Thick Film Resistor Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

Thick Film Resistor Market Data

Thick Film Resistor Market Trends & Drivers

Growing Demand for Advanced Features in Commercial Vehicles

Compared to passenger cars, commercial vehicles have fewer luxury and safety features. As a result, regulatory authorities in different countries are updating the standards for commercial vehicles, to make roads safer and transportation of goods and people more efficient and eco-friendlier.

• For instance, in July 2023, the Indian government mandated the installation of air conditioning systems in the cabins of trucks from January 2025.
• Furthermore, in the U.S., the Federal Motor Carrier Safety Administration (FMCSA) announced has mandated electronic logging devices (ELDS) on all commercial trucks.

Such regulations propel the installation of electronic devices in commercial vehicles, which, in turn, drives the market for thick-film resistors.

The most-widely used form of transportation in both developed and developing nations is the passenger car. Many advanced technologies, such as navigation, connectivity, engine control, power steering, electric transmission, climate control, lighting, and ABS, are being adopted in cars at a rapid rate. However, even the relatively new systems, such as V2V communications, driver assistance, self-steering, and self-parking, are witnessing rampant installation, thus propelling the requirement for resistors and capacitors.

• According to CEIC Data, in the U.S., the sales of passenger cars were reported at around 2,858,575.000 units in December 2022.

Increasing Demand for Electric Vehicles

• Internal combustion engines, electric drives, and a wide range of additional automotive technologies, including actuators, regenerative braking, and autonomous start/stop systems, are typically used to power hybrid electric vehicles.
• Complex electronic control units (ECUs) are needed for these technologies, in order to integrate them seamlessly and manage power effectively.
• The application of these technologies, along with the growing need for HEVs themselves, would propel the resistor demand growth.

Additionally, HEVs strongly rely on high-voltage battery packs; hence, thick-film resistors are used in the battery management system (BMS) to maximize the performance of the battery pack and ensure the reliability, safe operation, and longevity of the vehicle. As per the China Association of Automobile Manufacturers, the country's production of battery electric vehicles increased by 166% in 2021, to nearly 2.9 million units. China produced about 601,000 plug-in hybrid cars in the same year, a 131% increase over the previous year.

• Furthermore, the demand for HEVs is rising in emerging economies, including India, Brazil, and Mexico, due to the strict emission regulations and increasing need for low- or zero-emission transportation systems.
• Additionally, the U.S. government is focusing on lowering emissions in order to reduce the carbon footprint. In the U.S., the Department of Transportation has established the Corporate Average Fuel Economy (CAFE) standards for vehicles.
• Similarly, in India, the government has extended the FAME II program, launched to promote clean transportation, till 2024.

Rising Demand for Electronic Devices Contributes to Market Revenue Rise

As the demand for electronic devices rises rapidly, the need for resistors also increases. This is mainly due to the increasing use of internet of things (IoT), rising demand for smartphones and laptops, and surging popularity of wearable devices. Moreover, the average PC contains approximately 1,000 thick-film chip resistors.

• According to the National Bureau of Statistics of China, China produced approximately 27.6 million completed computers in July 2023.
• Similarly, in 2023, the export value of computer hardware from India was approximately USD 554 million.

Wearable devices, such as fitness trackers and smartwatches, also need a variety of electronic components. In these devices, chip resistors control signals, regulate power, and track and govern electricity flow. Moreover, devices with power-saving features, such as smartphones with the sleep mode, need these components to control power distribution and the mode of operation. Therefore, the burgeoning popularity of the wearable technology augments the demand for chip resistors.

• According to a report, the U.S. was one of the world’s largest smartphone users, with around 310 million in use in 2023.

Thick Film Resistor Industry Outlook

Market Analysis by End User

Based on end user, the automotive category will hold the largest share in 2030, of around 40%.

• This is because these resistors are used in automotive applications for their durability and resistance to environmental and other external factors, such as temperature, humidity, and vibration.
• Therefore, they are a key component of automotive electronic circuits because of their high resistance to heat, moisture, and shock.
• Thick-film chip resistors for automotive use are extensively accessible in various sizes, resistance levels, and operating voltages.
• They are designed to meet the strict testing and other specifications established by the Automotive Electronics Council (AEC), making them AEC-Q200 compliant.

To increase safety and enhance the driving experience, ADAS employs a variety of sensors and technologies. These resistors are frequently used to gauge and manage the flow of current to various components of the ADAS, including cameras, sensors, and control units. They are valued for their accuracy, stability, and durability in harsh conditions. Telematics control units, ADAS cameras, and body electronics are a few examples of ADAS components that use thick-film resistors.

• According to an article, by 2035, autonomous vehicles could create USD 300–400 billion in revenue.

This factor is likely to contribute to the market revenue expansion as these automobiles have even more electronic systems and circuits than a conventional connected car. Apart from possessing basic ADAS functionality, they must also communicate with other vehicles and the roadside traffic infrastructure to drive themselves, which makes them dependent on resistors and other semiconductor, electrical, and electronic components.

Additionally, these vehicles incorporate critical safety systems, such as airbags, anti-lock braking systems, and stability control, which rely on precise electronic components to function accurately. Moreover, the resistor helps regulate the flow of current and voltage in circuits. By dispersing heat energy, it also helps maintain the electrical system's stability. Since these devices are used to measure electrical signals, they also play a vital role in guarding against excessive heat generation, which could harm vehicle components.

• According to CEIC Data, German motor vehicle production was reported at 3,677,820 units in December 2022, compared to 3,308,692 units in December 2021.

We have categorized the end user segment as follows:

• Automotive (Largest and Fastest-Growing Category)
• Electricals & Electronics
• Telecommunications
• Others

Geographical Analysis

Geographically, APAC held the largest share, of around 45%, in 2023, and it is projected to grow at the highest CAGR.

• This is mainly due to the rising demand for these components from the electronic and electrical sectors, the presence of a large number of market players, and their active investment in new technologies to augment the production of vehicles.
• Additionally, China is considered the biggest hub for the automotive industry and continues to be the world’s largest market with domestic automotive manufacturing predicted to be 35 million units by 2025.
• As per the Ministry of Industry and Information Technology, approximately 26 million vehicles were sold in the country in 2021, including 21.48 million passenger vehicles, an increase of 7.1% from 2020.

Additionally, automobiles are witnessing an increasing integration of the 5G technology to provide better infotainment and telematics features. The rising demand for fast internet, along with better connectivity in autonomous vehicles, and the growing preference of customers for better multimedia services are boosting this automotive trend.

Additionally, governments are implementing favorable laws to augment the manufacturing of electric vehicles, in order to control pollution.

• For instance, in January 2023, the Japanese government announced the easing of regulations on fast-charging electric vehicle station installation, to boost the EV charging infrastructure in the country.

The market for integrated circuits has been strengthened by this factor. The market players too will benefit as more-effective resistors with leakage detection capabilities are used in hybrid and electric car systems and they continue to be improved to attain a higher efficiency.

• In April 2022, the Government of Japan announced its aim to triple the availability of 5G services in the country over the next two years (2023–2025).
• By March 2024, the government intends to have 95% of the Japanese population covered.
• Since the launch of 5G in 2020, mobile carriers in Japan have made it a priority to expand their networks into metropolitan areas.
• However, only 30% of the people currently have access to this cutting-edge technology.
• The communications ministry consulted local telecom firms and announced targets for 95% %g coverage by the end of fiscal 2023, 97% by fiscal 2025, and 99% by fiscal 2030.

North America also holds a significant market share. This is mainly due to the growing demand for high-quality electronic components in the military and aerospace industries. As a result, there is an increasing adoption of thick-film resistors due to their high reliability, durability, and ability to withstand harsh environments. Additionally, the rise of IoT is driving the market growth in this region as these resistors are widely used in connected sensors and actuators.

The regions and countries covered in the report are:

North America

• 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 and Fastest-Growing Regional Market)

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

Latin America (LATAM)

• Brazil (Largest Country Market)
• Mexico (Fastest-Growing Country Market)
• 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

Competitive Landscape

Market players have grown over the historical period by adding new products to their portfolios. In addition, these product launches lead to a competitive edge.

• In September 2021, Vishay Intertechnology Inc. launched the enhanced Vishay Draloric RCC1206 e3 thick-film chip resistor in the 1206 case size with a higher power rating of 0.5 Watts.
• In January 2020, KOA Speer Electronics launched the HV73V high-voltage, flat-chip resistor for automotive applications. Its inner electrode material makes it suitable for high voltages.