Passive and Interconnecting Electronic Components Market Analysis By Component (Passive, Interconnecting), By Application (Consumer Electronics, IT & Telecommunication, Automotive, Industrial, Aerospace & Defense, Healthcare, Others) & Forecast By 2031
- PUBLISHED ON
- 2023-06-06
- NO OF PAGES
- 255
- CATEGORY
- Electronics & Communication
Passive and Interconnecting Electronic Components Market was valued at USD 193.34 billion in 2022 and expected to grow at a CAGR of 5.5% during the forecast period.
Resistors: Resistors are passive components that resist the flow of electric current. They are used to control current levels, set voltage levels, and divide voltages in electronic circuits.
Capacitors: Capacitors store and release electrical charge. They consist of two conductive plates separated by an insulating material known as a dielectric. Capacitors are used for filtering, energy storage, coupling, and decoupling applications.
Inductors: Inductors are passive components that store energy in a magnetic field when current flows through them. They are used in applications such as filtering, energy storage, and inductive coupling.
Transformers: Transformers consist of two or more coils of wire wound around a common magnetic core. They are used to transfer electrical energy between different voltage levels, isolate circuits, and match impedance.
Diodes: Diodes are electronic components that allow current to flow in only one direction. They are used for rectification, signal modulation, and protection against reverse current.
Transistors: Transistors are active electronic components that can amplify or switch electronic signals and power. They are crucial for amplification, switching, and digital logic applications.
Connectors: Connectors provide physical and electrical connections between different components or devices. They come in various forms, including wire-to-board, board-to-board, and cable connectors.
Printed Circuit Boards (PCBs): PCBs provide a platform for mounting and interconnecting electronic components. They consist of a non-conductive substrate with conductive pathways known as traces, which provide electrical connections between components.
Switches: Switches are devices used to control the flow of current in an electrical circuit. They can be mechanical or electronic and are used for various applications, including power control, signal routing, and user input.
Interconnect Cables: Interconnect cables, such as ribbon cables, coaxial cables, and HDMI cables, are used to establish electrical connections between different components or devices.
These passive and interconnecting components work together to create complex electronic circuits and systems. They form the foundation of modern electronics, enabling the functionality and interconnectivity of a wide range of devices, from small consumer electronics to large-scale industrial systems.
Report Attributes | Description |
Market Size in 2022 | USD 193.34 Billion |
Market Forecast in 2031 | USD 232.32 Billion |
CAGR % 2023-2031 | 5.5% |
Base Year | 2022 |
Historic Data | 2019-2021 |
Forecast Period | 2023-2031 |
Report USP | Production, Consumption, company share, company heatmap, company production capacity, growth factors and more |
Segments Covered | By Component, By application |
Regional Scope | North America, Europe, APAC, South America and Middle East and Africa |
Country Scope | U.S.; Canada; U.K.; Germany; France; Italy; Spain; Benelux; Nordic Countries; Russia; China; India; Japan; South Korea; Australia; Indonesia; Thailand; Mexico; Brazil; Argentina; Saudi Arabia; UAE; Egypt; South Africa; Nigeria |
Key Companies | AVX Corporation Vishay Intertechnology, Inc. Mouser Electronics, Inc. Murata Manufacturing Co., Ltd. TDK Corporation Taiyo Yuden Co., Ltd. Samsung Electro-Mechanics Hosiden Corporation Others |
Covid-19 Impact:
The COVID-19 pandemic has had significant impacts on various industries, including the electronic components market. The passive and interconnecting electronic components market also experienced both positive and negative effects due to the pandemic.
Supply Chain Disruptions: The pandemic disrupted global supply chains, affecting the production and availability of electronic components. Restrictions on manufacturing operations, travel limitations, and lockdown measures led to delays in production, shipping, and delivery of components. This caused shortages and increased lead times for passive and interconnecting electronic components.
Increased Demand for Electronics: The pandemic led to a surge in demand for electronics, including computers, tablets, smartphones, and home entertainment systems. With people working and studying from home, the need for electronic devices and components increased. This created a higher demand for passive and interconnecting electronic components.
Shift to Remote Work and Online Learning: The transition to remote work and online learning resulted in increased demand for communication equipment, networking devices, and video conferencing solutions. These products require various passive and interconnecting components for their functionality, leading to an increased demand in specific segments of the market.
Manufacturing and Operational Challenges: Many manufacturing facilities faced temporary closures or reduced operations due to lockdowns and social distancing measures. This affected the production capacity of electronic component manufacturers, leading to supply constraints and potential price increases.
Market Volatility and Uncertainty: The COVID-19 pandemic caused economic uncertainties, leading to fluctuations in market demand and investments. Industries such as automotive and aerospace, which are significant consumers of passive and interconnecting electronic components, experienced downturns, affecting the overall market.
Increased Focus on Local Production: The pandemic highlighted the vulnerability of global supply chains, prompting some countries to emphasize local production and reduce reliance on foreign suppliers. This could lead to changes in the supply chain dynamics for passive and interconnecting electronic components.
Technological Advancements and Innovation: Despite the challenges posed by the pandemic, the electronics industry continued to innovate. The demand for advanced technologies, such as 5G, Internet of Things (IoT), and smart devices, remained strong. These advancements will drive the development of new passive and interconnecting components in the market.
Market Dynamics:
Drivers:
Growing Demand for Electronics: The increasing demand for electronic devices and equipment in various sectors such as consumer electronics, automotive, telecommunications, industrial, and healthcare is a significant driving factor for the passive and interconnecting electronic components market. The proliferation of smartphones, tablets, wearable devices, and smart home appliances fuels the need for these components.
Advancements in Technology: Technological advancements, including the emergence of 5G networks, Internet of Things (IoT), artificial intelligence (AI), and augmented reality/virtual reality (AR/VR), are driving the demand for advanced electronic components. These technologies require efficient and reliable passive and interconnecting components to support their functionality.
Miniaturization and Lightweight Designs: The trend towards smaller and lighter electronic devices creates a demand for miniaturized and lightweight passive and interconnecting components. As products become more compact, the need for components that occupy less space while maintaining high performance increases, driving innovation in this market.
Automotive Electronics: The automotive industry's increasing focus on electric vehicles (EVs), autonomous driving, and connected cars contributes to the demand for passive and interconnecting components. These components are used in various automotive systems, including power management, infotainment, safety systems, and connectivity solutions.
Industrial Automation and IoT Applications: The adoption of industrial automation, IoT, and smart manufacturing technologies is driving the demand for passive and interconnecting components in the industrial sector. These components are integral to sensors, actuators, control systems, and communication interfaces in industrial automation systems.
Renewable Energy Systems: The shift towards renewable energy sources such as solar and wind power requires passive and interconnecting components for energy conversion, storage, and power management. The growing installation of solar panels, wind turbines, and energy storage systems drives the demand for these components in the renewable energy sector.
Increasing Connectivity and Data Demand: The rapid growth of data-intensive applications, such as cloud computing, streaming services, and data centers, necessitates efficient data transmission and storage solutions. Passive and interconnecting components play a vital role in enabling high-speed data connectivity and interconnection in these applications.
Government Initiatives and Regulations: Government initiatives promoting digitalization, smart cities, and green technologies, as well as regulations related to energy efficiency and environmental sustainability, drive the adoption of advanced electronic components. These factors create opportunities and requirements for passive and interconnecting components that meet specific standards and guidelines.
Cost Reduction and Technological Advancements: The continuous drive for cost reduction, improved performance, and enhanced reliability in electronic devices and systems pushes the development of advanced passive and interconnecting components. Manufacturers focus on innovation, material advancements, and manufacturing techniques to meet these demands.
Increasing Globalization and Outsourcing: The globalization of the electronics industry and the outsourcing of manufacturing processes to cost-effective regions contribute to the growth of the passive and interconnecting electronic components market. The accessibility to global markets and the ability to cater to diverse customer requirements drive the market expansion.
Restraints:
Supply Chain Vulnerabilities: The global nature of the supply chain for electronic components makes it susceptible to disruptions. Natural disasters, geopolitical tensions, trade conflicts, and public health crises, like the COVID-19 pandemic, can disrupt the supply chain, leading to component shortages, increased lead times, and price volatility.
Cost Pressure and Price Sensitivity: The electronic industry is highly competitive, and cost pressures are a significant restraining factor. Customers, particularly in consumer electronics, often demand cost-effective solutions, which puts downward pressure on component prices. Manufacturers need to balance cost reduction efforts while maintaining quality and performance standards.
Counterfeit Components: The prevalence of counterfeit electronic components is a significant concern in the industry. Counterfeit components can be substandard, unreliable, and potentially pose safety risks. Manufacturers and customers need to implement rigorous quality control measures to avoid the use of counterfeit components, which can restrain market growth.
Technological Complexity and Obsolescence: The rapid pace of technological advancements and product innovations can present challenges for passive and interconnecting component manufacturers. Keeping up with the evolving technological landscape requires continuous research and development efforts. Additionally, the risk of component obsolescence due to changing industry standards or emerging technologies can impact market demand.
Intellectual Property Protection: Protecting intellectual property (IP) rights and preventing unauthorized replication or reverse engineering of components is a significant concern in the electronic industry. The lack of robust IP protection measures can discourage innovation and investment in new component development, limiting market growth.
Environmental Regulations: Increasing global environmental regulations, such as RoHS (Restriction of Hazardous Substances) and REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals), impose restrictions on the use of hazardous substances in electronic components. Compliance with these regulations can increase manufacturing costs and pose challenges for component manufacturers.
High Research and Development Costs: Developing advanced passive and interconnecting components requires substantial investment in research and development (R&D) activities. The cost of R&D, including prototyping, testing, and certification, can be a restraining factor for smaller manufacturers or new entrants in the market.
Fragmented Market and Intense Competition: The passive and interconnecting electronic components market is highly fragmented, with numerous players competing for market share. This intense competition can lead to price wars and margin pressure, particularly for commoditized components. Established players with economies of scale may have a competitive advantage, making it challenging for smaller manufacturers to enter or expand in the market.
Quality and Reliability Concerns: Passive and interconnecting components play critical roles in electronic systems, and their failure can have significant consequences. Quality and reliability are of utmost importance to ensure the proper functioning of electronic devices. Any concerns or issues regarding the quality and reliability of components can restrain market growth and erode customer trust.
Economic and Political Uncertainties: Fluctuations in the global economy, political instability, and trade barriers can create uncertainties in the passive and interconnecting components market. These uncertainties can impact consumer and business spending, leading to variations in demand and investment decisions.
Regional Analysis:
North America: North America is a significant market for passive and interconnecting electronic components due to the presence of major electronics manufacturers and technological advancements. The region is driven by the demand for consumer electronics, automotive electronics, and aerospace applications. The United States, in particular, plays a key role in the market, with a strong focus on research and development, innovation, and adoption of advanced technologies.
Europe: Europe is another prominent market for passive and interconnecting electronic components. The region has a strong industrial base and is known for its automotive industry, which drives the demand for components in vehicles. Additionally, there is a growing emphasis on renewable energy and smart manufacturing, which contribute to the market's growth. Countries such as Germany, the United Kingdom, France, and Italy are major players in the European market.
Asia Pacific: Asia Pacific is a significant market for passive and interconnecting electronic components, driven by the presence of major electronics manufacturers, rapid industrialization, and the rising demand for consumer electronics. China, Japan, South Korea, and Taiwan are key contributors to the market in this region. The presence of a robust manufacturing ecosystem, technological advancements, and increasing investments in infrastructure and automation fuel market growth.
Latin America: Latin America has a growing market for passive and interconnecting electronic components. The region experiences increasing demand for consumer electronics, automotive electronics, and industrial applications. Countries like Brazil and Mexico are major players in the market, driven by domestic consumption and expanding manufacturing capabilities.
Middle East and Africa: The Middle East and Africa region also contribute to the passive and interconnecting electronic components market. The region is witnessing rapid urbanization, infrastructure development, and increasing investments in sectors such as telecommunications, healthcare, and renewable energy. Countries like the United Arab Emirates, Saudi Arabia, and South Africa play a significant role in the market's growth.
Competitive Landscape:
The global Passive And Interconnecting Electronic Components market is highly competitive and fragmented with the presence of several players. These companies are constantly focusing on new product development, partnerships, collaborations, and mergers and acquisitions to maintain their market position and expand their geographical presence.
Some of the key players operating in the market are:
• AVX Corporation
• Vishay Intertechnology, Inc.
• Mouser Electronics, Inc.
• Murata Manufacturing Co., Ltd.
• TDK Corporation
• Taiyo Yuden Co., Ltd.
• Samsung Electro-Mechanics
• Hosiden Corporation
• Yageo Corporation
• Nichicon Corporation
• Panasonic Corporation
• Fujitsu Component Limited
• Fenghua (HK) Electronics Ltd.
• Rohm Co., Ltd.
• United Chemi-Con
• TE connectivity
• Molex Incorporated
• Others
Segments
By Component
• Passive
o Resistors
o Capacitors
o Inductors
o Transformers
o Diode
• Interconnecting
o PCB
o Connectors/Sockets
o Switches
o Relays
o Others
By Application
• Consumer Electronics
o Mobile Phones
o Personal Computers
o Home Appliances
o Audio and Video Systems
o Storage Devices
o Others
o Telecom Equipment
o Networking Devices
• Automotive
o Driver Assistance Systems
o Infotainment Systems
o Others
• Industrial
o Industrial automation and motion control
o Mechatronics and robotics,
o Power Electronics
o Photo Voltaic Systems
o Others
• Aerospace & Defense
o Aircraft systems
o Military Radars
o Others
• Healthcare
o Medical Imaging Equipment
o Consumer Medical Devices
o Others
• Others
By Geography
• North America
o U.S.
o Canada
o Mexico
• Europe
o U.K.
o Germany
o France
o Italy
o Spain
o Russia
• Asia-Pacific
o Japan
o China
o India
o Australia
o South Korea
o ASEAN
o Rest of APAC
• South America
o Brazil
o Argentina
o Colombia
o Rest of South America
• MEA
o South Africa
o Saudi Arabia
o UAE
o Egypt
o Rest of MEA
Quality Assurance Process
- We Market Research’s Quality Assurance program strives to deliver superior value to our clients.
We Market Research senior executive is assigned to each consulting engagement and works closely with the project team to deliver as per the clients expectations.
Market Research Process
We Market Research monitors 3 important attributes during the QA process- Cost, Schedule & Quality. We believe them as a critical benchmark in achieving a project’s success.
To mitigate risks that can impact project success, we deploy the follow project delivery best practices:
- Project kickoff meeting with client
- Conduct frequent client communications
- Form project steering committee
- Assign a senior SR executive as QA Executive
- Conduct internal editorial & quality reviews of project deliverables
- Certify project staff in SR methodologies & standards
- Monitor client satisfaction
- Monitor realized value post-project
Case Study- Automotive Sector
One of the key manufacturers of automotive had plans to invest in electric utility vehicles. The electric cars and associated markets being a of evolving nature, the automotive client approached We Market Research for a detailed insight on the market forecasts. The client specifically asked for competitive analysis, regulatory framework, regional prospects studied under the influence of drivers, challenges, opportunities, and pricing in terms of revenue and sales (million units).
Solution
The overall study was executed in three stages, intending to help the client meet its objective of precisely understanding the entire market before deciding on an investment. At first, secondary research was conducted considering political, economic, social, and technological parameters to get a gist of the various aspects of the market. This stage of the study concluded with the derivation of drivers, opportunities, and challenges. It also laid substantial emphasis on understanding and collecting data not only on a global scale but also on the regional and country levels. Data Extraction through Primary Research
The second stage involved primary research in which several market players and automotive parts suppliers were contacted to study their viewpoint concerning the development of their market and production capacity, clientele, and product line. This stage concluded in a brief understanding of the competitive ecosystem and also glanced through the strategies and pricing of the companies profiled.
Market Estimates and Forecast
In the final stage of the study, market forecasts for the electric utility were derived using multiple market engineering approaches. This data helped the client to get an overview of the market and accelerate the process of investment.
Case Study- ICT Sector
Business process outsourcing, being one of the lucrative markets from both supply- and demand- side, has appealed to various companies. One of the prominent corporations based out of Japan approached us with their requirements regarding the scope of the procurement outsourcing market for around 50 countries. Additionally, the client also sought key players operating in the market and their revenue breakdown in terms of region and application.
Business Solution
An exhaustive market study was conducted based on primary and secondary research that involved factors such as labor costs in various countries, skilled and technical labors, manufacturing scenario, and their respective contributions in the global GDP. A comparative study of the market was conducted from both supply- and demand side, with the supply-side comprising of notable companies, such as GEP, Accenture, and others, that provide these services. On the other hand, large manufacturing companies from them demand-side were considered that opt for these services.
Conclusion
The report aided the client in understanding the market trends, including country-level business scenarios, consumer behavior, and trends in 50 countries. The report also provided financial insights of crucial players and detailed market estimations and forecasts till 2033.
Frequently Asked Questions
What is the market size and growth projections?
The global Passive and Interconnecting Electronic Components market was valued at USD 193.34 billion in 2022 and expected to grow at a CAGR of 5.5% during the forecast period.
What are the trends shaping various markets?
The increasing demand for electronic devices and equipment in various sectors such as consumer electronics, automotive, telecommunications, industrial, and healthcare is a significant driving factor for the passive and interconnecting electronic components market.
Who are the key competitors of market Players?
Some of the major players operating within the market are AVX Corporation,Vishay Intertechnology, Inc.,Mouser Electronics, Inc.,Murata Manufacturing Co., Ltd.,TDK Corporation,Taiyo Yuden Co., Ltd.,Samsung Electro-Mechanics,Hosiden Corporation,Others
What are the top performing segments, and countries / regions of each of the markets?
North America is a significant market for passive and interconnecting electronic components due to the presence of major electronics manufacturers and technological advancements.
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