Contactless Connector Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Contactless Connector Market Data

Contactless Connector Market Analysis

The size of the global contactless connector market was around USD 200.1 million in 2023, and it is expected to reach USD 598.3 million by the year 2030, elevating at a CAGR of 17.1% during 2024–2030. The popularity of the wireless technology began with wireless data transfer. With wireless power transmission in consumer electronics, such as computers, laptops, mobile phones, IoT devices, and audio devices, the demand for contactless connectors is increasing rapidly.

Contactless connectivity is ideal for harsh environments as they are completely sealed, which reduces the risk of damage from dirt, moisture, and dust. Additionally, the lack of mechanical connectors and cables eliminates the wear caused by vibration, repeated connections, and tangling of cables.

The expanding infrastructure all over the globe drives the contactless connector market by opening doors to deploy this technology in different areas, such as smart cities, electric vehicles, and telecommunications networks. Contactless connectors establish seamless communication, power transmission, and data transfer.

Different sectors have focused on adopting Industry 4.0 standards, thus accelerating the demand for contactless connectors in manufacturing industries The healthcare industry is also adopting this technology, especially in medical devices, for data collection and patient health monitoring in real-time.

Contactless Connector Industry Trends & Drivers

Shift of the World toward IoT

• The world is inclining toward IoT devices, which is a key driving factor for the increase in the demand for wireless connectors. They play a defining role in establishing data exchange and communication between IoT devices, thus facilitating the integration of controllers, sensors, and actuators without physical linkages.
• The growing addition of IoT devices and appliances in smart cities, homes, and financial services is providing a platform for the use of advanced wireless connectivity technology. Moreover, the consumer electronics sector is witnessing a rise in the adoption of NFC technology to provide secure and seamless communication.

Evolution of Smart Homes

• Smart home market revenue is expected to reach USD 196.5 billion by 2030, from USD 82 billion by 2021, thus widening the opportunity for contactless connectors. The smart home industry uses connected appliances and devices to automate routines, to save time, money, and energy. Home automation systems with such connectors allow for the integration of various appliances and devices controlled through a centralized unit.
• Various devices and appliances, such as CCTV cameras, fans, lights, and thermostats, can be turned on or off with voice control or voice assistants, such as Alexa. These connectors eliminate the need for a physical connection between these devices and enable reliable communication and convenience between them and the user.

Threats to Data Privacy

• The risk of system susceptibility poses a challenge for the contactless connector market as there are concerns about data integrity and the risk of security breaches.
• As wireless communication and data transfer use contactless connectors, the interception of data, malicious attacks, and unauthorized access becomes a potential risk. It is important to eliminate these risks to further consolidate the privacy of users.
• It demands robust encryption tools, cybersecurity measures, and authentication mechanisms to counter the potential risks. Implementing this technology will manipulate the cost and complexity of contactless connectors, which will negatively affect the market growth.

In-Depth Segmentation Analysis

Use Case Insights

• Power transmission is the largest category, holding a share of around 75% in 2023. With the adoption of connected devices in workplaces and homes, there is an increasing demand for advanced charging solutions that can power multiple devices together; thus, increasing the demand for contactless connectors.
• The hybrid technology is capable of transmitting power as well as data, which is why it will have the highest CAGR, of around 17.5% from 2024 to 2030. Data and power can be transmitted through a wide variety of materials, offering unlimited mating cycles and extreme robustness with low maintenance and no wear and tear.

The following use cases were analyzed in this report:

• Power Transmission (Largest Category)
• Data Transmission
• Hybrid (Fastest-Growing Category)

Technology Insights

• The inductive couplers category gained the major market share, of around 40%, in 2023. Inductive coupling transfers energy between two coils through the magnetic field and is widely used in applications that require short-distance transfers.
• Inductive couplers are a key element of technologies such as radiofrequency identification, wireless charging, and forms of data transfer. They offer resistance to environmental conditions, which enhances durability and makes them an ideal choice for smartphones, wireless EV charging solutions, and medical implants.
• The FORJ contactless couplers category is expected to be the fastest-growing from 2024 to 2030. The increase in the requirement for fast ethernet connections across multiple sectors, such as military and aerospace, propels the demand for fiber-optic rotary joints (FORJ).

Contactless connectors work with the following major technologies:

• FORJ Contactless Couplers (Fastest-Growing Category)
• Inductive Couplers (Largest Category)
• Capacitive Couplers
• Others

Mode of Operation Insights

• Full duplex is the largest category holding a market share of around 50% in 2023. It is also the fastest-growing category growing at a CAGR of around 17.4% during the period 2024-2030. The major reason accounting for this is in full duplex connectivity, the device can send and receive data simultaneously.

The report covers the below-listed modes of operation:

• Simplex Connectivity
• Half-Duplex Connectivity
• Full-Duplex Connectivity (Largest and Fastest-Growing Category)

Sales Channel Insights

• Original equipment manufacturers hold the larger market share, of around 80%, in 2023, and they will also be the faster-growing category, at a CAGR of around 17.3%, in the forecast period.
• Contactless connectors are a complex technology, and there are some key manufacturers in the market. As they possess expertise in technology, customers are more inclined toward buying from OEMs, rather than aftermarket entities.

Below are the major sales channels for contactless connectors:

• OEMs (Larger and Faster-Growing Category)
• Aftermarket

End User Insights

• Aerospace & defense is the largest category, holding a market share of around 35% in 2023. Due to the prevailing geopolitics, countries have increased their defense budgets, which has intensified the employment of contactless couplers at armament manufacturing facilities.
• This is because of their application in disk coupling, torque coupling, hysteresis coupling, torque coupling, and magnetic coupling. Defense operations also utilize satellites and radar to ensure efficient signal and power transmission even in difficult terrains and rugged environmental conditions.
• Electrical & electronics is the fastest-growing category, at a CAGR of 17.9%, during the forecast period. Advancements in technology and enhanced user experiences can be brought about by adding innovative features. These advancements cover efficiency, reliability, compatibility, and faster data transfer. Moreover, the use of contactless connectors in smart home devices and appliances has fueled the market growth.

The following are the biggest end users covered in the report:

• Telecommunications
• Energy & Utility
• Electrical & Electronics (Fastest-Growing Category)
• Healthcare & Medical Devices
• Industrial Automation
• Aerospace & Defense (Largest Category)
• Marine
• Automotive
• Others

North America Holds 45% Share Globally

• North America held, the largest global market share, of around 45%, in 2023. It is a lucrative market for contactless connectors as there has been rapid growth in industrial automation, aerospace, and defense in the U.S. have opened doors for contactless connector manufacturers and suppliers.
• The U.S. government is focused on automating industries through the use of advanced data and power transmission mechanisms. Due to these factors, the demand for contactless connectors.
• Asia-Pacific is set to be the fastest-growing market for this technology, at a CAGR of 17.5% during 2024–2030. One of the major reasons for this is the availability of cheap labor and an increase in the number of manufacturing facilities. Several key players are opening their manufacturing units in this region as the government is aiding them with policies and trade, and different sectors and industries are adopting the future technology.
• India and China are presumed to be the prominent pillars for the market development in the Asia-Pacific region, alongside South Korea.
• The market for contactless connectors in LATAM and MEA could offer future opportunities as the current manufacturing scenario is not conducive to their usage.

The regions and countries analyzed for this report include:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • U.K. (Fastest-Growing Country Market)
  • Germany (Largest and Faster-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Competitive Analysis

Established companies with extensive research capabilities, years of technological experience, and sound finances are dominating the market. They also have strong global sales and marketing networks with diversified product listings. Several of them are developing new technical solutions that can transfer power and data effectively and efficiently.

The global contactless connector market displays a moderate degree of consolidation and extreme rivalry, principally because of the limited number of tier-1 players in the business. The sector is competitive, and factors such as fragmentation, accumulation dominance, and amalgamation were observed among them.

Contactless Connector Industry News

• In September 2023, Molex introduced MX60 USB SuperSpeed contactless devices, which offer solid-state wireless connections at high speeds, by eliminating mechanical connectors. They are designed as an affordable and convenient connectivity solution for high-vibration applications and rugged environmental conditions.
• In October 2023, THine Electronics collaborated with STMicroelectronics and developed the ST60A2 contactless transceivers, capable of low-power, high-speed, point-to-point communications. By leveraging V-by-One and other interface technologies, THine enables board-to-board contactless connections for several applications.
• In June 2023, Indie Semiconductor announced the iND87200, an advanced automotive wireless power charging system-on-chip (SoC). The product facilitates the development of cost-effective, Qi-based wireless charging solutions for in-cabin portable devices. The iND87200 leverages software and semiconductor integration to deliver reliable, compact, and efficient charging technology.
• In September 2023, FLO, in collaboration with WiTricity, began testing wireless EV charging solutions at its advanced engineering science, using WiTricity's magnetic resonance technology. This technology will eliminate human interference and the need for drivers to plug and charge.