/ SEIZING THE OPPORTUNITY OF AN EMERGING MARKET
By Philip Ling
Editor-in-Chief and Senior Technology Writer, Avnet
Emerging markets are diverse, sometimes complex but always exciting. Technological innovation brings huge benefits with the right partnerships.
The global economy is currently estimated to be around $100 trillion and remains on an upward trend. The value of emerging markets—like EV charging, home healthcare, non-terrestrial networks, smart industry and smart homes—is one way to identify the trend.
Emerging markets are typified by fragmentation, as early movers help develop the technology and define the applications. Consolidation, acquisition, attrition and innovation are the hallmarks of emerging markets.
Regional variations will always exist, but technology underpins all verticals and is uniquely global. Established end markets, such as automotive, industrial, and consumer, and all emerging markets, benefit from access to the latest semiconductors and electronic components.
Avnet’s global presence means access to these enabling technologies has never been simpler. A strong supply chain and close working relationships with leading device manufacturers puts Avnet at the forefront of global markets—both established and emerging. Our customers rely on us to help them capitalize on the opportunities these markets present.
As new opportunities arise and suppliers cooperate, new markets emerge. But it takes more than good technology to create a new market. This issue of What’s Next takes a deeper dive into some of those markets.
EMERGING MARKETS TO LOOK OUT FOR
Analyst figures vary, and emerging markets are more volatile than established verticals. Given this uncertainty, Avnet has compiled a short list, by potential size in 2033, to illustrate the opportunities that exist for OEMS looking for new segments today.
Sources: Market projections are based on publicly available data and analyst forecasts. The sources used in our figures include: Expert Market Research, Fortune Business Insights, Grand View Research, Mordor Intelligence, Maximize Market Research, Allied Market Research, McKinsey & Company, and Markets and Markets.
HOME HEALTHCARE
Home healthcare is the largest and most established of our shortlisted emerging markets. Having been in development for at least two decades, the shape of the market continues to change based on the market’s needs and technologies available. Despite being well established, it is still seeing strong growth due to the size of the market and current penetration.
With an aging population, more people are turning to home healthcare solutions to treat long-term and persistent conditions. The profile of the population continues to change, which is one reason why the market itself is constantly evolving. For these reasons, it remains on our emerging markets list.
For outpatients, home health equipment needs to be intuitive and simple to use. The user experience has to drive the product’s design. This issue includes an article looking at how the Qt software framework provides an ideal platform for medical devices.
Sources: Market projections are based on publicly available data and analyst forecasts. The sources used in our figures include: Expert Market Research, Fortune Business Insights, Grand View Research, Mordor Intelligence, Maximize Market Research, Allied Market Research, McKinsey & Company, and Markets and Markets.
“Technical advances in MCUs and MPUs continue to enhance capabilities in power efficiency, processing performance and AI/ML acceleration. These are all contributing toward meeting the needs of home healthcare devices. This, plus advancements in new sensor technology, all feed into what developers are seeking for next-generation home healthcare products.”
– Jim Beneke, Vice President, Avnet Advanced Applications Group
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“The market for fast charging stations continues to grow strongly, where improved battery capacities, shorter charging times, and bi-directional charging functions will play a significant role.”
– Thomas Foj, Senior Director, supplier management, solutions & markets and strategy, EMEA, Avnet Silica
EV CHARGING
The need for a reliable EV charging infrastructure is international. The world is moving toward electrification in mobility. At the head of that movement are the vehicles we use most, including cars, vans, buses and trucks.
Roadside charging is a big opportunity for electric vehicle supply equipment (EVSE) OEMs. These are the companies that are developing, manufacturing, installing and maintaining the charging equipment in public spaces. Domestic chargers are relatively uniform, while the public infrastructure covers fast, slow, AC and DC chargers.
The design of on-board and off-board chargers also varies. The power supply topologies and the semiconductor technologies used remain hot topics. Explore system-level considerations for EVSE design in this issue of What's Next.
Sources: Market projections are based on publicly available data and analyst forecasts. The sources used in our figures include: Expert Market Research, Fortune Business Insights, Grand View Research, Mordor Intelligence, Maximize Market Research, Allied Market Research, McKinsey & Company, and Markets and Markets
CAGR 2023-33: 9% to 26%
ESTIMATED VALUE 2027: $93 B
SMART HOMES
Smart homes have been in ascendence for decades. Early adopters have embraced new ways to control lights, appliances, garage doors and more. Fragmentation in the market has impeded wider adoption but with the emergence of Matter, the new high-level protocol that aims to remove the fragmentation, we could be on the verge of an inflexion point.
Matter could provide the abstraction layer needed to bring suppliers across all ecosystems together, without threatening competitive advantages.
Sources: Market projections are based on publicly available data and analyst forecasts. The sources used in our figures include: Expert Market Research, Fortune Business Insights, Grand View Research, Mordor Intelligence, Maximize Market Research, Allied Market Research, McKinsey & Company, and Markets and Markets.
CAGR 2023-33: 10% to 21%
ESTIMATED VALUE 2033:
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SMART INDUSTRY
Automation is the hallmark of a modern manufacturing economy. As new technologies emerge and converge, we are seeing more innovation on the factory floor.
The introduction of artificial intelligence and machine learning brings new applications to the smart factory. Deep vision inspection, using AI/ML, increases throughput throughout the entire production line. This powerful technology is now more accessible and could be set to disrupt all forms of industrial automation.
Sources: Market projections are based on publicly available data and analyst forecasts. The sources used in our figures include: Expert Market Research, Fortune Business Insights, Grand View Research, Mordor Intelligence, Maximize Market Research, Allied Market Research, McKinsey & Company, and Markets and Markets.
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NON-TERRESTRIAL NETWORKS
As 5G becomes the standard in cellular connectivity, it is evolving to cover more use cases. The need for machines and devices to have reliable and scalable connectivity is increasing. This is now supported by the 3GPP standard for non-terrestrial networks, or NTNs.
An NTN uses satellites in orbit to relay cellular signals between ground base stations. This increases the network’s coverage to areas where traditional base stations would be difficult or too expensive to deploy, such as in the middle of oceans.
The important point to note here is the NTNs do not impose any new RF requirements on the connected device. Standard 5G-enabled solutions will be able to make use of NTNs, often without even being aware that satellites are being used. This brings new use cases to IoT connectivity.
The article in this issue looks at NTNs and 5G, and specifically at the role RedCap and soon eRedCap will play in the massive and ubiquitous IoT.
Sources: Market projections are based on publicly available data and analyst forecasts. The sources used in our figures include: Expert Market Research, Fortune Business Insights, Grand View Research, Mordor Intelligence, Maximize Market Research, Allied Market Research, McKinsey & Company, and Markets and Markets.
FINAL THOUGHTS
As new markets emerge, OEMs can rely on Avnet to provide the support and service they need. The experience that comes with delivering enabling technologies across a worldwide market for over a century makes Avnet the right distribution, design and supply chain partner for all your future business activities.
ABOUT THE AUTHOR
Philip Ling
Editor-in-Chief and Senior Technology Writer, Avnet
Philip leads our FAE roundtable discussions and develops content covering the full range of technologies supported by Avnet.
Philip has more than 30 years of electronics industry experience, including working as a design engineer on mixed-signal embedded systems. He was also a technical journalist and editor covering the industry for several European technical magazines. He has worked for small, medium and large companies as well as startups, and is pleased to say he is constantly learning.
He holds a post-graduate diploma in advanced microelectronics.