PASSIVE ELECTRONIC COMPONENTS MARKET ANALYSIS

The global passive electronic components market size was valued at USD 32.8 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 5.0% from 2022 to 2030. This market has been driven by the increasing demand for mobile devices and digitalization of various industries. The major drivers for the global passive electronic components market are the increasing complexity of electronics, digitalization, and the mobility demand. These factors increase the size and complexity of devices.

Global Passive Electronic Components Market: Regional Insights

The global passive electronic components market is regionally divided into The Americas, Europe, Asia Pacific, and Rest of the World.

North America region is expected to account for major share in the global passive electronic components market over the forecast period. The region is a major consumer of capacitors in all over the world. The electronics and automotive sector in the region is likely to be one of the major consumer of capacitors in countries such as the U.S. For instance, in January 2020, the Alliance of Automobile Manufacturers and the United States Global Automakers entered into a merger to create a new alliance called Alliance for Automotive Innovation. This is anticipated to help in launching new innovations in the automotive industry.

Furthermore, Europe is also anticipated to witness substantial growth in the global passive electronic components market over the forecast period. This is due to rise in adoption of capacitors in the automotive industry across the region. The automotive industry in Germany is witnessing increasing technological development, with the integration of smart technologies. Moreover, electric and hybrid vehicles are likely to support growth of the automotive industry in this region, thus, automotive companies focused on EV technologies. This in turn is expected to support growth of the passive electronic components market in the region.

Figure 1. Global Passive Electronic Components Market Share (%), by Region, 2021

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Global Passive Electronic Components Market Drivers:

Rise in complexity of electronics to fuel growth of the market

The technological developments in electronics and electronic devices are increasing with time, and such developments are increasing complexities of these devices, as the consumer demand for slim or small devices continues to grow. The standards for electronics and electronic devices have increased among consumers such as, demand for thin, sleek design having a screen that goes from edge to edge. Moreover, features such as voice-enabled smart devices have become popular in past few years. The adoption of devices such as Google Home, Amazon Echo and Sonos has increased all over the world. This in turn has created demand for passive electronic components, which is further driving growth of the market.

Growing preference for miniaturized design is propelling the market pace

The demand and need for lighter, smaller, and high performance electronics is on the rise in consumer electronics industry all over the world. Thus, the demand for miniaturized electronics and components has increased significantly in recent times. Moreover, the rapid technological advancements has created availability of products incorporating multiple features on one platform. Due to the advancements in end user industries, the requirement for strong and small semiconductor devices has also increased. For instance, current smartphone devices need a smaller PCB board. Thus, this factor is likely to impact the market growth positively in the near future.

Global Passive Electronic Components Market Opportunities:

Increasing focus of vendors on enhancing their global manufacturing as well as customer support capabilities is anticipated to create numerous growth opportunities in the global passive electronic components market over the forecast period. The passive electronic components will become more complex in the future through integration of active and passive function to offer complete subsystem solution. Thus, market players are focusing on increasing their capabilities of global manufacturing and customer support. Along with this, demand for passive electronic components is also likely to grow with growing deployment of 5G, driver assist technology, and automotive telematics among various others. Thus, these factors will create various lucrative opportunities in the global passive electronic components market.

Emergence of wireless charging pads and supercapacitor charging points at stations is also expected to offer multiple growth opportunities in the global passive electronic components market during the forecast period. In the near future, the number of supercapacitor charging points and wireless charging pads such as the electrical equivalent of a petrol pump that fills a car tank within minutes will increase all over the world. These charging mechanisms can be extended further with supercapacitors that are built into roads for delivering power to EVs continuously when the cars zip along or stop at traffic lights. These factors are likely to offer market players with several growth opportunities in the passive electronic components market.

Global Passive Electronic Components Market Trends:

Increase in demand for EVs in Asia Pacific region is a recent trend

Asia Pacific is anticipated to account for a major share in the consumption and manufacturing of capacitors, specifically in the supercapacitors over the forecast future. The demand for electric vehicles is increasing in countries such as India and China. Moreover, these countries are also witnessing growth in renewable capabilities. Supercapacitors will be used for powering the Internet of Things. The devices making the whole IoT will depend on some type of energy-harvesting mechanisms.  These will require strong yet small devices for energy storage such as supercapacitors. Thus, growing demand for electric vehicles in Asia Pacific is a one of the major trends in the market.

Growing development of quantum computers is trending in the market

The semiconductor market across the globe is driven by increasing development of quantum computers. This trend is driving the global passive electronic components market. For instance, in 2020, IBM launched 28 quantum computers that were built on 27-qubit for achieving a quantum volume 64. The quantum volume can measure the complexity and length of circuits, which indicates that higher quantum volume increases the potential for exploring a solution for solving real-world problems of industry, research, and government. Thus, this trend is likely to continue in the global passive electronic components market during the forecast period.

Global Passive Electronic Components Market Restraints:

Increase in cost of metals to impede the market growth

The rise in metal costs are impacting the production costs of components. The cost of raw materials such as iron, nickel, and molybdenum have been changing recently. Due to the Covid-19 pandemic, the global precious metal market was impacted negatively. Moreover, due to the factors such as labor disputes, mine closure, speculation, and refinery closures are also impacting the cost of critical metals utilized in mass manufacturing of passive electronic components. For instance, as per the World Bank data, the cost of nickel stood at US$ 18, 584.38 in February 2021, from US$ 16,823.04 per metric in December 2020. Thus, the factor is likely to impede growth of the market in the forecast future.

Rise in complexity of passive electronic components are hampering the market growth

With increase in technological developments to cater consumer demand, the complexity of passive electronic components is growing. Operating these advanced components can be complicated without technical knowledge. Thus, this factor affects the demand for advanced passive electronic components, which in turn impacts the market growth. Nevertheless, the growing demand for electronics and electronic devices such as storage and networking devices in data center, robotics in industrial applications and demand for security cameras will create the need for advanced passive electronic components, which will further drive the market growth.           

Figure 2. Global Passive Electronic Components Market (%),  by Type, 2021

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Global Passive Electronic Components Market Segmentation:

The global passive electronic components market report is segmented into Type, End User Industry, and Region.

Based on Type, the market is segmented into Capacitors, Inductors, and Resistors. Out of which, Ceramic Capacitors is expected to dominate the global market over the forecast period and this is attributed to the increasing number of manufacturers involved in product innovation linked to miniaturization of the ceramic capacitors. For instance, in June 2020, Murata Manufacturing Co. Ltd. announced the development of a multilayer ceramic capacitor having a size of 01005 and a capacitance value of 1.0 μF, for various consumer smartphones and industry-grade smartphones.

Tantalum Capacitors segment is also expected to witness significant growth in the near future and this is owing to the increasing demand in avionics and military applications. Tantalum capacitors are a subtype of electrolytic capacitors. In order to cater the increasing demand, market players are offering new solutions. In September 2020, Vishay Intertechnology Inc. extended its EP1 wet tantalum capacitor with novel ratings in the B and C case codes, to cater the growing demand.

Based on End User Industry, the market is segmented into Automotive, Consumer Electronics, Aerospace and Defense, Energy, Communications/Servers/Data Storage, Industrial, and Medical. Out of which, Automotive is expected to dominate the global market over the forecast period and this is attributed to the increasing demand for electronic components in automotive applications. The emergence of autonomous vehicle technologies is offering novel automotive features and functionality. Thus, passive components such as capacitors are high in demand in automotive industry.

Consumer Electronics segment is also expected to witness significant growth in the near future and this is owing to the increasing advancements in capacitor technology. The advanced capacitors are meeting the smartphone requirements of strict performance. For instance, now capacitor manufacturers are using the microelectronechanical systems (MEMS) technology for making ultra-small capacitors for smartphone antenna systems. Thus, growing demand for such passive electronic components in consumer electronics is driving growth of the segment.

Global Passive Electronic Components Market: Key Developments

In June 2021, Kemet Corporation (Yageo Group) introduced a new composite metal power inductor MPEV, which are qualified inductors for AEC-Q200 surface amount. This inductor is suitable to use in DC-to-DC power transmission supplies with increased resistance for heating up to +180°C.

In January 2021, Panasonic Corporation launched the New ERJ-Hxx Series Automotive Grade, High Temperature Thick Film Chip Resistors that have a maximum category temperature of 175°C and 105°C maximum rated operating temperature.

In December 2020, Panasonic Corporation announced the expansion of its TQC series POSCCAP Conductive Polymer Tantalum Solid capacitors, which included small case sizes having large capacitance in a high voltage. The novel additions include 3.5mm x 2.8mm small case size for a small PCB footprint.

In July 2020, Vishay Intertechnology Inc. launched its ENYCAPÔ electrical double-layer energy storage capacitor designed for power backup and energy harvesting applications. The company announced these capacitors in seven smaller case sizes that range from 10mm x 20mm to 12.5mm x 40mm having capacitance values ranging from 5F to 22F.

Global Passive Electronic Components Market: Key Companies Insights

The global passive electronic components market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global passive electronic components market are Honeywell International Inc., KEMET Corporation (Yageo Company), Arcol UK Limited, Panasonic Corporation, Susumu Co. Ltd., TDK Corporation, Ohmite Manufacturing Company, Vishay Intertechnology Inc., TE Connectivity Ltd., Murata Manufacturing Co. Ltd., KOA Speer Electronics Inc., AVX Corporation (Kyocera Corp.), TT Electronics PLC, Taiyo Yuden Co. Ltd., Coilcraft Inc., Sagami Elec Co. Ltd., Eaton Corporation, WIMA GmbH & Co. KG, API Delevan (Fortive Corporation), Cornell Dubilier Electronics Inc., Wurth Elektronik Group, Yageo Corporation, Bourns Inc., Lelon Electronics Corp., and United Chemi-Con (Nippon Chemi- con Corporation).

*Definition:

A passive electronic component is a component that does not require a power source to operate. These components store energy in an electrostatic form and are used in high temperature applications. These components can charge and discharge in a matter of seconds. They are used in avionics and computing.