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HOME - IR Information - UKC at a Glance - Electronics industry and roles of electronics distributor -

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The electronics industry is too diversified and abundant in area and application to specifically define. Accordingly, the industry including electronic components has a broader base.

According to JEITA (Japan Electronics and Information Technology Industries Association), global production amount of electronics equipment (AV, communication, computer and information equipment) was as close as 120 trillion and that of semiconductors, electronic components, and display devices topped 60 trillion in 2013.
The size of the industry is expected to be on the rise since automobiles increasingly get electronically controlled in the future.


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The electronics industry is said to be one of the fastest globalized industries. Life cycles of products and technologies are extremely short and competitions cause a lot of ups and downs among areas and enterprises. In addition, production sites and supply chains flexibly vary for higher efficiency. Japan has led the industry for many years and is still abundant in valuable players. China is currently playing the leading part but ASEAN and India are expected to make a big leap. Business environment will continue to vary day by day depending on market growth and competition among enterprises. Each enterprise needs to promptly and flexibly deal with the drastic change.

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The industry has been led by IT equipment such as PCs and mobile (smart) phones and home appliances such as TVs and video recorders for several decades.

The markets of those products with globally high penetrations and large sizes continue to be important. At the same time, automotive, environmental and energy, and medical markets are expected to play new leading roles in the industry. Especially in the automotive area, development of electronics is essential to drive informatization and automation. Also, environmental and energy issues of globally high interest call for contributions of the electronics industry for solutions.

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Electronics distributors have characteristics that both suppliers and customers are mainly electronics manufacturers. Their roles include purchasing / sales, inventory / distribution, financing (absorbing a time lag between payment of accounts payable to suppliers and collection of accounts receivable from customers), technical support, and marketing. Although there have been arguments on the necessity of wholesalers or disintermediation for a long time, electronics distributors will play more important roles in this industry because of manufacturersf focus on core functions such as designing and development, and daily meticulous customer support only distributors would provide.
In addition, there is a strong call for providing various problem-solving supports from fiercely competitive markets. Future electronics distributors are required to not only extend lineups of products and services for broader customers but also propose and offer customers solution- and system-oriented higher added values beyond just providing goods.

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