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New Study Tracks Electronic Components Manufacturing in China

Electronic components manufacturing in China is expected to experience average revenue growth of 11.2% per year over the next five years, driven by increased demand from downstream industries and growth in exports, according to a new study from IBISWorld. As the Chinese and global economies further recover from the global financial crisis, demand for a range of intermediate manufacturing inputs is expected to increase. Industry revenue is forecast to reach $268.82 billion in 2016.

With the rapid development of China’s information communications technology (ICT) sector, China has become the world’s largest manufacturing center for electronic products, including televisions, computers, handsets and DVD players. China’s output of some component categories, especially commonly used and medium- and low-end electronic components, is the highest in the world.

Industry revenue is forecast to increase by 24.5% in 2011 to $157.93 billion. Slow 5.6% industry revenue growth in 2009 was mainly due to lower domestic and foreign demand resulting from the global financial crisis, as well as a decline in price levels. However, domestic demand increased in 2010 and 2011 due to the recovery of China’s economy.

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