Electric shock: Outsourcing and global competition kept the industry in decline

Electronic components are ubiquitous in modern life. A vast range of appliances, from computers and mobile phones to TVs and cars, use electronic components. They are present in infrastructure, such as traffic lights and alarm systems, and in medical equipment, industrial machinery and solar panels. Although UK companies design a considerable amount of new technology and electronic components, the UK industry is far from being a global market leader.Over the past five years, the industry has been volatile. Revenue spiked in 2016-17 as the result of the EU referendum, which led to a sharp fall in the value of the pound, boosting exports through the year. The industry is expected to struggle through the current year, with revenue forecast to decline by 3.5%...read more.

Industry Statistics & Market Size
Revenue
£1.9bn
Annual Growth 14-19
-3.2%
Forecast Growth 19-24
Profit
Employment
13,138
Businesses
584

Industry Threats & Opportunities

  • Manufacturers have moved production abroad, which has weighed on industry revenue
  • Some industry operators have moved their manufacturing to countries with lower wage costs
  • Firms are expected tofocus on fabless production as the competition from overseas grows
  • Industry Report - Industry Investment Chapter

    The industry has a medium level of capital intensity and a capital-to-labour ratio of 1:7.17. This indicates that for every £1.00 that is spent on capital, £7.17 is spent on wages. However, capital intensity in different segments of the industry vary. For instance, wafer foundry production is more intensive than the industry average.Significant investment is required to start manufacture of industry products due to the technical complexity and the required methods of production. High capital intensity is also required to minimise the costs of production due to a high level of competition both domestically but especially internationally. Fur...purchase to read more.

    Additional Insights for the Electronic Component Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Electronic Component Manufacturing Industry are

  • Access to the latest available and most efficient technology and techniques
  • Establishment of export markets
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Real effective exchange rate and Business confidence index in the Electronic Component Manufacturing industry impact industry performance..

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    What's in this report

    What is the Electronic Component Manufacturing Industry?

    Companies in this industry manufacture semiconductors and other components for electronic applications. These components are used in the manufacture of electronic devices for a range of business and consumer electronic hardware, such as TVs, telephones, desktop computers, solar panels and most modern electronic equipment.

    Industry Products
  • Integrated circuits
  • Other semiconductors
  • Passive electronic components
  • Solar panel components
  • Industry Activities
  • Integrated circuit
  • Microprocessor
  • Diode, transistor and related device
  • Dice or wafer semiconductor
  • Capacitor, resistor, connector, inductor, switch and transducer
  • Bare printed boards
  • Display component
  • Solar panel component
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real effective exchange rate
  • Business confidence index
  • Consumer confidence index
  • MSCI World Index
  • IT and telecommunications adoption

  • Current Performance
  • Economic conditions
  • Offshoring manufacturing
  • Re-exporting solar
  • Fluctuations in price
  • EU referendum
  • Chart: Revenue Growth

  • Industry Outlook
  • International competition
  • Growing demand
  • Market restructuring
  • International Trade
  • Table: Electronic Component Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Electronic Component Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Power Circuit Breaker Manufacturing
  • Computer & Peripheral Equipment Manufacturing
  • Communication Equipment Manufacturing
  • Consumer Electronics Manufacturing
  • Measuring, Testing & Navigational Equipment Manufacturing
  • Electromedical & Imaging Equipment Manufacturing
  • Electronic & Telecommunications Equipment Wholesaling

  • Key Selling Industries
  • Aluminium Production
  • Copper Production
  • Inorganic Basic Chemical Manufacturing
  • Precious Metals Production

  • Products & Services
  • Integrated circuits
  • Other semiconductors
  • Solar panel components
  • Passive electronic components
  • Chart: Electronic Component Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Communications equipment manufacturers
  • Industrial firms
  • Computer and peripheral equipment manufacturers
  • Consumer electrical goods manufacturers
  • Solar panel manufacturers
  • Chart: Major Market Segmentation for the Electronic Component Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesMarketingResearch and development and otherDepreciation and other
  • Chart: Cost Structure Benchmarking – Sector vs Electronic Component Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Electronic Component Manufacturing Industry

  • Industry Globalization
    Seagate Technology (Ireland) Ltd, Newport Wafer Fab Ltd,
  • Table: Seagate Technology (Ireland) Ltd - financial performance
  • Table: Newport Wafer Fab Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Electronic Component Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Electronic Component Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Fabless
  • A company that does not own foundries for the production of wafers from which their integrated circuits are made.
  • Integrated Circuit
  • A miniaturised electronic circuit, consisting of semiconductor and passive components, manufactured in the surface of a thin substrate of semiconductor material.
  • Lithography
  • A method similar to flat printing used in electronics manufacturing to transfer circuitry patterns to semiconducting wafers.
  • Microprocessor
  • A multipurpose, programmable device that takes input and provides output and is used to control a range of equipment, such as computers, mobile phones and consumer electronics.
  • Random Access Memory
  • An integrated circuit that allows stored data to be accessed in any order (i.e. at random).
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Electronic Component Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Electronic Component Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Electronic Component Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Electronic Component Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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