December 2018 - Demand for Discrete Components Set to Continue
Published on: 03/12/2018
It is expected that discrete components will grow by 3.1% through to 2022
The discrete semiconductor market is set to rise by 3.1% in the next four years according to researcher IC Insights. They predict that discretes revenue growth will be slow but steady compared to previous years when revenue would spike one year and decline the next. It is thought that the worldwide discretes market will increase by 16% from £18.5 billion ($24.6 billion) in 2017 to £21.6 billion ($28.7 billion) in 2022.
The research company also believes that the average price for discrete devices from 2017 to 2022 will decline by 0.9%.
In 2017 the unit demand for discretes increased by 11% and sales grew by 11.4%, this was four times greater than its average growth rate over the last 20 years.
GD Rectifiers along with all electronic component distributors are currently experiencing long lead times from the factories as a result, for diodes, small signal transistors, switching transistors, power transistors, rectifier bridges, rectifiers and thyristors.
Ron Lineback, Senior Market Research Analyst for IC Insights, predicts that discrete sales growth will continue throughout 2018 at a slower rate because of a healthy economic growth in different regions of the world. He believes the discrete market is often volatile because many discrete components are low-cost and there are usually multiple sources for them.
Buyers will usually place large orders when there is strong demand and then cut back on purchasing discretes when the forecast for the end products slows. Purchasers tend to cancel purchase orders as soon as they see that the economy is slowing down, and then come back and build up inventories when they start to see the demand increase. This is why year on year we see a colossal change in demand for discrete components.
We are seeing a whole range of new applications emerging that require discrete components. A new generation of cars, particularly EV and hybrid vehicles are boosting adoption of discretes, especially IGBTs and MOSFETs.
Markets that also contribute to the continued demand for discretes include: consumer, industrial, computer and communications. The three biggest markets currently are: consumer (26%), industrial (23%) and then automotive (19%) according to IC Insights.
There are many established discrete manufacturers including: Infineon, ON Semiconductor, IXYS, STMicroelectronics, Fuji Electric, Microsemi and Toshiba, and with demand remaining strong these manufacturers will most likely look to increase their capacity.
GD Rectifiers offers a wide range of discrete components from diodes, thyristors, rectifiers, IGBTs, bridge rectifiers, MOSFETs and TRIACs from some of the world’s leading OEMs, including IXYS, Semikron and Electronic Devices Inc. They have been servicing engineers, buyers and procurement specialists with power electronic components and customised solutions for over 50 years.