What’s Driving Global Electronics Industry – A Comprehensive Outlook

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Global electronics industry is witnessing a leap frog as new normal and set new standards are helping newer technologies to evolve across the globe. The impact still seems to remain around Internet of things (IoT) and Artificial Intelligence (AI). The US-China trade war has somewhat impacted the global supply chain and strategies of new business opportunities in new geographies. South Asian countries including India have been a pivotal focus for global electronic players.  India’s electronics industry has grown to become one of the largest consumer electronics markets in the Asia Pacific Region. There are numerous factors amplifying this growth in recent years. These include the growth of India’s middle-class population, increasing disposable income among its citizens and dropping prices for electronics. It’s estimated that India’s middle class will increase from 250 million to 583 million people by 2025, which will make it more than 40% of the population. The percentage of middle-class Indians aged 25 or younger applying to universities has increased by more than 60% in the past decade and is expected to continue to rise. With this growing middle class has also come an increase in economic consumption. The adoption of high-end technologies is also contributing to the growth in consumer electronic devices. The introduction of major technology transitions like IoT and 4G/LTE networks are rapidly increasing the adoption of consumer electronics. India is already the Asia Pacific’s fastest-growing smartphone market, and its IoT market is worth $9 billion by 2020. 

Overview of Personal Electronic Devices

The globalized world is well connected and new economic opportunities are driving the personal electronics devices market. The impact of the pandemic has compelled to begin a new era of working styles. Personal electronics Devices are the need of the hour as new workforces are adopting new technology-front work. The proliferation of the personal electronic device has driven tremendous design innovation during the past decade, as is the current consumer demand for smaller, more powerful devices with an unending amount of functionality. Data consumption continues pushing demand for ever-faster download speeds and storage capacity. The convergence of proven technologies developed for consumer electronics, infotech, and telecommunications into feature-rich mobile consumer, automotive, and medical devices has forged new market opportunities. 

Convergence is the Present-Future

Convergence is the present-future of tech innovation. Days are gone where electronics is just hardware and software is just an operation system. The hardware integrated software-driven world has come vitally in a time to ink the future potential of newer technologies and create a new demand in the market. Consumers’ wish to access content anywhere, anytime, and on any device, also drove changes in the industry including more powerful and faster connectors to support the heavy bandwidth requirements of video and music streaming.

Smartphones Defining Mankind

Smartphones have gone far beyond revolutionizing communications, impacting cultural norms and the way people access news, entertainment, photography, navigation, and even how we interact with our homes, vehicles, and, increasingly, automated equipment in our workplaces. Mobile devices have become indispensable.  OEMs also required a new way to address heat dissipation, creating new solutions for thermal management for a variety of electronic device connectors, ranging in size from microminiature to large scale.

Source: IDC Manufacturing Insight

India’s Electronics Market

The Indian government has initiated projects like Smart City and Digital India to stir up demand for IoT within the national market. The digital banking sector, including payment banks and wallet players, is another factor raising demand for VSAT and POS mobile ATMs. These will give further impetus to the rapidly expanding electronics industry. The cumulative result of these advances and projects is that India has become one of the largest electronics markets in the world. Some estimates anticipate that India’s electronics market will reach $400 billion by 2025. Additionally, the consumer electronics and appliances industry is expected to become the 5th largest electronics industry in the world by the same year. India experiences average annual growth rates of 26% in its electronics sector, 185% in mobile manufacturing, 17% in domestic manufacturing, and 8.60% in its hardware market. Projections also show that the Indian gaming market will be valued more than $801 million by 2022. The electronics market is currently expected to reach $228 billion by 2020. This is a significant increase from 2016-17 when it was valued at $100 billion reports Tandon Group.

Post Pandemic Curve

It is expected that reduced production as well as demand amid the coronavirus crisis will affect the electrical and electronics industry in 2020. However, there is hope that the industry will recover quickly thereafter. Globally, the industry is expected to grow by around six percent between 2020 and 2021. The European electrical and electronics market is projected to grow by around six percent between 2020 and 2021, while Asian and American markets are predicted to experience the strongest growth. China contributed around 40 percent of the worldwide market in 2019, more than any other country or region reports STATISTA.

Top Trends For 2021

  • As demonstrated by the COVID-19 protocol monitoring example, the IoB is about using data to change behaviors. With an increase in technologies that gather the “digital dust” of daily life — data that spans the digital and physical worlds — that information can be used to influence behaviors through feedback loops.
  • For example, for commercial vehicles, telematics can monitor driving behaviors, from sudden braking to aggressive turns. Companies can then use that data to improve driver performance, routing and safety.
  • IoB does have ethical and societal implications depending on the goals and outcomes of individual uses

The IoB can gather, combine and process data from many sources including: Commercial customer data; citizen data processed by public-sector and government agencies; social media; public domain deployments of facial recognition; and location tracking. The increasing sophistication of the technology that processes this data has enabled this trend to grow reports Gartner.

Privacy-enhancing computation features three technologies that protect data while it’s being used. The first provides a trusted environment in which sensitive data can be processed or analyzed. The second performs processing and analytics in a decentralized manner. The third encrypts data and algorithms before processing or analytics.

This trend enables organizations to collaborate on research securely across regions and with competitors without sacrificing confidentiality. This approach is designed specifically for the increasing need to share data while maintaining privacy or security.

  • An anywhere operations model will be vital for businesses to emerge successfully from COVID-19. At its core, this operating model allows for business to be accessed, delivered and enabled anywhere — where customers, employers and business partners operate in physically remote environments. The model for anywhere operations is “digital first, remote first;” for example, banks that are mobile-only, but handle everything from transferring funds to opening accounts with no physical interaction. Digital should be the default at all times. That’s not to say physical space doesn’t have its place, but it should be digitally enhanced, for example, contactless check-out at a physical store, regardless of whether its physical or digital capabilities should be seamlessly delivered.
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