Categories
Electronic Components

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).

Growth factors

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.

Meeting demand

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 sales@cyclops-elecronics.com or call 01904 415 415.

 

Categories
Semiconductor

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 sales@cyclops-electronics.com or call 01904 415 415.

Categories
Electronic Components Passive Components

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:

  • ABB
  • API Technologies
  • AVX Corporation
  • ST Microelectronics
  • 3M Electronics
  • Fujitsu Component
  • American Electronic Components
  • Hamlin
  • 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.

Categories
Component Shortage

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.  

IBM says the chip shortage could last two years, while Intel Intel’s chief executive, Pat Gelsinger, thinks it could stretch into 2023.

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.

Categories
Component Shortage Electronic Components

What Shortage? How Electronic Component Distributors Make Supply Meet Demand

When buyers can’t find electronic components, they turn to distributors like us who can source scarce and obsolete parts.

Our experience has been tested to new extremes over the last several months due to the semiconductor and wider electronic components shortage. This shortage was years in the making but has been amplified by COVID-19.

It says everything about the state of the electronic components supply chain when Samsung, who make their own chips, don’t have enough chips. Shortages have affected brands like Samsung, Apple, Volkswagen and Nintendo not just in terms of supply, but also prices, which have skyrocketed in 12 months.

When the chips are down, prices go up.

Distributors are busier than ever

Cyclops Electronics, as well other distributors, have become more essential than ever in supply chains since the COVID-19 pandemic began.

It’s no exaggeration to say distributors like us are keeping many businesses going. We keep production lines going by sourcing scarce parts from around the world – parts that would be impossible to source without excellent connections.

We are seeing desperation from companies that have never experienced supply chain problems. We’re talking about global companies listed publicly.

The situation is so bad for some components that some companies are paying a 100% premium just to secure them. Supply and demand is driving fierce competition and bidding wars are not uncommon.

If these revelations shock you, consider this – the electronics components shortage isn’t expected to abate until late 2021 at least. By then, there should be more order to the chaos, but some industry experts expect it to persist longer.

For example, IBM has said the chip shortage could last 2 years.

A 2 year extension would extend the chip shortage to 2023 at least. This is likely to be the case for other components too, including memory, integrated circuits and display drivers. A huge number of companies will be affected.

Playing a crucial role in the supply chain

Distributors like us are able to source hard-to-procure components because we have rapport with the best suppliers in the industry. In other words, we have immense buying power, and we put this to use for our customers.

Another way we are playing a crucial role in the electronics components supply chain is the reduction of counterfeit components.

Counterfeiters are taking advantage of weakened supply chains, lapse quality control processes and inadequate reporting to flood the market with illegal components. This has affected thousands of buyers and will affect many more.

Our role in this is to deploy anti-counterfeiting technologies including a SENTRY machine, die testing and decapsulation testing to test the components we procure. This ensures the components we supply are genuine parts.

We provide industry-leading chip testing to catch counterfeit parts. We have ISO 9001:2015 certification and ESD qualified staff.

If you need to buy parts and the only way to get them is with a distributor, don’t rush in – make sure your distributor is as equally qualified as us first. If you need help, feel free to call us on 01904 415 415 for a chat with our experts.

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