MOLX » Topics » The Connector Industry

These excerpts taken from the MOLX 10-K filed Aug 6, 2008.
The Connector Industry
 
The global connector industry is highly competitive and fragmented and is estimated to represent approximately $46 billion in revenue for fiscal 2008. The industry has grown at a compounded annual rate of 6.1% over the past 25 years and is expected to grow at a rate of 7.3% in calendar year 2008.
 
The connector industry is characterized by rapid advances in technology and new product development. These advances have been substantially driven by the increased functionality of applications in which our products are used. Although many of the products in the connector market are mature products, some with 25-30 year life spans, there is also a constant demand for new product solutions.
 
Industry trends that we deem particularly relevant include:
 
  •  Globalization.  Synergistic opportunities exist for the industry to design, manufacture and sell electronic products in different countries around the world in an efficient and seamless process. For example, electronic products may be designed in Japan, manufactured in China, and sold in the United States.
 
  •  Convergence of markets.  Traditionally separate markets such as consumer electronics, data products and telecommunications are converging, resulting in single devices offering broad-based functionality.
 
  •  Increasing electronics content.  Consumer demand for advanced product features, convenience and connectivity is driving connector growth at rates faster than the growth rates of the underlying electronics markets.
 
  •  Product size reduction.  High-density, micro-miniature technologies are expanding to markets such as data and mobile phones, leading to smaller devices and greater mobility.
 
  •  Consolidating supply base.  Generally, global OEMs are consolidating their supply chain by selecting global companies possessing broad product lines for the majority of their connector requirements.
 
  •  Price erosion.  As unit volumes grow, production experience is accumulated and costs decrease, and as a result, prices decline.


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Table of Contents

 
The Connector
Industry



 



The global connector industry is highly competitive and
fragmented and is estimated to represent approximately
$46 billion in revenue for fiscal 2008. The industry has
grown at a compounded annual rate of 6.1% over the past
25 years and is expected to grow at a rate of 7.3% in
calendar year 2008.


 



The connector industry is characterized by rapid advances in
technology and new product development. These advances have been
substantially driven by the increased functionality of
applications in which our products are used. Although many of
the products in the connector market are mature products, some
with
25-30 year
life spans, there is also a constant demand for new product
solutions.


 



Industry trends that we deem particularly relevant include:


 


































































  • 

Globalization.  Synergistic opportunities exist
for the industry to design, manufacture and sell electronic
products in different countries around the world in an efficient
and seamless process. For example, electronic products may be
designed in Japan, manufactured in China, and sold in the United
States.
 
  • 

Convergence of markets.  Traditionally separate
markets such as consumer electronics, data products and
telecommunications are converging, resulting in single devices
offering broad-based functionality.
 
  • 

Increasing electronics content.  Consumer
demand for advanced product features, convenience and
connectivity is driving connector growth at rates faster than
the growth rates of the underlying electronics markets.
 
  • 

Product size reduction.  High-density,
micro-miniature technologies are expanding to markets such as
data and mobile phones, leading to smaller devices and greater
mobility.
 
  • 

Consolidating supply base.  Generally, global
OEMs are consolidating their supply chain by selecting global
companies possessing broad product lines for the majority of
their connector requirements.
 
  • 

Price erosion.  As unit volumes grow,
production experience is accumulated and costs decrease, and as
a result, prices decline.





3





Table of Contents





 




This excerpt taken from the MOLX 10-K filed Aug 3, 2006.

The Connector Industry


The global connector industry is highly competitive and fragmented and is estimated to represent approximately $36 billion in revenue for fiscal 2006.  The industry has grown at a compounded annual rate of 5.8% over the past 25 years and is expected to grow at a rate of 7.5% in calendar year 2006.  We believe that our market share was approximately 8% of the worldwide market for electronic connectors in fiscal 2006.  


The connector industry is characterized by rapid advances in technology and new product development.  These advances have been substantially driven by the increased functionality of applications in which our products are used.  Although many of the products in the connector market are mature products, some with 25-30 year life spans, there is also a constant demand for new product solutions.


Industry trends that we deem particularly relevant include:

·

Globalization.  Synergistic opportunities exist for the industry to design, manufacture and sell electronic products in different countries around the world in an efficient and seamless process.  For example, electronic products may be designed in Japan, manufactured in China, and sold in the United States.

·

Convergence of markets.  Traditionally separate markets such as consumer electronics, data products and telecommunications are converging, resulting in single devices offering broad-based functionality.

·

Increasing electronics content.  Consumer demand for advanced product features, convenience and connectivity is driving connector growth at rates faster than the growth rates of the underlying electronics markets.

·

Product size reduction.  High-density, micro-miniature technologies are expanding to markets such as data and mobile phones, leading to smaller devices and greater mobility.

·

Consolidating supply base.  Generally, global OEMs are consolidating their supply chain by selecting global companies possessing broad product lines for the majority of their connector requirements.

·

Price erosion.  As unit volumes grow, production experience is accumulated and costs decrease, and as a result, prices decline.


3




This excerpt taken from the MOLX 10-K filed Sep 12, 2005.

The Connector Industry

The global connector industry is highly competitive and fragmented and is estimated to represent approximately $33.7 billion in revenue for the year ended June 30, 2005. The industry has grown at a compounded annual rate of 5-6% over the past 24 years and is expected to grow at a rate of 6-7% in calendar year 2005. Molex currently believes that its market share is approximately 8% of the worldwide market for electronic connectors.

The connector industry is characterized by rapid advances in technology and new product development. These advances have been substantially driven by the increased functionality of applications in which our products are used. Although many of the products in the connector market are mature products, some with 25-30 year life spans, there is also a constant demand for new product solutions.

Industry trends of particular relevance for the Company include:

Globalization. Synergistic opportunities exist for the industry to design, manufacture and sell electronic products in different countries around the world in an efficient and seamless process. For example, electronic products may be designed in Japan, manufactured in China, and sold in the United States.

Convergence of markets. Traditionally separate markets such as consumer electronics, data products and telecommunications are converging, resulting in single devices offering broad-based functionality.

Increasing electronics content. Consumer demand for advanced product features, convenience and connectivity is driving connector growth at rates faster than the growth rates of the underlying electronics markets.

Product size reduction. High-density, micro-miniature technologies are expanding to many markets leading to smaller devices and greater mobility.

Consolidating supply base. Generally, global OEMs are consolidating their supply chain by selecting global companies possessing broad product lines for the majority of their connector requirements.

Price erosion. As unit volumes grow, production experience is accumulated and costs decrease, and as a result, prices decline.

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