Outlook for European connector market scaled back, CEE continues to take share of the market

Oxford, UK, November 2008

The outlook for the European connector market changed markedly at the beginning of the fourth quarter as the financial crisis, which began over 12 months earlier intensified, and pushed the majority of the Europe into recession. The once positive forecasts for the final quarter of 2008 have been scaled back and 2009 will now see the connector market decline across Europe .

How far the market will fall is still unclear. Certainly the connector market will benefit from the diverse number of industries it serves however with consumer confidence weakening and vehicle production in free fall, demand will slow significantly in the first half of 2009 and, based on the latest indicators, will remain weak in the final two quarters of the year. An expected recovery in 2010 will gain momentum in the period to 2012 when the European connector market, according to the latest figures from Reed Electronics Research, is forecast to reach Euro 7.4 billion, up from Euro 6.6 billion in 2007.

Despite the recent volatility the underlying trends driving the connector industry remain the same with Central and Eastern Europe expected to continue to increase its share of the market throughout the period to 2012. Between 2007 and 2012 compound annual growth in the CEE connector market will average 6.4% per year with the overall market increasing from Euro 1,059 million to Euro 1,447 million. This compares to average growth of only 1.4% per year for Western Europe .

Figure 1 Compound Annual Growth Rates by Product/Region 2007-2012

Source: The European Connector Industry 2007-2012

Building on the Profile of the European Connector Industry series, which was first published in 1984, the European Connector Industry report 2007-2012 provides an detailed assessment of the European market including forecasts by country and product through to 2012, a ranking of the top 26 connector suppliers in 2007, profiles of the leading companies and a listing of European production facilities. For further information please contact anita.caird@rer.co.uk

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.