Top 3 Challenges in Hardware and Electronic Equipment Industry
What do your peers think about Hardware and Electronic Equipment Industry?
Professionals state that one of the principal challenges of hardware and electronic equipment industry is keeping up with innovation, while facing a highly competitive market ruled by Asia. As consequence, costs and margins are two important elements to attend.
Hardware and Electronic Equipment Top 3 peer challenges
Keeping up with innovation can be one of the hardest challenges to deal with in this dynamic industry and fast-changing environment. And is not only innovating in new products or materials, but also in new business models, management and consumer relationship.
Trying to compete with what is known as “Factory Asia” has become a real challenge as low-cost Chinese labor keeps reinforcing the dominance.
Costs and margins
The global market has accentuated the competition as consumers started to take advantage of a good price-quality relationship. As an inevitable result, the industry will have to cope with shrinking margins.
- Environmental regulation: new government’s standards are forcing the industry to start thinking in social responsibility terms. Nowadays, the entire lifecycle of a product has to be considered to respect regulations.
Research-based challenges and short-term forecast
Hardware and electronic equipment can guarantee a huge growth in emerging markets. The ascending demand in Asia-Pacific will reach the highest growth as consequence of the increasing domestic demand while China the United States will continue dominating the market with more than one-third of market share (PR Newswire).
According to Manufacturer Market Insider, the segment that will keep driving the largest growth is ‘Communications and computer products’. By 2019, the total industry could reach $1.9 trillion in annual assembly value cost of goods sold (MMI).