이전
Article

Global trends support Mycronic's business direction

Text: Mycronic

Photo: Shutterstock

Ongoing segmentation and regionalization of the market as well as stricter sustainability demands are changing the conditions within the electronics industry. Despite uncertainty due to the coronavirus and trade policy tensions, global trends are supporting the company’s business direction.

The electronics market is maintaining long-term strength despite increased uncertainty

The global electronics industry is substantial and constitutes in its entirety just over 2 percent of the global economy. The electronics industry is expected to continue to grow over time, with forecast growth of 3.2 percent per year for the 2018–2023 period (Prismark, December 2019). 

Automatic guided vehicles (AGVs) After being strongly influenced by individual dominant driving forces, such as PCs or mobile communication, the market development is now being driven by many different industry segments. With the more diverse pattern of needs of today and tomorrow, there is an increasing need for versatile, flexible production systems within several different areas of the electronics industry.

Furthermore, the Industrial Internet of Things (IIOT) – digitally interlinked production chain systems – means that the market for production equipment for the electronics industry is being assessed more extensively from a holistic perspective that takes into account performance, efficiency and precision throughout the entire production chain.

This large-scale digitalization of production environments also opens the door to new business models on the market. Electronics manufacturers could be offered production equipment based on cost per use, royalty payments or systems that increase production capacity in return for profit sharing with the supplier  of the production equipment.

Mycronic is working to expand the addressable market. Diversification – both geographically and in terms of market subsegments –  is becoming increasingly important.


Technology content constantly increasing

Flying droneWe are undergoing a rapid electrification stage. Nowadays, most things in our society and lives include some form of intelligence. Driven by the Internet of Things, 5G and other technology shifts, the presence of processors and sensors is constantly increasing.

In addition to the earlier description of various industrial segments’ influence on the market for production equipment, electrification is introducing other consequences. Previous demand for smaller, more powerful electronics is not applicable to all segments in the electronics market. There is a growing need for electronics that are based on well-established, reliable, robust and cost-effective technology, and its development is thus be driven by cost. At the same time, there is of course a constantly growing need for new, high-performance electronics in a number of fields, and this is being met with leading production equipment.

Thus, the requirement specifications in the electronics industry are broader than ever. This trend benefits flexible stakeholders that are able to supply production equipment for different applications in different production environments.


Market regionalization

Despite the expected robust growth in the global electronics industry, the sector is being affected by the general development in the global economy and events such as political uncertainty, rising protectionism and changing trade agreements.

In practice, this means increased regionalization of the market

What is happening globally, affects how the market behaves and is expressed in diverging supplier and logistics chains. The entire value chain is affected, from component manufacturers and manufacturers of semiconductor circuits to equipment suppliers and electronics manufacturers. In practice, this means increased regionalization of the market, with a number of separate value chains spanning different geographical areas such as North America, Western Europe and China.

Given these circumstances, it is particularly important to understand how the dynamics in different regions and markets work and to adapt the business to a more regionalized customer behavior, which is also associated with differing demands. In the long run, increasing regionalization in the market may also influence the standards that dictate the terms for electronics production.


The electronics industry needs to be more sustainable

Leading manufacturers of electronic consumer products are integrating sustainability issues such as choice of materials, use of resources and energy and end-of-life treatment in their business to an increasingly clear extent. Electronic waste is the fastest growing waste category in the world, resulting in major environmental and social challenges. With a constantly increasing level of technological content and high demand for new products, all links in the value chain are important for transitioning the electronics industry to a more circular economy.

As developers and suppliers of production equipment for electronics and display production, innovative stakeholders such as Mycronic can make this transition easier for their customers. For example, Mycronic has been working for a number of years on a project to radically reduce energy consumption in mask writers using energy-efficient solid state lasers.

When it comes to the end-of-life treatment for expired products, compliance with the EU’s WEEE (Waste Electric and Electronic Equipment) Directive is an important part of Mycronic’s producer responsibility to assist customers in handling electronic waste linked to the company’s products. Responsible choices of materials and the extended service life of production equipment are other factors that can assist with this transition.

Read more about how we are working with sustainability issues

Text: Mycronic

Photo: Shutterstock

Published: 6 5월 2020


29 6월 2020
Empowering people through automation
29 6월 2020
A high-tech future down under
29 6월 2020
Say hello to Leo the robot!
29 6월 2020
Printing skin with light

To help us improve the website experience we would like to set Google Analytics cookies to collect information on how you use the website. For more information on how these cookies work please see our cookies policy. The cookies collect information in an anonymous form.