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2020/04/07 Global Data- Component Makers’ Recovery from Coronavirus is Some Way Off

COVID-19 outbreak is now travelling around the world, leaving a trail of destruction in its wake. This report discusses the impact of the virus on leading companies in the component makers sector.


GlobalData's latest report, COVID-19 Impact on Component Makers - Thematic Research, analyzes the impact of COVID-19 on the global component makers sector. It identifies those companies that may benefit from the impact of COVID-19 over a 12-month period, as well as those companies that will lose out.


The coronavirus (COVID-19) is by far the most significant theme to affect the technology industry in 2020. It will put incredible strain on the world’s economy, which will be effectively halted for three months or more. Many companies will not survive this initial phase. Before COVID-19 hit, component makers were already suffering from waning global business confidence and flagging capital expenditure on automating and upgrading plant. Industrial robot sales have stalled, even in China which has a high priority in increasing its robot density, says GlobalData, a leading data and analytics company.

David Bicknell, Principal Analyst in the Thematic Research Team at GlobalData, says: “In autos, GM, Ford, Chrysler, Volkswagen, Toyota, Honda and Hyundai have closed plants due to COVID-19. This has caused an immediate blow to the already stuttering parts suppliers. The collapse in demand for electric vehicles has hit lithium-ion battery cell suppliers.


“You’d like to think that the market for components for consumer electronics will bounce back if consumer confidence returns and supply chains return to working order. If there is a rebound, it will be some way off. The key thing for component makers is to recognise and act on the signs of recovery when they emerge.”


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The report includes a thematic screen, that ranks the leading companies in this sector on the basis of overall leadership in the 10 themes that matter most to their industry, including COVID-19. This generates a leading indicator of future performance.

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