Market Review
Jeff Newell, senior vice president of products at Mouser Electronics
CIE: What are the current major industry trends that you see driving the electronics market forward? JN: One trend that is seeing significant development is artificial intelligence (AI). Now that we are seeing real-world applications appearing, AI technology is seeing solid growth. Edge AI is already used for practical applications, such as low- power image recognition and intelligent decision-making, that do not depend on internet connectivity. Furthermore, we are seeing an uptake in companies using AI and machine learning methods to analyse data from industrial sensors. By continually analysing MEMS sensors, like accelerometers, it is possible to detect problems and abnormalities earlier. For machinery, including electric motors, this can assist maintenance teams in detecting failures before they escalate, saving time and money.
The industry is calling for a steady and continued growth in technologies such as 5G, Internet of Things (IoT), robotics, and electric vehicles (EVs), with these trends being driven by advanced improvements in technology. Equally, while wearables and smart appliances haven’t provided quite the revolution that some predicted, both markets are doing well and continue to grow year-on-year. Our data also highlights a significant need for technologies that are key to industrial automation, EVs, personal medical devices, and smart home and smart agriculture. The automotive industry alone is estimated to drive 20 per cent of overall chip demand and the wireless communication industry is projected to
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drive 25 per cent of growth by the year 2030. It’s difficult to predict the future, given the intensifying geopolitical conflicts and economic instability occurring in several parts of the world. We see continued strength in the Mil / Aero and Transportation sectors over the next few quarters. Key technology sectors, such as 5G, IoT, IIoT (industrial IoT), AI, robotics, electric vehicles (EVs) and smart technologies will drive overall design, innovation and consumption in 2024. Finally, the industry can expect to see new
investment. The Semiconductor Industry Association predicts that increased private and government investments will lead to more semiconductor production, which can help avert future chip shortages and ensure the industry meets the growing needs of sectors like the automotive, data, and communication industries.
CIE: What would you say are the key factors driving sales in these areas at the moment? JN: For trends, such as AI and smart agriculture, the emerging nature of both technologies and their ability to solve many existing problems are fuelling growth. AI is allowing for increased intelligent decision- making and reduced manual labour. Smart agriculture is helping to meet global challenges, including reductions in arable land and an increased demand for food, while also allowing for better management of conditions, such as weather. For IoT and Industrial IoT (IIoT) expansion, there is a demand within many markets for intelligent decision-making and increased functionality. Hardware solutions that are smaller, more efficient, smarter, and cost-effective are allowing designers to create smart new devices. For consumers, it is about removing monotonous tasks from their lives and simplifying the way they interact with devices. For industrial applications, it is about increasing efficiency and creating powerful insight for diagnostics and data monitoring. Many driving factors come down to changes in hardware that improve performance and enable new implementations. For example, 5G is
a performance-based improvement, delivering a considerable jump over existing solutions and mitigating many of the longstanding weaknesses. In contrast, many consumer solutions are driven by a reduction in costs and additional functionality. For smart technologies, such as wearables and IoT-enabled devices, there has been an existing interest from customers for a while, but for many, the cost of ownership has been too high. Now, with reduced costs, greater functionality, and useability, consumers are embracing smart technology. And EV sales have been steadily increasing due to more adoption by consumers, and growth is also speeding up as the underlying components are able to deliver longer ranges and faster charging.
CIE: Are you seeing any new trends developing in terms of which categories/products are selling particularly well? JN: There are definitely a few standout product areas that are seeing high levels of interest. Any hardware that enables AI and Edge AI solutions is selling well. Many engineers are acutely aware of how these technologies could impact their industry and individual designs. Security is proving important with a shift towards component-based solutions. This drive comes from standards such as IoT Secure and from manufacturer innovations, such as NXP’s EdgeLock technology. People are becoming increasingly aware of the harm that can occur from security breaches and are looking for ways to address any potential weaknesses.
With a growth in IoT and IIoT, next- generation communication modules are seeing strong demand. Whether we are talking about BLE, Wi-Fi 6E, Matter or 5G, the new standards solve many existing issues while offering a jump in performance, which makes them an attractive proposition for many engineers. Cutting-edge solutions, like the ST4SIM- 200M eSIM GSMA System-on-Chip (SoC) from STMicroelectronics, which streamlines communication, provides heightened security and mitigates plastic waste by removing the need for physical SIM cards, are also witnessing a rise in demand.
The continued increase in intelligence across many electronic applications is creating a significant demand for increased perception. Image sensors, accelerometers, gyroscopes, radar, and
many more sensor types are selling well as they provide systems, such as robotics and AI backed automation, with the information they need to operate correctly and safely.
Miniaturised technologies, such as Field-Programmable Gate Arrays (FPGAs), System on Chips (SoCs) and Integrated Circuits (IC), that enable greater efficiency and functionality in a smaller package are popular as they are key to many expanding electronics sectors.
Beyond these developments, components designed for the next generation of 800V and 48V EV and hybrid vehicle systems, as well as smart agricultural and soil sensors, are seeing high demand. Mouser is stocking the world’s leading products from over 1,200 manufacturer brands and will continue to launch these new technologies for our customers.
CIE: With a wider range of new technologies and applications appearing in recent years, how does Mouser stay ahead of the curve when it comes to identifying and supplying products to support innovation? JN: We constantly study market conditions and buying patterns to see which areas are increasing in popularity and look for how we can anticipate and meet demand. Our teams are also incredibly proactive at communicating with our existing manufacturers, as well as bringing on new lines, helping to expand our range to cover a wide selection of products for our customers. We are stocking the widest selection of products in the world. Our technical teams can provide in-depth understanding of the latest solutions, providing customers with valuable guidance and advice.
Additionally, at our Distribution Centre in Mansfield, Texas, we are currently undertaking our largest-ever expansion. The new state-of-the-art facility has a footprint of 413,000 square feet and will be three stories high, delivering over one million square feet of additional storage and shipping capacity. Currently, we are on track for completion in 2024, and the facility will have a significant impact on all areas of our distribution capabilities. With this new centre, we can increase order processing volume, accuracy, and speed. While our customers will not see the change in person, they’ll undoubtedly experience its benefits.
https://www.mouser.co.uk/ Components in Electronics December/January 2024 17
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