Electronic Components Market Size, Share & Trends Analysis Report By Type (Passive Components, Active components, Electromechanical components), By Applications (Telecommunication, Consumer Electronics, Industrial Electronics, Defence and Aerospace, Automotive, Others), By End Use (Telecommunication, Consumer Electronics, Industrial Electronics, Defence and Aerospace, Automotive, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global electronic components market size was valued at USD 198.23 billion in 2023. It is expected to reach USD 349.39 billion in 2032, growing at a CAGR of 6.5% over the forecast period (2024-32). The rapid growth of the consumer electronics sector is a significant driver for the electronic components market. Increasing demand for smartphones, tablets, laptops, wearables, and smart home devices fuels the need for a wide range of electronic components such as semiconductors, capacitors, resistors, and sensors.

An electronic component is any simple discrete device used to influence electrons or related fields in an electronic system, assisting in circuit operation. A variety of electrical terminals have computer parts. Further, to create an electronic circuit, these terminals link to other electrical components. Electronic circuit guides and regulates the electric current, including signal amplification, computation, and data transfer, to perform different functions. It contains various elements, including resistors, transistors, condensers, inductors, and diodes.

Market Dynamics

Growth of IoT and IIoT

With the amplification of advanced technologies and the effective usage of internet networks in manufacturing, there has been a boom in the IoT industry and IoT applications. The infrastructure of the Internet of Things is undergoing major advances. As reported in the Mobile Economy 2020, released by the GSM Association, the number of devices connecting to the Internet—i.e., IoT connections are estimated to hit 25 billion in 2025, from 12 billion in 2019. In a few years, the greater involvement of IoT devices will gradually connect computers to software and link users to essential resources, streamline the corporate workflow, and benefit people. Furthermore, the accelerated penetration of the Internet and mobile devices has contributed to the rise of Industry 4.0, also known as Industrial IoT. As reported in the UN Industrial Development Organization's 'Industry 4.0 Opportunities Behind the Challenge – Background Paper’, Industry 4.0 is a paradigm change from centralized to localized smart manufacturing and production. As a result, the rise of Industry 4.0 and IoT products has led to an improvement in the use of electronic parts, thus improving market growth.

Failure of Electronic Components

Electronic components have a wide variety of modes of failure, such as excess temperature, excess current or voltage, ionizing radiation, mechanical shock, stress or effects, and many other factors that can be responsible for failures. Problems in the product packaging can cause failures in semiconductor devices due to corrosion, device mechanical tension, or open or short circuits.

Some of the common failures are packaging failures, contact failures, printed circuit board failures, relay failures, semiconductor failures, passive element failures, and MEMS failures. The recurring failures are a cause for concern, thereby restraining the growth of the market.

Regional Analysis

Asia-Pacific

Asia-Pacific is accounted for the maximum share in the global electronic components market due to the presence of favorable technical infrastructure in countries, such as Japan, South Korea, and China. Cost-effective manufacturing and the presence of a large amount of inexpensive labor in China and India has bolstered the growth of the market. As of 2020, the Asia-Pacific region encompasses approximately 61.7% of the total world population, thus holding a major share in the global trade and an impact on the shipments and the adoption of consumer electronic goods.

As stated in a report entitled Asia-Pacific Trade and Investment Trends 2019-2020, published by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), the global trade percentage of the region was accounted for 35% in the year 2018-2019. China is considered the dominant region in the electronic components market due to its supremacy in the manufacturing industry.

North America

North America is anticipated to display massive growth in the electronic components market over the forecast year owing to the massive technical infrastructure and the higher adoption of new technology. Additionally, higher deployment of the latest electronic components has been observed in this region due to the presence of many tech giants and other companies. The U.S. caters to the largest share of the electronic components market in the region. The high technological adoption, suitable technical infrastructure, the deployment of 5G network infrastructure, the tremendous penetration of IoT and other connected devices, and a larger utilization of consumer goods.

Additionally, as stated by eMarketer, there are approximately 98.4% or 8.16 million smartphone users, along with 99% internet users in Canada. The massive adoption of the latest technology has bolstered the need for efficient and faster network speed. Additionally, the NAFTA agreement (North America Free Trade Agreement) has strengthened the trade relationship between the United States, Mexico, and Canada, further driving the adoption of electronic components.

Segmental Analysis

By Type

Based on type, the electronic components market is divided into active, passive, and electro-mechanic. The active components cater to the largest share, followed by the passive components. Active electronic components are the integral components of telecommunications systems and other networking instruments that require an energy supply for the given mission to be carried out. Each electronic circuit typically consists of one active electronic part.

Transistors, diodes, triodes, optoelectronic modules, photoelectric tubes, and integrated circuits are some of the active electronic components. Because of its vast number of applications, such as electronic cameras, microphones, laptops, among many others, integrated circuits are quite in demand active electronic part. Besides, it has been the most profitable of a large range of technical advances in integrated circuits, such as modular IC and multi-layered IC.

By Application

On the basis of application, the Electronic Components market is divided into Automotive, Communication, Computing applications, Industrial, and Others.

The automotive sector caters to the largest share owing to its high dependence on the passive components. Further, Modern Electric Vehicles, Hybrid Electric Vehicles, and Plug-in Hybrid Electric Vehicles need electronic components more than ever before in the control electronics, driving the need for passive components. With the high requirement, manufacturers and suppliers are striving to keep up with the accelerating pace of technological advances.

Further, as reported by the International Energy Agency, the global number of car purchases has steadily risen from 59 million to 93 million over the decade 2010-2019. As per Organisation Internationale des Constructeurs d'Automobiles (OICA), more than 95 million cars were delivered on the world market in 2018. It is anticipated that global vehicle sales will reach the 100 million mark by the end of 2020. Therefore, the tremendous growth in the automotive sector is forecasted to propel the growth of the market.

Impact of covid-19

With the COVID-19 pandemic, the AWS market is expected to note a moderate downturn in growth prospects, with import-export restrictions making the cross-border trade of weather station components difficult. Lockdown restrictions and norms emphasize only essential commodities.  As weather forecast operations and meteorological services are not considered essential, operations in the sector have been disrupted, creating a pessimistic scenario for customers.

The COVID-19 outbreak has also affected data gathering frequency, which has decreased the accuracy of observational data, making weather forecast and meteorological operations challenging and less reliable. On the other hand, many countries vulnerable to natural calamities seek to gain more insight into weather forecasts to anticipate and prepare for cyclones and rainstorms, which is expected to bolster the AWS market’s growth during the forecast period.

Recent Developments

• February 2024 - Leading passive component maker Murata increased the number of high-Q rated monolithic ceramic chip capacitors (MLCC) in its lineup. The GJM022 series expands the world's smallest high-Q capacitor with a voltage rating of 100 V and is intended for high-frequency module applications, such as those found in cellular communication infrastructure.
• January 2024 - A distribution agreement was announced between Panasonic Industrial Automation and Mouser Electronics, Inc., the authorized worldwide distributor of the newest electrical components and industrial automation solutions. Panasonic Industrial Automation provides a range of technologically sophisticated sensors, programmable controllers, human-machine interfaces, servo motors, and drives.