In my apps I generally use Components in one of 3 ways:
Firstly, to standardise and re-use functionality either within a single app or across multiple apps. A great example of this is an organisation that requires standard branding and a consistent format for its Power Apps menus. A menu created as a Component only has to be created once and can be used many times
Secondly, Components are a great way to re-use functionality that others have created and made available for others to use. There are many Components freely available via the Microsoft Power Apps Community on the link below. The advantage of using these Components is that you’d don’t need to understand exactly how each Component works to use them in your own Apps. All that’s required is to supply the necessary Inputs to these Components they’ll work just fine – think of them as a ‘plugin’ or a ‘black box’ that provides the Output you require. Checkout the Components available, many provide great visuals to use in your apps
https://powerusers.microsoft.com/t5/Canvas-Apps-Components-Samples/bd-p/ComponentsGallery
Finally, if you need custom functions or formulas within your apps that aren’t available with Power Apps out of the box, you can create a Component so you don’t need to keep recreating or remembering the formula. For simple formulas this might not be an issue but if you need something way more complex, for example the validation of a credit card number or an international bank account number, a Component is definitely the way to go. Using a Component also has the advantage that if the formula changes or if a new block of numbers is to be used, the calculation only has to be updated once in the Component and not across multiple formulas and multiple apps