Demand for connectors and other electronic components is so robust that we are approaching record-breaking, historical levels of growth. The demand is so strong that we are also becoming concerned that we may be experiencing an AI bubble.
The following displays the recent outstanding performance of the connector industry:
- Sales are up 19.2% in 1Q 2026. Double-digit growth has been achieved for 12 consecutive months.
- Orders are up 38.9% in 1Q 2026. There have been 10 consecutive months of double-digit increases.
Orders and sales growth are shown in the following table:
2025 Orders and Sales
Growth in 2025 by Month
Percentage Change
| Month | Orders | Sales |
|---|---|---|
| January | 7.3% | 2.3% |
| February | 5.5% | 7.9% |
| March | 12.6% | 7.2% |
| April | 11.6% | 11.4% |
| May | 9.6% | 16.5% |
| June | 15.6% | 17.1% |
| July | 32.0% | 18.4% |
| August | 16.6% | 16.2% |
| September | 21.6% | 21.6% |
| October | 21.4% | 17.4% |
| November | 29.2% | 19.8% |
| December | 30.1% | 19.7% |
| Year-to-Date | 17.6% | 14.7% |
2026 Orders and Sales
Growth in 2026 by Month
Percentage Change
| Month | Orders | Sales |
|---|---|---|
| January | 34.1% | 21.9% |
| February | 32.6% | 15.0% |
| March | 49.6% | 21.1% |
| April | ||
| May | ||
| June | ||
| July | ||
| August | ||
| September | ||
| October | ||
| November | ||
| December | ||
| Year-to-Date | 38.9% | 19.2% |
Connector demand is strong. We have recorded 24 consecutive months of growth in both orders and sales, allowing us to continue to believe 2026 will be a good year for the connector industry!
- The strong demand for new orders has increased the backlog to $29 billion, up $5 billion since 2025 year-end.
- From a bookings and billings perspective, all geographic regions, except for sales in Japan, achieved double-digit growth in the first quarter.
1Q 2026 Connector Demand
by Region
| Region | YoY Change in Sales - 1Q26 | |
|---|---|---|
| Orders | Sales | |
| North America | 49.3% | 17.8% |
| Europe | 32.3% | 16.0% |
| Japan | 16.0% | 3.5% |
| China | 39.2% | 18.8% |
| Asia Pacific | 35.8% | 40.3% |
| ROW | 34.0% | 10.4% |
| World | 38.9% | 19.2% |
The growth in orders is the highest we have recorded in industry history. Our records go back to 1985.
- Normal book-to-bill ratios (BTB) are 1.01 to 1.05. The past five months have achieved BTB ratios of 1.08, 1.18, 1.16, 1.17 and 1.28 in March 2026. BTB ratios this high have never been recorded before.
- The two largest connector companies are achieving outstanding growth at or near historical levels.
1Q 2026 Change in Sales
| Company | Orders | Sales |
|---|---|---|
| Amphenol | 78% | 33% |
| TE Connectivity | 25% | 15% |
- The industry has now reported nine quarters of consecutive growth (1Q 2024 – 1Q 2026).
The record is 11 quarters (2Q 2016 – 4Q 2018). We are clearly going to break this record.
As noted, these results are historic records by significant amounts. Considering the industry has experienced downturns and bubbles, we believe it is prudent to remain conservative in employment levels and capital investments.
Previous Downturns
There have been four downturns in connector demand in the 21st century. Two of the worst downturns were caused by demand bubbles. See the following table
| Period | # of Down Quarters | # of Negative Booking Months | Reason |
|---|---|---|---|
| 2001-2002 | 5 | 15 | Dot-com Bubble |
| 2008-2009 | 4 | 13 | Housing/Financial Crisis |
| 2015-2016 | 5 | 16 | Strong U.S. Dollar, Weak Emerging Market Growth (China), and Low Commodity Prices (Crude Oil) |
| 2019-2020 | 6 | 17 | Contraction of Economic Activity Due to COVID-19 Causing Global Slowdown |
Decline in Annual Sales
| Period | % Change in Sales | Reason |
|---|---|---|
| 2001 | -18.8% | Dot-com |
| 2002 | -6.9% | Dot-com |
| 2009 | -21.8% | Housing/Financial |
| 2015 | -6.1% | Oil/Strong Dollar/Weak China |
| 2019 | -3.8% | Slowing Economic Activity |
| 2020 | -2.2% | COVID-19 Shutdowns |
Bishop & Associates is watching connector demand closely. We will continue to report on this subject.
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Statements of fact and opinions expressed in posts by contributors are the responsibility of the authors alone and do not imply an opinion of the officers or the representatives of TTI, Inc. or the TTI Family of Specialists.
