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SAFETY4SEA

Internet of Things leads component trade expansion

by The Editorial Team
March 13, 2019
in Smart
iot dcsa

Credit: Shutterstock / Photo by: whiteMocca

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Demand for electronic components used in Internet-of-Things (IoT) devices has driven the value of trade in international imports of information and communications technology (ICT) goods in 2017 to reach $2.1 trillion, according to UNCTAD.

Specifically, it is the first time that ICT goods imports have rebounded since 2014, experiencing a 6% development.

Moreover, according to UNCTAD, trade in ICT products developed a bit faster in comparison to merchandise trade and represented 13.4% of the total in 2017,  down from the 16.1% high during the dot-com boom in 2000; Yet, the highest in two years.

In 2017 machinery and transport equipment accounted for 37% and food for eight% of merchandise imports.

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Among ICT products, trade in electronic components continued increasing with an annual growth rate of 8%.

Internet of Things leads component trade expansion
Credit: UNCTAD

Although China remains the leader exporter of ICT goods, the Republic of Korea reached the highest development rate among the top exporters in 2017.

The share of intra-industry trade remains high in this sector, as big players such as Asia, North America and Europe are amongst the top exporters of ICT goods.

The US was the top importer, followed closely by China and Hong Kong. Mexico was the only economy among the top 10 where ICT goods imports did not grow in 2017.

ICT imports to developed economies showed 10% annual growth.

In 2017, Eastern Asia accentuated its role as the leading export hub, while Africa, Southern and Western Asia all experienced a decrease.

However, at 54% market share, developing economies import more than developed economies, because they have a more significant role in assembling ICT goods and so import significantly more electronic components.

Internet of Things leads component trade expansion
Credit: UNCTAD
Internet of Things leads component trade expansionInternet of Things leads component trade expansion
Internet of Things leads component trade expansionInternet of Things leads component trade expansion
Tags: digitalizationfuture of shippingInternet of ThingsUNCTAD
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