Ethernet Connector and Transformer Market by Connector Type (RJ45, M12, M8, iX), Connector Application, Transmission Speed (10Base-T, 100Base-T, GigabitBase-T, 10GBase-T), Transformer Application and Region - Global Forecast to 2028
[204 Pages Report] The global Ethernet connector and transformers market was valued at USD 940 million in 2023 and is expected to reach USD 1,294 million by 2028, at a CAGR of 6.6% from 2023 to 2028.
The major factors driving the market growth include the high adoption of Ethernet technology by automotive manufacturers, significant initiatives by governments of developing countries to promote industrial automation, strong demand for cloud services, and the urgent need for scalable, faster, and reliable communication protocols.
Ethernet Connector and Transformer Market Forecast to 2028
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Ethernet Connector and Transformer Market
The Ethernet connector & transformer industry includes major Tier I and II players like TDK Corporation (Japan), TE Connectivity (Switzerland), Eaton Corporation (Ireland), Belden Inc. (US), Bourns, Inc. (US), and others.
Ethernet Connector and Transformer Market Dynamics
Driver: High demand for Ethernet technology by automobile manufacturers
According to industry experts, the number of automotive Ethernet ports will exceed the total number of all other Ethernet ports combined by 2025. Testing to meet signal integrity and electrical requirements for EMI and radiofrequency interference (RFI) emissions, latency, and synchronization are some key use cases of Ethernet in automobiles. LEMO’s 1000Base-T1 connector is a miniature connector designed to help vehicle manufacturers and test certification organizations carry out automotive testing procedures. These push-pull connectors are IP68-rated, making them resistant to water ingress, and they have gold-plated contacts for reliability and durability.
Restraint: Absence of standardized industrial communication protocols and interfaces
Devices used in industrial equipment exchange information via a variety of interfaces, technologies, and protocols. Data misrepresentation could occur in the absence of established communication interfaces and protocols. Additionally, it may be more difficult to integrate systems and leverage plug-and-play capabilities for unrelated systems. For instance, the majority of equipment manufacturers communicate with network devices using their own proprietary interface protocols, which makes it difficult to use equipment made by other manufacturers.
Opportunity: Rollout of 5G services
Data traffic has increased rapidly with the emergence of 5G technology. The number of 5G connections is increasing day by day. According to the Mobile Economy Report 2022, active 5G connections are expected to surpass 1 billion marks by 2022. Also, by 2025, 5G will dominate the mobile communication sector, with over 2 billion active 5G connections worldwide. The rising volume of media content from social media and cloud-based platforms such as YouTube, Google, Facebook, and Twitter is driving the demand for Ethernet communication devices, such as routers, switches, hubs, and servers, to a great extent. Ethernet connectors and transformers are used in these network communication devices; hence, their market is also projected to increase.
Challenge: Cybersecurity threats
The increasing cybersecurity threats pose a major challenge for industrial communication solution providers due to the ever-increasing instances of virus attacks and hacking. The vital information in computer systems may be tampered with by viruses, which can cause a major loss to industries. Thus, the entire information flow could be disrupted if communication software systems are not protected with proper security measures. There is an increasing dependence on web-based communication and off-the-shelf IT solutions that are being used extensively in the industrial sector. Therefore, industries implementing such communications are prone to malware targeted at industrial systems. With the rise in cyberattacks over the past decade, critical infrastructure cybersecurity is becoming a central concern among industrial automation users and vendors. For instance, ransomware is computer malware that has replaced the advanced persistent threat network attacks. This attack was first detected in the last decade and is considered one of the major cybersecurity threats today.
Ethernet connector market for RJ45 connectors to hold the highest market share during the forecast period
The Ethernet connector market RJ45 connectors are expected to gain the highest market share in the forecasted period. RJ45 connectors are most commonly used across residential and commercial environments to connect PCs, laptops, smart TVs, mobile phones, games consoles, media servers, printers, etc., to the internet. These offer higher data transmission speeds, lower latency, lower security threats, and improved reliability, which drives the Ethernet connector market. Some major use cases of RJ45 connectors across IoT applications include smart lighting, IP cameras, gaming systems, voice-over IP, set-top boxes, etc.
Industrial automation equipment application for Ethernet connectors to hold the highest CAGR from 2023 to 2028
The Industrial Internet of Things (IIoT) is adding sensors, local processing power, and networking to many traditional industrial machines. Industrial robots have expanded beyond traditional settings, such as welding on an automotive assembly line. Autonomous delivery robots are becoming standard features in highly-automated factories and are even starting to appear on residential streets. These new features are driving the need for reduced size, weight, power consumption, and increased throughput. Space limitations in many applications are calling for connectors that can handle both power and data simultaneously. New connectors like the iX connectors are gaining attraction due to the advent of these new use cases across industrial automation.
100Base-T transmission speed for Ethernet transformers to hold the highest market share from 2023 to 2028
The 100Base-T transmission speed holds the highest market share during the forecast period. Due to improvements in infotainment systems, advanced driver assistance systems (ADAS), powertrains, and body electronics, automobile electrical systems have grown more sophisticated over time. Since connected car electronic control units (ECUs) share a significant amount of real-time data and firmware/software, these systems need quicker communication networks. Automotive companies partnered up with leading IC producers and system designers to create a brand-new Ethernet standard specifically for automotive communication networks in order to solve the bandwidth problem. Key companies offering 100Base-T Ethernet transformers include Bourns, Inc., Abracon, HALO Electronics, Pulse Electronics, and others.
Routers are expected to hold the highest share of the Ethernet transformer market during the forecast period.
Routers are expected to hold the highest market share during the forecast period. 5G networks are being rolled out at a faster pace around the world, and Internet of Things terminals and smart home products are entering thousands of households, enterprises, and institutions. The increase in wireless terminals also makes WiFi technology have to improve in network bandwidth, access quantity, delay, and other aspects. With the launch of WiFi 6, companies are also investing in R&D to launch routers with the latest technology. Huawei, Cisco, Arista have already launched networking routers with WiFi 6 technology for higher data transmission speeds and lower latency. New-age LAN transformers are used in these routers to restrain the electromagnetic noise coming from the connected device and hence provide efficient data transmission speed without interruptions.
Ethernet connector & transformer market in Asia Pacific to hold the highest CAGR during the forecast period
The overall growth of the Ethernet connector and transformer market is driven by the increasing adoption of machine-to-machine communication, industrial IoT, the development of new and connected technologies, and government initiatives to support smart factories. The governments of various countries are encouraging investments across their respective manufacturing sector. Hence manufacturing companies are raising the demand for various automation and network communication products for their structural development to support Industrial 4.0. APAC is expected to hold the highest market share for the Ethernet connector and transformer market due to the rising number of government initiatives across the industrial automation sector. The Chinese government is supporting R&D efforts for advanced manufacturing, bringing more automation and robots to the factory floor. This is expected to drive the demand for high-speed and reliable network communication protocols like Ethernet to run these machines. As the market for Ethernet grows, the demand for Ethernet connectors and transformers is also expected to increase.
Ethernet Connector and Transformer Market by Region
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Key Market Players in Ehernet Connector and Transformer Industry
The Ethernet connector & transformer companies are TDK Corporation (Japan), TE Connectivity (Switzerland), Eaton Corporation (Ireland), Belden Inc. (US), Bourns, Inc. (US), and others.
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Report Metric |
Details |
| Estimated Market Size | USD 940 million in 2023 |
| Projected Market Size | USD 1,294 million by 2028 |
| Growth Rate | CAGR of 6.6% |
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Market size available for years |
2019-2028 |
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Base year considered |
2022 |
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Forecast period |
2023-2028 |
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Forecast units |
Value (USD Million) |
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Segments covered |
Connector by Type, Connector by Application, Transformer by Transmission Speed, Transformer by Application |
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Geographies covered |
North America, Europe, APAC, and RoW |
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Companies covered |
The major market players include TDK Corporation (Japan), TE Connectivity (Switzerland), Eaton Corporation (Ireland), Belden Inc (US), Rockwell Automation (US), Amphenol Corporation (US), Bel Fuse (US), Bourns Incorporation (US), Abracon (US), TT Electronics (UK), Schneider Electric (France), and Wurth Elektronik (Germany) (Total 26 players are profiled) |
Ethernet Connector and Transformer Market Highlights
The study categorizes the Ethernet connector & transformer market based on the following segments:
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Aspect |
Details |
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Ethernet connector market, by type |
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Ethernet connector market, by application |
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Ethernet transformer market, by transmission speed |
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Ethernet transformer market, by application |
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Ethernet connector & transformer market, by region |
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Recent Developments
- In November 2022, Belden, a leading global supplier of network infrastructure solutions, announced six new products in Q4 2022 that make possible simple and secure data transmission, connection, and management. One of the launched products was Lumberg Automation M8 D-Coded Data Connectors, designed to meet growing needs for miniaturized components that support cyber-physical integration in the Industrial Internet of Things.
- In October 2022, Pulse Electronics launched three new Dual Gigabit discrete transformer modules compatible with slower 10Base-T and 100Base-TX data rates and can be used to support Single Pair Ethernet (SPE) switches.
- In August 2022, Belden acquired macmon secure GmbH, one of the leaders in advanced network access control software. Macmon’s products are complementary to Belden’s leading industrial networking portfolio and will be integrated with the company’s Hirschmann offering to expand its ability to provide complete end-to-end solutions.
- In June 2022, Würth Elektronik and Vales semiconductor announced that they have introduced to the market a joint solution to enable medical image diagnosis and procedures with unprecedented video resolution. The offering encompasses secure, cost-effective, uncompressed, high-bandwidth video connectivity and advanced camera imaging.
- In June 2022, Bourns launched LAN gigabit Ethernet transformer (SM91602L) that includes common mode chokes for noise rejection for Ethernet applications and offers 4680 VDC isolation voltage/500 V working voltage/reinforced insulation with an operating temperature range of 0 to +85 °C.
Frequently Asked Questions (FAQ):
What is the market size for the Ethernet connector & transformer market?
The global Ethernet connector & transformers market is estimated to be valued at USD 940 million in 2023 and is expected to reach USD 1,294 million by 2028, at a CAGR of 6.6% from 2023 to 2028.
What are the major driving factors and opportunities in the Ethernet connector & transformer market?
Some of the major driving factors for the growth of this market include the adoption of Ethernet technology among automotive manufacturers, increasing initiatives by the government of developing countries to promote the adoption of industrial automation, rising demand for cloud services, and growing need for scalable, faster, reliable communication protocols. Moreover, the emergence of connected cars and the emergence of 5G technology create opportunities for market players.
Who are the leading players in the global Ethernet connector & transformer market?
Companies such as TDK Corporation (Japan), TE Connectivity (Switzerland), Eaton Corporation (Ireland), Belden Inc. (US), and Bourns, Inc. (US) are the leading players in the market. Moreover, these companies rely on strategies that include new product launches and developments, partnerships and collaborations, and acquisitions. Such advantages give these companies an edge over other companies in the market.
What is the recession impact on the Ethernet connector & transformer market?
The short-term outlook for semiconductor revenues has worsened in the third quarter of 2023. A rapid deterioration in the global economy and weakening consumer demand will negatively impact the global semiconductor market in 2023. Weaknesses in consumer-driven markets such as telecommunications and networking are driven largely by the decline in disposable income caused by rising inflation and interest rates. This will negatively impact the production and sales of smartphones, PCs, and other consumer electronic products. Rising inflation, increasing interest and unemployment rates, and an energy crisis will lead to slow economic activity. As a result, end-user industries experience deterioration of their businesses, cash flow, and ability to obtain investments, thereby delaying or canceling the plans to purchase products. Similarly, the vendors who provide electronic components to these OEMs experience similar problems, which impact their ability to fulfill orders or meet agreed service and quality levels. If regional or global economic conditions deteriorate, operations, financial position, and cash flows could be materially adversely affected.
What are some of the technological advancements in the market?
The iX connector was released in 2017 in collaboration with German-based development partner Harting Technology Group and has been used in a variety of industrial markets, such as factory automation, robotics, and machine vision. In August 2022, Hirose Electric added a new in-line jack variation to the ix Industrial Series Ethernet connector lineup. In order to meet the interconnectivity requirements of the various operating environments in which industrial equipment is used, Hirose is currently considering the development of new variations to the ix Industrial lineup, including a splash-proof type and a screw lock type. Moreover, in July 2021, Hirose Electric released the new right angle plug variation in response to market needs for space-saving routing, free of stress on the connector resulting from cable bending when space on the interface connection side of the device is limited. This will enhance the market applications of iX connectors across industrial applications to a great extent.
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This research study involved the extensive use of secondary sources, directories, and databases, such as Hoovers, Bloomberg, Businessweek, Factiva, and OneSource, to identify and collect information useful for a technical, market-oriented, and commercial study of the Ethernet connector & transformer market. Primary sources were several experts from core and related industries and preferred suppliers, manufacturers, distributors, service providers, technology developers, and organizations related to all the segments of the value chain of the Ethernet connector & transformer ecosystem.
In-depth interviews with various primary respondents, such as key industry participants, subject matter experts (SMEs), C-level executives of key market players, and industry consultants, among other experts, were conducted to obtain and verify critical qualitative and quantitative information as well as to assess future market prospects.
Secondary Research
Secondary sources referred to for this research study included corporate filings (such as annual reports, investor presentations, and financial statements); trade, business, and professional associations; white papers; certified publications; articles by recognized authors; directories; and databases. The secondary data was collected and analyzed to arrive at the overall market size, which was further validated through primary research.
List Of Major Secondary Sources
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SOURCE |
WEB LINK |
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IEEE Communications Society |
https://www.comsoc.org/ |
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Computer & Communications Industry Association |
https://www.ccianet.org/ |
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International Society of Automation (ISA) |
https://www.isa.org/ |
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Ethernet Alliance |
https://Ethernetalliance.org/ |
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ODVA |
https://www.odva.org/ |
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Industrial Data Communications Systems |
https://www.isa.org/ |
Primary Research
Extensive primary research was conducted after gaining knowledge about the current scenario of the Ethernet connector & transformer market through secondary research. Several primary interviews were conducted with experts from both the demand and supply sides across four major regions—North America, Europe, Asia Pacific, and RoW. This primary data was collected through questionnaires, emails, and telephonic interviews.
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the size of the Ethernet connector & transformer market and its various dependent submarkets. The key players in the market were identified through secondary research, and their market share in the respective regions was determined through primary and secondary research. This entire procedure involved the study of annual and financial reports of top players and extensive interviews with industry leaders such as chief executive officers (CEOs), vice presidents (VPs), directors, and marketing executives. All percentage shares and breakdowns were determined using secondary sources and verified through primary sources. All the possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data was consolidated and supplemented with detailed inputs and analysis from MarketsandMarkets and presented in this report.
Bottom-Up Approach
The bottom-up approach was used to arrive at the overall size of the Ethernet connector & transformer market from the revenues of key players and their shares in the market. The overall market size was calculated based on the revenues of key players identified in the market.
- Identifying various types of Ethernet connectors contributing to the growth of the Ethernet connector market
- Analyzing major Ethernet connector providers and studying their portfolios and solution offerings
- Analyzing trends pertaining to Ethernet communication, including type and applications,
- Tracking the ongoing and upcoming Ethernet connector developments by various companies or end users and forecasting the market based on these developments and other critical parameters.
- Identifying various types of Ethernet transformers based on transmission speed contributes to the growth of the Ethernet transformer market.
- Analyzing major Ethernet transformer providers and studying their portfolios and solution offerings
- Tracking the ongoing and upcoming Ethernet transformer developments by various companies or end users and forecasting the market based on these developments and other critical parameters.
- Conducting multiple discussions with key opinion leaders to understand the types of contracts signed and products and systems offered by market players to help analyze the break-up of the scope of work carried out by each major Ethernet connector & transformer company.
- Arriving at the market estimates by analyzing revenues of these companies generated from various countries through the revenues generated for Ethernet connector products and then combining the same to get the market estimates based on region.
- Verifying and crosschecking the estimates at every level through the discussion with key opinion leaders, including directors and operation managers, and then finally with the domain experts in MarketsandMarkets
- Referring to various paid and unpaid sources of information such as annual reports, press releases, white papers, blogs, news, and databases to validate the market estimations
Top-Down Approach
In the top-down approach, the overall size of the Ethernet connector & transformer market that was derived through percentage splits obtained from secondary and primary research was used to estimate the size of the individual markets (mentioned in the market segmentation).
For the calculation of the size of specific market segments, the overall size of the Ethernet connector & transformer market was considered to implement the top-down approach. The bottom-up approach was also implemented for the data extracted from secondary research to validate the obtained market size of different segments.
The market share of each company was estimated to verify the revenue share used earlier in the bottom-up approach. With the data triangulation procedure and validation of data through primaries, the sizes of the overall parent market and each market were determined and confirmed in this study. The data triangulation procedure used for this study is explained in the next section.
- Focusing initially on top-line investments and expenditures made in the Ethernet connector & transformer ecosystem.
- Splitting the market considering the types of Ethernet connectors & transformers used in different applications, along with the key developments in the major market area.
- Collecting information related to revenue generated by players through the segments offering Ethernet connectors & transformers.
- Conducting multiple on-field discussions with key opinion leaders across each major company involved in the development of Ethernet connectors & transformers.
- Estimating the geographic split with the use of secondary sources based on numerous factors, such as the number of players in a specific country or region and Ethernet connectors & transformers used in various applications.
- Verifying and crosschecking the estimates at every level by discussions with key opinion leaders, including directors and operation managers, and then finally with the domain experts in MarketsandMarkets
Data Triangulation
After arriving at the overall size of the Ethernet connector & transformer market from the market size estimation process explained above, the total market was split into several segments and subsegments. Data triangulation procedures were employed wherever applicable to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying various factors and trends from both the demand and supply sides. In addition to this, the market size was validated using top-down and bottom-up approaches
Study Objectives
- To define and forecast the Ethernet connector market size, by type and application, in terms of value.
- To define and forecast the Ethernet transformer market size, by transmission speed and application in terms of value.
- To describe and forecast the Ethernet connector and transformer market size for four key regions, namely, North America, Europe, Asia Pacific (APAC), and the Rest of the World (RoW), along with their respective countries.
- To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contributions to the overall market
- To study the complete value chain of the Ethernet connector and transformer market
- To analyze opportunities in the market for stakeholders by identifying high-growth segments in the Ethernet connector and transformer ecosystem
- To strategically profile key players and comprehensively analyze their market position in terms of ranking and core competencies2 and provide details of the competitive landscape.
- To analyze strategic approaches such as product launches, collaborations, contracts, acquisitions, agreements, expansions, and partnerships in the Ethernet connector and transformer market
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players
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Growth opportunities and latent adjacency in Ethernet Connector and Transformer Market