The global Passive Electronic Components Market is estimated to be valued at US$ 32.8 million in 2021 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Passive electronic components are essential parts of various electronic devices and systems. These components do not require an external power source to function and provide electrical resistance, capacitance, and inductance. They are widely used in automotive, consumer electronics, healthcare, telecommunications, and other industries. The increasing adoption of advanced technologies, such as IoT, AI, and 5G, is driving the demand for passive electronic components in various applications.
The global Passive Electronic Components Market Size is driven by two key factors: increasing demand in the automotive sector and growing consumption in the consumer electronics industry.
Driver 1: Increasing Demand in the Automotive Sector
The automotive industry is witnessing significant technological advancements, such as electric vehicles (EVs), autonomous vehicles, and advanced driver-assistance systems (ADAS). These advancements require the integration of various electronic components, including passive electronic components, to enhance performance and efficiency. Passive components such as resistors, capacitors, and inductors play a crucial role in automotive applications, such as engine control units, infotainment systems, and safety systems. The growing adoption of EVs and the increasing focus on vehicle electrification are expected to drive the demand for passive electronic components in the automotive sector.
Driver 2: Growing Consumption in the Consumer Electronics Industry
The consumer electronics industry is experiencing rapid growth due to the increasing penetration of smartphones, tablets, smart wearables, and other connected devices. Passive electronic components are widely used in these devices to provide power, connectivity, and protection. These components are essential for the functioning of smartphones, batteries, displays, and connectors. The rising demand for advanced consumer electronics with enhanced features and performance is expected to drive the market for passive electronic components.
Strength: Wide Applications and Increasing Technological Advancements
Passive electronic components have extensive applications in various industries, including automotive, consumer electronics, healthcare, and telecommunications. The increasing adoption of advanced technologies, such as IoT, AI, and 5G, is expected to drive the demand for passive electronic components. Moreover, ongoing technological advancements in passive components, such as miniaturization and improved performance, are further fueling market growth.
Weakness: Supply Chain Disruptions and Price Volatility
The passive electronic components market is highly dependent on the global supply chain, and disruptions in the supply chain can impact the availability of components. Moreover, price volatility of raw materials, such as tantalum, ceramics, and metals, can affect the overall cost of passive components.
Opportunity: Emerging Markets and Industry Collaboration
The growing demand for passive electronic components in emerging markets, such as Asia Pacific and Latin America, presents significant opportunities for market players. Additionally, collaboration among industry players to develop and integrate passive components with advanced technologies can provide innovative solutions and enhance market growth.
Threats: Counterfeit Products and Intense Competition
The market faces the challenge of counterfeit passive components, which can lead to device failures and safety risks. The presence of counterfeit products in the market can significantly impact the reputation of genuine manufacturers. Additionally, the market is highly competitive, with the presence of numerous players offering similar products, leading to price competition and margin pressure.
The global passive electronic components market is expected to witness high growth, exhibiting a CAGR of 5.0% over the forecast period. The market will be driven by increasing demand in the automotive sector, particularly due to the adoption of electric vehicles and vehicle electrification. The growing consumption in the consumer electronics industry, fueled by the rising demand for smartphones and other connected devices, will further contribute to market growth.
In terms of regional analysis, Asia Pacific is anticipated to be the fastest-growing and dominating region in the global passive electronic components market. The region is witnessing significant growth in automotive and consumer electronics industries, supported by favorable government initiatives, rapid urbanization, and increasing disposable income.
Key players operating in the global passive electronic components market include Honeywell International Inc., KEMET Corporation (Yageo Company), Arcol UK Limited, Panasonic Corporation, Susumu Co. Ltd., TDK Corporation, Ohmite Manufacturing Company, Vishay Intertechnology Inc., TE Connectivity Ltd., Murata Manufacturing Co. Ltd., KOA Speer Electronics Inc., AVX Corporation (Kyocera Corp.), TT Electronics PLC, Taiyo Yuden Co. Ltd., Coilcraft Inc., Sagami Elec Co. Ltd., Eaton Corporation, WIMA GmbH & Co. KG, API Delevan (Fortive Corporation), Cornell Dubilier Electronics Inc., Wurth Elektronik Group, Yageo Corporation, Bourns Inc., Lelon Electronics Corp., and United Chemi-Con (Nippon Chemi-con Corporation).
Overall, the passive electronic components market is poised for significant growth, driven by the increasing demand in the automotive and consumer electronics sectors, as well as advancements in technology and emerging market opportunities.