Thematic Intelligence: Component Makers Sector Scorecard Q2 2024 Update

Thematic Intelligence: Component Makers Sector Scorecard Q2 2024 Update

Summary

The component makers sector continues to face some significant challenges, but the picture is brightening. Demand that was previously anemic in two major areas-battery electric vehicles (BEVs) and smartphones-is starting to pick up. China will lead in BEV sales, but Europe and Asia, notably India, will see more growth. In the US, consumers worry about a lack of charging stations and battery life. Meanwhile, smartphone sales have picked up. Apple’s announcement of artificial intelligence (AI) on its iPhones will increase demand when new models arrive later in 2024.

Key Highlights

• The thematic screen of the component makers sector scorecard is led by LG Energy Solution, followed by a string of strong players whose positionings are mainly due to their scores in AI, batteries, the Internet of Things (IoT), and robotics. Japan’s Murata, in second place has consolidated its position.
• Despite expectations of gradually lower interest rates, credit markets continue to be tight, and Q3 will likely be little different from the first half of the year as central banks sit on their hands. This will continue to hinder consumer-led demand for components. Any growth from an AI boom will be offset by political uncertainty in the US and around the world.

• This sector scorecard provides a top-down, comprehensive outlook for the key players in the component makers sector over the next two years, based on the key themes set to transform their industry landscape.

• Companies that invest in the right themes become success stories. Those that miss the important themes in their industry end up as failures.
• GlobalData’s thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the right investments ahead of the competition, and secure that all-important competitive advantage.
• At GlobalData, we have developed a unique thematic methodology for ranking all major companies in all major sectors based on their relative strength in the big themes that are impacting their industries.
• Our thematic engine tags over 180 million data items across six alternative data sets-patents, jobs, deals, filings, social media, and news-to themes. The vast datasets within our thematic engine help our analysts to produce sector scorecards that identify the companies best placed to succeed in a future filled with multiple disruptive threats.