DISTRIBUTION
Growth Ahead for the Electronics Sector T
By Dave Doherty, President, DigiKey
he world is changing and evolving faster than ever before. Where the design and launch of a new product or technology used to take years, in some instances, we are seeing it happen in mere months. It is an exciting time to be part of the electronics industry and all members of the design chain are required to ‘up their game’ to meet customer needs.
Expected market growth I often get asked about where I expect growth in the upcoming year. I can confidently say that any problem we are trying to solve as a society will involve technology and, thus, the opportunity for growth for our industry.
The evolution of electric and hybrid vehicles is in its infancy and the market is expected to expand considerably further, driving significantly higher electronic component content in each vehicle. Artificial intelligence (AI) is transforming how we live, work and make quick decisions. Alternative energy continues to grow and evolve in importance and scale. The large server farms being built to support AI and the increase in electric vehicles only increase the need for additional, efficient power generation and transmission. Climate change has also increased demand for more efficient solar and wind solutions and other sustainable technology. Healthcare needs are expanding as people, specifically baby boomers, are reaching an age where they need more support. How will our healthcare system
keep up? How can technology enhance this population’s lives? Meeting these challenges will continue to drive innovation, particularly with home diagnostic and treatment delivery solutions.
Predictions for the next industry cycle
The recent cycles have undoubtedly felt more extreme and sudden. The 2018 peak was followed by a pandemic-influenced dire status in the first half of 2020 to an utterly unforeseen status of supply constraints and increased demand in 2021 and through 2022. The next cycle in 2025, as far as we can tell, will be far more gradual,
sustainable and steady than recent cycles. Product lead times in many areas have come down, making inventory generally more available. However, do not get complacent. Current conditions are mixed, with some technologies having lowered lead times while others have stabilised and some are still extended. Due to this, our savviest customers are focused on the best practice of designing and manufacturing with flexibility in mind. Trying to predict our industry cycles is just as tricky as being a day trader on Wall Street, so it is wise to work in flexibility from the start and prepare for the next cycle.
new sizes!
1554/1554F Polycarbonate IP68
Learn more:
www.hammondmfg.com/1554
uksales@hammondmfg.com • 01256 812812
JULY/AUGUST | ELECTRONICS FOR ENGINEERS 15
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