Electronic Component Manufacturers Face Lengthy Recovery from COVID-19
- Claire Anderson
- market news
- Electronic Manufacturing
- Electronic Components
COVID-19 has caused severe disruption among electronics manufacturers, presenting consumer electronics and the automotive industry with a challenging year ahead, according to GlobalData, a leading data and analytics firm.
In a fresh report, analysts disclose that economic shutdowns, which started in China and extended across the globe, have significantly impacted supply chains and may delay the prototyping and production of new products as a consequence. This is further compounded as new car purchases, including electric vehicles, are now unlikely to be a priority for businesses and consumers, amid the economic uncertainty resulting from the pandemic.
One of the global electronic component market’s key drivers, the Internet of Things (IoT), will also be lower on the agenda of private and public organisations for the rest of 2020. Smart cities, which would have been sensor buyers (i.e. for electronics), are expected to delay spending until they have confronted the impact of the public health emergency.
“Future smart city applications, such as infectious disease monitoring, have been getting the full-scale pilot no-one could have foreseen or desired,” commented David Bicknell, principle analyst at GlobalData.
Once consumer confidence is restored, the market for components for consumer electronics will likely return and there will be a rebound. However, it is unclear when this will happen. When the world starts to win its fight against COVID-19, electronic component manufacturers should be in a position to meet future demand.
Bicknell added, “Every cloud has a silver lining and, for component makers, it may be the growing use of biosensors. The long-term need to provide tests both for COVID-19, its future variants, and other diseases, will see biosensors become an increasingly important part of the component makers market, with governments worldwide becoming continued buyers for public health applications.”