There is no mistaking the energy at electronica 2014: the halls are filled, the booths are vibrant, the ideas abundant, and the discussions are excited. The outlook is extremely positive for the rest of 2014 and through 2015 in terms of industry growth and positive demand across market sectors and regions. At the Smith Booth, 412 in Hall A4, we have experienced first-hand these positive outlooks as the many people we speak with daily look for creative, secure solutions to meet the growing demand, tightening cycles and shorter lead-times, and expanding global networks.
All lights green for growth
As electronica 2014 is clearly demonstrating, Europe is again home to growth and momentum in the semiconductor and electronics industry. The position of Europe in the industry has matured, of course, and with that Europe has taken on a much more global position and important link our industry's supply chain. Much as I discussed in the early Fall in this more detailed look at the European market for Global Purchasing, and as echoed by many including Victoria Kickham of Global Purchasing, "Europe remains an important target for supply chain companies based in North America, as the outsourcing trend continues and companies look to both expand upon and develop new business opportunities across the continent."
As I discussed in my article at the time, already by the end of the summer we saw that component demand for automotive, automation, and embedded components were rising. This growth relates to a core of positive, sustainable, and fluid growth in a wider set of market sectors that are taking off, hence placing demands for these component categories. More discussion on EU electronics industry growth can be found in Smith's MarketWatch Quarterly.Â In turn, this wider industry growth is supporting an increase of sales across a wider set of components and driving more diverse market applications for the semiconductor and electronics industry in Europe and globally. A positive perfect storm being fueled by pent-up demand for goods and for industrial/manufacturing upgrades that are supporting sustainable economic rebounds globally for electronics.
Demand (and supply) is broad-based
Along the trade show floor at electronica, there is a plethora of new solutions on display, from components to devices and the applications to support them. One overarching connection is SmartLife – an important blend of IoT, smart devices, and improvements in efficiency (from individual to municipal levels of energy, water, and other resources). It is not surprising to see SmartCity and SmartLife featured prominently at electronica, particularly given the European Union's (EU) leadership role globally when it comes to efficiency and sustainability improvements.
SmartLife and SmartCity are not just future dreams for improvements that can be realized through IoT and individual connectivity and resource management through personal smart devices, it is very much the new era we have entered. As Evertiq discussed today, connected devices are a central piece of the current growth market; these devices are the gateways through which SmartLife and SmartCity are being and will be realized.
Today I met with Anke Schröter as we discussed the growth being experienced in our industry - the video of our discussion is available on Evertiq's news from electronica 2014. In tomorrow's post, I will focus on some of the component and electronic trends that we are seeing and which are rising to the top of the trade floor discussions.