Precision connector components are essential components of terminal application products, and their market prospects are highly correlated with the development of downstream terminal application industries. The development of terminal applications will directly drive the growth of the demand for connector components.
Development of the Computer Industry
In recent years, the computer market has entered a stage of competition for existing demand, and the demand has gradually stabilized. According to statistics, the annual shipment volume of computers remained stable at around 260 million units from 2017 to 2019. Since 2020, influenced by factors such as remote working and online education, the shipment volume has increased. In 2021, the global PC market shipment volume grew by 15.18% year-on-year to 349 million units. However, in 2022, due to global macroeconomic factors, the shipment volume decreased by 16.33% to 292 million units, but still higher than that in 2019. In 2023, the global PC market shipment volume was 260 million units, a decline compared to 2022. Currently, the inventory reduction cycle of PC manufacturers has basically ended, and the global PC shipment volume is emerging from the trough, with a clear recovery trend. Due to factors such as consumer subsidy policies and Windows system updates, the PC shipment volume in 2024 is expected to reach 263 million units, achieving growth. In the personal consumer market, the integration of hardware and software with AI functions will shorten the user’s device replacement cycle. In the coming years, the installation volume of AI PCs will rise rapidly and become the mainstream in the PC market.
Development of the Smart Phone Industry
Benefiting from the rapid construction of 3G/4G networks, global smart phone shipments rose from 725 million units in 2012 to a peak of 1.471 billion units in 2016. From 2016 to 2023, due to factors such as extended consumer replacement cycles and chip shortages, shipments declined, reaching 1.17 billion units in 2023. However, with innovations in generative AI, screen technology, and battery life, market demand has rebounded. In the fourth quarter of 2024, shipments increased by 2.4% year-on-year to 331.7 million units, marking six consecutive quarters of growth. For the full year, shipments rose by 5.98% year-on-year to 1.24 billion units.
Overview of the Development of New Energy Vehicles
New energy vehicles are a strategic emerging industry in China. The “New Energy Vehicle Industry Development Plan (2021-2035)” proposed in 2020 set a target for new energy vehicles to account for 20% of new car sales by 2025 and for pure electric vehicles to become mainstream by 2035. Driven by policies, the industry has developed rapidly, but early on, it faced issues such as unregulated growth, uneven quality, and insufficient technology. As subsidies have been phased out and competition in technical services has intensified, high-quality domestic brands like XPeng and Li Auto have expanded their market share, and industry concentration has increased. Since 2015, the production and sales of new energy vehicles in China have grown steadily, with explosive growth in 2021. From 2022 to 2024, production and sales have continued to rise, reaching 12.89 million units and 12.87 million units respectively in 2024, with a market share of 40.9%. Policies, technology, and infrastructure have contributed to the expansion of the new energy vehicle market, increasing penetration rates and driving the growth of demand for new energy vehicle electrical connection components.
Overview of the Development of Drones
Currently, many regions across the country have incorporated low-altitude economy into their policy support systems, promoting the implementation of low-altitude industries. In 2023, the scale of China’s low-altitude economy reached 505.9 billion yuan, with a year-on-year growth rate of 33.8%. Among them, the manufacturing of low-altitude aircraft and low-altitude operation services accounted for nearly 55%, making the largest contribution. By 2025, the overall scale of China’s low-altitude economy is expected to reach 859.2 billion yuan. With the increasing number of low-altitude flight activities, it is expected that the scale of the low-altitude economy will exceed one trillion yuan by 2026. According to data from the Civil Aviation Administration of China, by 2035, the scale of China’s low-altitude economy is expected to reach 3.5 trillion yuan.