Avnet's latest research interprets the core trends and challenges of AI applications, helping Chinese engineers seize AI opportunities.
Avnet's latest annual research report shows that engineers around the world, including Chinese engineers, generally believe that AI has broad application potential, but it is currently difficult to determine which specific field AI will have the greatest impact on.
SHANGHAI, China, February 26, 2025 – Avnet (NASDAQ: AVT) today released its fourth annual Avnet Insights study. The study reveals that engineers remain cautiously optimistic about the opportunities offered by artificial intelligence (AI) in product development, as many are still evaluating which aspects of their work will be most impacted by AI. Established in 2021, the study continues to examine how engineers are responding to market changes and how they perceive future market trends.
The research shows that engineers are becoming increasingly optimistic about the overall state of product development, with 75% believing that market conditions for designing products are improving. Furthermore, nearly half (49%) of engineers expect the economic and market environment in 2025 to be favorable for their product design and development efforts. Regionally, engineers in Mexico are the most optimistic (87%), followed by engineers in China (85%).
Avnet Insights is an annual research program for engineers. The 2024 survey, conducted from October 31 to November 15, 2024, collected insights online from 1,204 engineering professionals worldwide, including those in the United States, Mexico, the United Kingdom, Germany, China, and Japan. Engineers in the Asia-Pacific region accounted for 34% of the respondents.
An Avnet Insights research report focuses on artificial intelligence (AI), a key technology likely to impact the coming year. The report shows that AI is rapidly revolutionizing product design, with 42% of engineers worldwide already incorporating AI into their product designs.
Of particular note, Chinese engineers are leading the way in this area, with nearly two-thirds (66%) employing AI in their design processes, significantly ahead of the second-placed United States (47%).
Dong Hua, President of Avnet China, said:
"Nearly two-thirds of the Chinese engineers who participated in the survey have already adopted AI technology in product design. This fact fully demonstrates the Chinese market's active capture and rapid adoption of cutting-edge technologies. In fact, China has become a country led by innovation, and Chinese engineers have a forward-looking mindset and a persistent pursuit of innovation. This practice of applying cutting-edge technology in the early stages of product development provides Chinese companies with important opportunities to use AI technology to develop leading-edge products. These products will not only meet the ever-changing needs of the Chinese market, but also contribute to global technological progress."
During the survey, when asked "Which of the 14 areas, ranging from AI-driven simulation and testing to hardware design tools and software code, is emerging AI technology likely to have the greatest impact?", respondents were reluctant to pinpoint a specific area that will lead in embracing AI opportunities. This suggests that opportunities may, in fact, be spread across various fields.
When it comes to product development specifically, almost all (96%) engineers believe that AI will impact key product development functions to some extent or even a great extent, including: increasing the degree of automation of design tasks, enabling more personalized and customized designs, improving the ability to predict market demand, and shortening the time required for the entire product development cycle.
Avnet's research found that the main challenges engineers face when considering integrating AI into their products include security and privacy (37%) and data quality (31%). For approximately a quarter of engineers, integration with existing tools (25%) and high costs (24%) also topped the list.
In line with global trends, security and privacy, along with data quality, were the top three challenges facing engineers in China and Japan in the Asia-Pacific market. Notably, in addition to these three challenges, Chinese engineers also listed sustainability as a key concern.
"Chinese engineers are at the forefront of applying AI to product design. They have a deep understanding of the key skills required to succeed in this transformative field. However, the key is to address challenges such as data security, privacy, and sustainability, while also cultivating a workforce of problem-solvers with strong skills such as critical thinking and digital design," added Dong Hua.
Avnet's research also revealed that engineers desire specific skills to help them seize the opportunities presented.
Engineers believe the essential skills to effectively utilize AI in product design include data analysis and interpretation (16%), AI model optimization (16%), and problem-solving and critical thinking (16%). In China, problem-solving and critical thinking (20%) are the most popular, followed by proficiency in digital design tools (19%) and understanding data requirements (13%).
"Chinese engineers are leading the way in AI application, and the country is poised to play a key role in AI-driven product development and shape the world's future. By embracing innovation, addressing challenges, and fostering a collaborative ecosystem, China can not only drive its own technological advancement but also make significant contributions to global AI innovation. With its global presence, deep expertise in AI, and industry expertise, Avnet is committed to providing engineers around the world, including those in China, with the tools, expertise, and support they need to successfully navigate this exciting era of change," Dong Hua concluded.
To download the full 2025 Avnet Insights research report, please click here.
2025 marks the 30th anniversary of Avnet's development in China. Rooted in China for 30 years, Avnet has consistently been at the forefront of the local electronics market, empowering innovation and driving business growth. Leveraging its global presence and deep expertise and industry experience in the local market, Avnet is able to provide customers with comprehensive technology solutions, ranging from design services and robust supply chain support to professional technical guidance. Our outstanding performance has earned recognition from core semiconductor manufacturers and key customers, and we have also received numerous industry awards, including "Best Agent of the Year." While contributing to customer success and supporting China's dual carbon goals, Avnet China deeply implements ESG concepts, achieving mutual benefits with the local market and contributing to a more sustainable future.
Avnet, a leading global technology distributor and solutions provider, has remained true to its roots for over a century, meeting the evolving needs of its customers. From conception to design, prototyping to production, Avnet supports customers at every stage of the product lifecycle. Avnet is at the center of the entire technology value chain. This unique position enables Avnet to accelerate design and supply throughout the product development process, helping customers achieve faster time to revenue. For decades, Avnet has been committed to transforming technology for customers and suppliers worldwide. For more information about Avnet, please visit www.avnet.com/apac.
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