Electronic usage of all types continues to surge. The sector includes equipment with consumer electronics being the strongest and most profitable. Worldwide sales of smartphones, TVs, and computers continue to drive demand. The global market for consumer electronics is expected to hit $1.5 trillion by 2024.
The surge is a direct reflection of the rise in personal incomes and increased usage. Growth is characterized by technological advancements in the use of everyday products. Vendors continue to develop and produce new features and add technologies to older devices. Household appliances, wireless technologies, high end audio interfaces, bluetooth are fuels for the raging fire of consumer electronics.
Electronics continue to be pioneered into industries previously excluded from consideration. Automobiles, for example, is seeing a major surge in the use of electronic components. Every area of the car is seeing electronic use, from wheel sensors to backup cameras. Electronic usage is permeating practically every device and life on the planet. Emerging markets are seeing unprecedented growth.
Total global growth rates for the electronics industry is a very healthy 4% per annum. 2018, Asia is expected to see a growth of nearly 5%, Europe 2% and the Americas which is the United States and Canada sits at 5%. Other countries including Austria, New Zealand, and Africa account for 3%.
Increased demand across the planet will continue to see substantial growth as China becomes a key market. The land of nearly 1.5 billion people is becoming a major consumer as well as a producer of electronics. 2018 China will outpace the United States in consumer electronic revenue by almost 2 to 1. China sits at almost $115 billion and the US at $70 billion. Japan, Germany and the United Kingdom are all at $16 billion each.
Key markets China, United States, Japan, South Korea and Germany will all see a boost in revenue for years to come. Conglomerates will continue to maintain a major slice of the electronics manufacturing markets.
The Asia-Pacific region accounted for nearly 55% of the electronics producing markets. North America came in second with 17%.
What all these numbers are telling us, the Asia-Pacific countries are growing at unprecedented rates in both manufacturing and consumption. These economies are thriving, due to their broad industry base. The region is expected to dominate the overall electronics market. Growth is due mainly to high population and generous government initiatives. Well recognized players like Samsung, Sony and Nikon make it difficult for smaller companies to gain a foothold.
The United States has not seen the kind of growth in the manufacturing sector as some other regions of the world. Due in large part to drastic reductions in shipments of computers and parts. The total number of electronic shipments was close to $230 billion in 2017, which equates to about 6% of all manufacturing shipments. The United States has relied heavily on R&D, for much of the industries growth since the early 1990s. Even though the current output of computers has been scaled back, they are major producers of other electronics.
America is a major player in the production of semiconductors, navigational and aeronautical search equipment. The United States leads in the technologies behind many of the new advancements.