The electronic part manufacturing market has been forecast to increase at an annualised rate of 5.8% over the next five years, increasing from a total of $713.1 billion in 2013 to reach an industry value of $946.6 billion by 2018.
Although 2013 is set to mark the fourth consecutive year of growth, industry revenue remained flat overall from 2008 to 2013, averaging annual gains of 0.0% (0.02) over the period.
The demand for consumer electronics, computers and industrial machinery was hampered by a slow global economy in 2008 and 2009, which ultimately hindered demand for semiconductor and other electronic components.
However, demand for electronic products did begin to recover in late 2009 (prompted by restocking), and this wave of recovery continued into early 2011.
Nonetheless, global economic growth weakened in 2011 and is expected to remain relatively anemic in 2013, softening demand for electronic components.
Over the five years to 2013, the production of final electronic products has continued to shift from developed nations, such as the United States, Japan and countries in Western Europe, to areas where labour costs are relatively low (mainly in Asia).
This is a factor that has pulled component manufacturers in the same direction. North Asia's share of the worldwide semiconductor market is expected to continue rising at a rapid rate, in addition to China's share of worldwide semiconductor consumption.
Growth over the next five years will be prompted by a strong global economy and buoyant demand for final electronic products and related components.
Demand for semiconductors and electronic components will be driven by increasing sales volumes of new computer and consumer electronics products; the growing use of electronics in home appliances, communications and automobile products and the rising application of electronics in industrial production (such as in automation and control).
For more information on the electronic parts manufacturing market, see the latest research: Electronic Parts Manufacturing Market
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