AI, ML, IoT Lead The Way For Electronics Industry In 2024

Artificial Intelligence- AI and its subset, Machine Learning- ML, have become major trends in recent times. The rapid development of this technology and its ability to address numerous long-standing issues are important drivers for expansion.

AI solutions have undergone extensive development over the years and are now becoming more accessible and practical for a variety of designs. With the rise of real-world applications and their rising impact, one is witnessing a notable shift in market value. By 2030, the market value is projected to soar to an impressive $1,811.8 billion, after reaching $136.55 billion in 2022.

Practical Uses of AI: From Anticipatory Maintenance to Intelligent Farming

There are many practical real-world applications for AI at the edge, such as low-power image recognition as well as intelligent decision-making that doesn’t rely on the internet. For instance, engineers are currently employing AI in industrial applications for predictive maintenance, which is also referred to as condition-based monitoring. By constantly tracking micro-electro-mechanical system- MEMS sensors like accelerometers, it becomes possible to intelligently and locally detect abnormalities at an earlier stage compared to traditional maintenance or analysis methods. AI monitoring is a valuable tool for maintenance teams, allowing them to prevent unexpected downtime, resulting in time and cost savings and increased productivity.

Smart agriculture has been receiving a lot of attention lately, and it is expected to keep growing. The integration of cutting-edge sensing and analysis technologies, such as AI, has demonstrated to be crucial in addressing pressing global issues, such as the decreasing availability of arable land and the increasing demand for food, while at the same time empowering farmers to effectively manage unpredictable weather patterns. Technology, like soil sensors that are wirelessly connected and supported by advanced simulation modeling, can not only improve current operations but also revive land that has become unsuitable for plant growth.

Just like AI’s ongoing expansion, the industry is witnessing significant progress in real-world applications and growth, thanks to the emergence of more advanced solutions and innovative approaches in the market. Over the next seven years, there is a projected significant CAGR of up to 13.4%.

The Emergence of Electric Vehicles and Advanced Driver Assistance Systems

In addition to these two rapidly emerging markets, there are other trends that are set to overcome the challenging world economy.

The automotive industry will see ongoing innovation as safety, efficiency, and other advanced driver assistance system- ADAS features continue to emerge. Experts anticipate that electric vehicle sales could account for up to 20% of new car sales by 2025, illustrating the progress made in EV technology. In certain regions, there was a significant increase of almost 40% in EV sales in 2022. Industry data also indicated a strong demand for the crucial technologies that drive the progress of EVs and their charging systems.

Consumer Electronics: Accessibility and Broadening into Wearables and Smart Appliances

Lowering ownership barriers will play a crucial role in fueling the growth of various trends in the coming years. Despite the ongoing public interest in technology such as wearables and smart appliances, the high cost of owning these devices has prevented many people from embracing them. In 2024 and beyond, the market for intelligent consumer electronics is expected to advance due to the combination of increased functionality and reduced costs. Analysts are projecting a significant CAGR for the wearable market, reaching as high as 14.6% from 2023 to 2033.

Promoting Intelligent Perception and Decision-Making with IoT and IIoT

The continued demand for distributed intelligent perception and decision-making remains a significant trend for both the IoT and IIoT. The increasing availability of smaller, smarter, as well as more cost-effective hardware solutions will lead to a greater number of applications being developed. The widespread adoption of IIoT in industrial settings is driven by its ability to improve efficiency and productivity and provide valuable insights for testing and data monitoring. The demand for consumer IoT is increasing as market spending is expected to grow from $147 billion in 2023 to $204 billion in 2027.

Factors Driving Growth in the Electronics Market: 5G Technology and Cost Reduction

The electronic component industry’s ongoing commitment to innovation and advancement with emerging technologies will play a crucial role in its sustained growth in the coming years. This fundamental principle is driving much of the growth in the electronics market.

5G, for instance, which is all about performance, offers a significant improvement over current technology while fixing many of its shortcomings. On the other hand, the expansion of various consumer electronic solutions, such as IoT devices and wearables, often comes from a decrease in ownership expenses. This typically occurs when new components or innovations lower the bill of material- BOM or production costs.

Keeping up with rapidly evolving trends, such as new AI implementations, can be a challenge. However, in 2024, buying teams can expect a more manageable task when it comes to global supply chains. This year, even more product lines will return to sustainable supply levels.