2019 has already proven to be an interesting year for the passive and interconnecting electronic components in India. It is expected that the government will focus and drive strong initiatives in the infrastructure projects after the elections, quotes Sambit Sengupta, Associate Director – Field Applications, Avnet India. Stating further with Niloy Banerjee of BISinfotech, Sambit underlines Avnet’s focus, strategies and the market dynamics of the passive and interconnecting electronic components market. Edited Nub.
- How vigorously innovations are evolving in this passive and interconnecting electronic components market?
There are widespread innovations happening in the interconnects and passive components market due to the rapid scale-up of new designs in the Internet of Things (IoT) and Artificial Intelligence (AI). The main key component in any innovative product is sensor. Most established enterprises (whether SMEs or big original equipment manufacturers (OEMs)) are looking at sensorization of their existing product offerings. They work with companies like Avnet who guides them on the optimization of component selection for their existing products. AI at Edge devices like SmartEdge Agile are helping to increase multiple passive and type-c connectors.
- What macroeconomic factors are directly or indirectly affecting the development of the global Passive and Interconnecting Electronic Components market?
Passives are not only the peripherals in any design board but they play a major role in making your product more successful and efficient. In the last one year, due to increased global demands, the supply chain of passives was stretched. This affected the projects in automotive and industrial products. There were local programs like Aadhar and smart meter projects which gave a boost to passive and interconnect components. Avnet in India has a dedicated team of highly skilled professionals working on passives and interconnect components requirement which helped us to meet and exceed the demands of customers.
- What Key factors will drive the Passive and Interconnecting Electronic Components market in 2019?
2019 has already proven to be an interesting year for the passive and interconnecting electronic components in India. It is expected that the government will focus and drive strong initiatives in the infrastructure projects after the elections. The implementation of smart energy, secure Aadhaar based products, various connectivity products, and OEM approved AIS-140 based vehicle tracking systems will accelerate the demand and potentially hit high double-digit growth rates. However, the second half of the year will show the trend at a rapid scale up.
- What challenges still hinder this sector?
Factors such as shortage of materials, high lead time and need for reliable partners will hinder this sector. There has been little encouragement to local manufacturers hence the ecosystem is slow. Much of the materials can be innovated locally and catered to OEMs, but that will require strong support from the local government. This sector requires strict quality assurance and there is always the grey market that affects product performance. The role of the purchaser at OEM matters greatly- to choose devices from the right sources. Avnet is working with its partners from reputable multinational companies and also works with Asia based manufacturers to meet the stiff price competitions while maintaining the quality of devices in the market.
- Lastly, If you want to shed some light on your focus into the Indian market and what key markets do you reckon to be the biggest consumers
For Avnet, Automotive and Smart energy meter are our biggest markets.