Global Passive Components Market to Reach $39.68 Billion by 2023, Driven by Surging Demand for Miniaturized Electronic Components

Dublin, Oct. 31, 2023 (GLOBE NEWSWIRE) -- The "Global Passive Components Market (by Type, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)" report has been added to ResearchAndMarkets.com's offering.

The global passive components market is poised for substantial growth, with a projected value of US$39.68 billion by 2023. This expansion is expected to occur at a compound annual growth rate (CAGR) of 5.44% during the forecast period of 2022-2027. Multilayer ceramic capacitors (MLCCs) are set to play a pivotal role as the dominant product category and a key driver of market growth.

Passive electronic components are integral components of various electronic devices, known for their role in collecting and storing energy without generating electricity. They are vital in the functioning of modern electronics and are essential for the operation of a wide range of devices and systems.

The increasing adoption of MLCCs in various emerging industries and applications, including 5G infrastructure, server/cloud, automotive, and 5G SP (5G service providers), is expected to drive steady growth in the demand for passive components over the next five years.

Segment Coverage

• By Type: The passive components market is segmented into three main categories: capacitors, resistors, and inductors. Capacitors hold a significant share in the market, driven by strong demand in industries such as computing, telecom, consumer electronics, automotive, and industrial sectors. Meanwhile, the resistors segment is anticipated to experience substantial growth due to the increasing demand for electronic devices among consumers.
• Capacitors By Type: Within the capacitor category, the market is further divided into four segments: Ceramic MLCC, aluminum, tantalum, and others. Ceramic MLCCs occupy a major share in the market, closely followed by the aluminum segment. Ceramic MLCCs are known for their high capacitance and miniaturization capabilities, making them ideal for use in compact and challenging environments. The expanding use of MLCCs in various applications, including smartphones, PCs, wearables, networking, servers, and automobiles, is expected to drive the growth of the ceramic MLCC market in the coming years.
• Inductors By Application: The market for inductors is segmented by application into five categories: communication, other communication, computing, auto, and industrial & others. The communication segment holds a significant share in the market, driven by the growing adoption of 5G smartphones and emerging technologies such as mobile payments and remote monitoring. The advancement in the communication industry is expected to fuel the demand for inductors in this field in the forecasted years.

Geographic Coverage

The report offers insights into the passive components market based on geographical regions, including North America, Europe, Asia Pacific, and the Rest of the World (RoW). North America includes the US, Mexico, and Canada, while Europe comprises the UK, Germany, France, Italy, and the Rest of Europe. The Asia Pacific region covers China, Japan, Asia excluding China & Japan, and the RoW encompasses other regions.

Asia Pacific leads the market with the largest share, driven by rapid urbanization in developing markets such as India and China, which has led to an increased demand for passive components in urban areas. In North America, the US is at the forefront of market leadership due to the rising demand for smart home devices, the implementation of Industry 4.0, and growing environmental concerns related to carbon emissions. In Europe, Germany dominates the market, primarily due to the growth in the automotive sector.

Key Growth Drivers

1. Surging Demand for Electric Vehicles: The proliferation of electric vehicles (EVs) and the associated electronic control units (ECUs) are driving demand for miniaturized electronic components. EVs, plug-in inductors, and other motor vehicles rely on passive components for various applications, propelling the overall passive components market.
2. Rising Demand for Network Devices: The increasing use of network devices, particularly in the context of 5G infrastructure, is boosting the demand for passive components required to support these devices.
3. Growing Complexity of Electronic Devices: As electronic devices become more sophisticated, the complexity of components within these devices is increasing, leading to a higher demand for passive components that meet these evolving requirements.
4. Consumers' Desire For Safer And Faster-charging Devices: Consumer preferences for safer and faster-charging electronic devices in both the consumer and automotive sectors are driving the adoption of advanced passive components that can enhance device performance.

Challenges

1. Increasing Metal Prices Impacting Component Costs: Fluctuations in metal prices significantly affect the cost of mass-produced electronic components used in consumer electronics and automotive industries. The increasing costs of metals such as palladium, nickel, and ruthenium have an impact on the total cost of production for high-volume components.
2. IC Supply Shortage: Shortages in the supply of integrated circuits (ICs) can impact the availability and production of passive components, potentially hindering market growth.

Trends

1. Accelerating Adoption of 5G Smartphones: The widespread adoption of 5G smartphones is fueling the demand for passive components, particularly MLCCs, to support the advanced capabilities of these devices.
2. Adoption of IoT Devices: The Internet of Things (IoT) is driving the adoption of IoT devices, which rely on passive components for their operation.
3. Smart Grid: The implementation of smart grids in electrical systems is boosting the demand for passive components, particularly in applications such as smart meters and soft magnetic components used in smart grid communication.
4. Miniaturization: The trend towards smaller and more compact electronic devices is driving the need for miniaturized passive components that can fit into tight spaces.

The COVID-19 Impact

The COVID-19 pandemic disrupted various industries, including manufacturing, affecting both supply chains and demand for electronic components. Supply chain disruptions in Asia-Pacific countries, such as Malaysia, impacted passive components production. For instance, the closure of manufacturing facilities in Malaysia, a key production hub, had implications for the passive components market. However, the pandemic also highlighted the importance of electronic components in enabling remote work, communication, and healthcare services, leading to increased demand in certain segments.

Analysis of Key Players

The global passive components market is characterized by consolidation, with major players including:

• TDK Corporation
• Panasonic Corporation
• Murata Manufacturing Co., Ltd.
• Kyocera Corporation
• Eaton Corporation plc
• Vishay Intertechnology, Inc.
• Taiyo Yuden Co. Ltd.
• Yageo Corporation
• Walsin Technology Corporation
• KOA Corporation
• TE Connectivity Ltd.
• ROHM

For more information about this report visit https://www.researchandmarkets.com/r/933gry

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