Crystal Oscillator Market

Market Overview

The global crystal oscillator market size was valued at USD 2115 million in 2021 and is expected to rise to USD 2760 million at a CAGR of 3% during the forecast period.

Oscillators are electronic circuits that generate an electrical signal of a specific frequency by utilizing the vibrating crystal mechanical resonance. The vibrating crystal is called piezoelectric material. Different types of piezoelectric resonators exist, but quartz crystal is commonly used in these oscillators. Such types of oscillator electronic circuits are called crystal oscillators.

The expanding demand for convenience and accessibility is driving the application of wireless interconnections like remote keyless entry. Crystal devices such as quartz crystal units and crystal oscillators have higher permanence and substantiality against environmental changes. And hence, they are increasingly used as frequency control devices in electronic circuits. The adoption of crystal units and crystal oscillators in the automotive industry is also anticipated to expand during the forecast period.

The crystal oscillators are widely adopted in safety applications like brake control systems, anti-locking systems, and airbag and tire pressure monitoring systems (TPMS). The demand for precision, growing stringent regulations for safety applications, and the necessity for fast data transmission are rapidly increasing the embracement of crystal units and oscillators.

Market Dynamics

Market Drivers

Adoption of 5G Across the World

Countries worldwide are expected to fully adopt the 5G technology in the next few years. This shift will further impact the demand for 5G-enabled devices like smartphones, network devices, network infrastructure, and IoT devices worldwide that are expected to incorporate such solutions.

In consonance, the growth in demand for handphones is expected to increase significantly with the deployment of the 5G network. 5G subscriptions are estimated to reach a market of 1.9 billion by 2024. In many regions, such as South Korea, the service of 5G is already made available, and it has crossed over 1.9 million subscribers.

5G is expected to lead the demand for crystal oscillators significantly over the coming years due to the volume of new devices expected to enter the market that incorporates crystal oscillators.

As per the TXC Corp., 5G facilities in infrastructures and devices like network infrastructure, Wi-Fi, 5G smartphones, and IoT are expected to incorporate 10-100 pcs, 1-2 pcs, 5-10 pcs, and 2-6 pcs of crystal oscillators respectively. The arduous amount of demand is likely to impact the vendors in the market to focus their offerings specific to the telecom and network industry during the period.

Demand From Automobile Industry

The deployment of Crystal oscillators is rapidly growing in automotive applications such as ADAS (Advanced Driver Assistance Systems), Camera, LiDAR (Light Detection and Ranging), automotive infotainment systems, body control, and others.

The consumer proclivity toward using connected vehicles is also slated to influence the requirement for technical instrumentations in the cars; the demand for advanced driver assistance systems and autonomous vehicles is envisioned to push the need for crystal oscillators.

The evident growth in the number of electronic components per vehicle and demand for electric and autonomous cars are further expected to upswing the order in the global crystal oscillator market growth.

As a result, several market vendors are highly optimistic about the scope and growth of crystal oscillators in the automotive industry; hence are planning on introducing many products specific to the automotive industry, pushing the development further.

Market Restraints

Shortage of New Improvements and the Technology Getting Matured with Substitutes

Crystal oscillators are energy and cost-efficient, but their response changes according to temperature and age; they require calibration circuitry. The crystals cannot be amalgamated as transistors and must be combined with the processors and communication chips. They deliver clocks and frequency references and demand an exclusion zone around and below the oscillator to keep out interfering signals.

The quartz timing devices have experienced significant innovation in decades. However, it still has many inherent limitations, including sensitivity to vibration, mechanical shock, limited frequency ranges, susceptibility to frequency jumps at particular temperatures, and limited programmability.

Some high-end applications of crystal oscillators are being substituted by MEMS due to the increasing demand for miniaturization. With growing advancements in technology and substitute space, the development of crystal oscillators has become static, and customers are forwarding toward MEMS solutions. The additional benefits and features offered by MEMS are creating restraints for the market growth of crystal oscillators.

The invention of Si-MEMS oscillators

The development of si-MEMS oscillators, which are more efficient, need less power, and are more compact, are among the factors restraining the crystal oscillator industry. However, compared to crystal oscillators, particularly oven-controlled crystal oscillators, si-MEMS oscillators still have significantly lower frequency stability. As a result, it is anticipated that this component will gradually have less impact as the major competitors in the crystal oscillator industry continue to invest heavily in R&D to create crystals with smaller bodies and better frequency stability. Asia-Pacific had the most significant revenue share in 2015 among all the geographical areas that contributed to this market.

Market Opportunity

While silicon-based timing devices are still not capable and suitable for sophisticated tasks compared to crystal oscillators, they are steadily advancing and replacing them in many circumstances. That will provide further coordination for the industry as mass production grows more cost-effective and accessible.

Developers anticipate higher frequencies and low jitter in oscillators in the current market, while buyers demand low cost and quick delivery. Timely oscillator options can deliver the highest desired performance, while minimally compensating design steps are necessary for cost-effective solutions.

The oscillator manufacturers are working towards closing the gap between high-level performance and cost-effective purchasing with conventional crystal technology paired with configurable oscillator technology.

It is likely to make the market for crystal oscillators in the future benefit from the growth of the consumer electronics industry.

The crystal oscillator market is showing signs of growth and recovery. Many crystal oscillator suppliers invest in developing mid to high-end crystals and crystal oscillators to prepare for the telecom market. It offers a positive outlook that may aid the growth of the market.

The next generation crystal oscillators are electronic oscillators that are absorbed with crystals of piezoelectric material such as quartz crystal, which are conferred with mechanical resonance and are used in signal generators. Such newer advancements are expected to make the market flourish in the coming days.

Regional Analysis

The global crystal oscillator market share is segmented based on North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa.

Asia-Pacific and North America command the market with the largest share.

The North American region is expected to share USD 667 million at a CAGR of 2% by 2030. The area is home to countries like the U.S and Canada, which contributes enormously to the share in the market. 

The United States is a major end-user country in the crystal oscillator market. The government has a high rate of investment which is witnessed in the market. Several industries in the country account for the eminently more significant portion of the global consumption of crystal oscillators. Various market vendors of the crystal oscillator at the worldwide level are US-based. The country is also one of the primary technology innovators, which often contributes to the market share.

The region’s government also plays a significant role as it predominantly invests in research that will promote American semiconductor innovation.

Asia-Pacific is estimated to have a value of USD 882 million at a CAGR of 3% during the forecast period. 

The region’s country like China is one of the illustrious markets of the crystal oscillator globally due to its strong position in consumer electronics, semiconductors, and other telecommunications devices and equipment manufacturing. The country is a prominent consumer and producer of global crystal oscillators.

China is one of the major semiconductor and electronic product manufacturers globally. The country consists of 60-70% of the world's electronics production capacity. The government is also home to some of the largest smartphone makers, like Huawei. This highly results in the country's consumption of crystal oscillators. 

South Korea is another important end-user market in the Asia-Pacific region owing to the massive technology adoption by the country’s industries. Industries of the country, such as consumer electronics, semiconductors, telecommunication equipment, and 5G, are some of the significant adopters of the crystal oscillators, which pushes the growth of the region's market. 

Europe Because of the increasing adoption of automated technologies and rising needs from the industrial, healthcare, telecommunication, and defense industries, Europe is predicted to see consistent growth in the following years. Convenience's expanding demand is fully supporting the market's expanding expectations.

Segmental Analysis

Based on type, the market for crystal oscillators is divided into Temperature Compensated Crystal Oscillator (TCXO), Simple Packaged Crystal Oscillator (SPXO), Voltage Controlled Crystal Oscillator (VCXO), Oven Controlled Crystal Oscillator (OCXO), Frequency Controlled Crystal Oscillator (FCXO) and others.

The TCXO segment is expected to generate the highest revenue during the forecast period of 2030. The expected revenue generation amount is USD 872 million with a CAGR of 2%.

The frequency of a stable crystal oscillator fickles with the temperature rise, which results in an unstable oscillation frequency. With the help of TCXO, a regular oscillation frequency in high-temperature environments can be made available. The demand for precise control of the clock signal is pushing toward the adoption of TCXO in the market. Vendors offer customized TCXO to satisfy the need for high accuracy. 

TCXOs are appropriate for wireless applications that rely on RF standards like Bluetooth, Zigbee, WIFI, Sigfox, smart metering, etc.

SPXO is expected to generate a revenue of USD 763 million with a CAGR of 3% during the forecast period. 

The simply packaged crystal oscillators delineate the primary crystal oscillator with no temperature control and are designed by a crystal unit and oscillation circuit. The SPXO units are used for the purpose of clocks. These oscillators are suitable for real-time clock microcontrollers and for all kinds of electronic devices in which the time of day is essential. Some of their applications include laptops, smartphones, and consumer electronics to washing machines, ATMs, and industrial control systems.

Based on mountain type, the segmentation done is surface mount and thru-hole.

Surface mount is anticipated to grow at a CAGR of 3% and reach the valuation of USD 1758 million in 2030.

Surface mount technology is expected to dominate a significant market share during the forecasted period. This follows the added benefits offered by the process. Because the technology is faster to set up for production, stability, and mechanical performance under vibration and shaking conditions and higher component density, it is widely in demand across the globe. 

Surface-mount crystal oscillators seek low material and production costs and indulge in a simple production process. Therefore, such crystal oscillators are highly used in consumer electronics and telecom and networking applications.

Thru-hole is expected to generate a revenue of USD 880 million during the forecast period. 

This mountain type proffers strong bonds between components and the board, making it ideal for more significant elements that undergo high power, high voltage, and mechanical stress. Thru-hole helps increase reliability as it runs through the board, allowing the components to provide better connectivity. Hence, the demand for this type of technology is expected from industries, such as defense and aerospace, which experience extreme accelerations, and environmental stress and require ruggedness. 

Based on end-user, the market is segmented as Consumer Electronics, Automotive, Telecom and Networking, Aerospace and Defence, Industrial, Research and Measurement, and others. Among the segments, telecom and networking, and consumer electronics generate the highest revenue. 

The telecom and networking segment is expected to generate a revenue of USD 998 million during the forecast period. 

Telecommunication infrastructure equipment using the crystal oscillators includes base stations, data centers, fiber optics, small cells, short-range wireless modules, antenna modules, BLE SoC, etc. Significant vendor activity is witnessed in the market for telecom and networking applications. Several vendors that function in the market have a targeted product portfolio and development initiatives to serve the telecom and networking industry. The commercialization of 5G is also expected to boost the market.

Consumer electronics is expected to share USD 532 million at a CAGR of 2% by 2030. 

The steady and advancing launch of newer consumer electronics products is visioned to push the market growth for crystal oscillators. The oscillators find application in cable television systems, wearables, personal computers, digital cameras, radio systems, and smartphones.

Recent Developments

• In December 2022, The BLM15PX SH1 and BLM15PX BH1 series from Murata expanded their range of chip ferrite beads. These small, sturdy devices, which come in a dimension of 1005 mm (0402 inches), are exceptionally well suited for vehicle use.
• In November 2022, GaN gate drive applications will be optimized for new Murata DC-DC converters.
• In December 2022, Epson will invest in U-MAP, a startup producing ceramic materials with high thermal conductivity.
• In November 2022, Rakon offered equipment for Hi-Rel Space Master Reference Oscillators with 100ppb stability over 20 years.
• In November 2022, The world's most minor mass-produced GaN laser chip was created by KYOCERA using silicon as the working substrate.
• In March 2022, Rakon introduced industry-leading ultra-low phase noise VCXO.