The global integrated passive device (IPD) market is expected to reach $1,572.3 million by 2023, with a CAGR of 8.4% during the forecast period (2017–2023). Rising demand for miniaturization, increasing adoption of smart wearables, and increasing internet of things (IoT) applications are expected to boost the market growth in the forecast period.
Insights into the market segments
On the basis of type, the IPD market is classified into radio frequency-integrated passive device (RF-IPD), light emitting diode (LED), electric discharge (ESD), and electromagnetic Interference (EMI). Among these, the RF-IPD category registered the largest market share in 2016, owing to high demand for miniaturization of devices. RF front-end model is one of the most important parts of any electronics gadget, such as smartphones, tablets, and wearables, which is another factor accelerating the demand for RF-IPDs.
Based on functional block, the IPD market is categorized into baluns, diplexers, couplers, harmonic filters, and others. Among these, baluns contributed to the largest revenue share in 2016 and is expected to lead the market during forecast period as well. This is attributed to the use of these devices in almost all electronic applications. Moreover, a large number of these devices are used in a circuit as compared to other functional blocks, which would result in high demand for these devices.
Whereas, harmonic filters are expected to be the fastest growing category in the forecast period, owing to the increasing demand for high-power quality and variable frequency devices by end users, government regulations, growing number of data centers, and increasing demand of the filters from the IT sector. Moreover, rising awareness toward possible damage caused by harmonic distortions is expected to boost the demand for harmonic filters. Harmonic filters overcome few limitations, such as high-utility cost and low-power factor, offered by conventional filters. Owing to this, harmonic filters are expected to completely substitute the conventional filters in the coming years.
Based on application, the IPD market is classified into digital and mixed signal, RF, LED lighting, and ESD/EMI protection. Among these, the digital and mixed signal application contributed to the largest share in 2016 and is projected to lead the market throughout the forecast period. This is attributed to the increasing requirement of optimizing electrical performance. Besides, IPD enables miniaturization, provides more functionality, and reduces overall cost. These factors are expected to drive the market growth during the forecast period.
Among regions, Europe, Middle East, and Africa (EMEA) is expected to be the largest contributor to the IPD market in the coming years. Established chip fabrication industry and IPD manufacturers are the prime factors boosting the growth of the market. Further, in the EMEA region, Europe registered the highest demand for IPDs in 2016, owing to the early adoption of this device in European countries.
Whereas, the Asia-Pacific (APAC) IPD market is projected to witness the fastest growth during the forecast period, owing to the emerging economies in the region including China, India, South Korea, and Taiwan. These countries are witnessing an unprecedented growth in the infrastructure development and technological advancements. This attracts foreign investors to set up their manufacturing plants in the region, which is expected to create huge opportunities for the market players.
Increasing use of IPDs for making consumer durables is expected to boost the market growth
Companies manufacturing consumer durables are generating high demand for IPDs for their production. The consumer durables require miniaturization of components to decrease overall device size. These are majorly used in electronic, optical, and mechanical equipment or gadgets. Very-large-scale integration (VLSI) technology is used for the miniaturization to gain high component density with utmost reliability. Besides this, end users are choosing products with in-built intelligence to make their tasks easier. This has led manufacturers to build electronic components with logic and intelligent functions. Thus, advancements in wearables and increasing miniaturization are some of the major factors responsible for high growth of the IPD market.
IPD Market Competitive Landscape
The intensity of rivalry in the global IPD market is moderate. Further, a large number of players are concentrated in the EMEA region, which has created a high market fragmentation. Some of the major players in the market include Infineon Technologies AG, Advanced Furnace Systems Corp., OnChip Devices Inc., Johanson Technology, Murata Manufacturing Co. Ltd., STMicroelectronics, Infineon Technologies AG, ChipPAC Pte. Ltd., and Semiconductor Components Industries LLC.
IPD MARKET SEGMENTATION
By Functional Block