Market Research Report
The Yearbook of World Electronics Data: Volume 1 - West Europe 2019
|Published by||Reed Electronics Research||Product code||235235|
Delivery time: 1-2 business days
|The Yearbook of World Electronics Data: Volume 1 - West Europe 2019|
|Published: March 31, 2019||Content info:||
In Euro's the production of electronic equipment in Western Europe increased by a forecasted 1.0% in 2018 to Euro 117.8 billion and compared to an increase of 2.6% in the prior year and a decline of 1.7% in 2016. The electronics industry in Western Europe entered 2018 with a strong carry over effect from the previous year, however a slowing economy in both Europe and globally in the second half of the year resulted in slower than expected growth for the year as a whole. As in 2017, the shortages of components held back growth in 2018 although the situation has eased in the first months of 2019 and it is expected that availability of most components will improve over the course of the year. Based on current indicators we are forecasting that growth in electronic equipment output in Western Europe will decline by 0.4% in 2019, post growth of 1.5% in 2020 and then accelerate to 2.6% and 2.7% in 2021 and 2022. However, there are significant downside risks that could result in a more substantial decline in 2019 that would carry over into 2020 and delay the rebound to the later part of the year or into the first months of 2021.
The industrial segment which accounted for an estimated 59.5% of electronics equipment output in 2018 will be the main driver of growth over the period to 2022, when it will account 61.0% of the total. Growth in the communications segment if forecast to post growth of 0.8% in 2019 on par with the prior year. Over the period to 2022 the production of communications equipment is expected to benefit from increased defence spending and the opportunities arising from the Internet of Things and the next generation of wireless technologies. Computer output will continue to decline over the forecast period as will the production of video and audio equipment. Germany accounted for 32.9% of electronics equipment output in 2018 and its overall share is expected to edge up over the period to 2022. France and the UK which are traditionally strong in communications will like the majority of countries benefit from the growth in the industrial segment. The restructuring of the communications sector in the Nordic countries, and in particular Finland and Sweden is on-going but the impact should fade over the period to 2022 as recent reorganisations are completed.
In 2017, the production of electronic components in Western Europe amounted to Euro 39.4 billion, 25.1% of overall electronics production, output increasing by 3.1% during the year on the back of rising demand in part due to offset component shortages.
Growth in electronic component production eased to a forecasted 1.0% in 2018, in part due to slowing demand in the later part of the year but also lower output at Intel's fab in Ireland. Of the total in 2018, active components accounted for 55.2%, passive 36.4% and other 8.4% while Germany accounted for the largest share of production at 34.8%, followed by France 15.9%, Italy 10.0% and the UK 8.0%.