I. Connector: bridge of electronic devices

1.1 Connector
Connecting devices are electronic components for current or signal transmission and exchange between electronic system equipment. Connector components are components that integrate connectors and corresponding cables (including optical fiber cables, wire cables, microwave coaxial cables, etc.) into corresponding circuit loops to realize signal connection and transmission between electronic devices. The connector forms the circuit in the electronic equipment mainly through the cable or PCB (printed circuit board) for connection, in which the cable for circuit connection has the advantages of long-distance transmission, flexible wiring, etc
Automobile connector is the largest application field of connector. The automotive industry is the largest market for connectors, accounting for 22% of the global connector industry. According to Bishop& According to associates data, the global connector market size will reach US $64.2 billion in 2019, with a compound annual growth rate of 4.3% from 2014 to 2019; The global automotive connector market size in 2019 was US $15.21 billion, and the compound annual growth rate from 2014 to 2019 was 5.33%, higher than the growth rate of the global connector market size in the same period
Due to the special safety requirements in the automotive field, the performance of connectors, especially those for new energy vehicles, focuses on high voltage, high current, anti-interference and other electrical properties, and needs to have good mechanical properties such as long mechanical life, vibration and shock resistance, which have been in a dynamic working environment for a long time

1.2 Automobile connectors: various types, applied to different on-board systems
The new energy vehicle is a comprehensive product, which includes different types of requirements in different fields, such as safety, entertainment, information transmission, power, energy storage, etc. This means that the performance requirements for connectors will vary in different modules according to their application directions
At present, the main types of vehicle connectors are: 1. High voltage connectors, mainly used in power motors, power distribution boxes, inverters, AC/DC and other batteries and electric drive units; 2. The power exchange connector belongs to a high-voltage connector, which is installed in the vehicle to realize rapid power exchange; 3. RF connectors are mainly used in sensors, cameras, entertainment terminals and other fields. 4. Ethernet connector is used to connect the vehicle high-speed network Ethernet system and connect all core domain controllers together; 5. Low voltage harness connector, responsible for brake system, door harness, transmission and steering system and other body control fields

II. New energy vehicles; 5G builds dual wheel drive, opens up long-term growth space for connector industry

2.1 Domestic connectors: 30% in the world, with a market scale of about 20 billion dollars
The size of the global connector market has increased from US $48.9 billion in 2011 to US $64.2 billion in 2019, with a compound annual growth rate of about 3.46%. It is estimated that the size of the global connector market will exceed US $90 billion by 2023; Benefiting from the rapid development of downstream connector application industries such as communication, automobile and consumer electronics in China, the size of the connector market in China increased from US $11.296 billion in 2011 to US $19.477 billion in 2019, with a compound annual growth rate of 7.05%, significantly higher than the global growth rate in the same period, and China's share of the global connector market in 2019 was about 30.35%

2.2 The value of new energy vehicle connectors is much higher than that of traditional vehicle connectors
Price: There are nearly 100 types of electronic connectors required for traditional vehicles, and the number of connectors used for a single vehicle model is about 600, mainly used in engine management system, safety system, entertainment system, etc. Compared with traditional fuel vehicles, the demand for connectors of new energy vehicles has increased significantly. The value of low-voltage connectors used by single vehicles of traditional fuel vehicles is about 1000 yuan, while the value range of connectors used by single vehicles of pure electric passenger vehicles is 3000-5000 yuan, and the value range of connectors used by single vehicles of pure electric commercial vehicles is 8000-10000 yuan, significantly increasing compared with traditional vehicles

2.3 The construction of 5G base stations has accelerated, and the demand for connectors has grown geometrically
The development of mobile communication technology has gone through the GSM (2G), 3G, LTE (4G) stages, and is gradually evolving to 5G. The transmission speed of 5G is about 100 times higher than that of 4G, and its requirements for the transmission speed and channel functions of the connection system are greatly increased. For example, the 4G single base station is basically 4-8 channel transmission, while the 5G base station is basically 32-64 channel transmission. Not only is the number of connectors required to increase geometrically, but also the performance requirements are stricter< br /> According to the data of the Ministry of Industry and Information Technology, the number of 5G base stations in China has reached 1.159 million, accounting for more than 70% of the world. The number of 5G terminal connections has reached 450 million, an increase of 247 million compared with last year. The gigabit network has the ability to cover more than 200 million households. According to the forecast of the Prospective Industry Research Institute, the pace of 5G base station construction in China will slow down after accelerating, but still remain at a high level. The number of new 5G base stations is expected to reach the peak in 2024, which is expected to reach 2.65 million

III. Competition pattern: European, American and Japanese enterprises take the lead, and domestic enterprises actively layout automotive electronics

3. China started late, manufacturing& The consumption transfer trend is obvious
The global connector market is highly concentrated: the connector industry is a fully competitive industry, with many product categories and highly decentralized market segments. Many small and medium-sized connector enterprises focusing on market segments have low market shares. At the same time, the global connector market has gradually become centralized, forming a situation of oligopoly competition. The market share of the top ten enterprises in the global connector industry has increased from 41.60% in 1995 to 61.44% in 2019. TEConnectivity, Molex and Amphenol, the three large US manufacturers, rank high in each segment. Tyco, Amphenol and Molex account for more than 30% of the global market share
Current situation of connector industry in China: it started late, mainly small and medium-sized enterprises, with low market concentration, and mainly low-end products. In addition to the military industry, China's high-end markets, such as automobile, medical and communication, are occupied by foreign enterprises. Under the active guidance of China's policies and the promotion of the demand in downstream automotive, communications and other fields, the overall technical level of China's connector industry has been greatly improved, and is in a rapid catch up. With the rise of large electronic manufacturing service (EMS) providers such as Celestica, Foxconn, Jabil and Sanmina, the supply chain, labor cost and consumption in Asia have shown obvious advantages. At present, there is only one connector enterprise in Chinese Mainland ranking among the top ten in the world, and there is a certain deviation in the change of supply and demand in the Chinese market. There is a broad domestic substitution space for domestic enterprises