Green Electronics Manufacturing Market

Green Electronics Manufacturing Market Outlook (2023 to 2033)

The green electronics manufacturing market is expected to increase at a 26.14% CAGR from 2023 to 2033, from US$ 17.36 billion in 2023 to US$ 177.01 billion in 2033.

A capital-intensive sector with insufficient raw material supply

The number and competence of indigenous chip production centers are crucial to the electronics sector (fab centers). Fab centers necessitate a dedicated ecosystem that includes investment, chip manufacturing know-how, raw material suppliers, demand continuity, and unit upgradation competency. Given the existing situation, India lacks much of the ammunition required for the creation of local chip production units. As a result, electronic product design and development are frequently outsourced to ODMs (original design manufacturers) in other nations with greater design and manufacturing capabilities.

To reduce their reliance on fossil fuels and lessen their carbon footprint, electronics manufacturers are now investing in renewable energy options such as solar, wind, and hydropower. Environmental concerns and the need to lower energy prices are driving this, as renewable energy sources are often more cost-effective in the long run.

The green electronics-manufacturing sector is increasingly focusing on circular economy ideas, which include creating goods and processes that minimize waste and maximize resource utilisation, such as recycling, remanufacturing, and refurbishment. Manufacturers are also looking for ways to incorporate recycled materials into their goods, which can help them have a lower environmental effect.

2018 to 2022 Green Electronics Manufacturing Market Outlook in Comparison to 2023 to 2033 Growth Forecast

The green electronics manufacturing market accounted for US$ 13.76 billion in 2022, expanding at a 26.11% CAGR from 2018 to 2022. 

The introduction of government rules and regulations has revolutionized the electronics sector as a result of green practices. Environmentally aware consumers predict the global green manufacturing electronics market to rise due to an increase in acceptance of green manufacturing electronic products. Electronic manufacturers are putting a strong emphasis on developing and implementing green production techniques while ignoring business requirements and development prospects.

Companies are increasingly implementing green business ideas and engaging in eco-friendly activities such as recycling and producing eco-friendly products. In addition, original equipment manufacturers are moving up to support the sustainable electronics trend, which is projected to drive market growth.

As per the FMI analysts, a valuation of US$ 177.01 billion by 2033 end is estimated for the market.

Environmental Issues are growing

Throughout the last few decades, there has been an increasing awareness of the environmental impact of electronic waste, which has led to an increase in demand for environmentally friendly and sustainable electronic products. Because electronic devices frequently contain toxic compounds such as lead, cadmium, and mercury, the electronics industry greatly contributes to environmental deterioration. When electronic goods are not properly disposed of, dangerous materials can end up in landfills, contaminating soil and groundwater. When burnt, electronic trash can emit greenhouse gases, contributing to climate change.

Customers are increasingly seeking sustainable and eco-friendly items as they grow more conscious of the environmental impact of their purchases. This has given rise to a market for green electronics manufacturing, in which companies can distinguish themselves by providing more ecologically friendly goods.

Many electronics businesses are responding to this demand by implementing sustainable practices such as using recycled materials in their products, minimizing the energy consumption of their production processes, and creating items that are easier to recycle or repair. Some businesses even collaborate with environmental organizations to develop more environmentally friendly practices and technologies.

Governments all over the world are imposing laws on the electronics industry in order to lessen its environmental impact. The EU RoHS directive, for example, prohibits the use of some hazardous compounds in electronic equipment.

The EU WEEE directive mandates electronics producers to assume responsibility for product collection and recycling. Growing environmental concerns, as a result, boost the green electronics manufacturing market by increasing demand for more sustainable and eco-friendly products and pressuring electronics companies to embrace more sustainable methods.

Sudip Saha

Principal Consultant

Talk to Analyst

Find your sweet spots for generating winning opportunities in this market.

Talk to Analyst

High Expenses associated with Developing Sustainable Manufacturing Methods and Technologies

While there are numerous advantages to green manufacturing, such as less environmental impact, increased productivity, and improved brand reputation, the initial costs of implementing these practices can be a substantial barrier for many businesses. Implementing sustainable practices can be costly for a variety of reasons, including initial investment. Many green technologies and practices necessitate significant investment in new machinery, buildings, and infrastructure.

Companies, for example, may need to invest in new machinery or rearrange existing facilities in order to cut energy usage, switch to renewable energy sources, or include recycled materials. Materials scarcity: Sustainable materials can be more difficult to obtain and more expensive than standard materials. Certain sustainable materials used in electronics production, for example, such as bioplastics, are still in the early phases of development and may not be readily available at a fair cost. Businesses may also need to invest in employee training and education to ensure that employees are familiar with new equipment and processes. This can be costly and time-consuming, and it may necessitate employing additional employees or collaborating with outside consultants.

As a result of these obstacles, some businesses may be unwilling to employ sustainable practices or may postpone their implementation. This hinders the shift to a more sustainable economy and limits the growth of the green electronics manufacturing market. Nevertheless, as more sustainable technologies are adopted and competition increases, costs likely fall, making green manufacturing more accessible to a broader spectrum of businesses.

Circular Economy and Closed-Loop Manufacturing Adoption

There are various advantages to implementing a circular economy and closed-loop production in the electronics industry. For starters, it helps to reduce manufacturing's environmental effect by reducing waste generation and resource usage. This is especially critical in a business that generates a lot of waste, like electronics. Second, by boosting resource efficiency and lowering the demand for additional raw materials, a circular economy approach helps industries decrease costs and enhance efficiency.

This can help to boost profitability while lowering manufacturing's environmental impact. Finally, implementing a circular economy and closed-loop manufacturing strategy extends product lifespan and promotes a more sustainable consumer consumption behavior. Manufacturers may increase product longevity and reduce waste by developing goods that are simple to disassemble, repair, and recycle.

To capitalize on this potential, businesses in the electronics industry need to engage in research and development to create innovative products and manufacturing processes that encourage resource efficiency and waste reduction. This may entail collaborating closely with suppliers and other stakeholders to develop more sustainable materials and manufacturing practices.

Businesses must collaborate closely with authorities and policymakers to ensure that their products and manufacturing processes adhere to environmental norms and requirements. Obtaining certifications such as the ISO 14001 environmental management standard, as well as participating in collaborative projects that encourage sustainable manufacturing methods, may be part of this.

Adopting a circular economy and closed-loop manufacturing approach opens up numerous prospects for enterprises in the green electronics manufacturing sector. Manufacturers can boost revenue while decreasing their environmental effects by improving resource efficiency, reducing waste, and expanding product lifespan. Taking advantage of this opportunity, necessitate investment in R&D, engagement with stakeholders, and a commitment to sustainability.

Geometries of novel devices for sensing and integrating with living tissue

Novel architectures have lately been presented as a method for integrating electronics with living beings and exploring the cluttered world of biological cells. The challenge of such integration stems from the anomalous form of transport found in complex heterogeneous materials such as biological media and polymeric networks. These types of media exhibit characteristic slow transport, with a sublinear increase in mean square displacement of particles (MSD), in contrast to the classic model of single-particle diffusion, which exhibits a linear increase in MSD over time; this type of unusual transport in polymeric and biological media, including governing equations and interface conditions, has recently been reviewed.

This delayed and anomalous transport must be paired with quick and predictable electrical transport in the electronic circuit, further complicating problems for the electronic device designer. Although the process of biological and chemical sensing by organic electronic devices has recently been examined, the subchapters that follow highlight some of the significant advancements in the field that reduced such coupling challenges.

A Glimpse of Country-wise Insights

Asia Pacific region dominated the industry, accounting for the majority of market revenue

The Asia Pacific area is home to some of the world's largest electronic manufacturers and has rapidly rising economies, resulting in tremendous potential opportunities in the green electronics manufacturing sector.

Furthermore, the region is seeing an increase in demand for environmentally friendly products and sustainable industrial techniques. China, Japan, and South Korea are the Asia Pacific region's leaders in green electronics manufacturing, owing to government programs and legislation that promote sustainable practices and renewable energy. China is the largest green electronics manufacturing market in the region, owing to the country's emphasis on lowering carbon emissions and promoting sustainability.

Consumer electronics goods are widely used in the region. Increased awareness of green manufacturing goods, fast industrialization, and worries about the harmful effects of hazardous compounds such as lead and cadmium, as well as rigorous government restrictions, are some of the factors predicted to drive regional market expansion during the forecast period.

The North American Electronics Manufacturing Market achieved tremendous growth, with plenty of room for future growth

Consumer electronics consumption in middle and upper-income households is driven by the region's urbanization and stable population growth. The availability of low-cost consumer electronic items from a variety of local manufacturers, including as smart home appliances, cellphones, and televisions, is assisting in increasing their acceptance among low-income citizens. The youth's acquaintance with modern technology increases demand in this sector.

North America's solid financial position also allows for major R&D spending. Increased structural electronics penetration in the region, as well as the rapid application of structure electronics in conductors, solar devices, and sensors in high-end automobiles and space vehicles, are projected to add to market expansion.

Category-Wise Insights

The Lead-free Technology has a Prominent Market Share

Lead-free technology has been around longer and is more frequently used than halogen-free technology. This is due, in part, to the implementation of the EU's Restriction of Hazardous Substances (RoHS) directive, which limits the use of certain hazardous compounds, including lead, in electronic items marketed in the European Union. As a result, in order to comply with this rule, several manufacturers have changed to lead-free technology.

Owing to lead exposure can cause major health concerns, lead-free technology has the potential to benefit workers in electronic production. Manufacturers can lower the danger of lead exposure for their employees and provide a safer working environment by employing lead-free technology. As a result, environmental restrictions, health benefits, customer demand, industry standards, and technological improvements drive the adoption of lead-free technology in the green electronics manufacturing market. Manufacturers may improve the sustainability of their products and meet the growing demand for more sustainable electronics by employing lead-free technology.

Saga of the Portable Device Segment Growth

This is due to the growing popularity of portable and energy-efficient electronic gadgets such as smartphones, laptops, and tablets. Customers are increasingly looking for environmentally friendly and energy-efficient alternatives, and manufacturers are responding by producing more sustainable products and manufacturing techniques. Numerous portable electronics manufacturers have also begun to create take-back and recycling programs in order to reduce electronic waste and encourage appropriate disposal of outdated gadgets.

Furthermore, there is an increasing tendency towards creating items that can be easily modified or fixed, thereby extending their lives and minimizing the need for frequent replacements. As a result of technological advancements and rising demand for transportable and energy-efficient products, the portable electronics industry is likely to expand in the future years. Businesses that prioritize sustainability in their product development and production processes likely have a competitive advantage in this quickly changing industry.

Competitive Landscape

Investments, partnerships, acquisitions, and mergers are all attempts by market participants to enhance their market share. Businesses are also investing in the development of new products. They are also focused on keeping competitive pricing.

Electrical product manufacturers have taken steps towards a greener future by redesigning their goods to expedite procedures and boost product reusability and recycling rates. Companies have also begun to use clean delivery tactics to promote minimal trash generation, which boosts supply chain efficiency. Electronics manufacturers are encouraged to reduce e-waste by designing devices that lower the number of dangerous substances.

Among the Key Market Participants are

• Apple Inc.
• Samsung Electronics Co., Ltd.
• Dell Technologies Inc.
• Sony Corporation
• LG Electronics Inc.
• HP Inc.
• Panasonic Corporation
• Siemens AG
• Toshiba Corporation
• General Electric Company 

Scope of Report           

Green Electronics Manufacturing Market Key Segment

by Technology :

• for Lead-Free
• for Halogen-Free

by Application :

• for Electronics
• for Portable electronics
• for Industrial
• for Automotive

by Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa