Core component: Revenue has declined as operators have shifted to a fabless manufacturing model

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. A key cause of this was the spike in revenue recorded in 2016-17 as the result of the EU referendum led to a sharp fall in the value of the pound, boosting exports through the year...read more.

Industry Statistics & Market Size
Revenue
£1.9bn
Annual Growth 14-19
-4.0%
Forecast Growth 19-24
Profit
Employment
13,483
Businesses
590

Industry Threats & Opportunities

  • The industry has been hit by offshoring activity and global competition over the past five years
  • Manufacturers are shifting production abroad, with ‘fabless’ manufacturing increasingly prevalent
  • More operators are likely to make the shift towards fabless construction over the coming years
  • Industry Report - Starting a New Business Chapter

    The Electronic Component Manufacturing industry has high barriers to entry. There are several drivers behind the difficult conditions for new entrants. Firstly, the industry requires expensive machinery and material inputs. Companies hoping to enter the industry need to make a high level of initial capital investment. New entrants also need to continually invest in research and development to remain competitive within an industry that operates through sophisticated technology and manufacturing processes.Incumbent industry operators also make significant use of intellectual property rights, including patents, which helps to insulate current market participants from competing businesses profiting from their research and development activity. Thi...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
  • Profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • International competition
  • Restructuring
  • The domestic market
  • EU referendum
  • Production location
  • 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
  • Loaded Electronic Board 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 market
  • 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
    ProfitPurchasesWagesDepreciationResearch and development and other
  • Chart: Cost Structure Benchmarking – Sector vs Electronic Component Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Electronic Component Manufacturing Industry

  • Industry Globalization
    Newport Wafer Fab Ltd, Seagate Technology plc,
  • Table: Newport Wafer Fab Ltd - financial performance
  • Table: Seagate Technology plc - 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 offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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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