By the time this copy reaches your hands, we are already entered in 2024. We wonder what 2024 will bring to the electronics industry in terms of challenges and opportunities. In a flux geopolitical situation worldwide, no one can be sure as to how the next year would be like. but we have got some intelligence about what’s going to happen down the line.
2024 has the respite of being a satisfactory recovery year for the semiconductor industry and setting the stage for continued growth in 2024. Semiconductor sales are likely to strengthen by mid next year 2024. The sales are driven by emerging technologies like artificial intelligence, computing, and networking infrastructure. All segments are projected to log year-over-year increases in 2024. There are several factors driving the demand for semiconductors. There’s a massive demand for computing power and data storage i.e. generative AI, smartphones, wireless communication devices and more advanced automobiles require more and powerful chips to power advanced road safety and self-driving features.
The EV and automotive industry are undergoing a transformative shift. Electrification is emerging as a driving force for the same. The automotive landscape is rapidly evolving as electrification stands out as a pivotal factor reshaping the industry. The transition towards electric vehicles is driving an increased demand for advanced semiconductor solutions. Power management systems to advanced driver-assistance systems, semiconductor technology is at the heart of this electrification revolution.
In 2024, the development of 5G networks will continue, based on which the smart grid automation and the development of IoT solutions for such industries as smart cities, healthcare, video surveillance, and smart cars will continue.
We can expect stable pricing and a manageable lead time for most components as we get into next year. India is climbing the ladder of large economies at an accelerated pace. To an estimate India’s GDP will reach $5.0 trillion by 2027. The purchasing capacity of the middle-income group is on the rise. As technology continues to evolve at a rapid pace, our lives will become increasingly intertwined with innovative electronic devices. The increased income will keep the market buoyant throughout 2024.
But it would not be wise to think that 2024 will be a smooth sailing. We need to pay attention to component manufacturing capacity. The focus towards supporting the most advanced technologies with new fabs and the trend toward consolidation in the semiconductor industry will lead to product discontinuance notifications.
Continued geopolitical strife will also have an impact on the electronics industry. War creates a certain amount of supply chain concern.
China could be a bizarre outcome to obstruct the supply chain as its economy is facing tremendous pressure due to faulty policies of the Chinese Communist Party. Thousands of overseas manufacturers have shut down their operations. Real Estate, banking and infrastructure sectors are hit badly. Companies worth billions of dollars have gone into bankruptcy. Unemployment is at an all-time high. Country’s foreign reserves are fast depleting. We are afraid that the world might see another Covid like situation if China’s economy doesn’t improve. China is an Achilles heel as of today. Currently the world is under threat due to respiratory illness in children in northern China. Unlashing such Bio-Terror is a reality of today.
If we could manage to keep the undesired events under control, 2024 should be a good year.
By Devendra Kumar, Editor in Chief, ELE Times