Industrial Electronics Market Size, Share, Growth, and Industry Analysis, By Type (Power Semiconductor Devices, Sensors and Actuators, Instrumentation, Intelligent Electronic Devices, Motor Drives, Power Systems, and Measurement and Testing), By Application (Transportation, Chemical, Mining, Energy, Semiconductor, Telecommunication, Healthcare, and Aerospace and Defense), and Regional Forecast to 2032

INDUSTRIAL ELECTRONICS MARKET OVERVIEW

The global Industrial Electronics market size expanded rapidly XX in 2023 and is projected to grow substantially XX by 2032, exhibiting a prodigious CAGR XX during the forecast period.

Industrial electronics is closely related to the use of electronic devices in the industry for better production, quality and security. An integration of electrical circuits, sensors, control systems, automation, and robotics which are used to control and monitor industries. Such systems are applied in manufacturing industries and energy, automotive industries, and various farming practices where automation, precise control, data gathering, and monitoring are applied.

In addition, Industrial electronics concerns the application of electronic devices, circuits, and systems across all industries and numerous production processes. It uses electronic components, control systems, and automation tools to monitor, direct, and upgrade the Industrial process to deliver high-quality work output that boast reliability and free from any risks. Industrial electronics can be given great importance in many manufacturing, energy, transport, medical, and telecommunication sectors.  The industry is growing at a pivotal pace due to the development of higher grade 5G communication and the rising importance of electric vehicles (EV) and quick charge stations.

GLOBAL CRISES IMPACTING THE INDUSTRIAL ELECTRONICS MARKETCOVID-19 IMPACT

Industrial Electronics Industry Had a Negative Effect Due to supply chain disruption during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The effects of COVID-19 greatly affected the industrial electronics market and how it operated. With the initial outbreak, different countries implemented severe lockdown measures, disrupting the established supply chain which negatively influenced the production of industrial electronics components and systems thus decelerating the overall demand. Some companies encountered issues in procuring electronic parts that negatively affected the production plans and timelines. Nevertheless, as COVID-19 unfolded, the demand for automation and the use of digital platforms has increased only more. Sectors ramped up the usage of industrial electronics to make business processes leaner, allow for the monitoring, and control of the manufacturing line remotely, and promote worker safety by minimizing physical contact.

LATEST TREND

"AI and Automation Integration Drive Market Growth "

The integration of AI and automation has become an essential strategic direction recognized in the global industrial electronics market to increase production efficiency and decrease operational expenses. Smart technologies alongside Artificial Intelligence technologies foster the provision of real-time data analysis, prediction, and automation systems in the manufacturing processes. This integration is also beneficial even in production since it enhances quality assurance, decreases the impact of human error influence, and increases the chances of a product having a unique design. While industries are looking for more scalable intelligent solutions, the adoption rate of automation systems gifted by AI is growing rapidly.

INDUSTRIAL ELECTRONICS MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Power Semiconductor Devices, Sensors and Actuators, Instrumentation, Intelligent Electronic Devices, Motor Drives, Power Systems, and Measurement and Testing 

•  Power Semiconductor Devices: There are significant numbers of applications in industrial electronics for power semiconductors for energy conversion and control in high-power applications such as motor control and renewable energy systems.
•  Sensors and Actuators: These components are important for automating the process to keep track of occurrences and change them, when necessary, as well as improve the performance and security of industries.
• Instrumentation: Industrial instrumentation helps to have proper control and monitoring of different data trends needed while making decisions during different critical processes like manufacturing and other power-producing processes.  
• Intelligent Electronic Devices: IEDs apply intelligence in industrial systems through power automation and process controls.
• Motor Drives: Critical for motion control, motor drives are relevant to productivity in industries and power-hungry processes like moving and mineral processing.
• Power Systems: The power systems for the industry make sure that necessary electricity is supplied and controlled for smooth running in industrial premises.
• Measurement and Testing: Measurement tools and many testing apparatuses play crucial roles in quality control and consistency most importantly in aeronautical engineering, medical science, and semiconductors.  

BY APPLICATION

Based on application, the global market can be categorized into Transportation, Chemical, Mining, Energy, Semiconductor, Telecommunication, Healthcare, and Aerospace and Defense

• Transportation: Industrial electronics helps to implement a complicated control system that is used in railways, aviation and automotive industries for safety and performance.
•  Chemical: Electronics make process control precise, and better in chemical production to avoid the negative implications on the environment.
•  Mining: Durability and performance enhance operations’ security and mechanization in intense mining conditions.
• Energy: Industrial electronics are the key enablers to improve renewable energy generation, grid integration as well as energy storage systems.
• Semiconductor: Functions critical in semiconductor manufacturing allow electronics for precise tools and systems to be used in chip production.
• Telecommunication: Electrical infrastructure for 5G, data centers, as well as network augmentation with power electronics and intelligent devices.  
• Healthcare: In healthcare institutions, electronics operate life-sustaining equipment, sophisticated imaging devices, and self-operative diagnostic equipment.
• Aerospace and Defense: Safety-oriented applications include avionics, radar systems, as well as space exploration missions or any type of application where high reliability is mandatory.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.                  

DRIVING FACTORS

"Demand for Smart Equipment Boost the Market"

A factor in the Industrial Electronics market growth is the Demand for smart equipment is one of the primary trends that is driving the growth of the global industrial electronics market since industries are improving with automation and digital technology. Sensory components, sticker control devices and intricate smart tools facilitate real-time data-gathering procedures which allow businesses to enhance their operations, cut down on lost time and produce better decisions. This growth is fueled by Internet of Things (IoT) and artificial intelligence (AI) technologies implanted in industrial equipment to enhance operation and control through improved, more efficient insights on maintenance diagnostics.

"Growing Demand for Energy-Efficient Solutions and Sustainable Manufacturing Processes Expand the Market"

The ever-rising concern for energy optimization and environmentally friendly production processes is considered to be the major factor that is propelling the growth of the global industrial electronics market. Given the escalating global energy crisis and the push for industries to minimize their impact on energy and the environment, energy efficiency has become inevitable. They decisively enhance operation costs, while also contributing to the achievement of sustainable development worldwide. Green manufacturing processes constitute another growth factor in the market because they align consumers' and industries’ interest in environmentally friendly products.

RESTRAINING FACTOR

"High Initial Costs Potentially Impede Market Growth"

A major factor that complicates the global industrial electronics market is the high initial costs which can prove discouraging to organizations, especially SMEs. This is especially the case because systems for industrial electronics call for high, sometimes very high performance and such parts are costly to procure, getting rid of initial costs hindering the investment. The implementation of such a solution is not without great financial costs of installation, training and maintenance. Especially for many companies here, these first costs are high, and thus the transition to such new and more efficient technologies is impossible or hampered, which hampers the companies’ competitiveness and their development perspectives.

OPPORTUNITY

"Telecommunications and 5G Create Opportunity in the Market"

Telecommunication advancement most especially the 5G technology is opening up opportunities in the global industrial electronics markets because of its ultra-speeds, low latency, and reliable connectivity; since data is transmitted in real-time hence enhancing automation and remote monitoring. IoT devices, smart sensors and industrial robots which are paramount for a new wave of manufacturing systems benefit from this connectivity enhancement. Also, with the additional possibility of connecting a large number of devices simultaneously, 5G advances smart factories.

CHALLENGE

"Skilled Labor Shortage Could Be a Potential Challenge for Consumers"

The scarcity of skilled labour in the production of industrial electronics for the global market has remained a major constraint to consumers due to the effects of the shortage on assembly line cycles, product quality, and product evolution. Due to scarcity, there are high chance that more professionals will be employed hence manufacturers will take time strive to find ways of making their products expensive. Furthermore, a lack of skilled workforce may slow down the growth of a variety of technologies and solutions which will put consumers at a disadvantage in accessing innovative products. It might also lead to increased operation costs which may slightly shift market balance because manufacturers are likely to transfer these costs to the consumer.

INDUSTRIAL ELECTRONICS MARKET REGIONAL INSIGHTS

•   NORTH AMERICA (U.S.)

North America also occupies a relatively large share of the industrial electronics market due to high technologies, developed industries, and the growing use of automation. Especially the U.S. and Canada, are spending big money on smart manufacturing and IoT, which form a strong demand for industrial electronics, especially from industries such as automotive, aerospace and energy, where precise and efficient products are a must. The sustainability agenda of the region also drives the progress of new efficient industrial electricity solutions. The United States Industrial Electronics Market is indeed in steady growth mainly due to technological developments in the areas of automation, IoT and energy efficiency. The manufacturing industry, automotive industry, and aerospace industry is one of the important industries that have incorporated advanced electronic systems to improve the production rate and minimize the cost. However, with the advent of smart factories and Industry 4.0, the demand for industrial electronics is on the increase.

• EUROPE

Europe has a significant role in the industrial electronics market due to a strong industrial sector, technological trends and environmental policies. The same as Germany, the UK, and France they are working on Industry 4.0 perspective and occupations of IoT and AI in industrial processes. The importance of the region towards environmentally friendly power sources and technologies also drives the sector’s demand. Also, increased sales in the automotive, manufacturing and chemical sectors in Europe are contributing to the sustained growth of the market.

• ASIA

Asia Pacific is the largest growing industrial electronics market driven by countries like China, Japan, and India. Growth at a fast pace which is mainly associated with robust investments in automation and smart factories is contributing to the growth of the market. Prolific technological manufacturing and development is key in China and an emerging manufacturing hub in India provides the basis of industrial electronics. In addition, new policies by the government and the enabling of the IoT ecosystem in the region also contribute to the growth of the market.

 KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

The leading players in the industry continue to influence the direction of the global industrial electronics market through their innovation, improvements to products and services, and presence across the globe. The market is continuously seeing new technological solutions including smart sensors, automation systems, and innovative power management systems, due to improved research activities done by leading companies. Strategic partnerships, joint ventures, mergers and acquisitions are also improving their positions in the market and expanding the range of combined offerings for different sectors including manufacturing and energy, automotive and others. Furthermore, their strategic growth programs related to sustainability, energy efficiency, and digitalization are exceeding the expectations of the global market demand for Industry 4.0 intelligent, stable, and cost-efficient industrial electronics systems.  

LIST OF TOP INDUSTRIAL ELECTRONICS COMPANIES

•        ABB (Switzerland)
•     Mitsubishi Electric (Japan)
•    Rockwell Automation (U.S.)
•      Infineon Technologies (Germany)
•        Vishay Intertechnology (U.S.)
•    Microchip (U.S.)
•    Texas Instruments (U.S.)
•       STMicroelectronics (Switzerland)
•     NXP Semiconductors (Netherlands)
•      Toshiba Corporation (Japan)
•      ON Semiconductor (U.S.)

KEY INDUSTRY DEVELOPMENTS

February 2022: SL Power Electronics declared the launch of the GB130Q-C family of 130W quad output power supplies in a 3 in.-by-5 in. open-frame form factor. According to the company, this product line is specifically designed for next-generation applications, with a screw-less design and no top-side heatsink, enabling more automated assembly, improving system reliability, and reducing system cost.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The Industrial Electronics market is poised for a continued boom pushed by AI and Automation Integration, the Demand for Smart Equipment, and Growing Demand for Energy-Efficient Solutions and Sustainable Manufacturing Processes. Despite challenges, which include Skilled Labor Shortage, the demand for Telecommunications and 5G supports marketplace expansion. Key industry players are advancing via technological upgrades and strategic marketplace growth, enhancing the supply and attraction of Industrial Electronics.