Wirewound Variable Resistors Market

Market Overview

The global wirewound variable resistors market size was valued at USD 1,410 million in 2023 and is projected to reach USD 2,206 million by 2032, registering a CAGR of 5.1% during the forecast period (2024-2032). The global market for wirewound variable resistors is projected to experience substantial expansion during the forecast period due to an increase in demand in various application sectors.

Many consumer electronics and business electrical devices are equipped with wire-wound resistors to prevent damage caused by excessive current flow. These resistors safeguard electronic devices by impeding variations in the flow of excessive electrical close to its threshold voltage, thus preventing harm. These have widespread use in circuit breakers or as fuses. Due to their high-power characteristics, these resistors are widely used in circuit-breaking applications. These resistors can function as components in massive circuit-breaking devices or as circuit breakers. By amplifying the inductive effect in these resistors, they can serve as both current and temperature sensors, expanding their range of applications.

The wire-wound resistors market is anticipated to experience expansion in the projected future for significant reasons such as increased manufacturing of consumer electronic devices, including computers, audio and video devices, and others. Moreover, wire-wound resistors are expected to experience growth in several industry sectors due to their distinct characteristics, such as their application in circuit breakers and circuit sensing. This is likely to drive the expansion of the wire-wound resistors market. 

Highlights

• Precision resistor generates the highest revenue share based on type.
• Potentiometers account for the largest market share by application.

Market Dynamics

Global Wirewound Variable Resistors Market Drivers

Increasing Demand for Consumer and Commercial Electronic Equipment

Consumer electronics' constant progress and diversification have resulted in a growing need for wirewound variable resistors. The commercial electronics sector, encompassing industries like telecommunications, networking equipment, and data centers, significantly depends on these resistors for accurate regulation and fine-tuning in electronic circuits. In 2023, the International Telecommunication Union (ITU) reported that around 5.4 billion individuals, representing 67 percent of the global population, used the Internet. There has been a substantial rise of 45 percent since 2018, with almost 1.7 billion individuals accessing the internet throughout that time frame. Consequently, this increase in consumer electronics directly contributes to the expansion of the market. 

Increasing Applications of Wirewound Resistor 

The increasing demand for wirewound resistors is due to their adaptability and dependability in various electronic applications. Wirewound resistors possess accurate resistance regulation, exceptional power dissipation capabilities, and minimal temperature coefficients, rendering them well-suited for multiple applications, including automotive, telecommunications, aerospace, and industrial automation.  Medical gadgets that come into direct contact with the human body include defibrillators, ECG/EEG machines, and surgical devices. The resistors utilized in such devices must possess the capacity to withstand power surges occurring during brief duration pulses. In particular, in the case of Automated External Defibrillators (AEDs), if the excess electrical energy is redirected away from the patient, it can travel back into the defibrillator and cause harm to the delicate monitoring inputs. Therefore, the medical and instrumentation markets commonly depend on leaded devices with high precision and power. Wirewound resistors are well-suited for these applications.

Furthermore, with the increasing complexity and miniaturization of electronic systems, there is a rising demand for compact and durable components such as wire-wound resistors. More specifically, the industry's utilization of wirewound variable resistors is increasing. This is because they can offer adjustable resistance levels in circuits, enabling precise adjustment and calibration in crucial systems. The demand for wirewound resistors, especially in the variable resistors segment, is predicted to keep expanding due to technological advancements and the growing focus on efficiency and performance in electrical design.

Global Wirewound Variable Resistors Market Restraints

Availability of Alternative Resistors and Macroeconomic Conditions

The presence of alternative resistors, such as chip resistors, metal oxide resistors, and metal film resistors, limits the widespread use of wirewound variable resistors due to their expensive costs, limited overload capabilities, and power rating. The acessibility with which sellers can enter the market has led to intense and fierce rivalry. The intense price rivalry in the wirewound variable resistors industry has significantly decreased the profit margins of market players, resulting in a decline in their revenues. Moreover, the market shares of current participants have experienced a substantial decrease. 

Moreoover, the current financial circumstances have a direct influence on the market. The market has been negatively impacted by macroeconomic factors such as the global recession and economic slowdown. The initiation of the financial crisis has resulted in a decrease in manufacturing capabilities, thereby impeding the expansion of the market. Furthermore, the presence of counterfeit items has hindered the expansion of the market.

Global Wirewound Variable Resistors Market Opportunity

Increasing Integration of Electronic Systems in Vehicles

The market for wirewound variable resistors is experiencing a substantial increase, primarily due to the growing incorporation of electrical systems in cars. The revenue generated by the automobile industry experienced considerable growth and became more varied, focusing on on-demand mobility services and services that rely on data analysis. This can generate an additional USD 1.5 trillion, or a 30 percent increase, in revenue by 2030. This is compared to the USD 5.2 trillion generated by regular car sales and aftermarket products/services, a 50 percent increase from the USD 3.5 trillion generated in 2015. The need for wirewound variable resistors is expected to significantly increase as automotive technology advances in electrification, connection, and automation.

Additionally, an important factor driving this trend is the widespread presence of electronic components and systems in contemporary cars. Modern vehicles have various electronic features, such as advanced driver assistance systems (ADAS), infotainment systems, electric power steering, brake-by-wire systems, and other technologies. These advanced electronic systems depend on accurate regulation of electrical currents and voltages, requiring the utilization of high-grade resistive components like wirewound variable resistors.

In addition, incorporating wirewound variable resistors is especially vital in electric and hybrid cars, where the management and optimization of power are of utmost importance. These cars employ intricate powertrain systems that depend on the accurate management of electrical signals for propulsion, energy storage, and regenerative braking. Wirewound variable resistors are essential for optimizing the performance and efficiency of systems. They achieve this by adjusting voltage levels, controlling motor speeds, and managing energy flow.

Moreover, the increasing focus on vehicle electrification and sustainability is propelling the use of sophisticated electronic components that improve energy efficiency and decrease emissions. Wirewound variable resistors help achieve these goals by using effective power management techniques and enhancing the overall performance of electric and hybrid cars. The Wirewound Variable Resistors Market is projected to experience substantial expansion, primarily driven by the growing integration of electronic systems in cars and the increasing need for high-performance resistive components. This growth is predicted to be particularly prominent in the automotive industry.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global wirewound variable resistors market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific is the most significant global wirewound variable resistors market shareholder and is estimated to grow at a CAGR of 5.3% over the forecast period.  The increase is ascribed to the expanding consumer electronic and electronic components manufacturing sector. China, Japan, India, Vietnam, Thailand, and South Korea significantly contribute to the market's growth. According to the Ministry of Industry and Information Technology (MIIT), China maintained its position as the world's leading manufacturing center in 2023, a title it has held for 14 consecutive years.  In 2023, the aggregate value-added output of the country's major manufacturing businesses, each with an annual primary business turnover of at least 20 million yuan (approximately 2.8 million US dollars), increased by 5 percent compared to the last year. In 2023, the value-added industrial output of major firms increased by 4.6 percent compared to the previous year, which is a one percentage point higher growth rate than in 2022.

Moreover, the market is seeing growth due to several factors, including the abundant availability of inexpensive raw materials, decreased labor costs, increased government and corporate investment and efforts, rising demand for home equipment, changing lifestyles, and higher disposable income among consumers.

Europe is anticipated to exhibit a CAGR of 5.7% over the forecast period. Due to technological improvements, Europe is experiencing a growing demand for precise and customizable resistors in areas including automotive, industrial automation, and telecommunications. Furthermore, the increasing awareness of energy efficiency and the demand for dependable electrical components contribute significantly to the expansion of the market. In addition, legislative measures that encourage sustainability and environmental awareness motivate manufacturers to create environmentally benign resistor solutions. Moreover, the growth of the European electronics manufacturing sector and the region's emphasis on research and development help the market's rise.

Furthermore, the increasing acceptance of IoT devices and intelligent technologies requires the utilization of top-notch resistors to achieve the best possible performance, hence fueling market demand. These variables combined influence the direction and development of Europe's wire-wound variable resistors market. The demand for wirewound variable resistors in the UK and Germany is expected to increase due to the significant usage and manufacture of technologically advanced consumer electronics, resulting in exports exceeding USD 6.29 million.

North America holds a significant market share. The need for wirewound resistors in the IT and telecommunication industries has significantly increased in North America, leading to substantial growth. These resistors are used to improve devices' precision and current sensing capabilities. Moreover, the rising demand for more excellent manufacturing capabilities will expand the area's wirewound resistors market throughout the forecast period.

Segmental Analysis

The global wirewound variable resistors market is segmented based on type and application.

The market is segmented based on type into precision wire-wound and power wire-wound.

The precision resistor segment dominated the market in 2023. Wirewound resistors designed for high-energy impulse applications are known for their precision. The demand for precision wire-wound resistors is expanding due to their increasing use in various applications, including test instrumentation, calibration equipment, measurement bridges, and AF attenuators. The market is growing due to the efforts of leading manufacturers to offer cost-effective, highly precise, and stable precision wire-wound resistors. These resistors are widely adopted in power inverters, engines, and temperature sensors.

Power wire-wound resistors are crucial in the market for wirewound variable resistors because they can effectively handle high power loads and maintain consistent resistance values under various operating circumstances. These resistors play a vital role in multiple applications involving industrial machinery, power electronics, and automotive systems, where accurate resistance control is necessary. The market for variable wirewound resistors, particularly power wire-wound resistors, is projected to experience consistent expansion due to the increasing demand for dependable and efficient electronic systems. Due to their sturdy design and ability to handle high power, these components are essential in many electronic circuits, guaranteeing reliable performance and durability.

The market is segmented based on application into current, potentiometers, and temperature sensors.

The potentiometer segment dominated the market in 2023. A potentiometer is an electrical component commonly utilized to measure electric voltage or potential in electronic devices. The potentiometer market is primarily propelled by its extensive use of electronic gadgets, mainly audio and volume control equipment. The market is expanding due to the rising use of potentiometers in TVs for controlling color, contrast response, and picture brightness, as well as in motion control equipment and displacement transducers.

Current sensors are expected to contribute to the increase in market size. Current sensors have several applications, such as integrating the charge of rechargeable batteries, accurately measuring power supply, and managing the operation of intricate loads powered by electric motors. Therefore, the growing demand for these resistors to diagnose control systems and monitor their conditions contributes to the expansion of this category.

Recent Developments

• February 2024– TT Electronics, a worldwide supplier of designed electronics for high-performance applications, introduced its newest advancement – the LRMAH2512 surface-mount technology (SMT) shunt resistors. This tiny resistor, designed to match the LRMAP3920 and LRMAP5930 perfectly, has a solid 6W rating. It is ideal for precise current measurements in motor control, power supply, and battery management applications.
• April 2024– TT Electronics, a prominent provider of worldwide manufacturing solutions and engineered technologies, recently announced that its Fairford UK business has secured a new contract with its longstanding customer, Kongsberg Defence and Aerospace (Kongsberg). The contract entails the production of intricate cable harness solutions.
• February 2024– TT Electronics, a worldwide supplier of specialized technologies for high-performance applications, showcased its products at APEC, the premier conference for power electronics specialists. TT will exhibit its wide range of passive components and power electronics at Booth 719. TT's resistor products, which will be showcased, offer EV battery management and charging capabilities. This aligns with the company's strategy emphasis on sustainability and technological solutions that promote a cleaner, more intelligent, and healthier future.