The green electronics manufacturing market is gaining traction by growing demand for eco-friendly products. Green electronics refers to electronics and electrical equipment designed according to the principles of environmental sustainability which includes reduced use of hazardous materials, improved energy efficiency during the product's manufacture, use and disposal, upgradability/modularity as well as less environmental impact. Companies are increasingly embracing green manufacturing practices to reduce carbon footprint and optimize resource efficiency throughout their supply chains and operations.
The Global Green Electronics Manufacturing Market is estimated to be valued at US$ 20.04 Bn in 2024 and is expected to exhibit a CAGR of 25.% over the forecast period 2024 To 2031.
Manufacturers are seeing green electronics as an opportunity to tap into consumer interest in sustainable products while also future-proofing their businesses against tightening environmental regulations. However, there are still lingering challenges around higher production costs and technology trade-offs that need to be addressed.
Key Takeaways
Key players operating in the green electronics manufacturing are Nokia, RIM, Toshiba, Samsung, Sharp, Philips, HCL Info system, LG, Apple, Dell, Sony, HP, Acer, Panasonic, VIA, Simmtronics, View Sonic, and Lenovo. These companies are investing heavily in research and development of greener production techniques.
Growing environmental consciousness among consumers as well as governments pushing sustainability goals through policy initiatives has bolstered demand for eco-friendly electronics in recent years. More than 80% of consumers surveyed in a recent study said they were willing to pay a premium for green products.
Asia Pacific currently dominates the global green electronics manufacturing market led by countries such as China, Taiwan and South Korea. However, North America and Europe are also seeing rising green electronics adoption driven by stringent regulations and incentives for greener manufacturing practices. More companies are expected to shift portions of their production to these regions in the coming years.
Market Key Trends
One key trend gaining momentum is the rise of remote production monitoring technologies that enable manufacturers to track energy consumption and emissions from individual production lines and plants located anywhere globally. This level of visibility allows companies to optimize their green manufacturing operations through continuous improvement practices. Other trends include growing focus on establishing closed-loop material recycling programs and leveraging renewable energy sources in factories.
Porter’s Analysis
Threat of new entrants: Low economies of scale and capital requirements in manufacturing and production make entry difficult for new players in this Green Electronics Manufacturing Market. Bargaining power of buyers: Buyers have high bargaining power due to the availability of substitutes and transparency in pricing of products. Bargaining power of suppliers: Suppliers have moderate bargaining power due to the differentiated nature of parts and materials used for producing green electronics. Threat of new substitutes: Strong R&D from new and existing players constantly introduces new greener alternatives thus posing threat of new substitutes. Competitive rivalry: Intense competition exists among top players to gain higher market share by focusing on innovation, marketing campaigns and strategic expansions.
Geographical regions: North America currently leads the global green electronics manufacturing market in terms of value, holding around 35% share as leading tech companies in the US and Canada are prioritizing sustainable and eco-friendly manufacturing processes. Asia Pacific region is expected to witness highest growth during the forecast period, driven by countries like China, India and South Korea ramping up investments to established green electronics production facilities and supply chain networks to cater to the growing domestic and export demand.
The fastest growing region for the green electronics manufacturing market is Asia Pacific. The region is expected to grow at a CAGR of over 30% between 2024-2031. This can be attributed to rising electronics consumption, stringent environment protection regulations and initiatives like 'Make in India' that are promoting domestic green manufacturing in countries like China, India, South Korea and Japan which are major electronics producers.
Get more insights on Green Electronics Manufacturing Market
About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
Comments
0 comment