All industries are improving, but many supply chains are still using outdated technology. Here are some of the benefits of supply chain digitisation.
The Electronic Components Industry Continues to Grow
In a world of technological innovation, the electronic components industry is vital. In order to manufacture a readily available supply of electronic products that consumers now expect, it is important that the industry continues 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 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 all 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 that are driving the growth of the electronic components industry.
What’s driving it?
Explosion of new products and markets
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 on a regular basis, there has been a huge spike in consumer demand.
The potential issue with this is that component suppliers simply will not be able to meet such huge demand. Manufacturers must learn to adapt to periods of shortages and create flexible long-term plans.
Another area which requires significant input from electronics manufacturers and suppliers is the building of the 5G infrastructure. In the UK, EE have already launched their 5G network using technology created by Huawei.
Related article: How Will the US Ban on Huawei Affect the Global Component Market?
Internet of Things
The Internet of Things (IoT) has seen an explosion in the past few years. All of the devices mentioned above – smartphones, fitness watches and even smart meters – require constant connection and communication between them. 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 aircrafts to healthcare tracking technologies.
As we discussed in a previous article, electric vehicles are set to soon be 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.
Related article: The Increasing Popularity of Electric Vehicle Components
Overall, the electronic components industry is continuing to grow but it may face issues with supply chain pressure and shortages in the face of demand.
As an independent electronic component distributor, we can source the components you need from around the world, and at the best prices.