Analysis on the rapid growth of China's electronic component market and enterprise financing in 2022

Electronic components are components of electronic components and small machines and instruments. They are often composed of several parts and can be used in similar products; It often refers to some parts of electrical appliances, radio, instruments and other industries, such as capacitors, transistors, hairsprings, clockwork and other sub devices.

With the rapid development of consumer electronics, automotive electronics, industrial electronics and other industries in China in recent years, as well as the rise of new energy vehicles, the Internet of things, new energy and other emerging fields, the demand for electronic components in China is increasing, and the demand for electronic components is growing rapidly. According to the data, the operating revenue of China's electronic components and materials manufacturing industry in 2020 was 2148.52 billion yuan, an increase of 11.3% year-on-year. It is expected that the operating revenue will reach 2245.99 billion yuan in 2021.

Revenue of China's electronic components and materials manufacturing industry from 2017 to 2021

Source: Ministry of industry and information technology, smart core collection and sorting

From the perspective of the market structure of electronic components, in 2020, the photoelectric cable market accounted for the highest proportion in China's electronic components market, accounting for 18%, followed by electroacoustic devices and photoelectric plug-in components, accounting for 17% and 16% respectively.

Market structure and distribution of electronic components in China in 2020

Source: smart core collection and sorting

With the continuous development of China's electronic components industry, a large number of excellent enterprises continue to emerge. Based on the main business income of major enterprises in 2020, the China Electronic Components Industry Association selected the list of China's top 100 electronic components enterprises according to the comprehensive ranking of enterprise scale strength, financial status, R & D capacity and other indicators. Among them, the top three enterprises are Lixun Precision Industry Co., Ltd., Hengtong Group Co., Ltd. and Goethe Co., Ltd.

Top 10 Chinese electronic component enterprises in 2021

Source: China electronic components industry association, smart core collection and sorting

In recent years, China's capital market has paid more attention to electronic components. Capital enters the market and promotes the further development of the industry. At present, in the B2B e-commerce field of electronic components, domestic participants mainly include Huaqiang electronic network group, Yunhan core city, Lichuang mall, icgoo and other service platforms; Foreign participants mainly include DigiKey, mouser electronics, RS and other service platforms.

List of financing data of domestic industrial e-commerce (components) since 2020

Source: smart core collection and sorting

China's optoelectronic device industry is a high-tech industry encouraged by the state, and it is also a pillar industry in the national strategic emerging industry. In recent years, the relevant national departments have attached great importance to it, and have issued a series of policies to support it. The encouragement policy has created a good policy environment for the optoelectronic device industry, which is conducive to the steady development of the industry.

With the upgrading of consumer electronics, the application of new technologies and 5g in recent years, the demand for electronic components has further increased, and the global market for smart phones and other terminal electronic products has expanded rapidly. The growth in the shipment of terminal electronic products represented by mobile phones and the acceleration of the application of 5g and the Internet of things have played a positive role in driving the development of electronic components. Since automotive electronics are mainly used in power control system, on-board information and entertainment system, automotive safety control system and body electronic system, in order to improve the driving experience, the rate of automotive electronization will continue to increase, which greatly promotes the development of electronic components industry. Moreover, the application ratio of electronic components of new energy vehicles is much higher than that of traditional vehicles. With the implementation of the "double credit policy", the output of new energy vehicles will further increase, which will further drive the improvement of the market scale of electronic components.