The question When should you create a component ? can be best answered by answering another question Why should you create a component ?. Reason for creating new components are:
You want to reuse the code, and you want to keep your code DRY.
You want each component to have a specific and meaningful purpose, to have a Single Responsibility.
You want to keep different layers of the app (such as data, presentation and any other middle layers) separately, to follow Separation of Concerns pattern.
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Thinking in react is actually a good read if you're still in doubt about when should you create a component: reactjs.org/docs/thinking-in-react....
The question
When should you create a component ?
can be best answered by answering another questionWhy should you create a component ?
. Reason for creating new components are: