The global electronic components market size was valued at USD 186.38 billion in 2022. It is projected to reach USD 328.50 billion by 2031, growing at a CAGR of 6.5% during the forecast period (2023-2031).
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.
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.
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.
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.
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.
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 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.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|