As the 14th Five-Year Plan Commences, Military-Aerospace Connectors and Other Components Reach an Inflection Point
This year's market environment is relatively complex, with various industries experiencing some sluggishness. However, military-industrial enterprises have seen orders gradually increase, achieving overall performance growth. *The Proposal of the Central Committee of the Communist Party of China on Formulating the 14th Five-Year Plan for National Economic and Social Development and the Long-Range Objectives Through the Year 2035* marked the first official proposal of the centennial military building goal for 2027. Consequently, there are seven years remaining to achieve the objective of modernizing national defense, with the "14th Five-Year Plan" period serving as a critical implementation phase.
The national defense policy further specifies the key priorities for military development during the "14th Five-Year Plan": accelerating the modernization of military equipment, focusing on independent and original innovation in defense science and technology, expediting the development of strategic, forward-looking, and disruptive technologies, and speeding up the upgrade and replacement of military equipment alongside the development of intelligent military systems. The term "accelerate" underscores the urgency of advancing military equipment construction and modernization. Given that weapon system development cycles typically exceed five years, multiple analysts predict that the military-industrial sector will enter a period of high prosperity characterized by a 3-year explosive growth phase followed by a 7-year upgrade cycle.
Military electronic components serve as the fundamental support for the leapfrog development of military equipment. Therefore, products in this category are subject to extremely high-reliability requirements, fall under the category of high-end manufacturing, and face significant industry entry barriers and technical challenges, with the supplier landscape often characterized by oligopolistic competition. The prevailing trends in military-aerospace connectors are miniaturization and high stability. Simultaneously, influenced by their application scenarios, these components demand exceptional quality and reliability, resulting in high technological and competitive barriers. Once connector manufacturers successfully enter the military connector domain, substantial market demand is expected to support their steady growth.