LONDON The European connector market is developing at two different speeds according to research from Bishop & Associates. Most countries in Central and Eastern Europe countries achieved higher than average growth of their national connector markets. Western European countries have grown at a much slower pace which effectively resulted in a decline of some of their national connector markets when measured in local currency.
The European connector market grew by an average of +4.8 percent per year (CAGR) between 2002 and 2007 measured in local currency (Euro). Measured in U.S. Dollar this would mean a CAGR of 12.5 percent in the five-year period from 2002-2007.
Most countries in Central and Eastern Europe countries achieved higher than average growth of their national connector markets. Western European countries have grown at a much slower pace which effectively resulted in a decline of some of their national connector markets when measured in local currency.
Bishop says the outlook for the European Connector market for 2008 has to be split in to an outlook for the CEE region and one for Western Europe. Overall we expect the European connector market to grow with a CAGR of 6.4 percent until 2012.
The automotive industry, by far the biggest connector market sector in Europe, and says the Bishop report this will further evolve and the production capacity build-up will continue in Central and Eastern Europe while the production of new vehicles in Western Europe is not likely to increase. The electronics content in vehicles in Europe will however further increase resulting in a higher connector market volume.
The communication sector is driven by wireless and mobile applications, which according to Bishop may lead to booming business in specific niches. If combined with increased throughput, bandwidth requirements and fiber to the home (FTTH) developments, the market for RF and fiber optic connectors also looks promising. Especially since FOC and RF connectors are also used in the growing medical sector.
As expected the computers and peripherals connector market will further decline in Western Europe over the next five years. This decline is partly offset by the growth of this sector in the CEE region. The medical equipment sector will remain the fastest growing market sector. The transportation (non-auto) sector is also growing at an above average rate, with a CAGR of 7.7 percent.
In 2007, the European Connector Market was the largest global connector market (by region).