PASSIVE ELECTRONIC COMPONENTS MARKET ANALYSIS

Market Size and Trends

The passive electronic components market is estimated to be valued at US$ 32.45 Bn in 2024 and is expected to reach US$ 46.70 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.3% from 2024 to 2031.

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The market is expected to witness positive growth over the forecast period due to increased demand for passive electronic components from the automobile and telecommunication industries. Key factors such as growing demand for smart homes, smartphones, and connected cars are driving the need for higher capacity and more durable passive components. Additionally, the rise in 5G infrastructure and adoption of Electric Vehicles (Evs) is anticipated to boost the demand for specialized passive components. New technology advancements in capacitors, resistors, and magnetic segments will create new revenue channels for component manufacturers operating in this market.

Rising Demand for Consumer Electronics

The demand for various consumer electronics such as smartphones, tablets, laptops, gaming consoles, cameras, wearables, and home appliances have significantly grown over the past decade. Miniaturization of chipsets and components have enabled manufacturers to integrate more features and functionalities into consumer devices without substantially increasing their size. This allows consumers to remain connected constantly through various smart devices and wirelessly control smart home products for convenience and comfort. As newer generations of devices are constantly being launched in the market with advanced specifications and capabilities, consumers worldwide are upgrading their existing devices more frequently in order to have the latest technologies. With rising disposable incomes as well, people across regions are able to spend more on purchasing the latest smartphones, appliances, and other gadgets for productivity and entertainment needs. This continuous growth in the consumer electronics industry directly increases the requirement for various passive electronic components used inside these devices including capacitors, resistors, inductors, connectors, and others. Component manufacturers are placing larger orders to meet the surging demand from consumer device makers, thus boosting the market growth.

Market Concentration and Competitive Landscape

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The increasing adoption of electric vehicles globally has emerged as another significant driver for the passive components industry. Electric Vehicles (EVs) require a complex network of passive components within their powertrains and on-board charging systems to efficiently distribute and manage high voltage power flows. Unlike conventional vehicles, EVs deploy advanced lithium-ion battery packs. They also feature more robust charging and power distribution systems, which involve extensive use of various passive components. The push for greener mobility is now compelling leading automakers to invest heavily in developing affordable EVs for mass market consumers. They are launching multiple new electric car models every year and expanding production capacities globally. This widespread shift towards electrification of the automotive sector translates to the magnified demand for specialized passive components that can withstand high temperatures, voltages, and offer longevity under rigorous operating conditions expected inside EVs. With governments raising emission norms as well, the EV market is projected to experience exponential growth over the next decade. This will correspondingly drive higher consumption of passive electronic components needed for the manufacturing of next-gen powertrains as well as supporting charging infrastructure expansion.

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Device miniaturization is reducing the size of components, necessitating the development of very small passive devices. Additionally, consumers demand devices with longer battery lives, placing pressure on component makers to lower power consumption further. Supply chain issues have also arisen, as ongoing trade disputes and the coronavirus pandemic have disrupted international manufacturing and logistics networks. Component makers must navigate disruptions to ensure supply meets demand.

Market Opportunities: Growing scope of 5G network infrastructure

Emerging technologies like 5G networks, electric vehicles, renewable energy systems, and IoT all rely heavily on passive components. This dependence on new sectors will fuel market growth. As devices become more advanced, they integrate more passive parts, creating demand for multicomponent modules. Manufacturers able to offer multi-function, miniaturized modules stand to benefit.

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Capacitors contributes the highest share of the market owing 53.7% in 2024 to their widespread applications in electronic devices. Capacitors play a vital filtering and energy storing function in circuits. They facilitate the smooth flow of current by blocking DC but allowing AC to pass through. This unique property makes them essential components across various end-use industries.

The growing adoption of capacitors can be attributed to the advancements in their design and functionality. With the miniaturization of electronic devices, there is an increasing demand for compact and high-performance capacitors. Leading manufacturers have responded to this need by developing novel thin film and multilayer ceramic capacitor technologies. Their ultra-small footprint allows for higher packaging density and integration into space-constrained applications. Furthermore, new capacitor variants with low equivalent series resistance and impedance provide enhanced efficiency, reliability and noise reduction capabilities.

The increasing use of capacitors in consumer electronics is a major factor propelling market share gains. Devices such as smartphones, laptops, tablets, and wearables extensively use capacitors for power management, signal filtering and timing circuits. The proliferation of IoT-enabled smart home products and hearables is further accentuating this demand. On the automotive front, capacitors play a crucial role in safety and driver assist components along with infotainment systems and battery management modules. Their adoption is rising sharply with the electrification of vehicles as well.

The passive component industry is also witnessing progressive increases in capacitor needs from healthcare, industrial, and telecom industries. New medical devices, factory automation solutions, and 5G network infrastructure will majorly drive consumption. With continuous product and process advancements by manufacturers, capacitors are well-positioned to maintain their prominence across diverse end-use markets in the coming years.

Insights By, End Use- Consumer Electronics Stimulate Passive Component Sales

Under the end user segment, consumer electronics contributes the highest share owing 26.4% in 2024 of the passive component market. This can be attributed to the lifestyle-driven replacement demand for electronic products and the emergence of new form factors.

Smartphones have become ubiquitous with over 2 billion users globally. They incorporate an extensive network of passive devices to support complex system-on-chip designs with multiple peripherals and fast processing capabilities. Furthermore, the rise of smart wearables, hearables, and other connected appliances is opening new avenues for passive components. Miniature accessory devices require even more compact and powerful passives to integrate diverse functionality within their small footprints.

Other major consumer devices fueling segment growth include smart televisions, gaming consoles, laptops, and tablets. The increasing affordability and accessibility of premium models is sustaining the healthy uptake of such products worldwide. Manufacturers are continuously improving screen resolutions, memory capacity and computing power to attract consumers with exciting new features. This, in turn, demands higher-performing passive solutions to enable advanced functionality.

Going forward, the deployment of 5G networks and proliferation of Augmented Reality/Virtual Reality (AR/VR) technologies will further stimulate consumer appetite for the latest gadgets. The development of smart home appliances and IoT sensors will broaden the passive component landscape as well. Moreover, the replacement cycles for consumer electronics are becoming shorter due to evolving trends, planned obsolescence and hardware malfunctions. This consistent refreshment culture maintains a steady replacement demand stream for passive industry participants.

Regional Insights

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North America has been the dominant region in the passive electronic components market owing36.2% in 2024. The presence of major component manufacturers as well as strong demand from the automotive, telecommunications and defense sectors have cemented North America's leadership position. Many leading global passive component brands have their headquarters and core research and development centers located in the U.S., allowing them to cater effectively to the needs of customers. The favorable business environment and infrastructure support have also encouraged companies to invest heavily and expand their manufacturing footprint over the years. As a result, North America accounts for the largest share of global production and enjoys strong export demand from other regions as well.

However, Asia Pacific has emerged as the fastest growing regional market for passive electronic components in recent times. Rapid growth of the electronics manufacturing industry across China, Taiwan, South Korea, and other Southeast Asian nations is the biggest driver. With many global OEMs and ODMs setting up large scale production centers to tap into lower costs, there is a massive and sustained increase in demand for passive components from the region every year. The thriving consumer electronics sector as well as the advancement of 5G infrastructure roll out are other factors accelerating the consumption of passive components in Asia Pacific. Countries like China have also emerged as a critical exporter, posing competition to traditional suppliers through competitive pricing and shorter lead times. The burgeoning electronics industry, growing urbanization and rising disposable incomes point towards continued momentum for passive component demand from Asia Pacific in the foreseeable future.

Market Report Scope

Key Developments

• In January 2023, Infineon Technologies AG includes a wide range of semiconductor components, such as microcontrollers, power MOSFETs, IGBTs, sensors, and security chips. expanded its MOTIX family for automotive and commercial motor control needs, offering a variety of products with different integration levels. Infineon is a leading semiconductor company based in Neubiberg, Germany. Specializing in cutting-edge semiconductor solutions, Infineon serves various industries including automotive, industrial, power, and digital security. introduced the MOTIX 3-phase gate driver IC 6ED2742S01Q to enhance its product range. This 160 V silicon-on-insulator (SOI) gate driver is packaged in a QFN-32 format with an exposed power pad for efficient heat dissipation and includes an integrated power management unit (PMU). This easy-to-use device is well-suited for battery-powered industrial BLDC motor control drives, commonly found in applications like robotics, drones, cordless power tools, and light electric vehicles.
• In December 2022, TDK Corporation is a global leader in electronic components and solutions, headquartered in Tokyo, Japan. introduced ModCap HF, a modular capacitor specially designed for DC link applications, capable of operating at very high switching frequencies. The B25647A series includes six newly developed power capacitors, ranging from 900 to 1,600 volts, with capacitance varying between 640 to 1,850 microfarads. These capacitors can handle hot spot temperatures of up to 90 °C, and their rated currents range from 160 A to 210 A, depending on the type.
• In November 2022, YAGEO is a leading global manufacturer of passive electronic components, headquartered in Taipei, Taiwan launched the HCV X7R MLCCs tailored to meet the stringent requirements of industrial applications. The latest addition to the lineup, the YAGEO HCV X7R, is available in case sizes ranging from 0,402 to 1,210 inches and boasts the highest capacitance and rated voltage of 47uF and 100 volts, respectively. YAGEO maintains its position as a leading provider of HCV MLCCs, particularly with the forthcoming operation of its new facility in 2023, which will cater to the increasing demand and significantly boost manufacturing capacity.
• In October 2022, YAGEO Group, the leading supplier of passive components globally, unveiled the automotive-grade thin film chip resistor - RP Series. The RP Series features a unique passivation design that creates a waterproof interface. This protective covering shields the resistive layer, preventing moisture ingress from the external environment. With this defense mechanism, the RP Series maintains high resistance stability even in challenging conditions, making it suitable for various applications such as power systems, industrial and medical equipment, telecommunications, automotive electronics, and industrial machinery.

*Definition: The passive electronic components market consists of non-active electronic elements or devices that are used in electronic circuits to alter voltage and current flows without an external power source. This market includes passive components like capacitors, resistors, inductors, transformers, wires, cables, and connectors that are used to build circuits for a wide range of electronic devices. Passive components are critical components within any electronic system as they perform fundamental functions like voltage regulation, noise filtering, and signal processing without requiring an external power source.

Market Segmentation

•  Type Insights (Revenue, US$ BN, 2019 - 2031)
  • Capacitors
  • Resistors
  • Inductors
•  End User Insights (Revenue, US$ BN, 2019 - 2031)
  • Consumer Electronics
  • Automotive
  • Healthcare
  • Telecommunications
  • Aerospace
  • Defence
  • Others
• Regional Insights (Revenue, US$ BN, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of Middle East & Africa
• Key Players
  • Infineon Technologies AG
  • NXP Semiconductors NV
  • Texas Instruments, Inc.
  • Panasonic Corporation
  • Murata Manufacturing Co. Ltd
  • Eaton Corporation
  • TE Connectivity Ltd.
  • Honeywell International Inc.
  • Toshiba Corp.
  • Vishay Intertechnology Inc.
  • YAGEO Corporation
  • TDK Corporation
  • KEMET Corporation (Yageo Corporation)
  • AVX Corporation (Kyocera Corp)
  • Lelon Electronics Corporation
  • Taiyo Yuden Co. Ltd