Passive Electronic Component Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Passive Electronic Component Market Size

Passive Electronic Component Market Trends & Drivers

Technological Advancements Act as Significant Trends

• Passive electronic components are widely used in the specialized and high-performance components of electric vehicles.
• New autonomous vehicle technologies, such as vehicle-to-vehicle communications, advanced driver-assistance systems (ADAS), and safety & sensing systems, such as backup cameras and lane departure detectors, are the key trends in the market.
• In addition, the rapid advancement of quantum computers across the globe is influencing the market growth positively. The complexity and length of circuits are measured with quantum volume.
• A higher quantum volume could help in exploring a solution for solving real-world problems in the industrial and research &government space.

Increase in Complexity of Electronics Drives Market Growth

• As the demand for slim or small devices rises among consumers, the development of passive electronic devices is picking up pace as they are essential to tackle the increasing complexities. The demands of consumers for electronic gadgets continue to grow, thereby leading to the need for slim, attractive designs with edge-to-edge screens.
• Over the last several years, voice-activated smart gadgets have gained popularity. Globally, more people are using gadgets such as SunOS, Amazon Echo, and Google Home, thus propelling the demand for passive electronic components.

Fluctuating Raw Material Cost Acts as Challenge to Market Growth

• Various sectors, such as telecommunications, healthcare, and automotive, are demanding passive electronics items.
• This increasing demand is putting pressure on the suppliers of raw materials, who might find it difficult to handle the higher order quantities. To reduce this risk, manufacturers may have to engage in collaborative efforts or expand their supply base.
• The rise in the production cost of passive electronic components is due to the continuous increase in prices of metals, such as nickel, iron, and molybdenum.

Passive Electronic Component Industry Outlook

Type Insights

• On the basis of type, capacitors dominate the market. This is due to their wide usage in electronic devices, including laptops and smartphones, as well as in audio systems and power supply circuits.
• The resistor category is expected to grow at the highest CAGR, of 6.8%, during the forecast period. Resistors are used extensively in temperature sensing, noise suppression, and voltage regulation devices.

On the basis of type, the market has the following categories:

• Resistors (Fastest-Growing Category)
  • Linear resistors
  • Fixed resistors
  • Variable resistors
  • Non-linear resistors
• Capacitors (Largest Category)
  • Ceramic capacitors
  • Aluminum electrolyte capacitors
  • Film capacitors
  • Tantalum capacitors
  • Super capacitors
  • Others
• Inductors
  • Iron-core inductors
  • Air-core inductors
  • Iron-powder inductors
  • Ferrite-core inductors
• Transformers
  • Surface-mounted chips
  • Network transformers
  • Wire-wound transformers
  • Film/oxide/file transformers
  • Carbon transformers

Material Insights

• On the basis of material type, the ceramic category dominates the market, with a share of 40%, in 2023.One of the most-common types of capacitors found in many electrical devices is the ceramic capacitor as it is durable and less expensive.
• Most of these capacitors are composed of non-polarized ceramic or porcelain discs. The ceramic substance is also widely recognized for its exceptional dielectric strength, due to its low conductivity and the ability to support electrostatic fields.
• The tantalum category is expected to grow at the highest CAGR of 6.9%, during the forecast period. Because Tantalum capacitors are in high demand in avionics and military applications.

On the basis of material, the market has the following categories:

• Ceramic (Largest Category)
• Polymer
• Tantalum (Fastest-Growing category)
• Aluminum
• Others

End User Analysis

• The automotive category dominates the market due to the technological advancements in the automotive industry. This is because the hybrid electric vehicle (HEV) technology uses passive electronic components, such as intelligent current measuring resistors.
• The consumer electronics category is expected to witness the highest CAGR, of 7.2%, during the forecast period. This is due to the rapid advancements in the capacitor technology.
• Advanced capacitors are able to fulfill the demanding performance requirements of smart phones, such as suppressing the mini voltage and boosting power when the battery is almost dead.
• Micro electromechanical systems are currently being used to create ultra-small capacitors for smart phone antenna systems.

On the basis of end user, the market has the following categories:

• Consumer electronics (Fastest-Growing Category)
• Automotive (Largest Category)
• Healthcare
• Telecommunications
• Aerospace
• Defense
• Industrial
• Others

Regional Insights

• Geographically, Asia-Pacific held the largest share in 2023, of around 50%, and it is expected to sustain its market dominance during this decade. The rising adoption of smart phones, laptops, and other consumer in India and China is the biggest factor driving the market growth in this region.
• Passive electronic components are used in communication systems, such as routers, client–server networks, and base stations. Thus, the rapid increase in the demand for telecommunication services in India and China adds to the market growth.
• In addition, the Government of India launched 5G network technologies across the country for the digital transformation of the nation in October2022, which is helping the market grow in this particular region.
• North America is predicted to be the fastest-growing growing regional market, with a share of 7.0% in 2023.This is due to the increasing adoption of electric vehicles and deployment of 5G technologies in the particular region.
• In addition, the increasing demand for smart and miniature electronic devices and increase in the usage of IoT devices add to the market growth positively.

The regions and countries analyzed in this report include:

North America (Fastest-Growing Regional Market)

• U.S. (Larger and Faster-Growing Country Market)
• Canada

Europe

• Germany (Largest Country Market)
• U.K. (Fastest-Growing Country Market
• France
• Italy
• Spain
• Rest of Europe

Asia-Pacific (APAC) (Largest Regional Market)

• China (Largest Country Market)
• Japan
• India (Fastest-Growing Country Market)
• South Korea
• Australia
• Rest of APAC

Latin America (LATAM)

• Brazil (Largest and Fastest-Growing Country Market)
• Mexico
• Rest of LATAM

Middle East and Africa (MEA)

• Saudi Arabia (Largest Country Market)
• South Africa
• U.A.E. (Fastest-Growing Country Market)
• Rest of MEA

Passive Electronic Component Market Share

With a large number of players, the passive electronic component market has become highly competitive. Industry players range from large MNCs to small and medium-sized enterprises. The major participants are developing new items with improved dependability and performance. They are making significant investments in R&D to create novel goods that meet the changing consumer demands. The players are also concentrating on creating safe, legally compliant, and sustainable goods.

Passive Electronic Component Industry News

• In March 2024, new surface-mount AEF Series wet aluminum V-chip electrolytic capacitors were released by KYOCERA AVX. These capacitors are suitable for high-density PCBs in consumer and industrial electronics and are qualified for basic industrial applications.
• In March 2023, the CGA series of multilayer ceramic capacitors (MLCCs) from TDK Corporation (TSE: 6762) were enlarged to 2.2μF in 2012 size (2.0 x 1.25 x 1.25mm – L x W x T) and 4.7μF in 3216 size (3.2 x 1.6 x 1.6 mm – L x W x T). They are 100-V products for the automotive applications. March 2024 was to mark the start of the product series' mass manufacturing.
• In November 2023, KYOCERA AVX introduced the new Class X1/Y2 KGK and Class X2 KGH Series of safety-certified surface-mount MLCCs for commercial applications.
• In October 2023, TDK Corporation launched the new PLEA85 family of high-efficiency power inductors, which extends working periods for battery-powered wearables and other devices.