A recent report from Cognitive Market Research estimates that the industrial electronics market has been experiencing steady and expanding growth. In 2023, it was valued at approximately $208 billion and is expected to grow at a compound annual growth rate (CAGR) of 5.60% from 2023 to 2030. This growth trajectory suggests the market could reach around $345 billion by 2032.
The industrial electronics market encompasses electronic components, systems and equipment used in industrial applications such as automation, manufacturing, energy, transportation and process control. Even cybersecurity and AI are a part of the industrial marketplace, and some market studies include medical and test & measurement equipment.
Power electronics and the merchant power supply market are often considered part of the industrial market. In fact, power is incorporated into everything industrial, from SCADA and PLC systems and DCS-distributed control systems and sensors to embedded systems, industrial networking and wired and wireless communications. It’s also essential in robotics and motion control, renewable energy, smart grids, battery storage systems and more. The power components used in industrial applications include everything from discrete components to complete embedded control boards, semiconductors, sensors and transducers, complete power supplies and systems.
The industrial market is driven by a need for automation across industries to increase productivity and efficiency. This means reliability is key. I’ve been saying for years that the industrial market is the automotive market without wheels. Industrial failures and downtime can lead to safety concerns—not to mention lost productivity from having a line down. Thus, the requirements for AEC-Q processes and reliability qualifications are just as important for this market as they are for the automotive arena.
I’ve also learned that it’s important to keep production simple when dealing with industrial electronics. Years ago, I participated in a project where a major toothpaste maker was having issues with some toothpaste boxes being shipped without the toothpaste tube inside. Smart people inside the organization partnered with an external company to develop a solution: a dynamic weighing system weighed each box to differentiate between a full box vs. an empty one, and having an actuator knock off the empty boxes and stop the line.
This complex and expensive system looked amazing; the line ran so fast that the tubes went by in a blur. However, it also had the problem of continually shutting down the line even when nothing was wrong. One frustrated worker finally went to a big box store and bought a $12 fan. His system had the fan blow on the boxes and the empty ones flew off the production line.
With industrial electronics, it’s instructive to consider what Einstein said: Things should be made as simple as possible but not simpler.
