The Connector Portfolio and Capacity OEMs Need for Growth

The industrial and commercial transportation (ICT) market has enjoyed steady growth in recent years. The global commercial vehicles market was valued at $1.32 trillion USD in 2017 and is slated to grow at a CAGR of 7.1 percent from 2018 to 2025. In 2018, North America accounted for over 52% of the market, followed by Asia-Pacific and Europe. Trends such as the growth of emerging markets, digitization of vehicles, and industry regulations promoting the electrification of vehicle systems all fuel market growth. 

All of this is good news for industry companies in multiple sectors and the original equipment manufacturers (OEMs) and maintenance, repair, and overhaul (MRO) organizations who serve them. As the industry continues to press forward with innovation in multiple markets, OEMs and MROs can count on growth in years to come, which is why they are working closely with suppliers to strengthen the supply chain. Here’s what customers are looking for from suppliers today:

OEMs and MROs want to source and implement products that have demonstrated exceptional performance. For industrial users, this means using reliable solutions that enable full utilization of heavy machinery and equipment in harsh environments such as construction, farming, and mining, without experiencing costly breakdowns. In other applications, such as electrified vehicle (EV) and semi-autonomous vehicle development, it means providing superior functioning to protect human safety and life. TE DEUTSCH connectors have grown over the decades to become the market standard for design engineers because of their trustworthy field performance. Design engineers know that they can count on DEUTSCH HDP and DT products to perform dependably for years of productive operations across a wide array of environments. This provides design engineers and end-users with confidence and much-needed operational flexibility. 

OEMs want their suppliers to be able to scale supply to accommodate both seasonal and cyclical demand patterns along with planned and unplanned volume growth, wherever it occurs globally. MROs want to ensure global availability to key products they need to support and repair regional equipment fleets. TE has responded by adding significant new global capacity, with new investments in Asia and North America. TE has facilities all over the world with duplicate tooling, enabling the company to manufacture products in multiple regions close to customers. From this global manufacturing footprint, TE has demonstrated that it can scale supply to meet customer growth needs in any market condition, for any application, including those requiring customization.

OEMs seek to reduce lead times to increase production and meet customer needs for speed to market. This is especially important in applications where rapid innovation is occurring. TE is able to meet these demands and supply end-users with the DEUTSCH connectors they need for such applications as:

• Powertrain controllers
• Anti-lock braking systems
• Chassis and electronic stability controls
• Telematics and infotainment modules
• Sensors, displays, and instrumentation
• Wire-to-wire and unique wire-to-board device applications

Sometimes even access to a broad portfolio of connectors with multiple configurations, mounting styles, and material selections isn’t enough. TE extends its existing HDP and DT product line with the opportunity to develop new products or enhance current solutions for custom applications.