Showing posts for August 2021
25 August 2021
Automotive electronics market set to grow
With vehicles getting smarter, more connected and more autonomous, the automotive electronics market looks set to soar.
Future growth in numbers
Back in March, Precedence Research predicted the automotive electronics market would hit around US$ 640.56 billion by 2030.
Then, in July, Global Market Insights released research predicting the automotive electronics market would hit around US$ 380 billion by 2027.
Interestingly, measured across the same period, both research reports (which are independent) predict a similar growth pattern. Global Market Insights predicts a 6% CAGR, while Precedence Research predicts a CAGR of 7.64% over a 3-year longer period.
With two separate reports indicating significant annual growth, the automotive electronics market looks set to boom. But wait, there’s more.
A 9.3% CAGR is expected in the automotive electronics market by 2030, according to research by P&S Intelligence. They predict slightly less growth than Precedence Research to 2030, at US$ 615.3 billion (versus $640.56 billion).
There are approximately 1,400 chips in a typical vehicle today, which each chip housing thousands of components on a semiconductor wafer, creating the integrated circuits that power computing, memory and a host of other tasks.
Those are just the chips.
Cars have thousands of other electronic components, including passive, active and interconnecting electronic components, from batteries, sensors and motors, to displays and cameras. Oh, and everything is connected.
All told, a typical car today has more than 50,000 electronic components that enable features like in-car Wi-Fi, self-parking technology, adaptive headlights, semi-autonomous driving technology, keyless entry and powered tailgates.
However, cars are getter smarter and more advanced. Electronic components today make up around a third the cost of a car, which will increase over time as more sophisticated and greater numbers of components are used.
Smarter cars need more components
The future of cars involves electrification, autonomous and self-driving technologies, hyperconnectivity, Internet of Things, augmented reality, artificial intelligence, biometrics and a whole host of next-generation technologies.
How will these be enabled? With electronic components.
Let’s take electrification as an example. An electric car handbook will tell you an electric car has a motor, a battery, an on-board charger, and an Electronic Control Unit (ECU) that controls one or more of the electrical systems or subsystems in the vehicle. Together, these let you drive around, charge, and pop to the shops.
In-between these systems, are hundreds of thousands of electronic components that make them work. You see, an Electronic Control Unit is a single component, containing thousands of smaller components, each performing a critical role.
The automotive electronics market is set to soar because cars and other vehicles will need more components with electrification and next-gen technologies. Sometimes, things can be simple to explain, and this is one of those times.
The electronics industry is facing a global chip and electronic component shortage which is expected to last 2-3 years. As demand for automotive electronics soars, shortages look very likely for certain components like CPUs and memory.
The solution for many companies will be to use an electronics component distributor, to fill gaps in the supply chain and keep things moving.
Electronic component distributors like Cyclops can source hard-to-procure components because we have relationships with the best suppliers in the industry. Contact us today with your enquiries at email@example.com or call 01904 415 415.
18 August 2021
Why are semiconductors so important to so many industries?
The semiconductor chip has done more to connect the world than any other technology, but why is it so important to so many industries?
Semiconductors are materials used to make semiconductor wafers, on which potentially millions of components are fabricated, to create an integrated circuit (IC), creating a single chip that can be used for computation or other tasks.
Semiconductors are important to so many industries because they are an essential electronic component, whether we are talking about the semiconductor material (silicon, silicon carbide) or the chips that perform tasks.
To understand why semiconductors are so important to so many industries, let’s take a step back and clarify what a semiconductor actually is.
What is a semiconductor?
A semiconductor is a material that partly conducts current, somewhere between that of an insulator and a conductor (hence the name semi-conductor).
A semiconductor chip is an integrated circuit (IC) formed on a wafer of silicon, consisting of the semiconductor material that manages the flow and control of current, and components like transistors and resistors to create the circuit.
When talking about semiconductors in relation to chips, we use the names “chips” or “semis’” because these names are more accurate for describing circuits laid down or grown to do computation or other tasks like memory.
Why are semiconductors so important?
In 1947, the first semiconductor transistor was made. Engineers quickly realised that manufacturing transistors out of silicon allowed them to fit on a microchip, which opened the gates to all the electronics you use today.
Without semiconductor chips, modern electronics would not exist. These inconspicuous, tiny components replaced tubes in electronics in the 1970s, laying the foundation for every electrical device used today, including the screen you’re looking at.
Today, all modern electrical devices use semiconductor chips, from home ovens to smartphones and cars. Billions of semiconductors are manufactured each year, and they are getting smaller and smarter with each generation.
Powering our smart, connected world
As we discussed earlier, semiconductor chips are single electronic components consisting of thousands or millions of electrical components, enabling functions like computation, memory, oscillation, switching, logic, amplification, and so on.
Without this single component with an integrated circuit, there would be no way to efficiently make the circuits we need to create smart, connected devices in their current form. Quite literally, chips are the reason you are reading this.
With an insatiable appetite for semiconductor chips, it’s a good job the material we use to make the wafers - silicon - is naturally abundant.
Today, most chips are built on silicon, which makes up 27.7% of the earth’s crust, or silicon carbide, a compound tweaked for performance.
However, our demand for chips is outstripping supply. There is a global semiconductor shortage under way affecting all industries, with the automotive industry hardest hit due to a perfect storm that has been building for years.
Electronic components distributors like us, Cyclops Electronics are helping supply meet demand, while the semiconductor industry battles to make more chips.
If you are having difficulty finding those hard-to-find and obsolete electronic components. Get in touch with our team today by emailing firstname.lastname@example.org or call 01904 415 415.
10 August 2021
Passive and Interconnecting Electronic Components market to display lucrative growth
The passive and interconnecting electronic components market is predicted to display lucrative growth across all regions over 2020-2025, with North America the dominant market due to the prominence of players in the country.
These predictions come from The Passive and Interconnecting Electronic Components market report from Market Study Report, which you can request a sample of here. The report delivers a rigorous analysis of the market, examining the main growth drivers and restraints, as well as opportunities for revenue cycles.
The passive and IEC markets are forecasted to experience a CAGR (compound annual growth rate) of 3.1% from 2020-2025, with the US market expected to reach $32.3 billion by 2025, up from $28.6 billion in 2020.
Key players in the industry include:
- API Technologies
- AVX Corporation
- ST Microelectronics
- 3M Electronics
- Fujitsu Component
- American Electronic Components
- Eaton Corp.
- Datronix Holding Ltd
As the world gets smarter and demand for passive and interconnecting electronic components increases, small players will also take a bigger role. Trade barriers caused by geography will need to be overcome to meet demand, fuelling an explosion in growth across all developed markets, from Europe to Asia Pacific.
What is fuelling growth?
While the report provides in-depth analysis of factors that will fuel growth, we don’t want to tread on its toes, so we’ll provide a simpler analysis.
The reason the passive and interconnecting electronic component markets are going to experience significant growth over the next several years is because of industry tailwinds and technological advancement. Given today’s technological innovation, it’s no wonder that demand for all types of electronic component is soaring.
Disruptive new technologies, rapid advancement in existing technologies and the adoption of smarter, more connected devices, is fuelling unprecedented demand for everything from passive components to chips.
For example, in 2021, manufacturing of passive components could see an 11% increase, but demand is likely to exceed 15%.
Making supply meet demand
There has been a lot of talk about how the next great technological cycle will fuel growth for the semiconductor industry, but it’s important to recognise that chips are nothing but silicon and metal without other components like passives and IECs.
While supply for some components like display drivers is ticking along, there is a global shortage for other components like active, passive and electro-mechanical components, putting manufacturers in a compromised position.
The shortage for some IECs and passive components is expected to last several years, so making supply meet demand will be a challenge in the near future.
To make supply meet demand, suppliers and manufacturers will need to partner with well-connected distributors. Electronic component distributors are the best-connected players in the supply chain, linking sellers with buyers and vice versa.
Sourcing and allocating shortage electronic components is something that we specialise in at Cyclops. We help source components that are impossible to find, helping to keep supply chains moving and manufacturing plants going.
With the passive and interconnecting electronic components market set to soar, planning is essential to make supply meet demand and capitalise on growth.
04 August 2021
Chips shortage limits auto production in Brazil and the rest of the world
“Never seen anything like it,” Tesla’s Elon Musk tweeted last month about the global chips shortage, “Fear of running out is causing every company to overorder - like the toilet paper shortage, but at epic scale.”
If you want a prime example of the chips shortage, look to Brazil.
In 2020, the automotive industry in Brazil was hit hard by chip shortages and the coronavirus pandemic. Approximately 1.61 million passenger cars were made in 2020, a decrease of over 34% compared to the following year.
2021 got off to a flier… then grounded
2021 got off to a much better start for Brazil, with 1.14 million passenger cars leaving the production line in in the first half of the year, a 57.5% increase compared to the same period last year. However, production has hit a ceiling.
Brazil's Association of Automotive Vehicle Manufacturers, ANFAVEA, has disclosed that because of chip shortages, Brazil missed its target for automotive production in the first half of 2021, and the numbers cited are startling.
According to ANFAVEA, some 100,000 to 120,000 passenger cars were prevented from entering production by the chips shortage. In June, only 166,947 passenger cars were made, the worst figures of any month in the last 12 months.
Manufacturing limitations created by the chips shortage have been compounded by the coronavirus pandemic. Brazil has seen 19.8m coronavirus cases with a 2.8% mortality rate, sadly resulting in over 500,000 deaths.
The biggest factories are struggling in Brazil
More than 20 plants in Brazil run by the likes of Volkswagen, Mercedes-Benz, General Motors, Nissan, Toyota, Renault, Volvo, Scania and Honda have shut down temporarily in 2021 because of the chips shortage and the pandemic.
At the beginning of June, Volkswagen halted operations at two Brazilian plants amid the chips shortage for 10 days. The company said, “A significant shortage of semiconductors is resulting in several supply bottlenecks.”
Then, in July, Hyundai Motor temporarily halted the operations of its Brazil plant due to the chips shortage. The closure was the first in the Piracicaba plant’s history, raising the alarm over chip shortages in the automotive sector.
What next for the Brazilian automotive sector?
Figures show that in the first half of 2021, the Brazilian automotive sector had a strong rebound on 2020. However, water has been thrown over the fire towards the middle of the year, due to chip shortages across the sector.
Local manufacturers expect to see some relief after August as manufacturing plants catch up, but manufacturers are uncertain about when the supply chain will normalise.
How’s morale among big companies? Sombre, to say the least.
Dell’s CEO echoes these sentiments, "The shortage will probably continue for a few years. Even if chip factories are built all over the world, it takes time."
So, whichever way we look, and whichever experts we ask, the global chip shortage is showing no signs of abating. For Brazil’s auto manufacturers, making supply meet demand will be the biggest test of the last few decades.
Need Electronic Components?
When you need to source hard to find electronic components quickly because of allocation, long lead times, obsolescence, or quality issues, contact Cyclops Electronics for a fast response to your enquiries and a reliable on time delivery. Email Sales@cyclops-electronics.com or call 01904 415 415 today.
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