Passive and Interconnecting Electronic Components Market

Market Overview

The global passive and interconnecting electronic components market size was valued at USD 171.92 billion in 2021. It is projected to reach USD 276.45 billion by 2030, growing at a CAGR of 5.80% during the forecast period (2022–2030).

The global passive and linking electronic components market is expanding rapidly and is projected to expand significantly during the next few years. Electronic devices like cellphones, computers, electrical home appliances, and gaming consoles rely heavily on passive and interconnected electronic components. Numerous interconnecting devices include sockets, connectors, printed circuit boards, relays, and switches. Passive electrical components do not produce power but dissipate, store, or release it. Passive elements include resistances, capacitors, and coils. Industrial IoT devices assist manufacturing facilities in increasing their overall productivity and operational efficiency by facilitating operability and reducing system downtime. Moreover, as the fourth industrial revolution (Industrial 4.0) evolves, several manufacturing facilities are integrating linked devices to streamline operational operations via remote monitoring.

Market Dynamics

Market Driving Factors

Rising Smartphone Adoption and Internet Penetration to Aid Growth

The rapidly expanding use of smartphones and laptops in developing nations such as India and China is expected to propel the market. The industrial sector is experiencing rapid change with the widespread deployment of internet of things (IoT) devices. Industrial IoT devices assist manufacturing facilities in increasing their overall productivity and operational efficiency by facilitating operability and reducing system downtime. Consequently, the robust deployment of IoT devices in several industrial applications, such as process automation and motion control, will expand the passive and interconnecting electronic components market during the forecast period.

Growing Demand Medical Industry to Drive Market

Due to the increase in immunodeficiency illnesses among the population, worldwide healthcare expenditures are escalating. There is an increase in the elderly population and the incidence of diabetes, hypertension, etc. Consequently, the need for electronic medical gadgets testing blood pressure, sugar levels, etc., is growing. Medical device manufacturers deliver economical and dependable medical equipment to the market. Diverse passive and interconnected electronic components are utilized to improve the affordability and dependability of various medical care devices. The medical business has a significant requirement for passive and interconnected electrical components.

Market Restraining Factors

Decline in Manufacturers' Profit Margins to Hinder Market Growth

Due to technological advances, hardware costs are going down, but other commodities' costs are increasing as consumers continue to demand more complexity and variety in their purchases. Passive parts and interconnects have become very expensive due to widespread product counterfeiting. In addition, the ruthless competition among competitors from various places decreases the prices of passive components and interconnects. This negatively influences the costs of creating new products or those driven by advanced technologies.

Key Market Opportunities

Extensive Demand for Passive Components and Interconnects in 3C Applications to Boost Market Opportunities

The market for passive and interconnect components is driven by the proliferation of computing, communications, and consumer electronics (3C) applications. Passive components are the fundamental elements of all electronic devices and appliances. These components are integral to electronic circuitry and have been the primary pillar of businesses, including computing, telecommunication, and consumer electronics. Interconnects connect various active and passive components in a system-controlling electronic assembly. Connectors are one of the most commonly utilized interconnection types in telecommunications and consumer electronics applications. According to Electronics Web, personal computers have driven the expansion of the connection sector in the United States. There is a significant demand for high-speed and high-bandwidth networks; consequently, compatible connectors are introduced.

Regional Analysis

The global passive and interconnecting electronic components market is segmented into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific dominates the global market for passive and interconnected electronic components during the forecast period. The expansion is mainly driven by significant exporters and manufacturers of electronic goods in the region. The major consumer electronics manufacturers such as Samsung Electronics Co., Ltd., BBK electronics (Including brands like Oppo, Realme, and Vivo), Foxconn Technology Group, and Xiaomi Corporation are anticipated to be favorable for regional growth.

Telecom titans such as Verizon Inc. and AT&T Inc. are investing massive sums in developing 5G network infrastructure in response to the increasing demand for connected vehicles in the United States. It is envisaged that this next-generation 5G mobile network will allow constant connection between vehicles and facilities across the country. Moreover, the U.S. government is spending enormous sums to construct smart cities around the country. It is projected that the 5G network infrastructure deployment would increase new installations of telecom equipment and other networking devices, consequently driving the market for passive and interconnecting electrical components.

Segmental Analysis

The global passive and interconnecting electronic components market is segmented by component type and application.

By Component Type

Based on component type, the market is divided into passive and interconnecting.

The capacitor segment holds the most significant market share during the forecast period due to the high need for various types of capacitors to be manufactured for consumer electronic gadgets, industrial applications, and other uses. Transformers are vital to the operation of electronic devices because they convert high voltage to the circuit's required voltage. With the increasing manufacturing of various household appliances, industrial digital devices, and other consumer electronic products, the demand is expected to increase significantly during the forecast period.

Interconnecting electronic components took a sizable portion of the market for passive and interconnecting electronic components and are projected to increase at a considerable rate during the forecast period. The expansion can be ascribed to the increasing use of Bluetooth in electronic devices such as digital cameras, game consoles, etc. In addition, the continued need for networking and storage devices in data centers is predicted to increase the global usage of connectors/sockets.

By Application

Based on application, the market is segmented into consumer electronics, IT and telecommunication, automotive, and industrial.

The consumer electronics sector has a significant market share and is projected to grow at a CAGR of 5.7%. The demand for security cameras and sensor-based devices in industrial applications such as process automation and remote monitoring is increasing rapidly. Consequently, it is anticipated to increase the demand for passive and linking electrical components over the next seven years. The need for networking equipment such as modems, gateways, and repeaters is growing, particularly in the office automation and home application markets. Consequently, the rising demand for network devices and telecommunications equipment is anticipated to accelerate the growth of the IT and telecommunications segment of the market for passive and interconnecting electronic components throughout the forecast period.

Recent Developments

• In June 2022, TT Electronics to Feature FlexSense and Industry-leading Optoelectronics Sensors Portfolio at Sensors Converge 2022.
• In June 2022, TT Electronics to Feature Advanced Passenger Interface and Lighting Technologies at Aircraft Interiors Expo.
• In April 2022, AVX Corporation, New Horizontal Wire-To-Board Connectors For Industrial And Commercial Applications.
• In June 2022, Axians Teams with Cisco to Help Enterprises in Germany and the Netherlands Digitize and Expand IoT with Cisco Private 5G.