Active and Passive Electronic Components Trends and Forecast
The future of the global active and passive electronic components market looks promising with opportunities in the automotive, consumer electronics, computing, medical, industrial, and communication sectors. The global active and passive electronic components market is expected to reach an estimated $675.7 million by 2030 with a CAGR of 8.2% from 2024 to 2030. The major drivers for this market are the growing demand for automation technology, the emergence of automated industry 4.0, and the expanding usage of this technology in renewable energy sources.
• Lucintel forecasts that, within the component category, active is expected to witness the highest growth over the forecast period due to its significant use in consumer products, wearable technology, connected gadgets, vehicles, and healthcare requirements.
• Within the end-use category, consumer electronics will remain the largest segment due to the extensive use of active and passive electronic components in various electronic devices, such as smartphones, tablets, and smart wearables.
• In terms of regions, APAC is expected to witness the highest growth over the forecast period due to the availability of a large consumer base, robust demand for advanced electronic gadgets, and the presence of major electronic manufacturing hubs in the region.
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Emerging Trends in the Active and Passive Electronic Components Market
The latest developments regarding emerging trends in active and passive electronic components reflect advancing technologies as well as industry dynamics redefining future applications and designs of these crucial elements.
• Progression within semiconductor technology: The pressure for smaller, faster, and more efficient semiconductors continues unabated. Advancements include improved fabrication methods alongside new materials to boost performance while reducing power consumption across various electronic gadgets.
• Growth of 5G technology: The need for high-frequency components is being driven by the deployment of 5G networks. In telecommunications and networking, electronics supporting higher data rates and signal processing efficiency are increasingly necessary.
• Focus on energy efficiency: Energy conservation has become a key focus in component development aimed at reducing power consumption and improving energy management. This is reflected in both active components like integrated circuits (ICs) and passive devices such as capacitors.
• Integration of IoT devices: The proliferation of Internet of Things (IoT) applications has necessitated a wide range of electronic components. There is an emphasis on developing tiny, user-friendly, and economical components for supporting diverse IoT devices and systems.
• Advances in passive component technology: Innovations in passive components such as capacitors and resistors are focused on improving performance combined with reliability. These developments involve using enhanced materials that augment stability and functionality during manufacturing processes.
These trends are driving innovation and efficiency in the active and passive electronic components market. Developments in semiconductor technology, energy-saving strategies, and integration into the Internet of Things (IoT) have transformed the design and application of electronic components across various industries.
Recent Developments in the Active and Passive Electronic Components Market
The market for active and passive electronic components is growing rapidly due to the increased demand for high-end electronics in industries like telecommunications, automotive, industrial automation, and consumer electronics. These components are essential for circuit operation and are evolving to meet needs for enhanced performance, miniaturization, and power efficiency. Key trends focus on improving efficiency, reliability, and size as electronic devices become more complex. This evolution is driving next-generation technologies like electric vehicles, 5G networks, and IoT. Below are the key developments shaping the market.
• Miniaturization of Components: Miniaturization remains a major trend as devices become smaller, lighter, and more portable. Manufacturers are creating compact resistors, capacitors, and inductors without compromising performance. This trend is crucial for smartphones, wearables, and automotive electronics, enabling higher performance in smaller spaces.
• High-Efficiency Passive Components: To meet the need for energy-efficient systems, high-efficiency passive components are being developed. These components now have reduced energy loss, improved heat control, and better performance. They are essential in power supplies, renewable energy systems, and electric vehicles, where efficient energy conversion is vital.
• Advancements in Semiconductor Technology: In the active components market, improvements in semiconductor technology, such as Gallium nitride (GaN) and silicon carbide (SiC), are enhancing performance. These semiconductors enable faster-switching speeds, reduced heat dissipation, and greater efficiency, improving power devices used in electric vehicles, data centers, and renewable energy systems.
• Passive Component Integration with Active Systems: Integration of passive components with active systems is on the rise. This integration offers compact, efficient, and cost-saving solutions, reducing component count and improving system performance. It is driving innovation in industries like telecommunications, automotive, and industrial automation, where space and efficiency are crucial.
• Reliability and Longevity: As electronics become more complex, ensuring the reliability and longevity of components is critical. Advances in high-temperature and high-performance materials are enabling components to function in harsh environments. This focus on reliability is essential for industries like automotive and aerospace, where failure-free operation is necessary for safety and durability.
Trends in the active and passive electronic components market are transforming the sector with a focus on efficiency, miniaturization, and integration. Miniaturization allows for compact devices, while high-efficiency components improve energy conversion in power systems. Emerging semiconductor technologies like GaN and SiC boost performance and efficiency. The integration of passive and active components reduces complexity and enhances reliability. These innovations are driving the evolution of electronics across multiple industries, advancing both consumer and industrial electronics.
Strategic Growth Opportunities for Active and Passive Electronic Components Market
The active and passive electronic components market offers several strategic growth opportunities across key applications driven by technological advancements and rising demand conditions.
• Automotive industry: Advanced safety features and infotainment systems are some of the factors that make the automotive sector a viable market for electronic components today. For instance, high-performance, durable components will be crucial to meet current vehicle needs.
• Consumer electronics: Consumer electronics such as smartphones, wearables, and smart home devices continue to grow, requiring compactness and efficiency in electronics. Opportunities exist in the development of components that improve performance and are energy efficient.
• Telecommunications: The ongoing expansion of 5G networks and telecom infrastructure opens up possibilities for advanced electronic components. High-speed data transmission and signal processing capabilities are needed for next-gen communication systems to develop effectively.
• Industrial automation: Reliable, high-performance electronic components remain a priority as industrial automation continues to gain traction. The focus is on developing critical elements that underpin automation systems, robotics, and advanced manufacturing technologies.
• Healthcare devices: Specialized electronic components are required in the healthcare industry for medical devices and equipment. Opportunities include developing precision, reliable, and highly functional components for diagnosis and treatment in healthcare settings.
These growth opportunities demonstrate how electronic components can be applied across multiple sectors. As market expansions take place due to advancements in technology and the demand for better-performing devices, this leads to further innovation.
Active and Passive Electronic Components Market Driver and Challenges
The active and passive electronic components market is influenced by various drivers and challenges shaped by technology, economies, and regulations.
The factors responsible for driving the active and passive electronic components market include:
• Technological advancements: Semiconductor technology advances, including new materials, have enhanced market growth. Improved performance and miniaturization of electronic parts make them more effective across different functions.
• Growing demand for consumer electronics: High-performance, compact electronic components are increasingly needed due to the growing uptake of consumer electronics such as smartphones and smart devices. This rise continues to foster industry expansion and innovation.
• 5G network expansion: The rollout of 5G technology demands specialized electronic components that support signal processing and transmission at high frequencies. In the telecommunications sector, this expansion creates significant growth opportunities.
• Focus on energy efficiency: The push for energy-saving components aligns with global sustainability targets. Innovations in energy-efficient technologies for both active and passive components strengthen market development and environmental goals.
• Increasing local manufacturing: Efforts to increase local manufacturing capabilities reduce dependence on imported goods while boosting domestic production. This move supports market growth by increasing supply chain resilience and advancing local industries.
Challenges in the active and passive electronic components market include:
• High R&D costs: The cost of research and development (R&D) for new technologies and materials is typically expensive. For companies, especially small ones, this poses a challenge in coping with fast-paced technological changes.
• Supply chain disruptions: Production output and delivery are interrupted when there are disruptions in the supply chain for electronic components. Market stability can be affected by raw material shortages and geopolitical tensions.
• Regulatory compliance: Compliance with regulations related to electronic components, such as safety and environmental standards, can be complex. Consequently, meeting these requirements may affect operational costs and market entry.
While drivers like technological advancements and growing demand for consumer electronics propel market growth, challenges such as high R&D costs and disruptions in the supply chain influence the dynamics of the market. Therefore, addressing these factors is necessary for maintaining progress and innovation within the active and passive electronic components marketplace.
List of Active and Passive Electronic Components Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies active and passive electronic components companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the active and passive electronic components companies profiled in this report include-
• Infineon Technologies
• NXP Semiconductors
• Texas Instruments
• Panasonic
• Murata
• Eaton
• TE Connectivity
• Honeywell International
• Toshiba
• Vishay Intertechnology
Active and Passive Electronic Components by Segment
The study includes a forecast for the global active and passive electronic components market by component, end use industry, and region.
Active and Passive Electronic Components Market by Component [Analysis by Value from 2018 to 2030]:
• Active Component
• Passive Component
Active and Passive Electronic Components Market by End Use Industry [Analysis by Value from 2018 to 2030]:
• Automotive
• Consumer Electronics
• Computing
• Medical
• Industrial
• Communications
• Others
Active and Passive Electronic Components Market by Region [Shipment Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Active and Passive Electronic Components Market
The active and passive electronic components market is evolving with advancing technology and shifting global demand. Major regions are experiencing developments in materials, manufacturing processes, and applications that are shaping market dynamics.
• United States: The semiconductor technology sector in the U.S. market has witnessed significant advances, including the miniaturization of electronic components. New materials and methods improve both active and passive component performance and reliability, supporting sectors such as consumer electronics and automotive.
• China: China is focused on expanding its semiconductor production capabilities and improving the quality of passive components. This includes increased investment in research and development (R&D) and efforts to reduce dependence on foreign technologies, boosting domestic production of electronic components.
• Germany: Germany leads in the development of high-precision electronic components for automobiles and industrial applications. Advanced materials and production techniques enhance both active and passive components, improving their performance through innovation.
• India: India is becoming a significant player in the electronics component market due to increasing local manufacturing capacity and rising demand from the IT and telecommunications sectors. Recent developments aim to strengthen local semiconductor and passive component production.
• Japan: Japan has been making strides in electronic components for consumer electronics and robotics by emphasizing high-performance materials and parts. New developments include improvements in low-energy consumption devices and enhanced PID characteristics for feedback loops in power systems.
Features of the Global Active and Passive Electronic Components Market
Market Size Estimates: Active and passive electronic components market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Active and passive electronic components market size by component, end use industry, and region in terms of value ($B).
Regional Analysis: Active and passive electronic components market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different component, end use industry, and region for the active and passive electronic components market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the active and passive electronic components market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q.1 What is the active and passive electronic components market size?
Answer: The global active and passive electronic components market is expected to reach an estimated $675.7 billion by 2030.
Q.2 What is the growth forecast for active and passive electronic components market?
Answer: The global active and passive electronic components market is expected to grow with a CAGR of 8.2% from 2024 to 2030
Q.3 What are the major drivers influencing the growth of the active and passive electronic components market?
Answer: The major drivers for this market are growing demand for automation technology, emergence of automated industry 4.0, and expanding usage of this technology in renewable energy sources.
Q4. What are the major segments for active and passive electronic components market?
Answer: The future of the active and passive electronic components market looks promising with opportunities in the automotive, consumer electronics, computing, medical, industrial, and communication sectors.
Q5. Who are the key active and passive electronic components market companies?
Answer: Some of the key active and passive electronic components companies are as follows:
• Infineon Technologies
• NXP Semiconductors
• Texas Instruments
• Panasonic
• Murata
• Eaton
• TE Connectivity
• Honeywell International
• Toshiba
• Vishay Intertechnology
Q6. Which active and passive electronic components market segment will be the largest in future?
Answer: Lucintel forecast that active is expected to witness the highest growth over the forecast period due to its significant use in consumer products, wearable technology, connected gadgets, vehicles, and healthcare equipments.
Q7. In active and passive electronic components market, which region is expected to be the largest in next 5 years?
Answer: APAC is expected to witness the highest growth over the forecast period due to availability of large consumer base, robust demand for advanced electronic gadgets, and presence of major electronic manufacturing hubs in the region.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the active and passive electronic components market by component (active component and passive component), end use industry (automotive, consumer electronics, computing, medical, industrial, communications, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?