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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:
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From 2008 to 2013, the
industrial equipment market for connectors is anticipated to grow
approximately 2.3 percent.
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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.
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One of the greatest areas
of growth will be in energy generation and distribution equipment,
where double-digit growth is anticipated through 2013.
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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.
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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.
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Improved maintenance
diagnostic systems for all industrial equipment will be required as
manufacturers look for reduced maintenance downtime.
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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.
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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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