According to leading global technology research and advisory company, Technavio, the active electronic components market is expected to grow $122.44 billion by 2027. That’s a 7.02% CAGR (compound annual growth rate) increase.  

Continue reading below to learn more about the identified catalysts for growth and how you can stay ahead of the curve.

Catalysts of Predicted Market Growth

Furthermore, according to Technavio’s data analysis, the demand for IoT (Internet of Things), “interconnected devices or things that are integrated with electronics, software, sensors, and network connectivity,” is responsible for driving the increase in active electronic components. 

Research further concludes that consumer electronics will hold the largest increase in market share, followed by Networking & Telecommunications, Automotive, and Manufacturing respectively. 

For comparison, the consumer electronics market had a $80.6 billion value in 2017. An increase in consumer demand for electronic devices has led to a rise in research and development by major manufacturers. Satisfying this boost in consumer demand is important to key market players.

How to Handle Shifts in the Electronics Market 

The COVID-19 pandemic led to a shortage market worldwide. Nonetheless, it also led to profitability for many distributors. 

In alignment with the above data, Forbes predicts a normalization of supply and demand in the market this year. 

IBuyXS CEO, Claudia Pallazola has also stated that it is essential to maintain a flexible strategy. Moreover, excess is key in both shortage and cost-savings-driven markets. 

Likewise, in a recent article, Forbes lists ways industry leaders can remain flexible and prepare for what’s next. Their article advises the following: 

1. Gather information from multiple sources.
2. Evaluate earnings reports. 
3. Use online electronics procurement marketplaces. (i.e., BidChips)

In Conclusion 

Like in any industry, staying abreast of industry trends is important. You can trust iBuyXS to update you with the data that matters most. 

The above research suggests that we can expect substantial growth in the active electronics component industry, which will be primarily led by the post-pandemic increase in demand for consumer electronic devices.  

Stay tuned for more updates on the state of the electronics components market and how you can best strategize to remain competitive!