Asia Witnesses Massive Growth In Electronics Industry

Asia Witnesses Massive Growth In Electronics Industry

Manufacturing Technology Insights | Tuesday, July 05, 2022

Electronic industry growth in Asia has been as apparent as ever over the recent years. Asia has emerged as the leader in global electronic industry growth, with several major markets registering some of the world’s fastest growth rates for consumer technology.

FREMONT, CA: Consumer electronics industry statistics and growth rates are changing quickly, and Asia's top markets are leading this change. Due in significant part to the region's low labour costs, high availability of qualified people, privileged trading access to Europe and America, rising foreign direct investment, and strong government support, Asia is now the world's largest producer and exporter of electronic products. In the upcoming years, it is anticipated that Asia's electronics sector, which is currently dominated by China, India, and Malaysia, would expand and further solidify its market dominance. China is the world's largest producer of electronic goods, accounting for over a third of worldwide manufacturing, and the market leader in semiconductors. The sector was affected by poor global demand for high-volume products in the computer, consumer, and communication markets in 2016, which resulted in a 1.5 per cent fall in electronics output. According to a recent report by Reed Electronics Research, despite a developing mobile phone market in China, the anticipated recovery in demand for PCs and next-generation LCD TVs should boost production. Output is predicted to increase by 3.4 per cent in 2017, electronics equipment by 2.0 per cent, and components by 8.7 per cent.

India's consumer electronics market recovered in 2015 and 2016, growing by 12.6 per cent and 14.2 per cent, respectively. Its electronic sector is anticipated to continue to expand by double digits in 2017. India will continue to see substantial growth over the medium to long term, supported by a sizable, rapidly expanding domestic market, sizable foreign investment, rising exports, and an improved regulatory environment. However, imports will be used more and more to fill demand as market growth outpaces output. With around 110 million handsets manufactured, the Make in India campaign and other incentives, such as expanding tariff differential benefits in favour of domestic enterprises, have continued to push mobile phone production in India.

Compared to the growth of 4 per cent the year before, Malaysia's electronic output climbed by an estimated 2.8 per cent in 2016. The country will continue to be a desirable location for the top electronic manufacturing service providers, continuing the trend toward higher value-added production. With the output for the important semiconductor sector rising by an expected 5.9 per cent in 2016, Malaysia is one of the top locations for semiconductor packaging and assembly around the globe. The output is anticipated to expand by 8.4 per cent under the improved outlook for the global semiconductor market.

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