Application prospect forecast of the downstream subdivision of electronic components industry

2023-02-27

Development analysis and application prospect forecast of the downstream subdivision of electronic components industry

1. Analysis of development characteristics of electronic components industry

The electronic component industry is the cornerstone of the electronic information industry. The production and manufacturing of all electronic products or the realization of electronic information services depend on the basic functions provided by various electronic components, including signal transmission, signal processing, etc., so as to achieve wide application in multiple fields. The technical level and production process of electronic components are the key factors that determine the performance of terminal electronic products, especially the active components led by IC integrated circuits, which directly determine the performance level of electronic products in terms of power, signal transmission and processing efficiency.

According to product types, electronic components are mainly divided into active components, passive components and accessory accessories. Among them, active devices refer to electronic components that need power supply to realize their specific functions, mainly including electronic tubes, transistors, integrated circuits, etc. Passive components refer to circuit components that do not affect the basic characteristics of the signal, but only allow the signal to pass without modification. The most common ones are resistors, capacitors, inductors, ceramic oscillators, crystal oscillators, transformers, etc. According to the type of original factories, the original factories in the electronic components industry include: engaged in design, engaged in manufacturing, or integrated design and manufacturing.

Analysis of three characteristics of the development of electronic components industry

资料来源：普华有策

(1) The head concentration effect of electronic components industry is obvious, presenting the characteristics of "seller's market"

The production and manufacturing of electronic components are technology-intensive and capital-intensive industries. Therefore, in terms of market share and technology leadership, the industry shows significant head concentration effect.

In terms of market share, taking semiconductors as an example, Intel and Samsung Electronics have been among the top global semiconductor suppliers for many years. In 2021, the total market share of the top ten semiconductor manufacturers in the world is 55.9%, with high market concentration.

In terms of technology leadership, there are only 7 chip manufacturers in the world that have mastered the 14nm process, including Intel, TSMC, Samsung Electronics, Groveland, Liandian, SMIC International and Huahong Semiconductor, while the more advanced 5nm process is only mastered by TSMC and Samsung Electronics. Therefore, in the case of limited suppliers, high-end electronic components present the characteristics of "seller's market".

The distributor of electronic components has assumed the key role of "link". On the one hand, the head distributors provide technical solutions and match the purchase demand of electronic components according to the demand of customers in the downstream electronic information manufacturing industry by virtue of their deep technical accumulation and many years of industry experience, and provide comprehensive services of electronic components supply chain with controllable cost and matching technical demand under the situation of intensified supply chain fluctuation risk and head monopoly of high-end electronic components; On the other hand, it also provides an important information channel for the original factory to timely grasp the technical requirements of downstream customers.

(2) The global electronic component industry maintains a high-speed growth pattern

As the basic material of all electronic products, electronic components have shown rapid growth over the years at a time when the electronic information industry has brought about a leap in productivity in the form of digitalization, networking and intelligence. Taking integrated circuits as an example, since 2020, the global integrated circuits have shown a rapid growth, and will continue to maintain double-digit growth in 2022.

In terms of domestic enterprises, China's electronic information manufacturing industry has maintained a relatively stable export delivery value growth trend in recent years. Except for the impact of Sino US trade frictions in the second half of 2019, the impact of the COVID-19 in early 2020, and the impact of the Shanghai epidemic in April 2022, the export delivery value of most other months has maintained a stable growth.

(3) China's electronic components industry has developed rapidly, but there is still large room for development

Due to the late start of China's electronic components industry, there is still a large gap between China's enterprises and international leading manufacturers, especially in the high-end integrated circuit industry, which is still "blocked" by foreign countries. According to the data of the ICT Institute, China's dependence on foreign technology in core basic parts, key basic materials, basic technology and industry is more than 50%.

Although China is a big country in the global electronic information manufacturing industry, it still relies on foreign countries in the field of integrated circuit products. In recent years, there has been a persistent trade deficit in integrated circuit products. China's trade deficit in integrated circuits will expand in 2021, from 1069744 billion yuan in 2020 to 1660447 billion yuan in 2021.

In this context, domestic electronic component distributors help domestic manufacturers understand the needs of downstream customers more efficiently, realize the rapid promotion of products, help the transformation and upgrading of China's electronic information manufacturing industry, and break through the monopoly pattern of foreign manufacturers in key core technology fields through product promotion, demand docking, supply chain services and other value-added services.

2. Analysis and prospect forecast of downstream subdivision application fields in electronic components industry

(1) Communication: The communication infrastructure has been continuously improved, and there is still a large space for the development of 5G technology

After years of accumulation, China's communication infrastructure construction has been relatively complete. By the end of 2021, the total number of mobile communication base stations in China reached 9.96 million. In terms of 5G technology, 1.425 million 5G base stations have been opened by the end of 2021, and more than 650000 new 5G base stations have been added in that year. However, there is still much room for development in the wide application of 5G technology; Especially in terms of cost, 5G modules are still at the price of 1000 yuan at this stage, and the high price restricts the richness of terminal products, which makes downstream demand fragmented and difficult to form scale effect, and the scale demand of a single market is insufficient. Under this background, the "link" role of electronic component distributors is further highlighted. By providing technical innovation services for downstream electronic information manufacturing enterprises, it helps the upstream manufacturers understand the downstream 5G technology landing needs, and helps the downstream customers reduce the 5G module procurement costs, so as to realize the wide application of 5G technology and promote industrial technology upgrading.

(2) Consumer electronics: wearable devices have become a new growth point, and 5G technology has brought new momentum

The field of consumer electronics mainly includes the research, development and production of terminal electronic products such as mobile phones, wearable devices, personal laptops, etc. Among them, smart phones are the most important component of consumer electronics, while wearable devices, led by TWS headphones, have seen explosive growth in recent years and become a new growth point in the field of consumer electronics.

In terms of smart phones, with the promotion of 5G communication technology, the shipment volume of smart phones has ushered in new growth space. According to the data released by the China Academy of Information and Communications, the shipments of 5G mobile phones increased rapidly. In the whole year of 2021, the domestic shipments of 5G mobile phones reached 266 million, up 63.5% year-on-year, accounting for 75.9% of the total shipments of mobile phones in the same period. In terms of wearable devices, thanks to the continuous development of chips and other key electronic components towards miniaturization and the improvement of processing technology, wearable devices have seen explosive growth in recent years. The global shipment of wearable devices increased from 89 million in 2016 to 193 million in 2020, with a compound growth rate of 21.35%, and is expected to reach 388 million in 2025.

(3) Automotive electronics: new energy vehicles become an important increment

With the introduction of the concept of "carbon neutrality" and the continuous maturity of new energy technologies such as lithium batteries and energy management, new energy vehicles have become the driving force for the growth of the automotive electronics industry. In the whole year of 2021, the output of new energy vehicles will reach 3.545 million, a year-on-year increase of 1.6 times, accounting for 13.59% of the total vehicle output. In addition, the new energy automobile industry has taken the lead in the deep integration of new technologies, including automatic driving, big data, etc., and will integrate more electronic components, such as sensor lines, chips, control rights, etc., resulting in an increasing demand for electronic components in the industry.

(4) Intelligent manufacturing equipment: the key factor to promote the intelligent upgrading of manufacturing industry

Intelligent manufacturing equipment refers to the electronic special equipment that realizes automation and intelligence through the collection of electronic information technology. It is the necessary hardware facilities for the manufacturing industry to realize automation, intelligence, data and network upgrading. Compared with traditional professional equipment, intelligent manufacturing equipment combines a variety of cutting-edge technologies such as machine vision, motion control, visual algorithms, and so on. Therefore, it integrates a variety of electronic components with more diversified types and higher technical requirements.

At present, China's intelligent manufacturing equipment industry has grown rapidly. The data shows that the market size of China's industrial automation equipment has increased from 142.2 billion yuan in 2016 to 189.5 billion yuan in 2020, with a compound growth rate of 7.44%. The market size of China's industrial automation industry will exceed 200 billion yuan in 2022.

However, there is still much room for the development of industrial intelligence in China. According to "Made in China 2025", in 2013, the CNC rate of key processes of industrial enterprises above designated size in China was only 27%, and the target for 2025 was 64%. In the future, with high-quality development becoming the main goal of China's economic development, the demand for transformation and upgrading of the manufacturing industry will further promote the rapid development of the intelligent manufacturing equipment industry. With the improvement of intelligence, intelligent manufacturing equipment will put forward higher requirements for electronic components in terms of quantity and technical content.

For more industry information, please refer to the "Special Research Report on Market Segmentation Analysis and Investment Prospects of Electronic Components Industry 2023-2029" of PricewaterhouseCoopers. Meanwhile, PricewaterhouseCoopers also provides services such as industry research report, industry chain consultation, project feasibility report, the Fourteenth Five-Year Plan, BP business plan, industry map, industry planning, blue white paper, IPO investment feasibility study, IPO working paper consultation, etc.

Report directory:

Chapter I Analysis of Macroeconomic Environment

Section I Global Macroeconomic Analysis

1、 Overview of global macroeconomic operation in 2022

2、 Forecast of global macroeconomic trends in 2022

Section II Analysis of China's macroeconomic environment

1、 Overview of China's macroeconomic operation in 2017-2022

2、 Forecast of China's macroeconomic trend in 2022

Section III Social environment analysis of electronic components industry

Section IV Analysis of political and legal environment of electronic components industry

1、 Analysis of industry management system

2、 Industry-related development planning

3、 Interpretation of major industrial policies

Section V Technical environment analysis of electronic components industry

1、 Analysis of technical development level

2、 Technical innovation trend analysis

Chapter II Development Analysis of International Electronic Components Industry

Section I Analysis of the development status of the international electronic components industry

1、 Overview of the development of international electronic components industry

2、 Economic benefit analysis of electronic components industry in major countries

3、 Analysis of the development trend of international electronic components industry from 2023-2029

Section II Development status and experience of electronic components industry in major countries and regions

1、 Analysis of the development of electronic components industry in the United States

1. Industry scale in 2017-2022

2. Industry prospect in 2023-2029

2、 Analysis on the development of European electronic components industry

1. Industry scale in 2017-2022

2. Industry prospect in 2023-2029

3、 Analysis on the development of electronic components industry in Japan and South Korea

1. Industry scale in 2017-2022

2. Industry prospect in 2023-2029

4、 Analysis of the development of electronic components industry in other countries and regions in 2017-2022

5、 Summary of development experience of foreign electronic components industry

Chapter III Supply and demand analysis of China's electronic components market in 2017-2022

Section I Analysis of electronic component capacity in 2017-2022

1、 Production capacity and growth rate of electronic components in China from 2017 to 2022

2、 Production capacity forecast of electronic components in China from 2023 to 2029

3、 Analysis of capacity utilization of electronic components in China from 2017 to 2022

Section II Analysis of output of electronic components in 2017-2022

1、 Output and growth rate of electronic components in China from 2017 to 2022

2、 Forecast of China's electronic component production from 2023 to 2029

Section III Market demand analysis of electronic components in 2017-2022

1、 Market demand and growth rate of electronic components in China from 2017 to 2022

2、 Forecast of China's electronic component market demand in 2023-2029

Chapter IV Analysis of China's electronic components industry chain structure

Section I Structure of China's electronic components industry chain

1、 Overview of industrial chain

2、 Characteristics

Section II Evolution trend of China's electronic components industry chain

1、 Life cycle analysis of industrial chain

2、 Analysis of value flow in the industrial chain

3、 Evolution path and trend

Section III Competition analysis of China's electronic components industry chain

Chapter V Analysis of the industrial chain of electronic components industry in 2017-2022

Section I Analysis of upstream operation of electronic components industry in 2017-2022

1、 Industry upstream introduction

2、 Analysis of upstream development of the industry

3、 Analysis of the influence of the upstream of the industry on the electronic components industry

Section II Analysis of downstream operation of electronic components industry in 2017-2022

1、 Industry Downstream Introduction

2、 Proportion of downstream demand in the industry

3、 Analysis of downstream development of the industry

1. Market analysis of electronic components for A

(1) Industry development status

(2) Demand scale

(3) Demand prospect forecast

2. Market analysis of electronic components used in field B

(1) Industry development status

(2) Demand scale

(3) Demand prospect forecast

3. Market analysis of electronic components for field C

(1) Industry development status

(2) Demand scale

(3) Demand prospect forecast

4. Market analysis of electronic components for D

(1) Industry development status

(2) Demand scale

(3) Demand prospect forecast

5. Market analysis of electronic components used in E field

(1) Industry development status

(2) Demand scale

(3) Demand prospect forecast

Chapter VI Regional market analysis of China's electronic components industry

Section I Analysis of electronic components industry in North China