Astute Electronics’ sales and marketing director, Mark Shanley, encourages OEMs to double down on forging strong supplier relationships to withstand any upheavals
The OEM market presents a mixed bag of prospects in 2024. IoT, renewable energy, healthcare, wearable technology and automotive are on the rise, contrasting with static consumer electronics, particularly smartphones and PCs.
The drive for greater functionality in smaller devices is unrelenting. IoT and related smart devices are catalysing a global shift, boasting over 20 per cent yearly growth. Renewable energies are breaking records for growth. Healthcare tech is rising more than five per cent, while wearable tech, riding the wave of health awareness, is predicted to grow by up to 15 per cent. The EV industry is set to grow even more, as much as 18 per cent.
All this innovation is forcing up prices of key components like microcontrollers, power management ICs, SoCs, low- power sensors, imaging chips and display technologies. It is also stretching lead times. Since everybody now wants a generative AI application, Invidia chips are in huge demand, likewise those from Google, Graphcore and AMD.
However, it’s not all peaks. Consumer electronics shows signs of stagnation, with the smartphone and PC markets barely growing, hinting at a saturated market. These forecasts must be tempered by serious geopolitical unrest that will impact the electronics supply chain. With global military spend exceeding $2 trillion, OEMs will be competing for essential components, potentially causing delays and price surges.
We should brace for constrained supply conditions and price fluctuations, and double down on forging strong supplier relationships to withstand any upheavals.