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【Popular Science】In-depth Observation of the Terminal Connector Industry 2026丨Breakthrough of Domestic Precision Manufacturing, High-Voltage & Miniaturization Restructures a New Industrial Cycle！
- Categories:Company News
- Author:Guangdong Deke Electric Co., Ltd.
- Origin:https://www.de-ke.cn/
- Time of issue:2026-06-23 15:25
- Views:
【Popular Science】In-depth Observation of the Terminal Connector Industry 2026丨Breakthrough of Domestic Precision Manufacturing, High-Voltage & Miniaturization Restructures a New Industrial Cycle！
- Categories:Company News
- Author:Guangdong Deke Electric Co., Ltd.
- Origin:https://www.de-ke.cn/
- Time of issue:2026-06-23 15:25
- Views:
In-depth Observation of the Terminal Connector Industry 2026
Breakthrough of Domestic Precision Manufacturing, High-Voltage & Miniaturization Restructures a New Industrial Cycle
Terminal connectors serve as the fundamental interconnection units for all electrical and electronic equipment, dubbed the "electrical nerve endings" of industrial machinery. From industrial control circuit boards and energy storage battery modules to new energy complete vehicles, photovoltaic power stations and AI computing servers, the operational stability and safety of equipment are entirely determined by the precision manufacturing quality of connector terminals. In 2026, amid the combined boost of three high-demand downstream sectors—new energy, industrial automation and computing industry, continuous implementation of domestic substitution policies, and comprehensive upgrading of national industrial standard systems, China’s terminal connector industry has bid farewell to low-price cutthroat competition and formally entered a high-quality development phase driven by technology, centered on quality and oriented toward customized solutions. Based on public industrial data released by the Ministry of Industry and Information Technology (MIIT) and China Association of Automobile Manufacturers (CAAM), as well as current national standard specifications, this article objectively dissects the industry landscape, core technological transformations, prevailing pain points and breakthrough paths for domestic manufacturers, providing objective and actionable selection references for end equipment manufacturers.
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DEKEELEC—— —— —— —— —— —— —— —— —— —— —— —— —— —— —— —— —— —— —— —— ——
I. Industrial Fundamentals 2026: Expanding Market Scale, Three Core Tracks Underpin Growth Momentum
Authoritative industrial statistics show that China’s overall terminal connector market reached RMB 48.54 billion in 2025, representing an 11% year-on-year increase and marking five consecutive years of double-digit growth. Institutions forecast the full-year market size will exceed RMB 53.8 billion in 2026, maintaining a steady growth rate of around 11%, with all incremental demand stemming from three high-boom downstream tracks.
1. New Energy Vehicles: Top Growth Driver, Surging Demand for High-Voltage Terminals
CAAM data projects China’s annual output of new energy vehicles (NEVs) will surpass 12.5 million units in 2026, while the penetration rate of 800V high-voltage fast-charging vehicles keeps rising, directly driving a 47% year-on-year jump in demand for vehicle-mounted high-voltage high-current terminals. Compared with traditional fuel vehicles, the per-vehicle value of connectors for pure electric models is 3 to 5 times higher. Battery packs, full-vehicle high-voltage circuits and on-board domain controllers impose rigid requirements on terminals in terms of voltage resistance, current carrying capacity, temperature tolerance and shock resistance: terminals must operate reliably within a wide temperature range of -40℃ to 155℃ without performance degradation after ten thousand plug/unplug cycles, and meet IP67 or higher protection ratings. Conventional low-voltage household appliance terminal processes are completely incompatible with automotive-grade scenarios. Meanwhile, the newly revised national standard GB/T 18487.1-2024 for charging connectors has come into force, raising mandatory thresholds for terminal temperature rise and arc suppression performance and accelerating the phase-out of low-end non-standard products.
2. Photovoltaics & Energy Storage: Long-Duration Energy Storage Boosts High-Power Storage Terminals
The implementation of the Action Plan for New Energy Storage continues to advance. China’s installed energy storage capacity surged over 150% year-on-year in 2025, and the segmented market for dedicated energy storage terminals exceeded RMB 2.5 billion. Centralized, household and industrial & commercial energy storage scenarios impose three core requirements on terminals: low contact resistance to reduce heat loss, resistance to extreme outdoor temperatures and salt spray corrosion, and anti-misplug safety locking structures. The gradual popularization of 1500V energy storage platforms forces manufacturers to upgrade terminal base materials such as copper-chromium-zirconium alloys and high-temperature LCP insulating materials, continuously lifting industry technical barriers.
3. Industrial Automation & AI Computing: Explosive Demand for Miniature Precision Terminals
Shipments of domestic PLCs, servo motors and industrial robots maintain robust growth. Industrial control equipment widely adopts small-pitch wire-to-board and board-to-board terminals with pitches of 2.54mm, 1.0mm and 0.8mm. Booming demand for high-speed interconnection in AI servers has led to a shortage of high-density miniature connectors, with overseas brands extending delivery lead times to over 30 weeks—opening a window for domestic precision terminal manufacturers to realize import substitution. The stamping tolerance of such miniature terminals must be controlled at the micron level, forming rigid barriers in mold precision, automated assembly and online inspection capabilities.
The export segment also sustains steady growth. China’s export value of terminal connectors hit RMB 9.26 billion in 2025, rising 13.4% year-on-year. Southeast Asia, Europe and Mexico serve as core overseas markets, and local manufacturers with complete independent production chains and compliance with UL and IEC international standards enjoy expanding export advantages.
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II. Three Core Industrial Technological Transformation Directions Defining Corporate Core Competitiveness
From manufacturing and product design perspectives, the whole industry’s technological iteration centers on three main lines: high voltage & high current, miniaturization & high density, and long-term reliability & environmental adaptability. All compliant leading manufacturers conduct R&D around these three directions, which also act as the key criteria distinguishing low-end OEMs from professional customized solution suppliers.
(I) High-Voltage Development: Dual Upgrades of Base Materials & Structures to Solve Two Major Safety Pain Points: Temperature Rise and Electric Arcing
As voltage platforms of new energy and energy storage equipment upgrade from 750V to 1000V and 1500V, traditional brass terminals suffer insufficient current carrying capacity and easy oxidation under high temperatures. The industry has formed standardized mainstream solutions:
- Base Material Upgrade: Adopt copper-chromium-zirconium alloys and high-conductivity oxygen-free copper substrates, paired with nano gold plating and thickened silver plating processes to cut contact resistance and curb temperature rise under high-current operation;
- Structural Optimization: Widen terminal contact springs and adopt multi-spring parallel contact designs to disperse current load, equipped with arc-suppression insulating partitions to eliminate risks of short circuits caused by electric arcs during charging/discharging or equipment startup/shutdown;
- Supporting Processes: Integrate fully automatic air tightness testing, real-time temperature rise testing and ten-thousand-cycle plug/unplug aging tests into standardized factory inspection procedures to meet audit requirements of automotive-grade and energy storage equipment.
(II) Miniaturization & High Density: Micron-Level Precision Manufacturing as a Mandatory Entry Threshold
Continuous miniaturization of industrial control devices, on-board domain controllers and computing hardware has made small-pitch terminals ranging from 0.4mm to 2.54mm mainstream products, with manufacturing difficulty rising geometrically. The stamping mold tolerance of terminals must be controlled within ±2μm, and assembly requires fully automatic visual alignment to guarantee coplanarity of all pins and eliminate poor soldering or contact failure on PCBs. The traditional manual assembly model has been completely phased out. Only enterprises with independent mold R&D and closed-loop production lines covering full-process automatic stamping, injection molding, assembly and inspection can stably deliver miniature precision terminals in batches. Small factories lacking self-developed mold capacity and relying on outsourced processing commonly suffer dimensional deviations and inconsistent batch performance.
(III) Long-Term Reliability & Environmental Adaptability: Full-Scenario Weather-Resistant Design Becomes a Must
Outdoor energy storage, vehicle-mounted and industrial equipment operate long-term under vibration, extreme temperatures, humidity and salt spray environments. Terminal failure may directly cause complete machine shutdown and safety accidents. Current national standards and IEC specifications mandate terminals to pass salt spray, thermal shock and vibration durability tests:
- Corrosion Resistance: Thickened electroplating layers and passivation sealing processes enable terminals to withstand 500 hours of neutral salt spray without corrosion for coastal energy storage and outdoor charging pile scenarios;
- Vibration Resistance: Reinforced spring structures and snap locking designs prevent terminal loosening and contact failure amid vehicle jolts and high-frequency machine tool vibration;
- Environmental Compliance: Halogen-free high-temperature resistant insulating plastics are widely adopted to fit high-temperature operating environments of power batteries and high-power equipment, complying with the EU RoHS environmental directive.
DEKEELEC—— —— —— —— —— —— —— —— —— —— —— —— —— —— —— —— —— —— —— —— ——
III. Prevalent Industry Pain Points & Key Risks to Avoid in End-User Procurement
Drawing on years of customized terminal production and customer factory audit service experience of Guangdong Deke Electric, four widespread irregularities plague the industry—these are the most common pitfalls for end equipment manufacturers during procurement, carrying objective reference value for the sector:
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Homogenized low-price competition and cost-cutting that compromise long-term reliability Numerous small workshop-style manufacturers seize low-end orders via rock-bottom pricing. To slash costs, they thin electroplating layers, adopt recycled copper substrates and simplify mold structures. No obvious faults appear in the short term after installation, but prolonged operation leads to severe overheating, spring fatigue and loosening, as well as corrosion and open circuits. Such hidden hazards carry fire risks especially for new energy and energy storage equipment. These non-compliant products fail to meet mandatory safety standards of GB/T and UL and cannot pass third-party certification for complete machines.
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Fragmented industrial chains lacking full-process independent production capacity Most small and medium-sized manufacturers only handle assembly work, outsourcing mold development, stamping and electroplating to external vendors. Inconsistent quality standards across processes lead to massive batch-to-batch discrepancies. When customers require customized modifications, development cycles extend, dimensional precision cannot be guaranteed, and after-sales fault tracing becomes extremely difficult. Truly competitive enterprises must own an integrated closed-loop production system covering independent mold R&D, precision stamping, injection molding, automated assembly and full-item performance testing.
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Absence of standardized testing and professional laboratories Terminal reliability must be verified through stringent testing. Key performance indicators including temperature rise, plug/unplug lifespan, salt spray resistance, voltage withstand and insulation impedance are all indispensable test items. Many manufacturers only conduct visual appearance inspections without professional testing equipment, leaving product performance unsupported by test data. Complete test reports cannot be provided for complete machine exports or project bidding.
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Misconception about domestic substitution: "Domestic products equal low-end quality" The high-end terminal market was long monopolized by overseas brands including TE Connectivity, Molex and Amphenol. However, domestic leading manufacturers have accumulated sufficient technological capabilities over the past three years. The localization rate of automotive high-voltage and industrial precision terminals has exceeded 45%. Products of identical specifications match the performance of imported alternatives, cut delivery lead times by 60%, and offer faster response speeds for customized after-sales adjustments. In contrast, overseas brands suffer from lead times of 3 to 6 months, steep premiums for customized revisions and delayed after-sales communication. Independent supply chain control has become a core demand for end manufacturers.
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IV. Breakthrough Paths for Domestic Manufacturers: Build Long-Term Advantages via Independent Precision R&D & Customized Solutions
During the restructuring of the industrial landscape, sustainable competitive local terminal connector enterprises follow three core development logics, which also represent the core development philosophy of Guangdong Deke Electric in the industry:
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Front-end R&D investment to master core mold and material technologies Molds constitute the core barrier for precision terminals. In-house mold design teams can conduct forward optimization of terminals based on customers’ equipment structures, pre-emptively addressing design defects such as temperature rise, structural interference and assembly difficulties. Meanwhile, continuous R&D and testing on conductive substrates, electroplating and high-temperature plastic materials enable customized material schemes tailored to new energy and industrial control scenarios, instead of generic low-grade raw materials.
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Flexible automated production lines balancing mass orders and small-batch customization Downstream equipment manufacturers have diversified demand: energy storage and charging pile projects require large-volume standardized orders, while industrial control and medical equipment feature multi-variety small-batch customization. Enterprises must deploy rapidly switchable automatic stamping and assembly production lines equipped with full visual inspection equipment, which not only guarantee delivery efficiency for mass orders but also quickly respond to customer non-standard modifications and shorten sample delivery cycles.
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Upgrade from single-product suppliers to comprehensive interconnection solution service providers Market demand has evolved beyond simple procurement of individual terminals. End customers demand integrated services including structural model selection, performance testing, drawing optimization, bulk supporting and technical after-sales support. Professional manufacturers can deliver customized terminal matching schemes based on customers’ complete machine voltage, current, installation space and operating environment, alongside complete test reports and national standard compliance documents to assist customers in factory audits and export certification of finished equipment.
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Strict compliance with national and international specifications and establishment of full-process quality traceability systems Fully abide by GB/T series national standards for electrical connectors, as well as IEC, UL and RoHS regulations. Raw material, stamping, electroplating and testing data of each terminal batch are archived to realize full life-cycle traceability of individual products, completely avoiding batch quality incidents and meeting stringent factory audit requirements of new energy, industrial control and export equipment manufacturers.
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V. Forecast of Industrial Development Trends in the Next 3–5 Years (For reference only)
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Deepening domestic substitution and steady growth of high-end market share Supported by national policies such as the Action Plan for the Development of Basic Electronic Components Industry (2025–2027), end equipment manufacturers in new energy, industrial control and energy storage sectors are encouraged to prioritize independently controllable domestic electronic components with supporting fiscal subsidies. It is projected that the localization rate of high-end automotive and energy storage terminals will rise above 45% by 2030, while the market share of imported brands will keep shrinking.
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Gradual popularization of smart terminals with integrated monitoring functions Driven by demand for smart energy storage, intelligent vehicles and industrial IoT, smart terminals embedded with temperature monitoring and overload early warning functions have entered commercial application. Such terminals can real-time upload temperature and current data of connection points to enable predictive maintenance of equipment and reduce losses from unexpected shutdowns, poised to become standard configurations for mid-to-high-end equipment.
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Green low-carbon standards turn into mandatory market entry thresholds With global carbon neutrality policies fully implemented, halogen-free, recyclable and low-energy-consumption materials will completely replace traditional plastics. Electroplating processes will be upgraded to low-pollution closed-loop treatment systems, while outdated high-energy-consumption production lines will be phased out at an accelerated pace. Small manufacturers failing environmental compliance will gradually exit the market, lifting overall industrial concentration.
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Specialized division of labor across segmented tracks, comprehensive integrated manufacturers gain prominent advantages The industry will witness polarization: small factories will only retain market share in low-end household appliances and low-voltage general terminals. Integrated manufacturers with supporting capacity across new energy, industrial control and energy storage tracks and self-developed precision manufacturing technologies will continuously capture high-value customized orders, widening gaps in technology and profit margins.
The terminal connector industry stands at a critical turning point of industrial upgrading. The extensive development model relying purely on low-price competition has reached its end. Four core metrics now measure the comprehensive strength of a connector enterprise: precision manufacturing capacity, independent core process R&D capability, compliant and reliable product quality, and customized solution service capacity.
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VI.Explanation of Data & Standard References for This Article
1. Sources of market scale and downstream output data: China Association of Automobile Manufacturers (CAAM), Electronic Components Branch of the Ministry of Industry and Information Technology, and public research reports on the connector industry from 2025 to 2026.
2. Product technical standard references: GB/T 18487.1-2024, GB/T 40032-2021, IEC 61984 connector safety standard, and UL insulation performance specifications.
3. References for industry trends and domestic substitution policies: Action Plan for the Development of Basic Electronic Components Industry (2025–2027) and supporting policy documents for the new energy storage industry.
4. Production processes and industry pain points are summarized from over ten years of practical experience of Guangdong Deke Electric in terminal production and customer complete-machine factory audits.
DEKEELEC—— —— —— —— —— —— —— —— —— —— —— —— —— —— —— —— —— —— —— —— ——
As a local enterprise rooted in Guangdong and specialized in R&D and production of terminal connectors, Guangdong Deke Electric consistently focuses on three core tracks: new energy vehicles, photovoltaic energy storage and industrial automation. Supported by independent mold R&D, integrated automated production lines and standardized performance testing laboratories, we provide customized supporting services for wire-to-wire, wire-to-board, high-voltage energy storage and precision industrial control full-series terminal connectors for domestic and overseas equipment manufacturers. Keeping pace with the industry trends of high voltage, miniaturization and domestic substitution, we deliver compliant, stable and cost-effective domestic interconnection solutions to facilitate independent controllable upgrading of the whole industrial chain.
In the future, Deke Electric will continuously boost R&D investment in materials, molds and structural technologies, while perfecting full-process quality control and technical service systems. We will cooperate with all equipment manufacturing customers to jointly drive high-quality development of China’s terminal connector industry.
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