The global electronics and ICT industry is on a promising trajectory, with projections indicating a 5.3% increase in output for 2024 and a further 6.3% rise in 2025. This growth is propelled by several pivotal factors across different sub-sectors.
Revitalization of Computers and Office Equipment
As both consumers and businesses begin to upgrade computing devices acquired during the pandemic, the computers and office equipment sector is poised for a significant rebound in output and sales throughout 2024 and 2025.
Growth in Electronic Components and Boards
The electronic components and boards sector is expected to experience an annual growth rate of approximately 9% over the next two years. This surge is primarily driven by the escalating demand for semiconductors, which is being accelerated by advancements in artificial intelligence technologies.
Advancements in Telecommunications Equipment
The telecommunications equipment industry is also set for expansion, with production and sales projected to increase by about 5% annually. This growth is underpinned by continuous upgrades to mobile and broadband infrastructure.
US Electronics and ICT: Semiconductor Boom
In the United States, the electronics and computer production sector is forecasted to grow by 4.7% in 2024 and 3.4% in 2025. A major driver of this growth is the electronic components and boards subsector, which is expected to expand by 9.8% this year and 7.2% in 2025. The increasing focus on cloud computing, storage, automated data processing, and cybersecurity is becoming crucial for businesses. Additionally, government initiatives are poised to enhance US chip production capacity in the medium to long term.
Asia-Pacific: Managing US-China Trade Dynamics
Producers in Japan, South Korea, and Taiwan maintain a positive long-term outlook, benefiting from the growing demand for semiconductors and ICT products. However, ongoing US restrictions on advanced chip exports to China could affect sales and profits for East Asian high-tech manufacturers. Despite these challenges, Chinese production of electronics and semiconductors is anticipated to grow by 9.5% this year and 7.4% in 2025, as the country continues to progress in the chipmaking value chain.
Europe: Navigating Challenges and Seizing Opportunities
In Europe, the electronics and computer sectors in the eurozone and UK are expected to see a slight contraction of 0.4% and 0.2% respectively in 2024. However, a gradual recovery is anticipated towards the end of the year. The EU Chips Act aims to invest EUR 43 billion in local semiconductor production and research, aiming to reduce reliance on Asian imports. Despite these efforts, the EU's target of achieving 20% of global production by 2030 remains ambitious.