Rising Demand for Electronic Components: Industry Insights
13 May, 2023
The global demand for electronic components is on the rise as the electronics industry continues to grow. According to recent industry reports, the electronic component parts demand is expected to reach $539.6 billion by 2027, at a CAGR of 6.2% during the forecast period. This growth can be attributed to various factors, including the increasing adoption of advanced electronic technologies, such as 5G, artificial intelligence, and IoT, as well as the growing demand for consumer electronics, automotive electronics, and medical devices.
Global electronic components demand is projected to hit $539.6B by 2027, driven by 5G, AI, IoT, renewable energy, and EVs. Trends like miniaturization and advanced tech adoption fuel growth, despite supply chain disruptions impacting prices and availability.
One of the significant trends driving the growth of the electronic component industry is the increasing demand for miniaturized and high-performance electronic components. As the demand for smaller and smarter electronic devices, such as wearables, smartphones, and tablets, continues to rise, the need for smaller and more efficient electronic components is becoming more critical. Miniaturization of electronic components helps in reducing the overall size of the device, while improving its performance and power efficiency.
Another trend driving the growth of the electronic component industry is the increasing use of renewable energy sources. With the growing concerns about climate change, there has been a significant shift towards the adoption of renewable energy sources such as wind and solar energy. This has led to an increase in the demand for electronic components used in renewable energy systems such as inverters, converters, and energy storage systems.
The electronic component market growth is also fueled by the increasing demand for electronic components in the automotive industry. With the growing adoption of electric vehicles, the demand for electronic components used in EVs, such as batteries, electric motors, power electronics, and sensors, has increased significantly. The automotive industry is also adopting advanced driver assistance systems (ADAS) and autonomous driving technologies, which require a higher level of electronic components.
However, the rising demand for electronic components has also led to a shortage of supply, which has impacted the pricing of these components. The shortage of electronic components has been attributed to various factors, including the COVID-19 pandemic, trade wars, and geopolitical tensions. These factors have disrupted the global supply chain, leading to delays in the production and delivery of electronic components, thereby affecting the overall pricing of these components.
The rising demand for electronic components is a trend that is expected to continue in the coming years, driven by the increasing adoption of advanced electronic technologies, the shift towards renewable energy sources, and the growing demand for electronic components in the automotive industry. However, the shortage of supply and pricing of electronic components remain significant challenges that need to be addressed by the industry.
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