Interconnection Watch: Market Insights with Samtec

Electropages sat down with Matt Burns, Global Director of Technical Marketing at Samtec, a global manufacturer of a broad line of electronic interconnect solutions, including connectors and cables, to understand how the market has performed so far in 2024, forecasts for Q3 and Q4, as well as a more specific look on connectors in today’s climate. Check out the exclusive interview below.

2024 So Far

Q: How has the market for electronic components performed in the first half of 2024 compared to your expectations?

Matt: The market has probably performed as expected. It’s kind of a mixed bag right now. Design activity, in general, has remained strong. We see this globally. Customers and partners are without question busy designing next-gen solutions.

On the other hand, there are lots of headwinds as well. Consumers are running out of steam. Inflation and interest rates, while declining, are persistently higher than the long-term averages. Global security is obviously a concern. All is all, the market is OK. It could be better, but it could be worse.

Q: Are there particular applications or regions that have performed notably above or below expectations so far this year?

Matt: That’s an easy answer. Anything related to AI is going like gangbusters, emphasised by a recent report that stated by 2025, the global AI market in the electronics industry is expected to reach USD 6,548.6 million. That includes semiconductor design, emulation, and data centre equipment providers. Mil/Aero and Defence applications remain strong. Commercial space applications are also driving demand.

Market Trends and Expectations:

Q: Based on current trends, do you anticipate the market performance to improve, decline, or stabilise in the second half of 2024?

Matt: In general, Samtec expects a stabilisation in the market in the second half of 2024.

Q: What factors are currently influencing market performance, and how do you expect these to play out over the remaining months of 2024?

Matt: Interest rates will probably start to drop as inflation normalises. Inventories at some time will need replenishment. Other growth trends – AI, defence spending, commercial space – should stay strong. The rest of the market should be flattish.

Advice for Buyers

Q: Looking ahead to the remainder of 2024, is there any advice you would give to buyers and purchasing teams to help them ensure their supply chain is protected and performing at it’s optimum?

Matt: Samtec is the industry’s Service Leader. We have developed several platforms that help OEMs, ODMs and CMs optimise their supply chain.

The Samtec Reserve® program includes over 200,000 frequently ordered connectors and cables which are in heavy demand. It is designed to serve customers who need inventory in less than one day. This is in addition to our next day free samples and world direct shipping in 2 days to all major markets. These programs make Samtec an ideal partner and supplier for minimal supply chain disruptions.

To learn more or contact Samtec, please visit https://www.samtec.com/.