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Electronic Components

Electronic component market to see continued growth by 2027

Electronic component market to see continued growth by 2027

The electronic component market is set to see continued growth over the next five years, with projections estimating greater demand than ever.

Several forecasts have converged with the same conclusion; demand for components is set to rocket as the world adopts more advanced technologies. 

This article will explore the latest research papers and market analysis from reputable sources. We will also explore why the demand for electronic components is set to soar and the supply chain’s challenges. 

Global components market 

The market analysis covered by Market Watch predicts that the global electronic components market will reach USD 600.31 billion by 2027, from USD 400.51 billion in 2020, a compound annual growth rate of 4.7% from 2021. 

Active components market 

Another market report, this time looking at active electronic components, predicts the active electronic components market will reach USD 519 billion by 2027 (£380bn pounds, converted 12/01/22), a CAGR of 4.82% from 2021. 

Passive and interconnecting components market 

According to 360 Research Reports, the passive and interconnecting electronic components market is projected to reach USD 35.89 billion in 2027, up from USD 28.79 billion in 2020, a compound annual growth rate of 3.2% from 2021. 

Semiconductor wafer market 

According to Research and Markets, the global semiconductor wafer market is predicted to reach USD 22.03 billion by 2027, rising at a market growth of 4.6% CAGR during the forecast period starting from 2021. 

Dynamic Random Access Memory (DRAM) market

Market Reports World predicts the global DRAM market will see extreme growth, growing at a CAGR of 9.86% between 2021 and 2027. The market was valued at USD 636.53 million in 2021 and will grow to nearly USD 700 million by 2027.  

Why is component demand set to increase so much?

The world is undergoing an extreme technological transformation that began with the first computers. Today, electronics are everywhere, and they are becoming ever more intricate and complex, requiring more and more components. 

Several technologies are converging, including semi-autonomous and electric vehicles, automation and robotics, 5G and internet upgrades, consumer electronics, and smart home appliances like EV chargers and hubs. 

This is a global transformation, from your house to the edge of the earth. Electronic components are seeing unprecedented demand because smarter, more capable devices are required to power the future. 

What challenges does the supply chain face? 

The two biggest challenges are shortages and obsolescence. 

Shortages are already impacting supply chains, with shortages of semiconductors, memory, actives, passives, and interconnecting components. 

As demand increases, supply will struggle to keep up. It will be the job of electronic components suppliers like Lantek and electronic component manufacturers to keep supply chains moving while demanding increases. 

Obsolescence refers to electronic components becoming obsolete. While some electronic components have lifespans of decades, others are replaced within a few years, which puts pressure on the supply chain from top to bottom. Email your inquiries to us today at sales@lantekcorp.com. Our specialized team is here to help.

In any case, the future is exciting, and the electronic components market will tick along as it always does. We’ll be here to keep oiling the machine. 

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Electronic Components

How to deal with electronic component obsolescence

How to deal with electronic component obsolescence

With technologies advancing at such a rapid rate, the rate of electronic component obsolescence is as high as it has ever been. OEMs have their work cut out to keep up with an industry where demand for electronic components is under increasing pressure as a result of innovation across the entire electronics industry.

Understanding the risks of obsolescence

Component obsolescence is bound to happen in time because all components have a diminishing lifespan. All components become obsolete eventually.

However, the rate of component obsolescence is increasing over time. This means the challenges facing you are growing.

Dealing with electronic component obsolescence

Now that you know obsolescence is nailed-on given a large enough timeframe, how can you deal with the challenge when you face it? Here’s some tips:

  1. Understand why obsolescence happens

The three main reasons for electronic component obsolescence include short product life cycles, innovation and increased demand.

A combination of these creates the perfect storm. A great example of this storm is with semiconductors, which are advancing at a rapid rate.

Which reasons for obsolescence will affect you the most? By understanding this, you can prepare properly for the future.

  1. If you are designing a product, look into longevity

The best defence against obsolescence is designing products that use components that are not expected to become obsolete during your product’s lifecycle.

You can assure longevity in a few ways:

  • Review the ‘Production Status’ of the component
  • Ask your supplier about component longevity
  • Look at the datasheet creation date – if it’s several years old, this could be an indication that the part may be due an upgrade sometime soon

Even when a component is due to become obsolete, it could be several years before this happens. This insight will be invaluable to your business.

  1. Get to the bottom of the type of obsolescence

If you get a notification that a component you use is becoming obsolete, take a step back and look into the reason why this is the case.

You can do this by looking at the PCN (Product Change Notification) which will provide the technical information you need.

If the component is a passive component, then there’s a good chance you will be able to source an equivalent component. If the component is an active component, you may have to upgrade to a newer component.

  1. How to deal with obsolescence when it happens

You have three options when dealing with obsolete components:

  • Equivalence – this is when you look for an equivalent component. You can cross reference many components, such as semiconductors, to find exact equivalents. You should review the datasheets to ensure cross compatibility.
  • Design – this is when you work with an OEM to manufacture a component on your behalf. It carries high cost but reduced risk because the component is unique to you. NANDs and micro-controllers are common examples.
  • Use old stock – somewhere in the world, there’s probably the component you need in storage. This is available if you can find it. An electronic component distributor is your best friend in this scenario to get the components you need.

If you are struggling to source your obsolete or hard to find electronic components Lantek is here to help. 

Contact us today.

Call: 1-973-579-8100

Email: Sales@Lantekcorp.com 

Website: lantekcorp.com