- Home
- Braemac Blog
- Navigating the Electronics Industry in 2026 and Beyond
Navigating the Electronics Industry in 2026 and Beyond
Trends, Tailwinds, and Supply Chain Realities
About Michael Kennedy
Michael Kennedy is President of the Exponential Technology Group (XTG) and Senior Vice President of Business Development at TTI, Inc., a specialty distributor of passive, interconnect, electromechanical and discrete components, a position he’s held since January 2023. He brings a wealth of industry experience and expertise to this key leadership role.
He joined TTI in August 2018 and served as Vice President of Global Accounts until 2022 when he was named Senior Vice President of Global Sales & Supplier Strategies. Prior to joining TTI, Kennedy held multiple senior leadership roles from 2014-2018 in sales, marketing and supply chain with Wesco Aircraft Holdings, Inc., a provider of supply chain management solutions to the global aerospace and defense industries.
During this time, between 2016-2019, Kennedy also served as an Independent Director on the Board for Nortech Systems, Inc., a NASDAQ traded, full-service electronic manufacturing services provider serving medical, industrial, defense and aerospace markets.
Prior to his time at Wesco Aircraft, he worked in electronic component distribution. Kennedy held the leadership position of Vice President of Asset and Supplier Marketing of WPG Americas, Inc., a top global distributor of electronic components. He also has held senior positions at global distributor Arrow Electronics, Inc., including Vice President EMEA PEMCO Engineering and Marketing.
Kennedy earned a Master’s Degree of Science in Education from Baylor University and received a Bachelor’s Degree of Science in Business Administration from Drake University.
He joined TTI in August 2018 and served as Vice President of Global Accounts until 2022 when he was named Senior Vice President of Global Sales & Supplier Strategies. Prior to joining TTI, Kennedy held multiple senior leadership roles from 2014-2018 in sales, marketing and supply chain with Wesco Aircraft Holdings, Inc., a provider of supply chain management solutions to the global aerospace and defense industries.
During this time, between 2016-2019, Kennedy also served as an Independent Director on the Board for Nortech Systems, Inc., a NASDAQ traded, full-service electronic manufacturing services provider serving medical, industrial, defense and aerospace markets.
Prior to his time at Wesco Aircraft, he worked in electronic component distribution. Kennedy held the leadership position of Vice President of Asset and Supplier Marketing of WPG Americas, Inc., a top global distributor of electronic components. He also has held senior positions at global distributor Arrow Electronics, Inc., including Vice President EMEA PEMCO Engineering and Marketing.
Kennedy earned a Master’s Degree of Science in Education from Baylor University and received a Bachelor’s Degree of Science in Business Administration from Drake University.
.png)
2026 is off to a fast start in the electronics industry! After a couple of down years driven by the post-Covid supply chain hangover, inventory digestion, and slower end market demands, 2025 progressively improved each quarter. This momentum set 2026 to be a strong growth year across defense, aerospace, satellite communications, edge computing, power infrastructure, and key industrial markets.
Key Growth Markets and Applications
A closer look at emerging markets and applications shows how they are accelerating electronic component demand this year, with many positioned for future sustained growth.
1. AI Moves From Pilot to Platform
We read every day about the trillions of dollars of investment by hyperscalers in data centers, but the growth frontier in components also exists at the edge in industrial, medical, transportation, and defense. Intelligent connected devices will play an increasingly important role throughout industries.
2. Industrial IoT (IIoT)
3. Electrification and Power Infrastructure
4. Transportation
Predictive maintenance, condition monitoring, and energy-reduction retrofits are driving growth. Additionally, factory automation/robotics, machine vision, and motion control will increase component consumption as companies look to pursue productivity and cost efficiencies.
3. Electrification and Power Infrastructure
Areas such as renewable energy, industrial electrification, charging infrastructure, and power conversion systems will be consistent multi-year drivers of component demand.
4. Transportation
Although the overall market is forecast to be relatively flat, electronic content continues to expand in areas such as ADAS, zonal architectures, and EV power electronics.
5. Medical and Healthcare
7. Aerospace, Defense & Space
The push to bring healthcare closer to the consumer continues via portable diagnostics, wearables, connected medical devices, imaging, and monitoring.
6. Media, Broadcast, and Professional AV
Component usage is increasing across IP-based video, ultra-low latency encoding, LED walls, and capacitive touch displays for numerous end markets.
6. Media, Broadcast, and Professional AV
Component usage is increasing across IP-based video, ultra-low latency encoding, LED walls, and capacitive touch displays for numerous end markets.
7. Aerospace, Defense & Space
With the geopolitical landscape remaining volatile, countries throughout the world are increasing defense spending. Drones, all varieties of unmanned systems, and satellite communications are key applications. The commercial aerospace backlog remains at historically record levels and space programs are a growing priority for a number of countries.
Supply Chain and Component Availability
What about the supply chain and component availability, you ask? As with many prior market upturns, this one will not be without challenges.
Continued Memory Volatility
The memory market remains challenged due to the transition from DDR4 to DDR5 and the extreme demands for High Bandwidth Memory (HBM) generated by massive investments in data center infrastructure to support AI. Key memory suppliers are essentially “sold out” for the year which will undoubtedly create bottlenecks for companies unable to source memory for their existing or future product releases.
Additionally, rapid price increases from the memory shortage will potentially force companies to delay or scrap new programs.
Extended Lead Times
While the majority of lead times had normalized over the last few years, we are now seeing general increase that could cause sourcing issues for customers. Those that were reliant on short lead times and flexible manufacturer support will face challenges as conditions shift. Future visibility is going to be critical to obtain the necessary components for production.
Navigating 2026 and Beyond with a Market-Led Approach
As we look to navigate the year ahead, one thing is becoming clear: there is no new normal or even old normal. Geopolitics, AI evolution, supply chain localization, tariffs, climate-related events, and a whole host of other relatively uncontrollable factors will continue to influence our business. Success will be defined by companies that can adapt and execute regardless of these challenges.
The good news is that it’s a great time to be in the electronics industry! As we often say, there will never be “less” electronic components consumed and “electronics are in everything”.
As a robust ecosystem of specialty semiconductor solutions providers, Exponential Technology Group (XTG) brands, Braemac, Changnam, Connected Development, and RFMW, are uniquely positioned to help developers and supply chain professionals navigate market challenges, design for manufacturability, and source components for production. Let our teams demonstrate the value of being a specialist. In a fast-moving market, collaborating with a trusted partner can make all the difference.
About Michael Kennedy
Michael Kennedy is President of the Exponential Technology Group (XTG) and Senior Vice President of Business Development at TTI, Inc., a specialty distributor of passive, interconnect, electromechanical and discrete components, a position he’s held since January 2023. He brings a wealth of industry experience and expertise to this key leadership role.
He joined TTI in August 2018 and served as Vice President of Global Accounts until 2022 when he was named Senior Vice President of Global Sales & Supplier Strategies. Prior to joining TTI, Kennedy held multiple senior leadership roles from 2014-2018 in sales, marketing and supply chain with Wesco Aircraft Holdings, Inc., a provider of supply chain management solutions to the global aerospace and defense industries.
During this time, between 2016-2019, Kennedy also served as an Independent Director on the Board for Nortech Systems, Inc., a NASDAQ traded, full-service electronic manufacturing services provider serving medical, industrial, defense and aerospace markets.
Prior to his time at Wesco Aircraft, he worked in electronic component distribution. Kennedy held the leadership position of Vice President of Asset and Supplier Marketing of WPG Americas, Inc., a top global distributor of electronic components. He also has held senior positions at global distributor Arrow Electronics, Inc., including Vice President EMEA PEMCO Engineering and Marketing.
Kennedy earned a Master’s Degree of Science in Education from Baylor University and received a Bachelor’s Degree of Science in Business Administration from Drake University.
He joined TTI in August 2018 and served as Vice President of Global Accounts until 2022 when he was named Senior Vice President of Global Sales & Supplier Strategies. Prior to joining TTI, Kennedy held multiple senior leadership roles from 2014-2018 in sales, marketing and supply chain with Wesco Aircraft Holdings, Inc., a provider of supply chain management solutions to the global aerospace and defense industries.
During this time, between 2016-2019, Kennedy also served as an Independent Director on the Board for Nortech Systems, Inc., a NASDAQ traded, full-service electronic manufacturing services provider serving medical, industrial, defense and aerospace markets.
Prior to his time at Wesco Aircraft, he worked in electronic component distribution. Kennedy held the leadership position of Vice President of Asset and Supplier Marketing of WPG Americas, Inc., a top global distributor of electronic components. He also has held senior positions at global distributor Arrow Electronics, Inc., including Vice President EMEA PEMCO Engineering and Marketing.
Kennedy earned a Master’s Degree of Science in Education from Baylor University and received a Bachelor’s Degree of Science in Business Administration from Drake University.
Tags:
AI
,
Defense and Aerospace
,
Edge Computing
,
Electric Vehicles
,
Healthcare
,
IIoT
,
Industrial Automation
,
Smart Factories
,
Supply Chain