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Developments in Smart Electronics Driving Electronic Components Market, Report Says
SAN JOSE, Calif.— The global market for electronic components is projected to reach $233.1 billion (U.S. dollars) by 2020, driven by rapid developments in smart electronics in the automotive, healthcare, and industrial, and consumer electronics sectors, among others, according to a report by Global Industry Analysts (GIA), Inc.
Positive macro-economic factors, including rising manufacturing and industrial activity, are expected to drive growth in major end-use markets, such as telecommunications, computing, and consumer appliances, in turn creating tremendous opportunities for electronic components. High growth in other electronic market segments, such as medical electronics, automotive electronics, marine electronics, and defense and aerospace electronic equipment, is poised to amplify the market opportunities for electronic components in the upcoming years, said GIA analysts.
Similarly, rising focus on automation in industrial environments in the form of electronics-based machine tool equipment, material handling and packaging machinery, food processing systems, and HVAC is expected to improve the demand for electronic products and components. Growing inclination towards building and home automation, a positive upward trend in rolling out and remodeling of transportation infrastructure, and the increasing focus of governments and power companies across the world on quality power generation and efficient power transmission and distribution are expected to infuse new demand for electronic solutions in the foreseeable future.
The consumer electronics industry is a major end-use market for electronic components, and therefore, the recent spurt in demand for electronic devices, particularly in developed markets, is lending significant traction to the global electronic components market. With electronic device manufacturers increasing their production capacity in order to meet the growing demand for these devices, demand for electronic components used in their manufacture is poised to witness significant growth. The unprecedented surge in global demand for mobile handsets and rising adoption of sophisticated smartphones across major countries is contributing to growth in demand for electronic components used in manufacture of these devices.
From air bags to audio systems and gaming consoles to the convergence of information and entertainment, infotainment, the automotive end-use market witnessed sea changes in technology development and evolution over the past several years. This is in turn leading to significant growth in demand for electronic components, such as capacitors and transformers that find use in air bag system manufacture. However, the global electronic components market faces several challenges at local, national and international levels. Key challenges include counterfeit products, regulatory issues, raw material prices and availability, and declining margins, which negatively affect future prospects of the market.
The research report, titled “Electronic Components: A Global Strategic Business Report,” provides a review of industry segments, trends, growth drivers, restraints, and market share.
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