Overview of Global Electronics Sector’s Demand in 2025

Last Modified

2025-08-05

Update Frequency

Aperiodically

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PDF

In 2025, the electronics industry sees diverging trends: strong AI demand, weak consumer devices, early pull-in erases seasonality, and future growth slows.

Key Highlights

In 2025, AI demand surges while consumer electronics—smartphones, laptops, TVs—see stagnant or minimal growth.
Tariff and subsidy impacts cause early inventory pull-in, disrupting traditional sales peaks and raising risks in the year's latter half.
Cloud providers grow capital spending on AI servers, with less tariff impact, squeezing budgets for general servers. "AI alone thrives."
Edge AI loses momentum; end devices lack compelling AI applications, failing to drive upgrades or noticeable consumer interest.
By 2026, the industry enters a consolidation phase with slow growth, most products remain weak, and AI server momentum eases; breakthroughs needed for future cycles.
Tariff uncertainty impacts PC OEMs' and suppliers’ production strategies; DRAM supply-demand and other components merit close watch.

Tariffs and Subsidies Have Caused Demand to Be Pulled Forward and Disrupts Traditional Peak Season
- Shipment and Production Volumes for Each End-Product / Application Categories – Distribution of Annual Shipments Between 1H25 and 2H25 vs. Averages of Previous Five Years
Demand Grows Steadily for AI Servers, Which Are Less Affected by Tariff-Related Uncertainties Compared with Other Applications and Have Benefited from CSPs’ Increasing Capital Expenditure
Subsiding Topic of Edge AI Yet to Ignite Replacement Wave; Killer Applications Pending for the Time Being
Looking Ahead to 2026: Industry Enters Low-Speed Growth and Consolidation under Decelerating Increment

Shipment and Production Volumes for Each End-Product / Application Categories – Distribution of Annual Shipments