29 Feb 2024 -
 General

Electronics industry optimistic: bright start to 2024

semi manufacturing

The latest industry survey reveals strong momentum and optimism in the electronic components market for 2024.

The Electronic Components Industry Association’s (ECIA) recent Electronic Component Sales Trend (ECST) survey results show significant improvement across the board, with the overall index jumping over 20 points to its highest level in 21 months, at 98. Notably, 100 represents the threshold for reaching growth.

The survey highlights the positive performance of end-markets like avionics/military/space, medical, and industrial, with all projected to reach or exceed the 100-point growth threshold in February.

ECIA

Positive sentiment extends to February, with survey respondents expecting the overall index to reach 107.4, breaking above the growth threshold for the first time since September 2020. This optimistic outlook is reflected across all three major segments: semiconductors, electro-mechanical components, and passive components.

Semiconductors, in particular, witnessed exceptional growth, leaping nearly 39 points to reach 105 and exceeding December’s expectations by over 24 points.

However, ECIA cautions that the forecasts should be approached cautiously, as exceeding such high expectations has only occurred twice in the survey’s history. The last such instance, in September 2020, was followed by a significant dip in the index, highlighting the inherent volatility in the market.

The current upswing, however, appears fundamentally different from the 2020 rebound from the COVID-19 impact. This time, the improvement signifies a more sustained recovery following a 1.5-year slump.

Furthermore, the ECST survey highlights the positive performance of end-markets like avionics/military/space, medical, and industrial, with all projected to reach or exceed the 100-point growth threshold in February. This robust outlook suggests a potential for continued growth across diverse sectors within the electronic components industry.

While caution remains necessary, the ECIA’s ECST survey paints a promising picture for the electronic components market in 2024. The strong momentum and positive sentiment across various segments indicate a potential for continued growth and recovery.

Thousands of senior engineers and procurement professionals subscribe to our LinkedIn Market Intel newsletter – get yours here

For more help with looking at supply chain options, contact Astute Electronics

Related News

18 Jul 2024 - General

New Study Unveils Significant Value of Authorised Electronics Distributors

Read more

16 Jul 2024 - Defence

Astute Group Strengthens Embedded Computing Portfolio with AiTech Systems Distribution Deal

Read more

10 Jul 2024 - General

Counterfeit GPUs on the Rise: A Growing Concern for the Electronics Industry

Read more

09 Jul 2024 - General

DRAM Prices Skyrocket Amidst AI Boom and Production Shifts: A Deep Dive into the Memory Market

Read more

08 Jul 2024 - General

US Government Invests in Semiconductor Workforce to Combat Looming Talent Crisis, But Challenges Remain

Read more

07 Jul 2024 - General

Semiconductor Manufacturing Equipment Sales Expected to Explode

Read more