How is the Electronic Component Industry Growing?

In a world of technological innovation, the electronic components industry is vital. To manufacture a readily available supply of electronic products that consumers now expect, the electronic industry must continue to grow and be supported by effective supply chains.

Thankfully, despite fears about shortages in the industry, the global market is predicted to grow and reach values of high millions by the end of the forecast period of 2018-2023 (Source: Market Watch).

Passive components, active components, and PCBs are in high demand in various industries, including medical electronics, industrial robotics, and portable electronics. (Source: Digital Journal). We’ve taken a closer look at some of the trends driving the growth of the electronic components industry.

World electronic component demand will grow over nine percent annually based on the further development of the Internet, new generations of handheld and wireless computers, and rising electronic content in original equipment. High-end integrated circuit (IC) devices such as microprocessors and digital logic ICs will lead to gains.

New product development is more innovative than ever, from smartphones to fitness devices to virtual assistants. With so many new, interconnected devices being designed and released regularly, there has been a huge spike in consumer demand.

The potential issue with this is that component suppliers will be unable to meet such a huge demand. Manufacturers must learn to adapt to periods of shortages and create flexible long-term plans.

5G: Another area that requires significant input from electronics manufacturers and suppliers is building the 5G infrastructure. In the UK, EE has already launched its 5G network using technology created by Huawei.

IoT: The Internet of Things (IoT) has exploded in the past few years. All the devices mentioned above – smartphones, fitness watches, and even smart meters – require constant connection and communication. This technology requires a variety of intricate electronic components at its heart.

Continued demand for industry solutions: many important industries are developing and looking for new technological solutions, particularly healthcare and aerospace. These areas require active, passive, and PCB components for all manner of things, from navigation systems in aircraft to healthcare tracking technologies.

Electric cars: as we discussed in a previous article, electric vehicles are set to be soon as affordable as their counterparts, and many manufacturers are keen to move to the forefront of this industry. This will place an increased demand on suppliers.

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