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The Passive Component Market size is forecast to increase by USD 13.09 billion, at a CAGR of 6.58% between 2023 and 2028. The growth rate of the market depends on several factors, including the increase in the need for passive components in space applications, the rising adoption of passive components in the automotive industry, and the growing demand for smartphones and tablets.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 15 market companies, including Adolf Wurth GmbH and Co. KG, Electronics Ltd, KOA Corp., KYOCERA Corp., Murata Manufacturing Co. Ltd., NICHICON Corp., Nippon Chemi Con Corp., Panasonic Holdings Corp., ROHM Co. Ltd., Rubycon Corp, Ryosan Co, Samsung Electronics Co. Ltd., SUMIDA Corp, TAIYO YUDEN Co. Ltd., TDK Corp., TTI Inc., Vishay Intertechnology Inc., Walsin Technology Corp., and Yageo Corp. . Additionally, Delta Electronics Inc provides a range of passive components, including inductors, RF inductors, transformers, EMI filters, and solenoids. These components find applications in portable devices, cloud computing equipment, automotive systems, and IoT (Internet of Things).
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One of the key factors driving the market growth is the increase in the need for passive components in space applications. Passive components are extensively used in space applications. In addition, the US has been contributing to space-based applications enormously for the past ten years. Furthermore, APAC and EMEA have also increased their spending in the space application segment.
Moreover, there is an increasing need to use components that are less in weight and can withstand high voltages, elevated temperatures, high mechanical stress, and high radiation due to the rising demand for space applications. In addition, passive and RF passive components represent more than 80% of the electrical, electronic, and electromechanical (EEE) parts used in a spacecraft. Hence, such factors are driving the market growth during the forecast period.
A key factor shaping the market growth is the growing advancement of IoT in industries. The number of devices added to the industrial network and the sensors utilized in these devices will grow with the advancement of IoT. In addition, companies are now focusing on manufacturing sensors, actuators, and other devices, that can support this IoT market. Furthermore, the adoption of IoT in industries has resulted in an unprecedented increase in production volumes.
Moreover, analysis of big data, which is gathered using IoT, can reduce the occurrence of problems automatically with high accuracy. In addition, the adoption of IoT increases not only the efficiency of production but also procurement, R&D, and sales. Furthermore, industries, such as automotive and electronics, are expecting a revolution using IoT in improving production lines to eliminate wastefulness, inconsistency, excessive burden, and shortening delivery times, as there is a huge demand for passive components that can support IoT. Hence, such factors are driving the market growth during the forecast period.
Growing concerns about volatility in raw material prices are one of the key challenges hindering market growth. The market is highly relying on the supply of base metals, including nickel, palladium, and ruthenium. In addition, the supply of such metals depends on the mining and refining industries. For example, nickel is mainly used in electrode materials in MLCCs; similarly, palladium is used in the production of reliable MLCC electrodes.
Moreover, with growing labor costs and political instability, several industries, such as mining, are facing a threat of raw material scarcity. For example, the invasion of Ukraine by Russia in February 2022 has led to the increase in prices of nickel and palladium, which are major components in the manufacturing of passive components. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.
The capacitors segment is estimated to witness significant growth during the forecast period. The capacitors segment store electric energy temporarily and supply it when required. In addition, the major applications of capacitors include smartphones, tablets, laptops, digital cameras, and others. Furthermore, the main function of capacitors is to reduce electric noise in a system.
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The capacitors segment was the largest segment and was valued at USD 10.02 billion in 2018. Moreover, there are many types of capacitors available in the market, such as monolithic ceramic capacitors, multilayer ceramic capacitors, single-layer microchip capacitors, electrical double-layer capacitors, disc ceramic capacitors, and polymer capacitors. In addition, ripples in the direct current can also be removed by using big capacitors as they smoothen the voltage by absorbing at peaks and filling the valleys. Furthermore, the demand for capacitors is increasing in India, China, and other Asian countries because of the rising demand for consumer electronics, such as smartphones, smart TVs, and camera flashlights. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
The increasing demand for passive components in the consumer electronics segment will drive market growth. Capacitors, resistors, and inductors are the main components used in consumer electronics, including laptops, TVs, notebooks, refrigerators, air-conditioners, and others. In addition, the purpose of using passive components in consumer electronics is to reduce noise in the devices. Moreover, capacitors and resistors are mainly used for this purpose. In addition, passive components are used in digital electronics where there is more need to protect the microchip and ensure the absence of noise from the power signals. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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APAC is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The Asia-Pacific (APAC) region is considered as a powerhouse in the global market, characterized by a robust electronics industry, technological advancements, and extensive manufacturing capabilities. In addition, key players such as Murata Manufacturing Co. Ltd., TDK Corp, and Samsung Electronics Co. Ltd. contribute significantly to the region's dominance. Moreover, countries such as China, Taiwan, South Korea, and Japan substantially contribute to the growth of the global market. Low labor costs and government policies have helped the region evolve as a major manufacturer of electronic components, which includes passive components. Hence, such factors are driving the market growth in APAC during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Fenghua HK: The company offers passive components such as multilayer ceramic capacitors, thick film resistors, aluminum electrolytic capacitors, high voltage disc ceramic capacitors, chip beads, and humidity sensors.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market plays a vital role in the electronics industry, providing essential components like integrated circuits, circuit boards, and MEMS gyroscopes. These components are crucial for the functioning of electronic devices, especially in the Consumer Electronics and Computing Industry. With a focus on the regulation of voltage, noise filtration, and current control, passive components contribute to the efficient operation of electrical circuits and DC power management.
Various electronic devices, such as televisions, digital set-top boxes, smartwatches, printers, audio equipment, touch screens, and mobile phones, heavily rely on passive components for optimal performance. In the era of 5G smartphones, where internet browsing and call quality are paramount, the demand for high-quality passive components continues to rise. The industry's emphasis on component production aligns with the ever-growing need for reliable and advanced electronic devices, further establishing the significance of passive components in modern technology.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Passive Component Market Scope |
|
Report Coverage |
Details |
Page number |
186 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.58% |
Market Growth 2024-2028 |
USD 13.09 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.69 |
Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
Performing market contribution |
APAC at 49% |
Key countries |
US, China, Taiwan, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adolf Wurth GmbH and Co. KG, Delta Electronics Inc., Fenghua HK Electronics Ltd, KOA Corp., KYOCERA Corp., Murata Manufacturing Co. Ltd., NICHICON Corp., Nippon Chemi Con Corp., Panasonic Holdings Corp., ROHM Co. Ltd., Rubycon Corp, Ryosan Co, Samsung Electronics Co. Ltd., SUMIDA Corp, TAIYO YUDEN Co. Ltd., TDK Corp., TTI Inc., Vishay Intertechnology Inc., Walsin Technology Corp., and Yageo Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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