Market Overview
The worldwide passive electronic component industry generated revenue of USD 44.1 billion in 2023, which is projected to experience a CAGR of 6.5% over the projection period, to attain USD 68.1 billion by the end of the decade. The driver that is behind the increased demand for electronic components is their wide usage in different applications.
Passive electronic components are typically utilized in the main components of electric vehicles that have specialized and high-performance features Car manufacturers are constantly developing the latest autonomous technology such as communications between vehicles, advanced driver assistance systems (ADAS), and safety & sensing systems like backup cameras and lane departure detection which are the key trends in the market.
Furthermore, the fast expansion of quantum computer technology all over the world is an aspect that is positively affecting market growth. We talk about the complexity and length of circuits in terms of quantum volume. The increased quantum volume may prove crucial when finding a solution to problems in the industrial and research &government areas.
The demand for small or slim devices from the users is growing, and therefore, the creation of passive electronic components is gaining popularity since they help resolve the emerging difficulties; complexities in particular. The desire for electronic gadgets has become so strong among consumers that they are constantly on the lookout for slimmer, yet appealing and edgy designs with edge-to-edge screens.
Key Insights
· Capacitors are leading the industry because of their wide use in electronic devices such as smartphones, laptops, audio systems, and power supply circuits.
· Over the projection period, the resistor category is estimated to advance at a high CAGR of 6.8%.
· Resistors find extensive application in temp sensing, noise suppression, and voltage regulation devices.
· Ceramic capacitors dominate the market with a 40% share in 2023 due to their durability and affordability, commonly used in electrical devices.
· The use of tantalum capacitors can be projected to have one of the highest CAGRs in the segment with demand rising from applications in the avionics and military fields.
· The leadership of the automotive sector originates from technical development besides hybrid electric vehicles' deployment of passive electronic components, like current measuring resistors.
· Consumer electronic goods will register the highest CAGR of 7.2% and will be mainly supported by the rising demand for the development of next-generation capacitor technology efficient enough to meet the performance standards of smartphones.
· Asia-Pacific holds the largest market share (50% in 2023), driven by smartphone and consumer electronics adoption, with India and China leading.
· North America is the fastest-growing market (7.0% in 2023) due to electric vehicle adoption, 5G deployment, and IoT device usage.
· March 2024: KYOCERA AVX released new surface-mount AEF Series wet aluminum V-chip electrolytic capacitors suitable for high-density PCBs in consumer and industrial electronics, qualified for basic industrial applications.
· March 2023: TDK Corporation enlarged their CGA series of multilayer ceramic capacitors (MLCCs) to 2.2μF in 2012 size and 4.7μF in 3216 sizes, both 100-V products for automotive applications, with mass manufacturing beginning in March 2024.
· November 2023: KYOCERA AVX introduced new Class X1/Y2 KGK and Class X2 KGH Series of safety-certified surface-mount MLCCs for commercial applications.
Source: P&S Intelligence
