GENERAL ELECTRONIC COMPONENTS MARKET ANALYSIS

Global General Electronic Components Market is estimated to be valued at US$ 498.34 Bn in 2023, and is expected to reach US$ 789.81 Bn by 2030, exhibiting a compound annual growth rate (CAGR) of 6.8% from 2023 to 2030.

Global general electronic components market is a broad and diverse industry that encompasses a wide range of components used in various electronic devices and systems. These components include resistors, capacitors, inductors, diodes, transistors, integrated circuits (ICs), connectors, switches, relays, and many others.

The market growth is driven by factors such as technological advancements, increasing adoption of electronic devices in various sectors, the growth of wireless communication systems, the Internet of Things (IoT), automotive electronics, and consumer electronics. The demand for electronic components is also influenced by factors such as consumer preferences, industry trends, government regulations, and economic conditions.

Global General Electronic Components Market- Regional Insights

• North America: North America, particularly the U.S., is a prominent market for general electronic components. The region is known for its technological advancements, strong research and development activities, and the presence of major electronic component manufacturers. The market demand is driven by industries such as automotive, aerospace, defense, telecommunications, and healthcare, and this region holds a substantial percentage of the market share, accounted for approximately 20.5% for 2023.
• Europe: Europe has a well-established electronics industry, and is home to several major electronic component manufacturers. Countries such as Germany, France, and the U.K. have a significant presence in the market. The region focuses on innovation, high-quality standards, and advanced manufacturing techniques. The automotive, industrial, and telecommunications sectors are key drivers of the electronic components market and Europe held around 13% of the market share for 2023.
• Asia Pacific: The APAC region has been a significant player in the general electronic components market. Countries like China, Japan, South Korea, and Taiwan are major manufacturing hubs for electronic components. The region benefits from a robust electronics manufacturing ecosystem, strong consumer electronics demand, and a large population. APAC is expected to continue leading the global market due to its manufacturing capabilities, technological advancements, and increasing adoption of electronics in various industries, and Asia Pacific accounted for approximately 54% of the market share for 2023.

Figure 1. Global General Electronic Components Market Share (%), By Region, 2023

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Analyst Viewpoint:

Global general electronic components market growth is driven by growing semiconductor and passive components demand from various industries including consumer electronics, automotive, industrial and telecommunication. The miniaturization of devices and focus on power efficiency increases utilization of various electronic components. Riisng technologies such as artificial intelligence, 5G, and Internet of Things is also creating new opportunities for component suppliers to develop innovative solutions.

However, ongoing trade tensions between major economies poses a challenge for manufacturers who are highly dependent on global supply chains. Meanwhile, geopolitical uncertainties in certain regions can potentially disrupt operations. There is also intense competition among suppliers which may impact profitability. The demand is largely concentrated in Asia Pacific currently, led by countries like China, Taiwan, South Korea and Japan where most of the world's electronics production is centered.

In the value chain, the Passive Components segment is experiencing significant momentum, attracting numerous startups looking to capitalize on outsourced manufacturing. The continued dominance of passive components in the market is attributed to the widespread use of devices that necessitate a multitude of resistors, capacitors, and other footprint-level components. Anticipated growth areas include the expansion of electric and autonomous vehicles, the establishment of 5G infrastructure, and the rise of AI/ML applications, all of which will drive demand for specialized semiconductors and supporting circuits.Top of Form

Global General Electronic Components Market- Drivers

• Increasing Adoption of Electronic Devices: The proliferation of electronic devices across sectors such as consumer electronics, automotive, industrial, healthcare, and telecommunications boosts demand for general electronic components. With advancements in technology, electronic devices are becoming more integrated, compact, and feature-rich, requiring a wide range of components to power and enable their functionality.
• Technological Advancements: Constant advancements in technology, such as the development of smaller and more efficient electronic components, drive the market growth. Innovations in areas like semiconductors, sensors, microprocessors, and wireless communication technologies create opportunities for new applications and boost demand for advanced electronic components.
• Internet of Things (IoT): The IoT is a significant driver of the electronic components market. The growing interconnectedness of devices and systems in the IoT ecosystem requires a wide array of components for sensing, connectivity, data processing, and control. The demand for electronic components is expected to increase as the IoT continues to expand across industries, including smart homes, smart cities, healthcare monitoring, and industrial automation. For instance, in October 2020, Microchip Technology is a leading provider of microcontroller, mixed-signal, analog and Flash-IP solutions, introduced several new microcontrollers toits product portfolio.  The companylaunched the SAM L10 and SAM L11 series of ultra-low-power microcontrollers with enhanced security features, making these suitable for applications in IoT, consumer electronics, and industrial sectors.
• Automotive Electronics: The automotive industry's increasing reliance on electronic systems and components is a significant driver of the general electronic components market. Modern vehicles incorporate a wide range of electronic components for engine control, safety systems, infotainment, connectivity, and autonomous driving functionalities. The shift towards electric vehicles (EVs) and hybrid vehicles further increases demand for electronic components.

Global General Electronic Components Market- Opportunities

• Internet of Things (IoT) Expansion: The continued expansion of the IoT presents significant opportunities for electronic components. As more devices and systems become interconnected, there is a growing need for sensors, wireless communication modules, microcontrollers, and other components to enable connectivity, data collection, and device control. Developing specialized components to meet the unique requirements of IoT applications can offer revenue streams.
• Renewable Energy and Green Technologies: Increasing focus on renewable energy sources and sustainability opens up opportunities in the electronic components market. Components for solar power systems, wind turbines, energy storage systems, electric vehicle charging infrastructure, and energy-efficient devices are in huge demand. Developing energy-efficient and environmentally friendly components can cater to the growing market for general electronic components.
• Advanced Manufacturing and Industry 4.0: The adoption of advanced manufacturing techniques and Industry 4.0 principles presents opportunities for electronic components. Components used in industrial automation, robotics, machine vision, and industrial control systems, and smart sensors are in demand. Developing components that enhance automation, connectivity, and data analytics capabilities can tap into the evolving needs of the manufacturing sector. For instance, In October 2023, Intel t is one of the world's largest semiconductor chip manufacturers, is working to further increase access to opportunity, empower the next generation of innovators and expand its industry talent pool. Intel has now shared its plans to advance its semiconductor technology development facilities at the Gordon Moore Park at Ronler Acres in Hillsboro, Oregon.
• Automotive Electronics: The automotive industry's increasing reliance on electronic systems creates opportunities for component manufacturers. With the rise of electric vehicles, there is a growing demand for components such as power electronics, battery management systems, sensors, and connectivity solutions. Developing components that improve efficiency, safety, connectivity, and autonomous driving capabilities can cater to the evolving automotive market.

Global General Electronic Components Market- Trends

• Miniaturization and Integration: There is a trend towards miniaturization and integration of electronic components. As electronic devices become smaller and more compact, there is a growing demand for smaller-sized components that offer high functionality and performance. This trend drives advancements in microelectronics, multi-functional components, and System-on-Chip (SoC) solutions, enabling the development of smaller, lightweight, and more feature-rich devices.
• Increased Demand for Connectivity: With the proliferation of IoT devices and the need for seamless connectivity, there is an increased demand for components that enable wireless communication. This includes components such as RF modules, Bluetooth/Wi-Fi modules, and cellular communication modules. The demand for high-speed data transfer, low power consumption, and robust connectivity solutions continues to rise.
• Industry Focus on Energy Efficiency: Energy efficiency has become a significant focus across industries. Electronic components that offer improved power efficiency and reduced energy consumption are in high demand. This includes low-power microcontrollers, power management ICs, energy-efficient sensors, and components designed for optimized energy consumption in various applications, such as smart homes, industrial automation, and energy systems. For instance, In November 2023, the U.S. Department of Energy’s Argonne National Laboratory researchers successfully adapted a semiconductor coating technique for promising battery materials called argyrodites. A method traditionally applied in the production of computer chips could significantly extend a battery’s charge capacity and simplify its manufacturing process.
• Growth of Advanced Sensors: Sensors play a crucial role in various applications, including IoT, automotive, healthcare, and industrial sectors. There is growing demand for advanced sensors, such as MEMS sensors, environmental sensors, biomedical sensors, and optical sensors, that offer high accuracy, sensitivity, and reliability. The integration of sensors with other components, such as microcontrollers and wireless modules, enables smart sensing and data collection capabilities.

Global General Electronic Components Market- Restraints

• Price Pressure and Cost Optimization: The general electronic components market is highly competitive, leading to price pressure on manufacturers. Customers often seek cost-effective solutions, forcing component manufacturers to optimize production costs while maintaining quality and performance. This can limit profit margins and pose challenges for smaller players. Counterbalance, to tackle the problem of price pressure and cost optimization in the general electronic components market, it is important to have a strategic vision for supply chain cost management.
• Supply Chain Disruptions: The general electronic components market is susceptible to supply chain disruptions, including shortages and fluctuations in component availability. Factors such as geopolitical tensions, natural disasters, trade disputes, and disruptions in raw material supply can impact the availability and pricing of components. Manufacturers need to manage their supply chains effectively to mitigate these risks. Counterbalance, to tackle the problem of supply chain disruptions in the general electronic components market, companies can use above strategies like diversify suppliers, collaborate with suppliers, improve visibility, increase inventory and redesign products.
• Rapid Technological Obsolescence: The electronics industry experiences rapid technological advancements, leading to frequent product obsolescence. Components and technologies can become outdated within a short span, requiring manufacturers to continuously invest in research and development to stay ahead. The need for regular product innovation and upgrades can pose challenges for companies. Counterbalance, companies can reduce the risk of obsolescence and stay competitive in the market by using above techniques continuous innovation, product diversification, collaboration, lifecycle management and planned obsolescence.

Global General Electronic Components Market- Recent Developments

• Microchip Technology Launches New Microcontrollers: In October 2020 Microchip Technology, a leading provider of microcontroller and semiconductor solutions, introduced several new microcontrollers to its product portfolio.  The company launched the SAM L10 and SAM L11 series of ultra-low-power microcontrollers with enhanced security features, making them suitable for applications in IoT, consumer electronics, and industrial sectors.
• In July 2021, - Kemet Corporation (Yageo Group) launched a new composite metal power inductor MPEV. These inductors are qualified for AEC-Q200 surface area. This inductor can be used in DC-to-DC power supplies that need more resistance to heat up to +180°C. KEMET Corporation, a subsidiary of Yageo Corporation, is a company which manufactures a broad selection of capacitor technologies such as tantalum, aluminum, multilayer ceramic, film, paper, polymer electrolytic, and supercapacitors.
• In January 2021, - Panasonic Corporation launched a new ERJ-Hxx Series Automotive Grade, High Temperature Thick Film Chip Resistors. These resistors have a maximum category temperature of 175°C and a maximum rated operating temperature of 105°C. Panasonic Holdings Corporationis a Japan-based multinational electronics company.

Key Strategic Initiatives

• NXP Collaborates with Foxconn on Next Generation Vehicle Platforms: In July 2022, NXP Semiconductors announced that it had signed a memorandum of understanding with Hon Hai Technology Group (“Foxconn”) to jointly develop platforms for a new generation of smart connected vehicles. NXP Semiconductors N.V. (NXP) is a semiconductor designer and manufacturer in Netherlands.
• CrowdOut Capital Acquires Sourceability: In January 2023 CrowdOut Capital LLC ("CrowdOut"), an investment firm, announced the acquisition of Sourceability (the "Company"), a global distributor of electronic components offering digital tools, services and data.

Figure 2. Global General Electronic Components Market Share (%), By Functionality, 2022

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Top companies in Global General Electronic Components Market

• Panasonic Corporation
• Samsung Electronics Co., Ltd.
• Intel Corporation
• Texas Instruments Incorporated
• Toshiba Corporation
• Sony Corporation
• STMicroelectronics N.V.
• NXP Semiconductors N.V.
• Infineon Technologies AG
• Broadcom Inc.
• Analog Devices, Inc.
• Murata Manufacturing Co., Ltd.
• Vishay Intertechnology, Inc.
• ON Semiconductor Corporation
• Renesas Electronics Corporation

Definition: General electronic components refer to a wide range of essential devices and parts used in electronic systems and devices. These components include but are not limited to resistors, capacitors, inductors, diodes, transistors, integrated circuits (ICs), connectors, switches, and relays.