The 2024 Electronic Components Industry: What A Year THIS Has Been!
December 18, 2024
There’s a Keystone in every great product, solution, service, tool and platform.
The Next 6 Months Will Be Just Like the Last 6 Months. That’s all we heard at electronica 2024 from manufacturers, channel partners and customers. Not exactly the way we would like to head into the new year. Economic uncertainties, demand fluctuations and ongoing supply chain disruptions significantly impacted the component landscape particularly mature electronic component markets in 2024. Manufacturers of legacy components are only producing at profitable levels, resulting in price hikes for the wider customer base. Supply chain disruptions caused by ongoing geopolitical challenges and imbalances in supply and demand are continuing to contribute to supply chain uncertainty. These factors combined create a high-risk environment for mature electronic component markets, with uncertain recovery timelines and potential for continued volatility in the near future.
Despite this less than ideal year in review, 2024 was still one for the history books. Even though we are still working our way out of the post-COVID inventory chapter, there’s no debating the level of interest and intrigue, and the number of ways AI and its plethora of tools being developed are helping redefine every phase of our business. From product concept and design to product lifecycle management to quality and regulatory procedures to supply chain management, AI will be (if not already) a positive game changer for all of us regardless of what markets we serve. The semiconductor industry is one of the bright spots fueled by the rising demand in AI, 5G infrastructure, data centers, high-performance computing, and the automotive industry. Hopefully this will soon trickle down to positively impact the components and technologies that support these emerging applications.
The global electronic components market, including electromechanical components, is forecasted to grow from $442.82 billion in 2024 to $488.43 billion in 2025. There are several drivers impacting this component growth including: 5G network integration, Data Centers, Automotive’s Advanced Driver-assistance Systems (ADAS), Industrial Automation and the adoption of industry 4.0 technologies, and Consumer Electronics wearables, and smart home devices. While the outlook for electromechanical components is generally positive, the industry may still face potential supply chain disruptions due to geopolitical tensions, the need for continuous innovation to meet evolving industry demands and adapting to the increasing integration of AI and IoT technologies. Companies in the electromechanical components sector will need to focus on developing cutting-edge solutions and maintaining adaptability to capitalize on the opportunities presented by the growing market in 2025.
Still 2025 holds numerous bright spots for our industry driven by technological advancements, market demands and global trends. We’ve mentioned artificial intelligence and machine learning integration. In addition, advancements in battery technology, wider 5G deployment and early-stage of 6G technology, Quantum Computing expansion into commercial applications, healthcare electronics growth in telemedicine and wearable devices, enhanced robotics and automation systems in manufacturing, and logistics are just a few of the key opportunities and developments to watch.
At Keystone Electronics, 2025 will highlight our 75th year and the debut of our latest Product Design Guide with new products in many of our categories including Battery Clips, Contacts & Holders, Fuse Clips & Holders, Computer and Panel Hardware and more.
We made it through 2023 and 2024, let’s see how we can really turn things around in 2025.
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