Transport up, connected devices down

TTI’s senior VP, global strategic accounts, Jeff Ray

TTI’s senior VP global strategic accounts, Jeff Ray, says availability of commercial products in communications/consumer markets may drive prices down

Compared to 2023, sectors yielding the most pronounced growth will be transportation/mobility, healthcare and industrial industries. Transportation/mobility sub-segment applications driving 2024 growth include drivetrain electrification, ADAS/autonomous, connectivity and EV charging. Healthcare growth will come through increases in diagnostic, test and measurement equipment, plus patient monitoring and medication management applications.

Industrial sector growth sub-segments include energy storage systems, renewable energy generation and transmission/infrastructure, including building technology and industrial automation. I see declining performance in 2024 for connected devices, handheld/ultraportable, 5G, cloud/network and storage market sectors.

Measured in lead times and with few exceptions, electronic components have been more available in 2023 and that trend will continue in 2024. However, some more problematic products are critical to high growth sectors such as transportation, medical and industrial.

Availability of commercial grade products heavily used in the declining communications and consumer market segments may have downward pricing pressure in 2024. Today, given the amount of inventory in the channel either at distributors, OEMs or EMS providers, most component manufacturers are reluctant to offer lower prices because there are limited upside or available share gain opportunities.