TE Connectivity Is the Largest Automotive Connector Supplier and Merits a Narrow Moat

TE Connectivity designs and manufactures connectors and sensors, supplying custom and semicustom solutions to a bevy of end markets in the transportation, industrial, and communications industries. TE has maintained a leading share of the global connector market for the last decade, specifically dominating the automotive connector market, from which it derives almost half of its revenue. While the firm’s entire business benefits from trends toward efficiency and connectivity, these are especially notable in cars, where shifts toward electric and autonomous vehicles provide lucrative opportunities for TE to sell into new vehicle sockets, like an onboard charger or advanced driver-assist system.