In this opinion piece, Amy Leary, marketing manager at eBOM.com, identifies trends for the electronics industry in 2020…
So, it’s now 2020 and the festive season is over – many of us will have started new years resolutions along with new beginnings. For many people, January is a month where work slowly gets back to normal and business starts to get back into the swing of things. The last few years have been tough within the electronic industry, from Brexit to the China tariffs to economic struggles. This year we are expecting a rise in electronic component sales along with stability. Within this article I am going to talk you through what new beginnings and trends we can expect for 2020 within the electronics industry.
Artificial Intelligence making a breakthrough
Artificial intelligence is a very controversial subject. Many people don’t like the idea of AI as it’s an electronic machine which supposedly can analyse right from wrong, in other words, machine intelligence. Within 2020, I believe that AI will make a breakthrough and will be more socially accepted and in high demand. AI can be featured in the medical sector, automotive sector and education sector. According to ‘Sky News’, Artificial Intelligence better than expert radiologists at spotting breast cancer, study says. This would result in fewer mistakes made my radiologists and more accurate results for patients. Artificial intelligence in the automotive sector will result in devices constantly learning and adjusting to the rules of the road. Despite this, there are many dangerous side effects to artificial intelligence such as programming defects. This could result in damage to other vehicles along with pedestrians. Within the next decade, I think artificial intelligence will be a huge trend within marketing divisions such as selling assets, promoting services and collecting information. AI can be used in marketing by leveraging information from customers and delivering the right message back to them.
Multipurpose electronics in higher demand
Multipurpose electronics is the term used for electronics which have more than one purpose. Nowadays there are so many electronic devices to market, but, not many electronic devices have a multipurpose. For example, shoes that count our daily steps along with being able to warm up would be multiple purpose. I believe that in 2020 more devices will be constructed in a multipurpose form to solve storage issues along with efficiency. Products such as ‘Alexa’ have proved a success due to their ability to multitask (play music, answer questions, contact people etc) along with their small, sleek design.
Tariff problems coming into play
Over the past year, the world’s two largest economies have been locked in a bitter trade battle over the tariff of goods. It all started when China and the US imposed tariffs on billions of dollars’ worth of one another’s goods. According to BBC, ‘The US has imposed tariffs on some $250bn (£204.5bn) of Chinese goods, and China has retaliated with tariffs on $110bn of US products.’ This trade war has affected many companies due to increased costs which decreases profit margins. Smart-phone camera sensors, glass used in liquid crystal displays and organic light-emitting diode (OLED) screens found in high-end TVs and smart-phones are specifically affected. Not only this, semiconductor testing and sorting equipment are also included. According to Reuters, import tariffs on multi-component semiconductors will be cut to zero. In my opinion, in 2020 we can expect possible further tariffs on electronic goods which may further effect electronic companies along with individuals.
New environmental priorities
In my opinion, I believe that in 2020 many businesses and individuals will alter their priorities to popular matters. One example would be the environment. This subject is such a big topic nowadays and is hugely respected globally. One company who has proved to be environmentally friendly within this industry is Panasonic. According to Virgin, Panasonic has ambitious energy goals, both in terms of efficiency and renewable, and it also focuses on making environmentally friendly products. What sets them apart is the way they’ve incorporated sustainability into their day-to-day life. It moved its North American headquarters from suburban Seacaucus, New Jersey to a LEED-certified building in downtown Newark by Penn Station. Not only this, Smart Cities Dive quoted: ‘Hewlett-Packard is one of the first companies to have reported its greenhouse gas emissions, after which they have initiated plans that are aimed at reducing emissions and cutting back on toxic substances used in manufacturing its products like cartridges. The company also has an aggressive recycling program that ensures most of the manufacturing waste does not end up in landfills.’. In my opinion, this will be a huge trend in 2020 because of the media coverage it receives along with peoples perceptive changing on global warming etc.