An inductor stores energy in the magnetic field when electric current flows through it and is often called reactor, chokes, or coil. Increasing demand for consumer electronics such as smartphones, tablets, laptops, and personal computing devices among others is expected to be one of the major factors driving the demand for inductors around the globe.
Expanding Automotive Industry
The automotive industry has witnessed a drastic evolution in recent years with many important advancements in technology. The old-fashioned four-wheeled cars, which were earlier equipped with basic features, have transformed into connected cars with advance wireless connectivity such as Bluetooth, ZigBee, and Ultra-Wide Band and there are several applications that are pushing for the adoption of newly advance electronic systems in automotive systems both within the vehicle and between the vehicle and its surroundings.
The combination of WiFi and Bluetooth solution powers the infotainment and telematics systems in today’s connected cars that allow the drivers and the passengers to easily sync and stream content from mobile devices to the car’s infotainment system while enabling high-speed connectivity beyond the vehicle. Rising demand for connected cars, hybrid autonomous cars, and electric vehicles are fuelling the use of advanced wireless technologies in vehicles. Increasing surge for autonomous driving, artificial intelligence interfaces, telematics, and vehicle-to-vehicle (V2V) connectivity are driving the growth of inductors in the automotive sector. For instance, recently, Ford has launched its fusion hybrid autonomous vehicle at Consumer Electronics Show (CES) 2017 that uses the current Ford autonomous vehicle platform with advanced computing capabilities.
It and Telecommunication Is Shaping the Future of Inductors
With the telecom sector facing challenges to increase their revenues, the industry is actively automating their processes and is incorporating advanced technologies such as Artificial Intelligence (AI), Machine learning, and the Internet of Things (IoT). Over the past few years’ artificial intelligence, business intelligence, and big data have become the standard features in the enterprise which is increasing the need for enterprise hardware to be more efficient and durable. With powerful computing, it becomes easier to deliver the benefits of AI, IoT to the industry. Industrial pc is playing a crucial role in the services-based industries such as IT and Telecom as it provides powerful computing, low power functionality, performance efficiency, longer product life cycle, customizable features, durability, and product reliability. As telecom providers are moving from providing simple basic connectivity to becoming a provider of digital services, they are investing in AI to gain the competitive edge and start-ups that are coming up with digital innovation. In April 2017, Vodafone launched its AI Chabot Tobi to enhance its customer service and relationships. Thus, the inductor market is expected to grow at a steady pace owing to the increasing incorporation of Artificial Intelligence in industrial applications.
China Is One of the Leading Players in the Global Inductor Market
China is the hub of electronic equipment production as more than half of the global production takes place in the country. It is primarily because of the conducive business environment which attracts foreign firms to open there manufacturing hub in the country. In fact, China is sufficiently dependent on the global economic environment in order to sustain its growth as it generates a significant proportion of the GDP through exports. The export of machinery and electronic production from China to the rest of the world has increased from US$698,387,520.16 thousand in 2010 to US$895,639,747.87 thousand in 2016 (source: World Integrated Trade Solutions, World Bank). China is a hub of smartphone manufacturing along with the other smart consumer electronic products, which is creating a demand for inductors in the country. In fact, the growing number of sensors and functions per electronic product is driving the demand for higher capacitance per electronic item which is driving whole semiconductor industry. For instance, the MLCC capacitance demand is estimated approximately double from its current requirement of roughly 2,000µF in a high-end smartphone by 2020 while it expected to grow modestly for a middle-class and low-end smartphone. Looking at the opportunity for generating higher revenues, many manufacturers are expanding their capacitor manufacturing in the country. In September 2018, Murata Manufacturing Co. Ltd announced its plans of expanding the production of multi-layer ceramic capacitors in China. Similarly, Samsung Electro-Mechanics announced its plans to invest US$443 million to increase the production capacity of MLCC in its Tianjin plant.
The Indian Subcontinent Is Driving the Growth of the Market
India has been aiming to encourage local production of different electronic items, with the government making key policy changes in order to make India a more attractive destination for foreign investment. It is indicated by the fact India has jumped and reached the top 100 in the ease of doing business ranking given by the World Bank, with the country now aiming to breach within the top 50 brackets soon. Simultaneously, the growing employment rate and the availability of quality jobs are also boosting the growth of disposable income, which is increasing the demand for different consumer electronic products.
India Transmission Lines and Substations
Source: Ministry of Power, Government of India
As such, the major global companies are establishing production facilities in order to target the local market while simultaneously meeting global demand. For instance, in July 2018, Samsung Electronics opened the world's largest mobile manufacturing facility that can manufacture 120 million units a year. Moreover, India is now the second-largest mobile manufacturer in the world, with the mobile production of mobile phones increasing from 3 million units in 2014 to 11 million units in 2017 (source: Indian Cellular Association). The growing production of different consumer electronic products is driving the demand for inductors in the country. Moreover, India is also investing heavily to generate and distribute electricity to a larger proportion of the population. For instance, the installed transmission line in the country has increased from 274,588 ckm in March 2013 to 399,142 ckm in August 2018 showing a growth of more than 45% in just five years (source: Ministry of Power, Government of India).