The passive electronic components market is estimated to be valued at USD 34.24 Bn in 2025 and is expected to reach USD 49.84 Bn by 2032, growing at a compound annual growth rate (CAGR) of 5.5% from 2025 to 2032.
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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.
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The integration of artificial intelligence into passive electronic component is enhancing the its design, manufacturing and performance. AI offers faster prototyping, optimized designs, predictive maintenance and enhance quality control. Along with this, AI also assists in high-frequency magnetic component designs and improve signal integrity. AI is specifically used in components such as capacitors to optimize its design for specific application including high-frequency power convertors. AI in inductors assist in designing inductor with optimized magnetic properties for various applications. And, AI in resistors helps in selecting the right type of value of resistors for different circuit applications.
Capacitors segment contributes the highest share of the market owing 54.2% in 2025 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.
In March 2025, NVIDIA launched its latest GB300 server, this features an integrated supercapacitor designed to enhance power stability for high-performance computing application. This innovation is leading Taiwanese supplier to intensify their efforts in supercapacitors development to meet the rising demand.
Under the end user segment, consumer electronics contributes the highest share owing 26.9% in 2025 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. For instance, in May 2025, Samsung launched the slimmest smartphone as race against the rival Apple. The S25 Edge is designed to meet the increasing demand for consumers in their 20s and 30s. Analysts says, this launch is strategically timed to beat Apple. 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. This is further fueling the electronic components market growth.
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North America has been the dominant region in the passive electronic components market owing 25% in 2025. 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. For instance, according to IBIS World, there are 2,482 businesses in the Circuit Board & Electronic Component Manufacturing industry in the United Sates in 2025. 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 passive electric components market share of global production and enjoys strong export demand from other regions as well.
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. The region is expected to project its 5G connection around 1.4 billion by 2025, with further growth anticipated through 2030. Countries like China have also emerged as a critical exporter, posing competition to traditional suppliers through competitive pricing and shorter lead times, which is further adding to electric components market share.
The United States is leading the passive electronic component market in North America; the dominance is driven by strong industrial based and technological infrastructure. The United States majorly consists of Silicon Valley, Texas and other regions and companies such as Intel, Nvidia, Cisco, Apple, HP, and AMD in Silicon Valley. The electronic component manufacturing companies in U.S. represent the innovations in the fields with cutting-edge technologies and commitment to excellence. Arrow Electronics and Avnet are the largest global distributor of electronic components with revenue of USD 34.47 billion and 21.59 billion, respectively. This is further expected to create passive electronic components market opportunities.
India’s market for passive electronic component is growing rapidly, driven by its robust component ecosystem by attracting significant investments from both domestic and internation stakeholders. India also plans to provide around 91,600 direct jobs within country in the field of passive electronic components, along with numerous indirect employment opportunities as the ecosystem expands. In April 2025, India has introduced an INR 229.19 billion Production Linked Incentive (PLI) scheme to enhance domestic electronic manufacturing and reduce reliance on imported components. This is the first initiative in India to include Passive electronic component under a dedicated PLI scheme, marking a strategic shift in the country’s approach towards electronic manufacturing.
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.
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.
As 5G technology evolve, the passive electronic component market forecast indicates robust growth. Devices are becoming smaller and more sophisticated, requiring higher component density and functionality in limited space. This trend is driving demand for multi-functional, miniaturized modules that integrate multiple passive elements into compact designs.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 34.24 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 5.5% | 2032 Value Projection: | USD 49.84 Bn |
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| Companies covered: |
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, and Taiyo Yuden Co. Ltd |
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*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.
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About Author
As an accomplished Senior Consultant with 7+ years of experience, Pooja Tayade has a proven track record in devising and implementing data and strategy consulting across various industries. She specializes in market research, competitive analysis, primary insights, and market estimation. She excels in strategic advisory, delivering data-driven insights to help clients navigate market complexities, optimize entry strategies, and achieve sustainable growth.
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