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New Decade, New Developments: Supply Chain Projections for 2020

The 2010s are over. One of the most consequential decades in the history of supply chain management – particularly for electronic components – won’t soon be forgotten. The last 10 years have included:

• A full-scale recovery from the 2008 global financial crisis.

• Implementation of 4G network connectivity for most of the developed world.

• Red-hot economic growth in India, China, Brazil and other burgeoning markets.

• Monumental technological advances in everything from the Internet of Things (IoT), personal computing, automated vehicles, artificial intelligence (AI), and more.

• Unique challenges to the global supply chain, including increased consumer demand, wide-reaching tariff legislation, and more.

Those are only a few key highlights of the 2010s. What will the worldwide marketplace for electronic accessories look like in 2020 and beyond? Some factors – for example, the upcoming 5G revolution – appear to be already written in stone. But others (unexpected trade wars, rumors of a possible global economic downturn, etc.) are tougher to pinpoint.

Here’s one prediction we can confidently offer: if your organization wants to leverage all the benefits of a true e-commerce marketplace, Sourcengine™ has everything you need to stay ahead of the 2020 supply chain curve, from trusted, traceable sources to up-to-the-second purchasing data, from Boston to Beijing and beyond.

The Future Forecast: Key Trends to Consider for the Global Supply Chain in 2020

In the worldwide electronic component supply chain, one adage holds true for every day, every week, every year, and every decade: the only constant is change. While the global marketplace is usually robust enough to withstand turmoil here, or a tariff dispute there, there are a few things to pay attention to for 2020:

Integrated Circuit Woes?

A projected decrease in integrated circuit (IC) sales (one of the biggest sub-markets of the total electronic marketplace) suggests a slightly restricted supply for 2020. By some estimates, the IC market will lag more than 15% in 2020, from over $420 billion to just over $350 billion. Due to this slight downturn, many computer manufacturers and semiconductor producers will pull back on total capital spending in 2020. However, these changes aren’t expected to impact every semiconductor manufacturer – Intel and Samsung, two giants in the industry, are expected to continue their momentum from the late 2010s well into the next decade.

The New Normal: AI and Automation Everywhere

How efficient is your supply chain process? If you’re like a lot of companies, probably not as efficient as you’d like. Thanks to AI and automation (with e-commerce solutions like Sourcengine), most firms will have some sort of automated buying/purchasing analysis in place by 2020. As a result, expect 2020 to produce better purchasing decisions across the board with key metrics like delivery and accuracy, not to mention an overall cost reduction for wider project budgets – less money spent on parts could result in intelligent investments elsewhere, including R&D.

Emerging Markets Could Offset Wider Global Supply Shortages

As electronic components like smartphones and wearable tech continue to surge in popularity, suppliers will likely struggle to keep up with demand. Thanks to predictive analysis – yet another form of AI benefitting the supply chain – new startups in emerging marketplaces and as-needed manufacturing should keep the worldwide supply chain moving forward without too many hiccups.

5G Is Here to Stay

We touched on it earlier, but it’s worth exploring the latest communication technology in-depth. 4G was enormously influential in the 2010s; expect 5G to have an even bigger impact for 2020. While the early months of 2020 might be “quiet,” expect 5G connectivity to create a demand for brand-new 5G-compatible applications, processes, and hardware devices for Q3 and Q4. Again, emerging markets are a wildcard; the ability of Verizon, Spring, T-Mobile, and other networking companies implement 5G technology in India, China, and South America will ultimately determine the true impact on the global electronic parts supply chain.

Discover how intelligent automation – Sourcengine’s e-commerce marketplace – can improve your own small corner of the global supply chain today. Schedule a demo of our powerful, productive tools, or sign up and get started ASAP.

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