terminal blocks Market

The Terminal Blocks Market is projected to reach US$ 6,138.30 million by 2028 from US$ 4,559.97 million in 2022; it is expected to grow at a CAGR of 5.1% from 2022 to 2028.

According to data from the World Bank, East Asia and the Pacific region is experiencing the fastest rate of urbanization in the world, with an average annual urbanization rate of 3%. The Asian Development Bank (ADB) is working to facilitate the transformation of developing cities in the Asia Pacific region into sustainable and secure urban centers. Additionally, in April 2022, the Government of India and the ADB signed a Project Readiness Financing (PRF) loan worth US$ 2 million to support an urban development project in Nagaland. Furthermore, the Industrial Development Report 2022 published by the United Nations Industrial Development Organization shows that Asian manufacturing industries are attracting investments for future growth.

The analysis of the terminal blocks market is primarily based on type, function type, connection technology, and industry. With respect to type, the market is categorized into barriers, sectional terminal blocks, PCB mount terminal blocks, power blocks, and other types. In terms of function type, the market is classified into single-level feed-through terminal blocks, dual-level terminal blocks, three-level blocks, ground circuit terminals, fuse terminal blocks, and other function types. Additionally, the connection technology segment is further divided into spring clamp terminal blocks, screw-type terminal blocks, insulation displacement connections, push-in type terminal blocks, and special connections. The market is also segmented by industry, which includes business equipment, HVAC, power supplies, industry controls, instruments, telecom equipment, transportation, and other industries. Furthermore, the terminal blocks market is primarily segmented by geography into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America.

The year 2022 witnessed a significant shift towards automated operations in the industrial sector, leading to a major transformation in the way companies manage their operations. This trend towards industrial automation, coupled with the increasing adoption of electronic components in industrial applications, is driving the growth of the terminal blocks market. The South and Central American regions are experiencing a rise in digitalization adoption across all industries, leading to an increased adoption of automated machinery for enhanced accuracy and productivity. Furthermore, the region has a thriving electronics industry, which is growing rapidly due to the increasing demand for consumer electronics from the expanding middle-class population. Therefore, the terminal blocks market is experiencing growth in South and Central America, fueled by the rapid adoption of automation across various industries, a growing emphasis on workplace safety, and the rising deployment of robotics.

The growth of the terminal blocks market is being fueled by advancements in connection technologies such as screw clamps, spring clamps, push-in terminals, insulation displacement connections, and special connection technologies (such as slip-on connection and TERMI-POINT connection), which are facilitating various types of connections in industrial controls, HVAC, telecom equipment, instruments, power supplies, automotive and transportation, and other applications. Phoenix Contact is offering a wide range of connection technologies for PCB terminal blocks and PCB connectors for Single Pair Ethernet, which allow for the integration of intelligent field devices into switch-based Ethernet environments. These PCB connection technologies meet the requirements of the APL Port Profile Specification (Draft 0.3) and are thus suitable for use in process automation applications. Additionally, Toshiba has developed a Bare Wire Connection Mechanism (BWCM) technology that uses two connector technologies. The progressive digitalization and industrial transformation trends are shortening the time required for new device production, and prototyping is playing an increasingly significant role in the evolution of the electronics industry. These advancements in connection technologies are expected to bolster the growth of the terminal blocks market during the forecast period.

Over the past decade, the adoption of terminal blocks in Asia Pacific has increased significantly. India's production linked incentive (PLI) schemes for IT hardware offer eligible companies a four-year incentive ranging from 4% to 2%/1% on incremental net sales (over the base year) of goods manufactured in India and included in the PLI Target Segment, which includes laptops, tablets, all-in-one PCs, and servers. The Indian government's tax benefits and initiatives are supporting the growth of the terminal blocks market. On April 14, 2022, South Korea and Israel launched a program for robotics tech cooperation, with both countries investing US$ 5.3 million for two to four years. These government initiatives to enhance robotics tech operations present a solid opportunity for the players in the terminal blocks market in the coming years. Furthermore, upgrading electrical grids using next-generation digital technology is likely to boost the demand for terminal blocks in Asia Pacific in the future. Major companies operating in the Asia Pacific terminal blocks market include Klemsan, Phoenix Contact, Rockwell, and TE Connectivity, which are investing in new product developments and strategic initiatives to propel market growth in the coming years.

Impact of COVID-19 Pandemic on Asia Pacific Terminal Blocks Market Share

The terminal blocks market in the Asia Pacific region was significantly impacted by the COVID-19 crisis, particularly in India and China, due to the lockdowns and slowdown in industrial activities, leading to supply chain disruptions. However, the terminal blocks market analysis in North America saw a positive impact from the COVID-19 outbreak. Prior to the pandemic, the adoption of industrial automation for various applications was increasing rapidly due to advancements in artificial intelligence, connected and hybrid clouds, edge computing, cellular IoT innovation through 5G, and sensor innovations. Therefore, the demand for PCBs is expected to grow, leading to growth in the terminal blocks market.

However, in 2021, with the relaxation of the lockdown measures, manufacturing businesses started again, leading to a resumption of production facilities. Some IoT companies have seen a drop of around ~50% in achieving new order intake as Covid-19 forced their clients to stick to their budgets or delay IT/IoT spending. As Covid-19 has led to an increasing customer need for more transparency and visibility of operations, smart connected products will play a crucial role in the coming years.

Advancements in connection technologies are the primary drivers of the global terminal blocks market. For instance, Toshiba developed the Bare Wire Connection Mechanism (BWCM), which uses two connector technologies to improve the efficiency of new device production. The electronics industry is experiencing rapid digitalization and industrial transformation trends, which have shortened the time required for device production. Additionally, prototyping has become more critical in the evolving electronics industry. Modularity and flexibility are essential for device development, and industrial automation is a critical tool for improving productivity and quality while reducing errors and waste. Furthermore, automation can increase safety and add flexibility to the manufacturing process. Integrating a real-time operating system (RTOS) with automated processes enhances process scheduling and improves operational efficiency. The growing demand for PCBs in industrial applications, coupled with increasing automation, is driving the demand for terminal blocks.

TE Connectivity, Phoenix Contact, Weidmuller, ABB Ltd, Wago, and Weco holds a significant percentage of the terminal blocks market share.

The size of the terminal blocks market has been determined using both primary and secondary sources. The research process began with extensive secondary research, utilizing both internal and external sources, to gather qualitative and quantitative information about the market. This approach also provided an overview and market forecast of the terminal blocks market across all segments. In addition, multiple primary interviews were conducted with industry participants and commentators to validate the data and gain more analytical insights into the market. The participants in this process included industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants such as valuation experts, research analysts, and key opinion leaders who specialize in the terminal blocks market.