Market Research Report
The Yearbook of World Electronics Data: Volume 1 - West Europe 2020
|Published by||Reed Electronics Research||Product code||936585|
Delivery time: 1-2 business days
|The Yearbook of World Electronics Data: Volume 1 - West Europe 2020|
|Published: May 15, 2020||Content info:||
Since the first edition of the Yearbook of World Electronics Data was published in 1973 the West European and broader global electronics industry has experienced a series of major downturns, the last the global financial crisis in 2008/2009. However, unlike the financial crisis which was primarily driven by stagnating consumer demand COVID-19 has resulted in not only a shock to global demand but also supply. Although the electronics industry will recover, at this point the actual timing remains uncertain and will depend on the control of the spread of the virus.
In providing the forecasts for the current study, which were made at the end of April/beginning of May, we have assumed that the major impact of the pandemic will occur in the second quarter of 2020, and then gain some momentum over the course of the final quarter of the year. Although not “V” shaped we expect growth to recover in 2021 before moderating slightly in 2022 and 2023.
In Euro's the production of electronic equipment in Western Europe declined by 0.3% in 2019 to Euro 119.9 billion and compared to an increase of 1.8% in the prior year and a decline of 2.4% in 2017.
Based on current indicators we are forecasting that growth in electronic equipment output in Western Europe will decline by 8.8% in 2020, post growth of 4.1% in 2021 and then ease to 3.7% and 3.6% in 2022 and 2023. However, if the pandemic extends through into the second half of the year it will lead to a more substantial decline in 2020 that would carry over into 2021 and delay the rebound to the later part of the year or into the first months of 2022.
The industrial segment which accounted for an estimated 60.1% of electronics equipment output in 2019 will be the main driver of growth after demand recovers from the COVID-19 led-recession. By the end of the forecast period its share of the total will account for 61.8%. Growth in the communications segment is forecast to decline by 5.8% in 2020. Upgrades to support increased demand for data and support home working, in particular in the first half of the year, is expected to be offset by lower capex by operators and a delay in the roll-out of 5G. Defence spending is expected to be maintained through the pandemic although budgets could be reduced in the later part of the forecast as governments look to reduce the deficit arising from measures introduced to support the economy through the crisis. In contrast, the aerospace segment will, in the short-term be hit hard by the collapse in the commercial aviation sector. Computer output will continue to decline over the forecast period as will the production of video and audio equipment.
Germany accounted for 32.4% of electronics equipment output in 2019 and its overall share, despite the downturns in 2019 and 2020, is still expected to edge up over the period to 2023. France and the UK which are traditionally strong in communications will like the majority of countries also benefit from the growth in the industrial segment in the later part of the forecast.
In 2019, the production of electronic components in Western Europe amounted to Euro 39.3 billion, 24.7% of overall electronics production, output declining by 1.7% as demand weakened during the second half of the year. Output is forecast to decline by 7.4% in 2020 but as with other sectors of the industry significant downside risks could push output lower in 2020/2021.
Published since 1973 the Volume 1 of the Yearbook of World Electronics Data provides:
48th Edition, providing:
16 countries covered: