The Less-Than-Sexy Industrial Market Remains Viable
By Lynda Nolen, Bishop & Associates Inc.

Over the last year, there has been considerable speculation about which of the end-use equipment sectors would fare this recession best. We know that the automotive sector has plummeted. Even with the “cash for clunkers” program and the car-scrapping incentive programs initiated by many European nations, it will take years for the automotive industry to recover from what has been truly one of the worst performance years ever. The consumer sector has also suffered tremendous losses, as consumers find themselves with less disposable income and more motivation to save. Sales of high-ticket consumer toys like flat screen TVs, electronic games, and audio/video equipment have dropped significantly.

For those manufacturers fortunate enough to participate in the military/defense industry, there is still extreme pressure to spend taxpayer’s money wisely, and many programs have been cut or initial production quantities reduced. The medical equipment sector is another area that is weathering the economic conditions well: Despite concerns over the rising cost of health care, the need for more sophisticated diagnostic, imaging, and therapeutic equipment has allowed this sector to sustain itself.

One sector that isn’t making headlines but has remained stable during these rough times is the industrial equipment sector. Sparked by an increased demanded for factory automation and energy generation and distribution equipment, the industrial equipment sector has fared remarkably well in comparison to other sectors. It accounts for approximately 12 percent of total worldwide connector sales in 2008, and grew a healthy 9.1 percent from 2007 to 2008.

To understand why this sector is fairing better than other sectors, it is helpful to first examine what types of equipment this sector encompasses, and then take a look at the connector families that support this equipment and the regions where the product is consumed.
 

Industrial End-Use Equipment Sector

Representing over $5.3 billion in total world connector sales, the industrial equipment sector utilizes all connector families and a wide diversity of connector types. Although PCB and rectangular I/O connectors account for over 50 percent of total worldwide connector sales within the industrial equipment segment, it is anticipated that the increased use of Ethernet, wireless, and fiber optics in the industrial equipment sector will result in an increase in connector usage found in the RF coax, telephone/telecom, and fiber optic families, and a decrease in rectangular I/O and circular connectors over the next 10 years.

Percentage by Family of Total Worldwide Connectors
Used in the Industrial Equipment Sector for 2008

Europe led the world in sales of connectors for the industrial sector in 2007 and 2008, due to its development of state-of-the-art equipment used in alternative energy, factory automation, and environmental technology applications.

2007 and 2008 Connector Market Share by Region for
Connectors Used in the Industrial Equipment Sector

Although Europe had the greatest market share of connectors used in industrial equipment applications, Japan experienced the greatest growth from 2007 to 2008, followed by China and then ROW. It is interesting to note that even in North America, where total worldwide connector sales declined 4.7 percent, modest growth was seen from 2007 to 2008.

2007 and 2008 Connector Sales with Percent Change by Region
for Connectors Used in the Industrial Equipment Sector

Product Types
In the rectangular I/O product family, connector types used extensively in the industrial equipment sector include D-subminiatures, Serial ATA, USB, IEEE1394, and power connectors. Many of these connectors, which were originally developed for less demanding environments, have been beefed up to handle the harsh environment of the factory floor.


D-subminiatures, and in particular the 9-pin D-sub, have enjoyed an increase in demand, as it is one of the primary I/Os specified in the so-called physical layer for Profibus, the world’s most successful Fieldbus for factory and process automation. According to PI, one of the largest automation organizations of its type in the world, “by the end of 2008, nearly 30 million PROFIBUS devices were in use, and this figure is expected to rise to 50 million by 2012.”

 


In addition to PROFIBUS, other fieldbus protocols also use 9-pin D-subminiatures, including CAN, SafetyBUS p, and Modbus.

 

 

 

 

Initially developed as a high-speed data bus for consumer applications, another rectangular I/O that has found its way into the industrial equipment sector is the IEEE1394 (also referred to as iLink or Firewire). Offering high bandwidth, synchronization, and the ability to handle long cable runs, the IEEE1394 is used in imaging, machine vision, motion control, and remote sensor readouts.

Compact vision systems, like National Instruments DCVS-1454, offer a multitude of I/O hook-ups, including three IEEE 1394 ports, 9-pin D-subminiature ports, a VGA video port, a RJ45 Ethernet port, three SMB ports, and a 44-position high-density D-subminiature port. 

Circular interconnects have also played an important role in the expansion and sustainability of the industrial equipment sector. In addition to commercial versions of the rugged mil-spec type connectors, including commercial versions of the threaded Mil-DTL-5015 and bayonet Mil-DTL-26482 connector, the industrial standardized M Series, including the M23, M12, M8, and M5 connectors, are used extensively to shield signals in automation applications. Offering high pin count and density, field or factory terminated capabilities, and a rugged, vibration-resistant, quick mating system, M-style circular connectors are designed to handle the rigorous, harsh factory environment.
 

Another connector family used widely in industrial automation is the heavy-duty type. Comprised of industrial connectors like Harting’s HAN® series, Tyco Electronics’ HTS series, and Weidmuller’s RockStar® Series, these heavy-duty connectors allow users to combine both power and signal in a single connector. Although developed many years ago, advancements in connector construction and materials have allowed this product family to expand, with some manufacturers now offering interface modules that can also include high-voltage contacts, coaxial contacts, RJ45 modular plugs, USB, and IEEE1394 contacts, as well as high-contact density. Their vibration-proof locking systems, modular design, and wide variety of layouts, housings, wire connections, and cable entries, provide “plug-and-play” capabilities in a robust connector design that is IP65- to IP69K-rated, dependent on selection.

In the telecom sector, increased usage of Ethernet applications in industrial equipment has spawned a variety of new products for Class D/Cat.5e and Class E/Cat 6 cable using RJ45-type connectors. Encased in either circular or rectangular composite, metalized composite, or metal housings, these connectors are sealed from fluids and dust, as well as shock and vibration resistant. They offer data transmission speeds of 10 BaseT, 100 BaseTX, and 1000 Base T, and most are either pre-terminated or in piece parts to allow easy field installation over existing RJ45 connections. In-line assemblies allow quick-cable extensions, and PCB-mount versions allow receptacles to be soldered directly to a board.

 

Amphenol’s family of RJ field connectors for harsh environment Ethernet applications allow the user to transform all standard existing RJ45 cord sets into an environmental connector, without any cabling operations or special tools.

 

 

 

 

Bishop’s Comments:

  • From 2008 to 2013, the industrial equipment market for connectors is anticipated to grow approximately 2.3 percent.

  • Much of the growth from 2005 to 2013 will be attributed to the continuing implementation of automated systems, including the use of robotics, all with the ultimate goal of increasing productivity and quality.

  • One of the greatest areas of growth will be in energy generation and distribution equipment, where double-digit growth is anticipated through 2013.

  • Wireless technology will continue to expand on the factory floor, in building/construction applications and in energy generation and distribution systems, as more and more companies turn to this option due to greater flexibility and lower installation costs.

  • The demand for more energy-efficient systems in all areas of industrial equipment will continue to rise as the cost of energy continues to rise. High-energy costs will also increase the demand for portable equipment, which generally necessitates lower overall energy requirements.

  • Improved maintenance diagnostic systems for all industrial equipment will be required as manufacturers look for reduced maintenance downtime.

  • As requirements for additional monitoring, more and smarter sensors, and measurement and diagnostic equipment increases, so will the number of required nodes per system, and in turn, the number of interconnects.


Lynda Nolen
Product Specialist, Bishop & Associates Inc.

Lynda Nolen has been in the interconnect industry for over 30 years. She has worked in sales, sales management, marketing, and product management for such companies as TRW Electronics Components Group, Sunbelt Components, Cinch Connectors, Arrow Electronics, PEI Genesis, and Delphi Interconnect. Nolen has extensive experience in competitive cross-referencing, drawing, web and catalog review, new product introduction programs, harness and connector assembly programs, account management, and customer service programs. Lynda received her Bachelor of Arts degree from Roger Williams University in Rhode Island in 1979, and has completed various electrical engineering courses.

 
 

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