April 12, 2024
Passive Electronic Components Market

The Growing Demand For Consumer Electronics Is Driving The Passive Electronic Components Market

Passive electronic components such as resistors, capacitors, and inductors form an integral part of all electronic devices and circuitry. They are compact components that do not require external power to function and are primarily used for regulating signal strength and managing power flow. These components find extensive applications in industrial equipment, automotive systems, renewable energy infrastructure, telecommunication networks, and consumer electronics devices. The constant innovation and miniaturization of devices across industries have fueled the demand for passive components worldwide. The increasing penetration of smartphones, wearables, laptops, cameras, and other consumer electronic devices is one of the major drivers augmenting the passive electronic components market. The global Passive Electronic Components Market is estimated to be valued at US$ 41.66 Bn in 2024 and is expected to exhibit a CAGR of 9.8% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key Trends:

One of the key trends witnessed in the passive electronic components market is the rising demand for Surface Mount Technology (SMT) components. SMT components are widely adopted in the manufacturing of printed circuit boards (PCBs) as they help miniaturize circuitry and maximize board space. The efficient mounting of passive components on the surface of PCBs aids in reducing production costs. Owing to the growing complexity in circuit design and increasing demand for compact electronics, the adoption of SMT resistors, capacitors, and inductors has increased significantly over the recent past. Furthermore, the proliferation of IoT devices and wearable electronics has also augmented market growth. Compact components manufactured using SMT techniques help address the stringent size constraints of devices using IoT and wearable technologies.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the passive electronic components market is low due to the presence of established players and high initial capital requirements for manufacturing facilities.

Bargaining power of buyers: The bargaining power of buyers in the passive electronic components market is high due to the availability of substitutes.

Bargaining power of suppliers: The bargaining power of suppliers in the passive electronic components market is moderate due to the presence of a large number of suppliers.

Threat of new substitutes: The threat of new substitutes in the passive electronic components market is moderate as no direct substitutes are available yet.

Competitive rivalry: The competitive rivalry in the passive electronic components market is high due to the presence of established players.

Key Takeaways

The global Passive Electronic Components Market Share is expected to witness high growth.

Regional analysis:

The Asia Pacific region is expected to dominate the passive electronic components market during the forecast period due to rapid industrialization and presence of major component manufacturers in countries like China and Japan.

Key players operating in the passive electronic components market are ABB Ltd., LG Chem, Ltd., Samsung SDI Co., Ltd, General Electric Company, and Tesla Inc.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it