Passive Electronic Components Market Forecasts to 2028 – Global Analysis By Type (Capacitors, Inductors, Resistors, Transformers and Diode), Material (Tantalum, Ceramic, Aluminium and Other Materials), End User and By Geography

Passive Electronic Components Market Forecasts to 2028 – Global Analysis By Type (Capacitors, Inductors, Resistors, Transformers and Diode), Material (Tantalum, Ceramic, Aluminium and Other Materials), End User and By Geography

According to Stratistics MRC, the Global Passive Electronic Components Market is accounted for $15.82 billion in 2022 and is expected to reach $20.93 billion by 2028 growing at a CAGR of 4.8% during the forecast period. Passive electronic components are ones that do not require a source of energy to perform their intended functions. They are the cornerstone of all electronics, both in terms of physical design and the language of circuit models that describe electrical behaviour in more complex systems. They’re used for everything from power conversion to power stability, filtering, and configuring integrated circuits.

According to the National Investment promotion and facilitation agency of India, India produced 60 million smart phones in FY 2015 while it was expected to produce 300 million units of mobile phones in FY 2021.

Market Dynamics

Driver

Emergence of IoT and 5G technologies

New technologies, such as IoT and 5G, have been widely embraced. They make it possible for quicker speed, reduced latency, more device capacity, better performance, and increased effectiveness. These will be the automation and intelligent system use enabling levels. Significant-speed technologies like 5G are in significant demand among the expanding young population. The need for high-performance passive electrical components arose as a result of this. The requirement for high-performance components is also anticipated to spur investment in research and development operations to create new technologies.

Restraint

Trade restrictions

The commerce of the electrical components was severely restricted in many developing areas. On a broad foundation, tariffs have been implemented. Additionally, the covid epidemic's existence created rigid trade obstacles. Due to the total lockdown, it also had an impact on industrial operations. Components were in limited supply, and prices rose as a result of the supply chain disruption and trade restrictions. These elements are limiting market expansion.

Opportunity

Rising trend of miniaturization in electronic devices

More transistor nodes can be accommodated on a smaller integrated circuit (IC) through the process of miniaturization in electrical devices. The IC is then interfaced within the system or device for which it was designed so that, after the system is put together, it can perform the necessary function. The technology is getting smaller yet more powerful. Electronic subassemblies can be made smaller to create room for bigger batteries without increasing the size of the device overall. Higher frequencies, shorter pathways, and other capabilities are boosting the market's growth.

Threat

Increasing metal prices

The consumer electronics and automobile sectors are both greatly impacted by the rising price of metals in mass-produced electronic components. In terms of the total cost of goods supplied, metal costs may make up around 25% of the costs incurred by major firms. Palladium, nickel, and ruthenium price rises therefore have an impact on the overall cost of production for particular high-volume components. The market's expansion is being hampered by this rising price element.

Covid-19 Impact

The component supply chain's market capacity was greatly impacted by the COVID-19 epidemic. Industries were unable to function at full capacity during the shutdown, and some were totally shut down for an extended period of time. Many nations, including Malaysia, the Philippines, and Indonesia, were unable to manufacture or export parts. OEMs from all over the world were thus unable to import and produce their goods. The market for passive electronic components is only one area of the supply chain where the virus is currently wreaking havoc. Technology advancements like artificial intelligence, 5G, and cloud computing continue to enable and fuel industry demand.

The capacitors segment is expected to be the largest during the forecast period

The capacitors segment is estimated to have a lucrative growth. Electronic passive components called capacitors store energy in an electric field. They are utilized in a wide range of applications, including signal processing and power supply. Two electrical plates and an insulating substance known as a dielectric separate the two electrical plates that make up a capacitor. The capacitor may store electrical energy by producing an electric field when a voltage is applied across the plates. High-frequency signals are filtered out by capacitors, which are also used to control voltage and store energy.

The automotive segment is expected to have the highest CAGR during the forecast period

The automotive segment is anticipated to witness the fastest CAGR growth during the forecast period, due to raising popularity of hybrid and electric vehicles. The drive toward electrification puts tremendous pressure on DC/DC converters to achieve great reliability and energy efficiency while supplying steady power over a wide temperature range. In the automobile industry, resistors are used in a variety of applications, such as drive train applications, engine management systems, cabin/comfort controls, entertainment systems, and body sections. Electronic components used in cars are advancing quickly on many fronts as automakers continually work to increase performance while lowering cost and mass.

Region with largest share

Asia Pacific is projected to hold the largest market share during the forecast period due to its growing electronics industry. By 2025, the Asian-Pacific area, driven by 5G industry innovators like Australia, China, Japan, and South Korea, will surpass all other regions in terms of population size. Massive businesses and foundries producing a number of significant passive electronic powerhouses are located in several nations, including Taiwan, South Korea, China, Japan, and China. Due to its fast expanding semiconductor industry and industrial automation, China now has the highest demand for individual inductor components. Numerous multinational corporations (MNCs) are drawn by the expanding electronics market to establish production facilities in Asian nations either on their own or in collaboration with other local businesses.

Region with highest CAGR

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to its innovations and developments. China, which is becoming more and more significant in the global automobile market, has a booming automotive sector. Two of the key nations boosting the market for capacitors are Japan and South Korea. One of the vital infrastructures that sustained the Japanese economy and developed alongside other sectors is the transportation industry. To develop electric vehicle technology for electric automobiles, including mini-vehicles, SUVs, passenger cars, and light trucks, the largest automaker in the nation, Toyota, has teamed up with another participant, Mazda. The Asian-Pacific area accounts for the majority of the demand for inductors.

Key players in the market

Some of the key players profiled in the Passive Electronic Components Market include Panasonic Corporation, Eaton Corporation, Honeywell International Inc, Coilcraft Inc., Yageo Corporation, TT Electronics PLC, Bourns Inc, KOA Speer Electronics Inc., Fortive Corporation, TE Connectivity Ltd, AVX Corporation, Ohmite Manufacturing Company, Murata Manufacturing Co. Ltd, Susumu Co. Ltd, TDK Corporation, Arcol UK Limited, KEMET Corporation, Cornell Dubilier Electronics In, Vishay Intertechnology Inc. and Sagami Elec Co. Ltd.

Key Developments

In May 2022, Vishay Intertechnology Inc. Company introduced a new series of AEC-Q200 qualified, chassis-mount wire-wound resistors targeted at the growing electric vehicle (EV) market. Vishay Dale RHA series resistors mount directly onto a chassis to utilize the heat-sink effect. It could offer high reliability to the devices, featuring a wholly welded and molded construction for total environmental protection and an operating temperature range of -55 °C to +250 °C.

In April 2022, TDK Corporation presents a new series of EPCOS MKP-Y2 capacitors for interference suppression. In contrast to conventional models designed for a maximum operating temperature of 110 °C, the new capacitors offer a maximum permissible operating temperature of 125 °C. Typical fields of application for the new Y2 capacitors include interference suppression in filters and at high operating temperatures, such as in automotive applications.

Types Covered
• Capacitors
• Inductors
• Resistors
• Transformers
• Diode

Materials Covered
• Tantalum
• Ceramic
• Aluminium
• Other Materials

End Users Covered
• Energy
• Industrial Machinery
• Consumer Electronics
• Aerospace
• Defense
• Medical
• Communications/Servers/Data Storage
• Automotive
• Information Technology
• Telecommunications
• Other End Users

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities,Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements