The disruption caused by COVID-19 on component makers mean it will be a challenging environment for consumer electronics and the automotive industry for the rest of 2020, says GlobalData, a leading data and analytics company.
GlobalData’s recent report, ‘COVID-19 Impact on Component Makers – Thematic Research‘, reveals that economic shutdowns, starting in China and subsequently spreading across the world, have hit supply chains hard and may also have a delaying effect on the prototyping and production of new products.
David Bicknell, Principal Analyst, Thematic Research at GlobalData, comments: “This is further compounded because in the current climate new car purchases, including electric vehicles, are not at the top of the agenda for either businesses or consumers right now.”
The Internet of Things (IoT), one of the strongest drivers of global component markets, will also be less of a priority for both public and private organizations in 2020. Smart cities, which would have been sensor buyers (i.e for electronics), will delay spending until they have come to terms with the impact of a public health emergency.
Bicknell continues: “Future smart city applications, such as infectious disease monitoring, have been getting the full-scale pilot no-one could have foreseen or desired.”
The market for components for consumer electronics will come back once consumer confidence returns. There will be a rebound, though it is not yet clear when that will be. When the tide starts to turn in the battle against COVID-19, component makers must ensure they are in a position to take advantage of future demand.
Bicknell adds: “Every cloud has a silver lining and, for component makers, it may be the growing use of biosensors. The long-term need to provide tests both for COVID-19, its future variants, and other diseases, will see biosensors become an increasingly important part of the component makers market, with governments worldwide becoming continued buyers for public health applications.”
