Aug 18 – Global connector leader Amphenol announced a $1B cash acquisition of Trexon (high-reliability interconnects), signaling expansion and faster consolidation in the global defense connector market.
Amid Russia-Ukraine conflict and Asia-Pacific arms race, 2024 global military spending hit a post-Cold War $2.7T. As military gear’s "nerve center," connectors grow in value; Trexon (2025 projected $290M sales, 26% EBITDA margin) excels in extreme-environment interconnects, complementing Amphenol.
Amphenol, with past mergers (Carlyle’s CIT 2024, $10.5B CommScope deal 2025), strengthens defense connector position via this acquisition. The military connector market will grow from $2.05B (2025) to $2.28B (2030), with Asia-Pacific as No.2 market, lifting tech barriers.
China’s defense connector market is in critical domestic substitution: firms like AVIC Optoelectronics expand share but face high-end material challenges; future competition focuses on core tech (e.g., extreme environment adaptability).
ICgoodFind: Amphenol’s Trexon deal shows global defense connectors’ "tech-driven, higher concentration" trend; Chinese firms speed substitution but need high-end material progress.
