The General Electronic Components Market is estimated to be valued at US$ 498.34 Bn in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The General Electronic Components Market is a crucial part of the electronics industry and touches nearly all sectors of modern technology. It involves a wide range of basic discrete semiconductors, integrated circuits, passive components that are used in consumer electronics, communications, automotive, industrial and other sectors. General electronic components are becoming increasingly complex with reducing size, increasing functionality and reliability.
General electronic components consist of a variety of integrated circuits, semiconductors, and passive components like capacitors, resistors among others. They provide basic functionality to a wide range of electronic devices and equipment across industries. The rising demand for consumer electronics, increasing digitization across industries, and growing adoption of IoT and AI are propelling the growth of the global electronics components market.
Market key trends:-
One of the key trends driving the general electronic components market is miniaturization and increasing demand for compact components. Electronic devices worldwide are becoming increasingly smaller yet more powerful which requires ever decreasing component sizes. This has spurred innovation and R&D into new materials and manufacturing techniques to miniaturize components while maintaining or enhancing functionality. For example, advances are being made to manufacture thinner and smaller chips, passive components, and other discrete components through techniques like 3D stacking. The miniaturization trend is expected to continue fueling market revenues over the forecast period.
- Threat of new entrants:- The threat of new entrants in the general electronic components market is moderate. High initial capital costs associated with manufacturing facilities and R&D act as a deterrent for new players. However, low brand loyalty and availability of substitutes provide opportunities for new entrants.
- Bargaining power of buyers:- The bargaining power of buyers is high in this market. Buyers have a variety of options to choose from due to the presence of numerous established as well as emerging players globally. Buyers can negotiate on price owing to the competitive nature of the market.
- Bargaining power of suppliers:- The bargaining power of suppliers is moderate. While a few raw materials used in manufacturing electronic components have specialized production processes, the availability of substitutes provides alternatives to buyers.
- Threat of new substitutes: The threat of substitutes is high. Constant innovation has led to the introduction of newer alternatives that can perform the same functions at competitive prices.
- Competitive rivalry:- Fierce among industry giants.
- Strengths:- Vast product portfolio and R&D capabilities of key players. Growing demand for consumer electronics and industrial equipment boosts sales.
- Weaknesses:- Volatility in raw material prices impacts margins. Supply chain disruptions amid pandemic affected production.
- Opportunities:- Rising adoption of IoT and connected devices offers scope for growth. Government support for semiconductor manufacturing presents opportunities.
- Threats:- Intense competition from regional and local players on pricing. Trade conflicts and geopolitical risks pose challenges.
The global general electronic components market demand is expected to witness high growth, exhibiting CAGR of 6.8% over the forecast period, due to increasing demand for consumer electronics. Rapid urbanization, rising disposable incomes and changing lifestyles in emerging economies are fueling the demand for smartphones, laptops, televisions and home appliances.
The Asia Pacific region currently dominates the general electronic components market, accounting for over 45% of the global demand. China, South Korea, Taiwan and countries in Southeast Asia are major manufacturing hubs and have a high concentration of OEMs. Countries like India also offer significant growth potential.
Key players operating in the general electronic components market are Panasonic Corporation, Samsung Electronics Co. Ltd., Intel Corporation, Texas Instruments Incorporated, Toshiba Corporation, Sony Corporation, STMicroelectronics N.V., NXP Semiconductors N.V., Infineon Technologies AG, Broadcom Inc., Analog Devices Inc., Murata Manufacturing Co. Ltd., Vishay Intertechnology Inc., ON Semiconductor Corporation, and Renesas Electronics Corporation. These players focus on expanding their manufacturing capacities and investing in R&D to develop innovative solutions.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it