They are in the technology research and development, production capacity and market expansion and other aspects of the force, and gradually formed a competitive landscape dominated by independent brands.
    Technological innovation: many domestic connector enterprises have increased investment in research and development, committed to technological innovation. For example, certain enterprises have successfully developed high-frequency connectors in line with international standards, filling the gaps in the domestic market.

    Industrial cooperation: through cooperation with universities and research institutions, enterprises have made significant progress in material research and development, product design, etc., and improved overall competitiveness.
    Market Expansion: Some enterprises have actively explored overseas markets and gradually stepped out of the country to participate in international competition and enhance brand influence.
    Fourth, the future outlook:Looking ahead, the domestic connector industry chain will usher in a broader development prospects. With the continuous progress of technology and market expansion, the process of domestic substitution of imports will continue to accelerate. It is expected that by 2025, China's connector market size will reach hundreds of billions of dollars, and the market share of domestic connectors will also increase significantly. In this process, enterprises need to continue to strengthen technical research and development, improve product quality, while focusing on brand building and marketing to cope with the fierce market competition. In addition, cooperation and integration within the industry will also become an important driving force to promote industrial upgrading. In short, the trend of domestic substitution of imports provides new opportunities for the development of the connector industry chain. Under the support of national policies, domestic connector enterprises will surely occupy a place in the future market competition and promote the healthy development of the whole industry chain.



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