Connector is a bridge connecting electronic circuits. It is a high barrier and high value in the automotive market. Connector is the basic component for transmitting current or signal between electronic equipment and system. Its largest downstream application market is the automotive industry, accounting for more than 20%. In the automotive architecture, connectors are widely used in power system, body control, chassis control, intelligent cockpit, automatic driving, on-board electrical appliances, etc. with high barriers to entry, high reliability, safety and long mechanical life requirements, long supply chain certification cycle, high temperature resistance, humidity resistance, earthquake resistance, anti-interference, high voltage and high current resistance, etc. New energy vehicles are developing rapidly. We expect that the Shanxi Guoxin Energy Corporation Limited(600617) vehicle penetration in 2025 is expected to exceed 30%, and the automatic driving vehicle is gradually being introduced into the market. It is estimated that the sales volume of L2 and L3 new cars will reach 50% in 2025. The innovation of electrification and intelligence has continuously increased the proportion of automotive electronics in the manufacturing cost of the whole vehicle. Compared with the low-voltage connectors of traditional fuel vehicles, the value of new high-voltage and high-speed high-frequency connectors has doubled, and the rapid growth trend of the automotive connector market is obvious.
New energy + intelligent driving, open the high-voltage, high-speed and high-frequency incremental space of automobile connector. The electric drive system is adopted for new energy vehicles, and the working voltage rises to Changshu Guorui Technology Co.Ltd(300600) v. The number and performance requirements of high-voltage connectors of big three electric and small three electric have been greatly improved. The value of a single vehicle is 3 Tcl Technology Group Corporation(000100) 00 yuan, which is doubled compared with traditional fuel vehicles. The replacement connector at the energy supplement end is expected to become the industry standard. The value range of the replacement connector for different models of passenger cars and commercial vehicles is 5001200 yuan and 25 Jinzai Food Group Co.Ltd(003000) yuan respectively. The replacement scheme will greatly increase the overall market scale of electric vehicle connectors. In terms of high-speed and high-frequency, the assembly rate of ADAS related to intelligent driving has been improved, the application of high-speed data transmission system has been expanded, and the requirements for connector transmission rate and anti electromagnetic interference ability have been improved. The vehicle high-frequency and high-speed connector represented by fakra, mini fakra, HSD and vehicle Ethernet connector has become the mainstream solution, which is applied to camera, sensor, information entertainment system, navigation and driving assistance system and other fields, The consumption and value of single vehicles have increased significantly. According to our calculation, the global high-voltage connector market is expected to be 61.9 billion yuan and the high-speed and high-frequency connector market is expected to be 48.4 billion yuan in 2025.
The rise of local automobile manufacturers brings opportunities for rapid innovation in the supply chain. The technical barrier of automobile connector is high, the vehicle factory has strict examination on the supplier’s access qualification, and the certification cycle is long, and the market and customer barrier are high. The connector concentration in the automotive market is higher than that in other industries. Overseas connector manufacturers started earlier and have great advantages in R & D investment and industrial scale. In 2019, Tyco, Yazaki and anbofu ranked among the top three in the industry, with a market share of 39%. In recent years, local connector manufacturers have achieved rapid development in consumer electronics, communications, military industry and other fields. Based on the following three points, we judge that the next three years will be the golden period for the rise of China’s automobile connector industry. (1) Compared with the standardization of fuel vehicle architecture, the innovation of electrification and intelligence improves the demand for customization and brings opportunities for the introduction of new suppliers. (2) The rise of China’s new car making forces and independent brands and active localization are conducive to reducing costs. (3) The epidemic has impacted the automobile industry chain. Under the demand of supply chain security, the production capacity has been gradually transferred to China.
Investment suggestion: China is the world’s largest connector market, with high growth driven by automobile intelligence + electrification + localization. With the rise of new energy vehicle industry and the transfer of electronic manufacturing capacity, Chinese manufacturers begin to highlight their competitiveness in cost, supply capacity and quality. Focus on the leading manufacturers of automotive high-voltage connectors: Suzhou Recodeal Interconnect System Co.Ltd(688800) , Shenzhen Deren Electronic Co.Ltd(002055) , Dongguan Dingtong Precision Metal Co.Ltd(688668) , Shenglan Technology Co.Ltd(300843) , Zhejiang Yonggui Electric Equipment Co.Ltd(300351) , Jiangsu Etern Company Limited(600105) , etc.
Risk warning: risk of price rise of main raw materials; The growth of new energy vehicles is less than the expected risk; The risk of intensified industry competition; Deviation risk of future spatial measurement of the industry; The public materials used in the research report may have the risk of information lag or untimely update.
