HS Code:
Rack and panel connectors, classified under HS Code 8536.69, are electrical connectors designed for mounting on racks or panels, commonly used in industrial, telecommunications, and military applications. These connectors facilitate reliable and secure connections in high-density environments, ensuring efficient data and power transmission. They are critical components in systems requiring frequent mating and unmating, such as in server racks, control panels, and modular equipment.
Total Trade Volume
USD 2.5 billion
Data from 2022
Source
United Nations Comtrade Database
USD 600 million
24% of total trade of total trade
Increasing
USD 550 million
22% of total trade of total trade
Increasing
USD 300 million
12% of total trade of total trade
Stable
USD 250 million
10% of total trade of total trade
Stable
USD 200 million
8% of total trade of total trade
Increasing
Average Rate
4.5%
Highest Rate
10% (imposed by certain developing countries)
Lowest Rate
0% (under free trade agreements like USMCA and EU-Japan EPA)
Growing demand for high-speed data transmission
Increased adoption of rack and panel connectors in data centers and telecommunications, driving market growth by 5-7% annually.
2021-2023
Shift towards miniaturization
Manufacturers are focusing on compact and lightweight connectors to meet space constraints in modern electronics, influencing design and production strategies.
2020-2022
Sustainability and regulatory compliance
Stricter environmental regulations are pushing companies to adopt eco-friendly materials and manufacturing processes, increasing production costs but enhancing market reputation.
2019-2023
A new phase of trade negotiations between the US and China has led to a temporary reduction in tariffs on electronic components, including rack and panel connectors.
March 2023
This is expected to boost trade volumes by 10-15% between the two countries in the short term.
The European Union has expanded the scope of the Restriction of Hazardous Substances (RoHS) directive, imposing stricter material compliance for connectors.
January 2023
Manufacturers exporting to the EU must adapt to new compliance costs, potentially affecting pricing and market entry.
Significant investments in data center infrastructure in Asia-Pacific, particularly in India and Singapore, have increased demand for high-performance rack and panel connectors.
June 2022
This trend is projected to drive regional trade growth by 8% annually over the next five years.