Electronic components (market of Russia)

2012-2013

According to data the volume of the Russian market of EK in 2013 kept Frost & Sullivan companies to 2.7 bln. dollars of the USA that makes about 0.6% of the world market. According to forecasts by 2020 the share of Russia in the world market will make 0.9%, at annual average growth rate of equal 18% that advances world indicators by 7%.

For the last 10 years the Russian market of electronic components grew from $624 million in 2002 to $2.522 billion in 2012. Thus market size increased four times in 10 years that corresponds to an annual gain for 15%. As analysts, notice all these years growth of the market of the electronic components "clearly correlated with increase in prices for oil".

More than 40% of the Russian market of electronic components are occupied by products military and special purpose. So, in 2012 35% of the market 25% to industrial electronics, on 8% to a communication equipment and security systems belonged to defense industry and the space equipment. The dominant position in the market (73% for 2012) is held by foreign component manufacturers.

The largest segment of the market of EK in Russia remain integrated microcircuits among which the greatest share is occupied by the radio-frequency (RFID) tags applied on transport further the components of SIM cards for mobile communication and the IC used in identification documents of citizens (passports of a new sample, Universal Electronic Cards) follow. The second most important is the segment of analog and digital-to-analog components. Further the segment of microcontrollers and microprocessors follows.

The latest events on the world scene, in particular in Ukraine, can have a certain impact on development of the domestic electronic industry. Today the largest consumer in the market of EK is military industrial complex (about 35% of total market). There is a potential threat of turning of cooperation on a number of the directions of researches where a key factor is presence of the western specialists and technologies. On the other hand, current situation can become an additional powerful incentive for development of own research projects and productions in key market segments on all chain of value creation, beginning from materials and finishing with modules and finished goods.

Undoubtedly, for creation of the competitive market of the microelectronic industry in Russia it is necessary to develop and implement a complex of the effective measures directed to maintenance and further development of cooperation between the state and the private sector. The most important issues which should be solved are: expansion of scopes of domestic component base, further diversification of the market, implementation of the last technology practices in production.

Analysts of Frost & Sullivan describe four scenarios according to which the domestic microelectronic industry can develop.

According to the "basic" scenario, infrastructure changes in Russia will be minimum, support will be got only by the existing markets, and the potential of the industry is waited by "final loss". According to this scenario, by 2025 the Russian market of microelectronics will reach $3.6 billion.

The "selective" scenario describes a situaution of preserving of the status quo. At it support will get single technology referrals or the separate industries - consumers of microelectronics. In this case by 2025 growth of the market to the level of $4 billion is expected.

The "progressive" scenario provides gradual development of the industry, "investments into the attractive directions" and changes in the domestic sphere of Research and Development: personnel and legislative. When implementing this scenario the microelectronic industry in 2025 is waited by the market size of $5.3 billion.

At last, a situation of high preference when the industry receives "the whole package of measures of support" and full-scale develops, analysts called ideal model of development which can provide to domestic microelectronics approach to world level. To it there corresponds the "aggressive" scenario of development meaning a market exit by 2025 to a mark of $7.2 billion^[1].

Analysts of Frost & Sullivan compared the best world practices of support of the microelectronic industry in six countries of the world (the USA, South Korea, Malaysia, Israel, Germany and in China). Follows from data of this analysis that at all these countries there are different protectionist measures in relation to production and development of electronics, including import quotas and tariff and non-tariff restrictions.

2002-2011

The domestic market of the electronic components (EC) historically developed with active support of public sector, providing needs of defense industry. And the military industrial complex remains the largest consumer in the market still aviation. For the last 10 years, the Russian market of EK grew four times – from 624 million US dollars in 2002 to 2522 million US dollars in 2012 that corresponds to 15% to the rate of an annual gain (data of Frost & Sullivan).

The share of electronic components of domestic production in the market in Russia, according to Minpromtorg, for 2006-2011 reached 40%, at the same time growth of the market from 2006 to 2011 was 6%.

See Also

Microelectronics (world market)

Notes