The Electronic Component Manufacturing industry in China is to grow at a CAGR of 9.32 percent over the period 2012-2016. One of the key factors contributing to this market growth is the high domestic demand. The Electronic Component Manufacturing industry in China has also been witnessing the increase in the number of lighting manufacturers in the country. However, the cyclical demand patterns could pose a challenge to the growth of this market.
The industry is characterized by high entry barriers. One of the major reasons for this is the requirement for high R&D spending. The vendors in the industry are focusing more on improving the existing technologies in order to be able to match the global standards. This is achievable only through technical reforms and increased R&D. It is expected that the R&D spending of the regional vendors will increase during the forecast period despite the increase in cost pressures. This is absolutely necessary if the country wishes to be able to compete at the global level and be a leading supplier for the numerous international firms.
The increase in the integration of electronic equipment into automobiles will tend to increase the demand for electronic components. It is expected that the increasing adoption of electronics in automobiles will increase the demand for electronic components.
Furthermore, China is witnessing an increase in the number of manufacturing facilities of the players operating in the Automobile sector. As a result, the industry is expected to witness an increase in domestic demand as well as in overseas demand. Thus, the increasing adoption of electronic devices in automobiles will tend to increase the growth prospects of the industry in China.
The key vendors dominating this market space are Qunkang Technology Shenzhen Co. Ltd., Hongfutai Precision Electronics (Yantai) Co. Ltd., Wuxi Sharp Electronic Components Co. Ltd., Tianjin Jinya Electronics Co. Ltd., and Delta Electronics Power (Dongguan) Co. Ltd. The other vendors mentioned in the report are Guangmao Scientific and Technologic (Guangzhou) Co. Ltd., Zhongda Electronics (Jiangsu) Co. Ltd., Hailiang Storage Products Co. Ltd., United Win (China) Technology Ltd., and TDK Xiamen Co. Ltd.
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