The global Passive Electronic Components Market is estimated to account for US$ 34.1 Mn in terms of value by the end of 2022. A common type of passive electronic component is a transformer. This type of component is used in a range of electronics, such as power stations, renewable energy applications, and small appliances. It can raise and lower voltage levels, increase or decrease power, and can be used in lighting systems. There are many types of passive components, however, they can be separated into two main categories. The first category includes inductors and resistors, which work as switches or amplifiers. They are used to limit the flow of current, and they are sometimes used to store energy.
Global Passive Electronic Components Market: Drivers
Rise in adoption of Internet of Things (IoT) devices is expected to propel growth of the global passive electronic component market over the forecast period. The advent of IoT devices has transformed the industrial sector all over the world. Due to this, manufacturing facilities have strengthen their operational capacities and their overall productivity as, IoT devices offer ease of operability and cut down the overall system downtime. Moreover, as the Industrial 4.0 is evolving, many manufacturing facilities are starting to use various connected devices for streamlining the operational processes through remote monitoring. Thus, the adoption of IoT devices is driving growth of the market.
Global Passive Electronic Components Market: Opportunities
Growing adoption inorganic growth strategies by market players is creating growth opportunities in the global passive electronic components market over the forecast period. For instance, in May 2021, YAGEO Group and Hon Hai Technology Group announced a joint venture agreement to form XSemi Corporation. With this, YAGEO will be expanding its footprint in passive components into semiconductors and will offer a more complete portfolio of components. This is expected to create various growth opportunities in the market.
Global Passive Electronic Components Market: Restraints
The outbreak of Covid-19 is expected to limit growth of the global passive electronic components market during the forecast period. Due to the pandemic the supply chains across several industries were enormously disrupted. This further impacted various businesses, as market operations such as manufacturing, supply chains, distribution operations. Thus, production and demand were significantly disrupted in the global passive electronic components market, which in turn hampered the market growth.
Global Passive Electronic Components Market - Impact of Coronavirus (Covid-19) Pandemic:
The coronavirus outbreak negatively impacted the global passive electronic components market. The virus outbreak affected several industries across the world. Many countries went under nationwide lockdowns to control the virus spread. Due to these stringent lockdown regulations various industrial activities were impacted. Moreover, industries such as automotive, electronics among others were disrupted due to the pandemic. This directly impacted the production and demand in passive electronic components market. Thus, the market witnessed a negative impact of the Covid-19 pandemic.
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Key Takeaways:
The global passive electronic components market was valued at US$ 32.8 Mn in 2021 and is forecast to reach a value of US$ 50.5 Mn by 2030 at a CAGR of 5.0% between 2022 and 2030.
Capacitors segment held dominant position in the global passive electronic components market in 2021, accounting for 51.56% share in terms of value, increasing approval and launch of new products is expected to propel growth of the segment during the forecast period.
Global Passive Electronic Components Market Trends:
Increasing R&D activities related to passive electronic components is a major trend in the global passive electronic components market. Advanced research into more durable and lighter material having mechanical properties and better energy consumption are being conducted all over the world. For instance, in June 2020, researchers at the University of Houston and the University of Michigan introduced two advanced material models for energy storage and consumption. The researchers at the University of Houston created a novel electrode, which is based on aramid nanofiber and reduced graphene oxide that is more durable and lighter.
Moreover, increasing investments in novel technology is also likely to boost growth of the global passive electronic components market during the forecast period. As the investments in novel technologies in electric and hybrid cars, smartphones, and internet of things is increasing, the demand for passive components such as diodes, MLCCs, resistors, transistors and others has become significantly high. Thus, there is a shortage of passive components in the market, which in turn is creative a lucrative environment for market growth.
Global Passive Electronic Components Market: Competitive Landscape
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).
Global Passive Electronic Components Market: Recent Developments
In January 2021, Vishay Technology announced a novel through-hole inductor that can deliver a 420 A saturation current for inductance reduction of 30% in a compact 1500 case size. The company launched a novel series of surface-mount, multilayer ceramic chip capacitors having lead (Pb)-bearing termination finish. These capacitors are suitable for aerospace applications that require tin whisker mitigation.
