As the second half of 2025 unfolds, the global market faces multiple challenges, including macroeconomic fluctuations, tariff uncertainties, and ongoing supply chain adjustments. The latest Q2 2025 Market Trend Report from Heilind Electronics offers valuable insight into the current state and future direction of the interconnect industry.
Highlight 1:
Heilind Outperforms the Market, with Strong Momentum in Key Sectors
In Q2 2025, both orders and billings at Heilind exceeded industry averages, reflecting the company’s strong market resilience.
Key growth sectors include:
- Military and high-reliability (Hi-Rel) applications
- Data centers and AI-related infrastructure
- Industrial automation, robotics, automotive, and transportation
- Semiconductor capital equipment, which is beginning to rebound
Although the overall industrial market remains soft, structural growth trends are emerging, with some verticals continuing to show strong demand signals.
Highlight 2:
Raw Material Cost Volatility & Tariff Impacts Continue
Prices of key raw materials such as gold, copper, and silver continue to rise. Many suppliers have adjusted part pricing accordingly, and these new costs are gradually being reflected in inventories. With the addition of a new round of trade tariffs, pricing pressure on connector-related products is expected to intensify further in 2025–2026.
Highlight 3:
Lead Times Stabilizing, but Critical Product Lines Still Need Early Planning
- Lead time average is 6.8 weeks now and forecast to be 6.0 in six months. This is an average across interconnect and electro-mechanical products.
- However, some categories — such as Hi-Rel connectors, relays, and sensors — continue to face extended lead times. Early procurement planning is strongly recommended.
Highlight 4:
Global Interconnect Market Expands, with Asia-Pacific Leading the Way
According to the report:
- Global connector sales in May 2025 grew +15.7% YoY
- Asia-Pacific posted a remarkable +29.6% increase, with China up +21.6%
- The semiconductor industry also maintained strong momentum, with May sales reaching $59.0 billion, a +19.8% YoY increase
Interconnect and semiconductor industries are showing parallel growth globally, and the strategic importance of the Asia-Pacific region continues to rise.
Economic Outlook:
Headwinds in H2 2025, Recovery Expected in 2026
- Growth may slow in the second half of 2025 due to tariffs and policy uncertainties, with inflationary pressures possibly returning.
- Policy shifts are expected by year-end, including potential Fed rate cuts and trade direction clarity.
- A rebound is anticipated in 2026, with high-tech manufacturing (semiconductors, computers, electronics), data centers, and industrial automation driving the next wave of growth.
Summary:
Read the Trends, Seize the Opportunity
Amid global supply chain restructuring and technological transformation, staying ahead of industry trends, optimizing procurement strategies, and focusing on high-growth sectors will be key to winning in the second half of 2025.
Heilind Electronics will continue to support customers through every cycle with a global perspective, professional service, and a resilient supply chain.
Contact the Heilind team for more market insights and customized solutions.
