Fusion Worldwide’ president, Tobey Gonnerman, highlights cloud computing, consumer, industrial and AI as sectors driving business growth in 2025.
Despite a relatively stagnant start, 2024 presented a unique opportunity to gain insight into underlying market dynamics in the electronic component industry. As the pressure of unprecedented demand from the chip shortage eased, we entered a corrective phase where customers replenished inventories and buffer stock. This triggered a sustained excess cycle and the current slowdown, with varying recovery rates across industries.
We anticipate a turning point in 2025. Manufacturers are forecasting growth and implementing strategies signaling recovery. Order volumes are on the rise in key sectors like cloud computing, consumer and industrial. Although the extent of this trend varies, such fluctuations are inherent to the supply chain.
Amidst this recovery, AI is a pivotal growth driver. AI has positively impacted memory and system-level commodities, fueling demand and innovation. We expect a wave of refresh cycles thanks to AI as consumers seek to upgrade technologies.
Additionally, the outcome of the US election may change trade policies, impacting global supply chains. Uncertainties surrounding tariffs and shifting supply chain dynamics are likely to persist in 2025.
Staying attuned to these fluctuations will be critical for strategic purchasing in the new year, which promises to bring new opportunities as market conditions evolve.