ELECTRONICS

Falling prices of semiconductors and delecerating demand across key client industries sent 2019 turnover down 3% globally. Asia Pacific, where nearly 90% of industry turnover is concentrated, was particularly hit. While signs of recovery emerged in late 2019 and early 2020, activity decelerated significantly in the aftermath of the Covid-19 outbreak in Asia, then in the rest of the world. With retail activity at a standstill and consumer confidence in the doldrums in Europe and North America, consumer electronics clients will focus on clearing inventories first, and resume placing orders for components only very progressively. The same holds true for other large client industries (automotive, electrical equipment, machinery, etc.) whose operations have also been hit by lockdown measures. 2020 industry revenue could decline by as much as 8%, with activity picking up in late Q3 ahead of the Christmas season.

 

Looking beyond 2020, it is very likely that the role played by information technologies in companies, public services and households will become even more important, fueling demand for electronic hardware and components.