Modest growth forecast for West European connector market

Oxford, UK, July 2005

Figures from Reed Electronics Research point to subdued connector market in 2005. “After a slight recovery in the connector market in 2004 to Euro 5 billion, after the sharp decline over the 2001-2003 period, weak market conditions will limit growth in Western Europe to under 1% in 2005” according to Graham Weaver , RER’s analyst tracking the European connector market. “Connector suppliers continue to grapple with the changing customer base, the migration of production from Western Europe and continuing price pressures, as a result growth to 2009 growth will remain modest with the market forecast to reach Euro 5.9 billion by the end of the period”.

Other findings from the study include:

- Germany accounted for nearly 35.1% of the West European connector market in 2004, the country benefiting from its leading position within the European automotive industry. France , which also benefits from significant automotive connector sales, was the second largest market at 14.8% followed by the UK at 12.4%.

- Benefiting from the increased use of electronics in passenger cars and relatively stable car production automotive connectors have increased their share of the overall European market and now account for 34.2% of the total, this compared to 27.6% in 2000.

- In response to the overcapacity problems and the pressure on prices, several connector manufacturers have closed factories in Western Europe and are concentrating more of their own production in the lower cost areas, with all of the major companies establishing production facilities in China .

- Merger and acquisition activity continues, with in the last two years Molex consolidating its position as the second largest connector supplier in the world, after Tyco Electronics, and Amphenol, after a number of small acquisitions, recently announcing the purchase of Teradyne Connection Systems to overtake FCI to become the world’s third largest connector supplier. In Western Europe the leading global suppliers also hold the leading positions although FCI is the second largest supplier.

Reed Electronics Research (RER) specialises in providing international business information sources designed to assist senior management, marketing and business development personnel, industry watchers and analysts in keeping abreast of changes, developments and other factors affecting their business. RER is part of the global Reed Electronics Group a part Reed Business Information a leading provider of critical information and marketing solutions to business professionals and a member of Reed Elsevier.