Pin, Female, Board-to-Board Connectors Market Analysis
2022-12-05
1. The threat of new entrants Pin, female, pin and female, board-to-board connectors as an indispensable and important accessory in products and equipment, the proportion of procurement in many product applications has exceeded 8% of the total procurement cost. And compared with other key components, connectors have a wider range of choices and more room for local procurement, so its industry barriers to entry are not high. Barriers to entry exist mainly in product differentiation advantages, economies of scale, while sales channels, capital requirements, conversion costs, cost advantages and other aspects of no special requirements. But the vitality of the connector market and the high growth potential in communications in the railroad, energy industry, machinery industry, etc., is attracting more and more new entrants. 2. The threat of substitutes The main substitutes for connectors are Terminal Blocks. Is in the high-end market, the connector is not threatened by substitutes, which is mainly the connector itself is developed from terminal blocks, is for the convenience of the cable, fast error-free plugging. In the low-end market, the connector is threatened by substitutes, when the buyer is under pressure from the cost, it will choose the general quality, cheap terminal blocks. 3. Bargaining power of the buyer The buyer of the connector is the product and equipment manufacturers, the buyer's concentration is high: the buyer from the industry to buy the product in its total cost where the proportion of about 10%; the buyer from the industry to buy the degree of standardization is increasing: the buyer's profitability has a tendency to reduce; the buyer has the ability to backward integration; both sides of the information more transparent; so all this makes the buyer's bargaining power is increasingly high. 4. Bargaining power of suppliers Connector suppliers are suppliers of aluminum, copper, silver, gold, etc.; engineering plastics and other raw materials suppliers. The concentration and standardization of the seller's industry is high; the volume of transactions of the buyer is very large; the degree of product differentiation is very small; the cost of converting the seller is relatively small; the possibility of forward integration is unlikely; the information between the two sides is quite transparent; in general, the bargaining power of the seller is relatively low, the existing enterprises between the buyer and the seller can still maintain a considerable profit margin.
