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Navigating the Evolving Global Electronics Market
Graham Maggs, VP Marketing EMEA, Mouser Electronics T
he electronics industry has endured a tumultuous period marked by a series of unforeseen events. From the upheaval caused by the pandemic to supply chain bottlenecks and geopolitical disruptions, the market has faced unprecedented challenges that have altered the landscape for sourcing and procuring electronic components and have had an ongoing impact on the market. This article will take a look at how these events have affected the industry and how investment and product innovation will support the recovery of the market.
Navigating the Path to Recovery The electronics component industry is still recovering from the semiconductor shortage and the accompanying decline in the production of semiconductors that preceded 2023. A combination of factors, such as the pandemic and rising demand, resulted in OEMs acquiring components amidst geopolitical tensions and inflationary pressures.
However, government initiatives, like the CHIP Act in the U.S. and the European Chips Act in the EU, are accelerating industry recovery. With the World Semiconductor Trade Statistics (WSTS) forecasting a 12.5 percent growth in the global semiconductor market in 2025, the market is showing promising signs despite persisting market challenges. Furthermore, the industry can expect a surge in investment with the Semiconductor Industry Association forecasting that increased private and government funding will bolster production, mitigating future chip shortages and meeting the growing demands of sectors
14 JULY/AUGUST 2024 | ELECTRONICS FOR ENGINEERS
such as data and communications. Still, ongoing geopolitical tensions continue to create significant uncertainty and businesses must make strategic investment decisions to carefully identify emerging and increasingly popular product categories. At Mouser, we are continuously evaluating market conditions and buying trends to support us in predicting future demands. Predicting future markets remains challenging due to the current volatile landscape, particularly in technology-driven sectors. However, we anticipate that industries such as mil/aero and medical technology should remain stable. Moving into the end of this year and beyond, key technologies like 5G, IoT, IIoT and AI will be critical for driving innovation and fostering a more positive outlook for future market growth.
How Innovation and Connectivity Are Boosting Creativity
Hardware innovation is still driving some areas, especially IoT and IIoT products, with new solutions that are smaller, more efficient, smarter and cost-effective, helping to create new business opportunities. Even in the current climate, we are seeing a robust demand for next-generation communication modules, which are key to IoT devices. Faster or more interoperable standards such as
BLE, Wi-Fi 6E, Matter and 5G are allowing engineers to create products that are faster and more reliable than ever.
Mouser supplies many solutions which are the fundamental building blocks of IoT and IIoT, such as the ST4SIM-200M eSIM GSMA System-on-Chip (SoC) from STMicroelectronics, which streamlines communication and mitigates plastic waste by removing the need for physical SIM cards. Security is a critical consideration, too. This impetus is supported by new standards such as the EU Cyber Resilience Act (CRA) and from manufacturer innovations, such as NXP Semiconductors’ MCX N Series Microcontrollers. Engineers and companies are acutely aware of the harm that can occur from security breaches and are always looking to design best-in-class ways to address any potential weaknesses, which is driving demand for security components.
Ensuring Authorised, Authentic Components
The pandemic and subsequent supply chain shortages have exacerbated counterfeiting activities worldwide. From costly downtime due to unplanned shutdown to product failure, the consequences of using counterfeit products are an ongoing concern.
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