Emerging Trends and Their Impact on the Demand for Electrical Components

Emerging Trends and Their Impact on the Demand for Electrical Components

As the landscape of technology evolves, various industries are experiencing significant shifts that directly impact the demand for specific electrical components. Understanding these trends and their implications is crucial for procurement professionals to stay ahead of the curve. Let’s delve into the latest trends in the automotive, consumer electronics, and aviation sectors, and examine how they influence the demand for different types of electrical components.

Automotive Sector Trends and Component Demand

1. Electrification of Vehicles (EVs):

  • Trend: The shift towards electric vehicles is driven by the global push for sustainability and stringent emission regulations.
  • Component Impact:
    • High-Capacity Batteries: The demand for lithium-ion and solid-state batteries is surging as EVs require efficient, high-capacity energy storage solutions.
    • Power Semiconductors: SiC and GaN semiconductors are essential for efficient power management in EVs, leading to increased demand for these components.

2. Autonomous Driving Technology:

  • Trend: The development of autonomous vehicles (AVs) is accelerating, aiming to enhance safety and efficiency.
  • Component Impact:
    • Advanced Sensors: LiDAR, radar, and camera systems are in high demand to enable the perception and decision-making capabilities of AVs.
    • AI Processors: High-performance AI processors and GPUs are crucial for real-time data processing and autonomous driving algorithms.

3. Connected Car Technology:

  • Trend: Vehicles are becoming more connected, integrating with IoT ecosystems for enhanced functionality and user experience.
  • Component Impact:
    • Connectivity Modules: 5G and other communication modules are critical for enabling vehicle-to-everything (V2X) communication.
    • Microcontrollers: Energy-efficient microcontrollers are needed to manage the various connected systems within the vehicle.

Consumer Electronics Sector Trends and Component Demand

1. Smart Home Devices and IoT:

  • Trend: The proliferation of smart home devices is enhancing convenience and efficiency in households.
  • Component Impact:
    • Communication Modules: Wi-Fi 6, Bluetooth 5.0, and Zigbee modules are essential for seamless connectivity among smart devices.
    • Sensors: Various sensors, such as temperature, motion, and humidity sensors, are in high demand to enable smart functionalities.

2. Wearable Technology:

  • Trend: Wearable devices are becoming more popular for health monitoring, fitness tracking, and personal communication.
  • Component Impact:
    • Miniaturized Batteries: Small, efficient batteries are necessary to power wearable devices without compromising their compact form.
    • Flexible Electronics: Flexible PCBs and displays are crucial for creating comfortable, durable wearable devices.

3. Augmented Reality (AR) and Virtual Reality (VR):

  • Trend: AR and VR technologies are expanding in applications ranging from gaming to professional training.
  • Component Impact:
    • High-Performance GPUs: GPUs capable of rendering complex graphics are in high demand for AR and VR devices.
    • Cameras and Sensors: Accurate motion tracking and immersive experiences depend on high-quality cameras and sensors.

Aviation Sector Trends and Component Demand

1. Advanced Avionics Systems:

  • Trend: Advanced avionics systems are crucial for improving flight safety, efficiency, and passenger experience.
  • Component Impact:
    • High-Reliability Processors: Reliable processors are essential for flight control, navigation, and communication systems.
    • Sensors and Actuators: High-quality sensors and actuators are needed to monitor and control various aircraft systems.

2. More-Electric Aircraft (MEA):

  • Trend: The transition towards more electric aircraft aims to reduce reliance on hydraulic and pneumatic systems, improving efficiency and sustainability.
  • Component Impact:
    • Power Electronics: SiC and GaN semiconductors are critical for efficient power conversion and management in electric propulsion systems.
    • High-Efficiency Batteries: Advanced battery technologies are necessary to support the electrification of aircraft systems.

3. Enhanced Passenger Experience:

  • Trend: Improving the in-flight experience through advanced entertainment and connectivity solutions is becoming a key differentiator for airlines.
  • Component Impact:
    • In-Flight Entertainment Systems: High-performance processors and high-definition displays are in high demand for superior in-flight entertainment systems.
    • Connectivity Solutions: Satellite communication modules and Wi-Fi systems are essential for providing seamless connectivity to passengers.

Strategic Implications for Procurement

1. Diversify Supplier Base: Mitigate supply chain risks by diversifying your supplier base, especially for critical components like semiconductors and sensors.

2. Invest in Advanced Planning Tools: Utilize AI-driven supply chain management tools, such as GEP AI Procurement software, to predict demand accurately and manage inventory efficiently.

3. Focus on Quality and Compliance: Ensure all components meet stringent quality and compliance standards, particularly in regulated sectors like aviation.

4. Stay Informed and Adaptive: Stay current with industry developments and be prepared to adjust procurement strategies as needed. Engage in continuous learning and networking.

5. Prioritize Sustainability: Incorporate sustainability into your procurement strategy by opting for environmentally friendly components and materials.


The evolving trends in the automotive, consumer electronics and aviation sectors significantly impact the demand for specific electrical components. Procurement professionals can ensure a resilient and innovative supply chain by understanding these trends and strategically preparing for the future. Embrace these changes, invest in relationships and technology, and prioritize agility to successfully navigate the dynamic landscape of electrical components.

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