OEMSecrets reveals global electronic parts and components market insight and trends

OEMSecrets reveals global electronic parts and components market insight and trends

OEMSecrets (United Kingdom) - Press Release: New data shows positive and increased opportunities in various industries even with shortage and price uncertainty still affecting the supply chain.

With the growing need for stable supply chain networks, business research company OEMSecrets has identified four key trends that reflect a recurring theme in 2021.

OEMSecrets analysts have selected these trends, extrapolated the following insights from big data analysed over the past three months in its search engine, for their influence on buyers and their ability to disrupt key functions across businesses.

Demand insights:

During the last quarter (Aug-Oct 2021) OEMSecrets has seen an increase in demand for parts with low stock which is an indication that the industry is experiencing continued electronic parts shortages. Semiconductors (diodes, ICs, and sensors) and passives (transistors, resistors, and multi-layer ceramic capacitor) have been the worst hit, with distributors displaying low stock levels with long lead times on additional stock. Although manufacturers have increased capacity and supply to their distributors listed on the OEMSecrets search engine, demand still outstrips supply, which in turn is perpetuating pricing uncertainty along the supply chain.

Price uncertainty dynamics:

There has been a gradual increase in prices for products in various categories including microcontrollers, power converters, LEDs and connectors. The price uncertainty has been driven by shortages along the various levels of the supply chain and according to OEMSecrets, it starts way down at raw materials, especially for products driving green technology such as  electric vehicles and battery components. The company reckons electronic parts prices are on the up for the foreseeable future.

Revenue insights:

In the months of September and October 2021, OEMSecrets saw strong demand for semiconductors and passive. The revenue data reflect an increase based on estimated figures shared with the company by top distributors over those two months. Restraints such as shortages barely affected revenue growth as suppliers also increased their capacity. These revenue insights are backed by research undertaken by Market Research Future who expect the electronics components market to be worth more than $355 billion by 2022.

Technology insights:

The data effectively highlighted that there has been an increased shift of preference to touch input technology which has pushed up the demand for display devices as consumers prefer information in visual form. Touch screens have become the gold standard on devices used today.

The adaptation of IoT & Industrial IoT technology has increased demand for sensors and Wi-Fi components which have created opportunities for growth in industries like medical, automotive, industrial, security and aerospace, among others.

The above insights have been derived from major suppliers including Abracon, Analog Devices, Diodes Inc., FTDI, Infineon, Kyocera AVX, Littelfuse, Maxim Integrated Products, MEAN WELL, Microchip Technology, Molex, Murata Power Solutions, Nordic Semiconductor, NXP Semiconductors, Omron, onsemi, Schurter, Sensirion AG, STMicroelectronics, Taiwan Semiconductor, TE Connectivity, Texas Instruments and Vishay.

“During the past three years the global market has been affected by various factors and as a result, we are seeing trends consistently shift with an increase in demand and shortages of various product types”, said Sam Cowley, founder of OEMSecrets.

“As a result, we recommend that buyers and engineers in the electronics components industry supply teams should consider the following:

  • Work with suppliers to identify indicators of demand surge and develop fallback solutions for smooth project continuity in case of shortages
  • Create price uncertainty pointers that will help buyers prioritise parts acquisition for their projects
  • Use comparison websites as research tools and analyse markets behaviours.”

The company’s latest global market insight indicates that the compound annual growth rate in 2020 was 0.7% but, based on the current market climate, expect a 6.4% increase by the year 2025 with a market value of US$367 billion.

For more information about this article from OEMSecrets click here.

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