The COVID-19 pandemic will continue to have a wide-ranging impact on our lives in 2022 as well as an impact on the electronic components market. This implies that the digitization and virtualization of business and society will continue at an accelerated pace.
With the rise of digitization and technological innovation, the use of electronics in our daily lives is on the rise. However, as we are in 2022 and beyond, the demand for electronics will skyrocket. This is because electronics are increasingly being used to power innovations in other industries, like construction and agriculture. As a result, this will drive fluctuating prices for both producers and consumers alike. This article discusses how the future of the electronic components market looks as we move closer to 2023.
The electronic components market
With a CAGR of 8.56%throughout the projected period, the Electronic Component Market is estimated to reach USD 568.63 billion by 2025.
The electronic components market is flourishing. With the rise of digitization and technological innovation, the use of electronics in our daily lives is on the rise. However, as we move into 2022 and beyond, the demand for electronics will skyrocket. This is because electronics are increasingly being used to power innovations in other industries, like construction and agriculture. As a result, this will drive down prices for both producers and consumers alike.
How the demand for electronics has been rising
The global component market for electronics is one of the world’s largest markets. In fact, it’s expected to be worth $9.2 trillion by 2022. That’s a lot of money! To put this into perspective, that number is about three times the size of the entire global auto industry and larger than the total value of all manufactured goods in China. And with digitization and innovation driving demand for electronics, we can expect that trend to continue to rise over time.
What will happen to the market in 2022 and beyond?
The electronic components market is constantly changing. This is due to the nature of digitization and technological innovation, which are constantly evolving. As we move closer to 2023, the fundamentals of the electronics industry will undergo a transition that will prove monumental. The demand for electronics has been on the rise in recent years because they have become increasingly essential to powering other innovations in industries like construction and agriculture.
With price deflation expected by 2023, there is more incentive for development. Within this transition period, there will be a simultaneous increase in demand for both producers and consumers alike. In addition, one of the most important aspects of this shift is that technology for these parts has improved significantly over time as well, which helps keep prices low across the board.
The electronic components market is going to keep booming. The demand for electronics will continue to grow, and the market will continue to expand in the coming years.
Manufacturers must change their methods as the global chip shortage will last for at least two more years. Until the supply-demand deficit is corrected, component availability and pricing will remain volatile. Depending entirely on factory direct shipments is no longer feasible. Simultaneously, more criminal counterfeiters will try to infiltrate the industry by preying on unwary buyers in 2022.
Accordingly, OEMs, CMs, and EMS providers should work with proven electronic component marketplaces to purchase parts indirectly. Legitimate providers maintain rigorous vendor vetting standards and quality assurance procedures to keep bad actors out of their networks. Given the challenges on the horizon in 2022, manufacturers should form partnerships with trustworthy providers sooner rather than later.
Invicta Electronics Pvt. Ltd., which focuses on the distribution of a wide range of high-quality electronic components, offers a one-stop solution for all consumers looking for obsolete and hard-to-find electronic components and provides quality assurance, rapid delivery, and direct sales from the source. We provide an extensive range of electronic component products from leading international manufacturers, including semiconductors, passive components, connectors, optoelectronics, electromechanical components, embedded systems, board-level products, tools, and supplies, all at competitive prices and with excellent service.