Electronics Forecast 2024

The outlook for electronics sales in 2024 is marked by a promising trajectory, underpinned by robust gains in IT infrastructure. Here's a concise breakdown of the key trends and projections shaping the industry landscape for the year ahead.

Growth Dynamics

In 2024, the electronics industry is poised for a mixed recovery, with sales expected to rebound after a period of inflation easing. Particularly noteworthy is the projected surge in servers and mainframes sales, anticipated to increase by 19% year-over-year (YoY), alongside a notable uptick in demand for storage solutions. This upward trajectory reflects promising growth dynamics within the sector, signaling a positive outlook for the year ahead.

Market Fundamentals

Improvements in market fundamentals are evident, marked by the gradual winding down or digestion of excesses within the industry. As demand recovery gains traction, particularly notable is the anticipation of stronger momentum in the latter half of the year. These trends signify a positive shift in market dynamics, indicating a more stable and resilient foundation for sustained growth and performance in the coming months.

Sectoral Analysis

In terms of sectoral analysis, several key trends are shaping various segments of the electronics industry in 2024. Growth in personal tools, encompassing PCs and related devices, is forecasted at 6%, driven by an accelerating momentum expected in the latter part of the year. Additionally, the audio and video segments are poised for robust growth, rebounding from double-digit losses experienced in the previous year. Meanwhile, the IT infrastructure sector is anticipated to witness a significant surge of 11% year-over-year (YoY), propelled by remarkable growth in servers and mainframes (19%) and storage (16%). This growth is largely attributed to the proliferation of AI technologies and an improving economic landscape. In the automotive sector, forecasts indicate an 8% increase, driven by gains in electronic content amidst a mild correction phase. Lastly, the industrial sector, despite undergoing a mild correction, is expected to see a modest gain of 3%, reflecting resilience amid evolving market dynamics.

In conclusion, 2024 holds promise for the electronics industry, with substantial growth anticipated across various segments. The surge in IT infrastructure, coupled with recovery in personal tools and automotive sectors, underscores a positive outlook for the year ahead. However, continued vigilance and adaptation to evolving market dynamics will be crucial for stakeholders navigating this dynamic landscape.