2025: A Year That Could be Shaped by Economic and Political Uncertainty

A new market research report by Bishop & Associates examines 2024 and early 2025 global connector industry performance, and offers a forecast for the future, although it is tempered by a wide range of fluctuating factors.

Coming out of a negative year is always difficult and 2024 was no exception. A year that started with weak year-over-year and year-to-date billings, 2024 ended up being a pleasant but well-earned surprise for the connector industry. Year-over-year, the connector industry grew +5.6%, with all market sectors and product types showing growth. Not all regions, though, performed as well as others, with several regions showing negative year-over-year growth. But the regions that grew — Asia-Pacific, China, and North America —  more than compensated for their decline. Among events that highlighted the year was the completion of a presidential election in the U.S., the rise of populism and far-right parties in several European countries, and continued potential instability in the Taiwan Strait, as well as several natural disasters worldwide.

Unlike previous years, where most of these developments were reflected in the bookings, in 2024, year-over-year bookings remained strong and positive for all but one month of the year. The greatest year-over-year growth was seen in October, when bookings grew +13.4%, followed by June with bookings growth of +11.3%. From a year-to-date standpoint, bookings were strong in all 12 months, and we ended the year with over 12 weeks of backlog. 2025 is also shaping up to be a year of strong bookings, with double-digit year-over-year growth in March and April.

Industry Sales Performance by Region

In 2024, as seen by the table below, growth and decline were not equal across all regions, nor will they be in 2025. The Asia-Pacific region saw the greatest growth in 2024, growing +19.2%. With growth of +12.1%, the Chinese region followed Asia-Pacific. The only other region showing an increase was North America, where sales increased +6.8%. All other regions declined in 2024, with the greatest decline in the ROW region, where sales in U.S. dollars decreased -15.7%, followed by Japan with a decline of -13.8%. Europe, the only other region declining, showed a decrease of -3.2%.

2023 and 2024 Connector Sales by Region With Percent Change

Examining projected performance in 2025, you see Asia-Pacific, ranked number two in 2024, is anticipated to move up to the number one spot in 2025, with sales increasing +YY.1%. The Asia-Pacific region will be followed by China, where sales are anticipated to increase +YY.8% in 2025. All other regions are projected to grow in the single digits, with North America increasing +Y.9%, followed by Europe at Y.0%, the ROW region at +Y.6% and the Japanese region at +Y.2%.

2024 and 2025F Connector Sales by Region With Percent Change

In addition to connector sales results varying by region in 2024, electronic connector sales also varied remarkably by market sector. As the table below shows, in 2024, the computer & peripherals equipment/market sector saw the greatest percentage growth, at +10.7%. It is interesting to note that this was the first time since 2006 that the computer & peripherals market sector outperformed all other sectors.

2023 and 2024 Connector Sales by Market Sector With Percent Change

2025 and Beyond Outlook

With industry backlog remaining strong, Bishop is forecasting 2025 sales to increase +Y.Y% to $XX,XX5 million. We anticipate the greatest percentage increase will occur in the Asia Pacific region, where sales will increase +Y.Y%, followed by the Chinese region where sales are anticipated to increase +Y.Y%. When looking at growth in U.S. dollars, although not the greatest increase percentage-wise, the largest increase in sales will be seen in the Chinese region, where connector sales will increase by $X,XXX.X million. The Chinese region will be followed by the North American region, where sales in U.S. dollars will increase $X,XXX.X million.

2024 and 2025F Connector Forecast by Geographic Region With Percent Change

2024 and 2025F Connector Forecast by Market Sector With Percent Change

Forecast Assumptions

Forecasting is always difficult, especially during times of economic and geopolitical uncertainty. Projecting future business conditions in this environment is almost impossible. Bishop took into consideration a variety of economic headwinds, political challenges, and uncertainties, including labor and housing shortages, interest rates, climate change, political tensions and war, and tariffs and commodity prices. To find out more about how these factors will influence the economy and connector industry, see the new Bishop & Associates report, 2025 Connector Industry Forecast. This comprehensive forecast examines which subsectors will drive growth and provides projections for the period 2025F through 2030F, with year-over-year percent change and five-year CAGR by region, market sector, and sub-sector.

This content is available to subscribers of Connector Supplier through a special partnership with Bishop & Associates. No part of this article may be used without the permission of Bishop & Associates Inc. The Bishop Report publishes monthly updates about the performance of the connector industry and key industry topics. Subscribe to the Bishop Report here. Contact us at [email protected] or 630.443.2702. 

Incorporated in 1985, Bishop & Associates, Inc. is a market research firm specializing in the connector and cable assembly industry. The firm publishes the monthly Bishop Report, a newsletter focusing on the connector industry, Industry News Briefs and Updates, The Connector Yearbook, as well as a variety of research reports covering the connector and cable assembly market, it’s products and its manufacturers.  To learn more, or to subscribe, follow this link.

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