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Passive Electronic Components Market

Passive Electronic Components Market: Information by Capacitors (Type and End-User Industry), Inductors (Type and End-User Industry), Resistors (Type and End-User Industry), and Region — Forecast till 2030

Published At : 26 Aug, 2022
Updated At : 26 Aug, 2022
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Market Snapshot
Base Year:
2021
Study Period:
2020-2030
CAGR:
4.85 %
Fastest Growing Market:
North America
Largest Market:
Asia Pacific

The global passive electronic components market size was valued at USD 32.95 billion in 2021, which is envisioned to reach USD 48.13 billion at a CAGR of 4.85% during the forecast period. The movement of electrical current through electronic circuits drives and controls the electronic devices in almost every environment today. A passive element is an electronic component that does not produce power but dissipates, stores, and releases the power it previously generated. Electronic components that use up energy are known as passive electronic components. It does not produce energy, cannot gain power, and does not require any form of electrical power to function. They do this by merely taking in energy.

The passive electronics market has experienced significant growth over the past few years, mainly due to the increasing digitalization of various industries, which has led to a rise in the adoption of consumer electronics across these industries, as well as an increase in the demand for connectivity and mobility. As a result of these advancements, the complexity of electronic products is also growing. This drives demand for passive components in the electronics and automotive industries. The steady growth of inductors is currently attributable to the increasing number of product launches, advancements in the consumer electronics industry, the rising utilization of inductors in automotive electronics, and the growing adoption of smart grids.

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Market Dynamics

Global Passive Electronic Components Market Drivers

The Growing Complexity of Electronic Devices to Foster Market Growth

With technological advancements, electronics and electronic devices are becoming more complex, primarily due to consumers' rising demand for minor or slim devices. Customers have certain expectations for these devices today, such as a sleek, thin design with a screen that extends from edge to edge. Owing to their low price, small size, and lightweight, MEMS gyroscopes have achieved tremendous success in smartphones. Moreover, features such as voice-enabled smart devices have recently gained popularity. Based on a survey conducted by Accenture, more than 50% of internet users worldwide employ digital voice assistants. This is anticipated to further increase the complexity of electronic systems, thereby increasing the demand for passive electronic components market. 

In addition, other technologies like 5G require multiple antennas, larger processors, and a battery. Hence, it is projected that future devices will include more radios, larger processors, more components, and a higher battery demand while maintaining the same form factor. Manufacturers of 5G chips increasingly require smaller package designs with the same capacitance or resistance as older, larger versions. Manufacturers of passive components respond to this demand by providing expanded ranges in smaller format designs. Passive components must also function in harsher environments, with extreme temperatures, vibration ratings, dust, liquid resistance requirements, etc. This technology has primary applications in the automotive, aerospace, and oil and gas industries.

Additionally, passive electrical components contribute significantly to the healthcare and medical device industries. Various advancements in the healthcare industry, such as the development of larger hospital equipment, medical wearables, and point-of-care devices, are anticipated to increase demand. The medical industry continuously drives electronics demand. As technology advances and smaller, denser, and more reliable circuit boards become feasible, passive electronic components will play a more significant role in the healthcare industry.

Global Passive Electronic Components Market Restraints

Increasing Metal Prices Impacting the Cost of Producing Components to Hinder Market Growth

The increased cost of metals substantially impacts the mass-produced electronic components used in the consumer electronics and automotive industries. The variable costs for manufacturing passive electronic components are between 40% and 50%, while the fixed costs are between 15% and 20%. Metal costs, as a proportion of the total cost of goods sold, may account for approximately 25% of large producers' expenses. Consequently, increases in the prices of palladium, nickel, and ruthenium affect the total cost of production for specific high-volume components. In addition, external factors such as mine closures, labor disputes, refinery closures, and speculation are anticipated to contribute to the price increases of critical metals used in the mass manufacturing of passive electronic components market.

Global Passive Electronic Components Market Opportunities

Increasing Preference for Miniaturized Design to Spur Market Opportunities

One of the latest trends in the electronic industry is the demand and need for smaller, lighter, and more powerful electronics, i.e., the miniaturization of electronics and components. Rapid technological advancements have resulted in product availability with multiple functions on a single platform. In addition, the development of end-user industries has necessitated the development of compact and sturdy semiconductor devices. In contrast to traditional PCB boards, modern smartphones, for example, require a smaller PCB board. There is also the emergence of IoT devices with irregular and unique shapes, such as wearables, which can only be accomplished through miniaturization. This is expected to significantly generate growth opportunities for miniaturized passive components.

Segmental Analysis

The global passive electronic components market is classified based on capacitors, inductors, resistors, and regions.

On the Basis of Capacitors

Based on capacitors, the sub-segments include the type and end-user industry.

Based on capacitor type, the fragments are Ceramic Capacitors, Tantalum Capacitors, Aluminum Electrolytic Capacitors, Paper and Plastic Films Capacitors, and Supercapacitors.

The segment of ceramic capacitors is expected to hold the largest share during the forecast period growing at a CAGR of 5.5%. Ceramic capacitors are among numerous electrical devices' most prevalent types of capacitors. They are reliable and less expensive to produce. Non-polarized ceramic or porcelain discs make up most of these capacitors employed in various industries. The ceramic material is also well-known for being an exceptional dielectric, as it supports electrostatic fields effectively and has low conductivity.

Based on the end-user industry, the fragments are Automotive, Consumer Electronics, Aerospace and Defense, Energy, Communications/Servers/Data Storage, Industrial, and Medical. 

The consumer electronics segment is most likely to hold the largest share and grow at a CAGR of 6% during the forecast period. Smartphones and tablets require antennas that are both small and capable of delivering a high level of performance. These antenna systems require capacitors with particular performance attributes. Capacitors are integral antenna system components. In antenna systems, capacitors are most frequently used for bandwidth tuning, impedance matching, and filtering. These applications require capacitors with exceptional performance characteristics, including low leakage current, high-quality factor, and high linearity. Numerous technological advances in capacitors have enabled the production of capacitors that meet the stringent performance requirements of smartphone antenna systems.

On the Basis of Inductors

Based on inductors, the sub-segments include the type and end-user industry.

Based on inductor type, the fragments are Power and Frequency.

The segment of power inductors is most likely to hold the largest share during the forecast period growing at a CAGR of 3.9%. A power inductor is designed for metal composite or ferrite power supplies and circuits. Its primary function in courses is to convert a specific voltage into the required voltage and provide stable power to the integrated circuit. As the inductor is utilized in power circuits, it is required to ensure inductance when imposed and to have low resistance. The magnetic field stores energy when a current flows through it. The increasing traffic electrification, like automobiles and trains, the demand for renewable energy, and the emphasis on obtaining renewable energy sources via smart grids have all contributed to the growth of the power inductor market.

Based on the end-user industry, the fragments are Automotive, Consumer Electronics and Computing, Aerospace and Defense, Communications, and Other End-user Industries (Industrial and Power and Energy, Medical). 

The consumer electronics segment is most likely to hold the largest share during the forecast period growing at a CAGR of 5%. Various technological advancements in consumer electronics have drawn consumers, increasing in inductor demand. The development of touch screens and other innovative features in consumer electronics has expanded the market for inductors in the consumer electronics industry. Consumer electronics consist of smartphones, home appliances, computers, laptops, and other devices such as televisions, gaming consoles, wearables, etc. There is a thriving market for inductors in the sector as the number of new consumer electronics product launches rises.

On the Basis of Resistors

Based on resistors, the sub-segments include the type and end-user industry.

Based on resistor type, the fragments are Surface Mounted Chips, Network, Wirewound, Film/oxide/Foil, and Carbon.

The segment of surface mount is most likely to hold the largest share during the forecast period growing at a CAGR of 3.6%. Surface mount chip resistors are used in various applications, including handheld devices, precision lab test equipment, and aerospace electronics. Multiple chip resistors are available to meet design and application specifications, including general-purpose chip resistors, high precision chip resistors, current sense chip resistors, high voltage chip resistors, high power chip resistors, and high resistance chip resistors. Surface-mount resistors are considerably smaller than standard axial or leaded elements, allowing for greater levels of miniaturization to be attained.

Based on end-user industry, the fragments are Automotive, Consumer Electronics and Computing, Aerospace and Defense, Communications, and Other End-user Industries (Industrial, Power and Energy, and Medical)

The consumer electronics segment is most likely to hold the largest share during the forecast period growing at a CAGR of 3.2%. Resistors are one of the most commonly utilized passive components in electronic circuits because they resist the stream of sudden voltage spikes, which can cause instantaneous damage to electronic equipment. Multiple resistor types were used extensively in consumer electronics like computers, PCs, and laptops. Surface mount chip resistors are used extensively for printed circuit boards in smartphones and laptops, and most silicon-printed circuits use them to ensure signals are always accurate.

Regional Analysis

The region-wise segmentation of the global passive electronic components market includes North America, Europe, Asia Pacific, and LAMEA.

The Asia Pacific Will Dominate the Regional Market

Passive Electronic Components Market Regional Analysis

Regional Growth Insights Request Sample Pages

Asia Pacific will command the regional market with the largest share and grow at a CAGR of 5% during the forecast period. Several multinational corporations are establishing manufacturing facilities in Asian Pacific countries, either independently or through joint ventures with regional businesses, due to the expansion of the electronics industry. It is projected that this will rise the local production of passive electronic components in the Asia-Pacific region. Due to the intense competition between manufacturers, businesses are also working to reduce the size of their products to make them more portable and versatile. The strong demand for notebooks and gaming machines, which supports the stay-at-home economy, as well as the gradual increase in demand for the handset and automotive applications, has prompted several businesses to boost their output. Such factors are most likely to propel the passive electronic components market in the region.

Companies, such as Murata, have deployed specialized inductors for NFC circuits, contributing to the region's significant communication advancements. Currently, NFC is used for transactions. Nevertheless, there is still considerable room for growth. Numerous nations in the region have transitioned to more advanced connectivity speeds, like 4G, which necessitate a more significant number of passive electronic components than earlier technologies. China and Japan significantly contribute to the region's growing electric vehicle sales. The sales of battery-electric vehicles in the Asia-Pacific region increased from 25.27 thousand units in 2012 to over 100 thousand units in 2020. Thus, contributing to the region's passive electronic components market.

Top Industry Players in Market

List of key passive electronic components market suppliers profiled

  • Panasonic Corporation
  • TDK Corporation
  • Vishay Intertechnology Inc.
  • Murata Manufacturing Co. Ltd
  • AVX Corporation
  • Taiyo Yuden Co. Ltd
  • Sagami Elec Co. Ltd
  • WIMA GmbH & Co KG
  • Cornell Dubilier Electronics Inc.
  • Yageo Corporation
  • Lelon Electronics Corp.
  • United Chemi-Con
  • Bourns Inc.
  • Wurth Elektronik Group

Recent Developments

  • In 2022, TDK Corporation developed the new TFM2018BLE series of inductors optimized for space-constrained smartphone power circuits. 
  • In 2022, TDK Corporation announced the construction of a new production building on the premises of the Kitakami factory.

Global Passive Electronic Components Market: Segmentation

By Capacitors

  • Type 
    • Ceramic Capacitors
    • Tantalum Capacitors
    • Aluminium Electrolytic Capacitors
    • Paper and Plastic Film Capacitors
    • Supercapacitors
  • End-user industry
    • Automotive
    • Consumer Electronics
    • Aerospace and Defense
    • Energy
    • Communications/Servers/Data Storage
    • Industrial
    • Medical

By Inductors

  • Type 
    • Power
    • Frequency
  • End-user industry
    • Automotive
    • Consumer Electronics and Computing
    • Aerospace and Defense
    • Communications
    • Other End-user Industries

By Resistors

  • Type 
    • Surface-mounted Chips
    • Network
    • Wirewound
    • Film/Oxide/Foil
    • Carbon
  • End-user industry
    • Automotive
    • Consumer Electronics and Computing
    • Aerospace and Defense
    • Communications
    • Other End-user Industries

By Region

  • North America
  • Europe
  • Asia-Pacific
  • LAMEA
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