Passive And Interconnecting Electronic Components Market Size, Share Report, Analysis, Trends, Growth 2030

Passive And Interconnecting Electronic Components Industry Prospective:

The global passive and interconnecting electronic components market size was worth around USD 177 billion in 2022 and is predicted to grow to around USD 271 billion by 2030 with a compound annual growth rate (CAGR) of roughly 5.5% between 2023 and 2030.    

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Passive And Interconnecting Electronic Components Market: Overview

Electronic gadgets, including computers, smartphones, electrical home appliances, and game consoles, are built entirely of passive and interconnected electronic components. They are regarded as the foundation of several other sectors, including consumer electronics, computer technology, and telecommunications. Connectors, sockets, printed circuit boards, relays, switches, and many more are examples of interconnecting devices.

Key Insights

• As per the analysis shared by our research analyst, the global Passive And Interconnecting Electronic Components market is estimated to grow annually at a CAGR of around 5.5% over the forecast period (2023-2030).
• In terms of revenue, the global Passive And Interconnecting Electronic Components market size was valued at around USD 177 billion in 2022 and is projected to reach USD 271 billion, by 2030.
• The growing consumer electronics industry is expected to drive the passive and interconnecting electronic components market expansion during the forecast period.
• Based on the component, the passive segment is expected to hold a significant market share over the forecast period.
• Based on the industry vertical, the consumer electronics segment is expected to grow at the fastest rate over the forecast period.
• Based on region, the Asia Pacific is expected to capture a significant market share during the forecast period.

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Passive And Interconnecting Electronic Components Market: Growth Drivers

Increasing adoption of IoT devices drives market growth

IoT devices are fast-changing the industrial sector globally. By reducing total system downtime and facilitating ease of operation, these devices help manufacturing facilities increase their overall productivity and operational efficiency. Furthermore, as Industrial 4.0 has developed, many industrial facilities have begun to integrate several connected devices as a means of streamlining operating procedures via remote monitoring. Over time, it is projected that a strong implementation of IoT devices in various industrial applications, such as motion control and process automation, would support the passive and interconnecting electronic components market expansion for passive and interconnected electronic components.   

Passive And Interconnecting Electronic Components Market: Restraints

The rising cost of raw materials and environmental regulation hampers market growth

Price fluctuations for raw materials used in electronic components, such as metals and rare earth elements, can affect manufacturers' profit margins and costs of manufacturing. Furthermore, producers may have difficulties complying with severe environmental rules and limits on certain materials, which may necessitate modifying production procedures. Thus, this is expected to hamper the passive and interconnecting electronic components industry growth over the projected timeframe.

Passive And Interconnecting Electronic Components Market: Opportunities

Growing acquisition offers a lucrative opportunity for market growth

The growing acquisition is expected to offer a lucrative opportunity for global passive and interconnecting electronic components market growth during the forecast period. For instance, in September 2023, for the aerospace, defense, energy, and semiconductor industries, AMETEK, Inc. acquired United Electronic Industries (UEI). UEI is an expert in creating high-performance test, measurement, simulation, and control solutions that help customers build intelligent, trustworthy, flexible, and long-lasting systems. Numerous mission-critical applications, such as automated testing, machine health and use monitoring, and aviation simulation and training, use the company's technologies. They were able to increase their presence in lucrative industrial areas and applications because of their distinctive solution complement and data collection capabilities.

Passive And Interconnecting Electronic Components Market: Challenges

Reduced manufacturers' profit margins pose a major challenge to market growth

Device technology advancements are driving down the cost of hardware; the ongoing demand for more complex and specialized goods is driving up expenses. The cost of passive parts and interconnects is directly impacted by product counterfeiting. In addition, the fierce rivalry between competitors from different areas causes the cost of passive components and interconnects to decrease. This has a negative impact on the price of developing new products or services with cutting-edge technology. Therefore, over the projection period, these factors hinder market expansion.

Passive And Interconnecting Electronic Components Market: Segmentation

The global passive and interconnecting electronic components industry is segmented based on the component, industry vertical, and region.

Based on the components, the global market is bifurcated into passive and interconnecting. The passive segment is expected to hold a significant market share over the forecast period. This segment is further subcategorized into resistors, inductors, transformers, and capacitors. The capacitor sub-segment holds the prominent market share during the forecast period. This might be attributed to the high demand for different kinds of capacitors to be manufactured for use in industrial, consumer electronics, and other applications. Furthermore, it is anticipated that the transformer category will attain the highest market share during the anticipated duration. Transformers are crucial to the operation of electronic devices because they reduce high voltage to the voltage that the circuit needs. Therefore, it is anticipated that over the projection period, there will be a sharp increase in demand for transformers due to the rising production of various home appliance types, industrial digital devices, and other consumer electronic products.

Based on the industry vertical, the global passive and interconnecting electronic components industry is bifurcated into consumer electronics, automotive, healthcare, IT & Telecom, industrial, and aerospace & defense. The consumer electronics segment is expected to grow at the fastest rate over the forecast period. The need for passive and interconnecting components for a variety of consumer gadgets, including mobile phones, wearable technology, set-top boxes (STBs), and household appliances, is primarily responsible for the rise. Additionally, the need for robots, sensor-based devices, and security cameras is growing quickly in industrial applications including process automation and remote monitoring. Thereby, driving the market expansion over the forecast period.

Passive And Interconnecting Electronic Components Market: Report Scope

Passive And Interconnecting Electronic Components Market: Regional Analysis

Asia Pacific is expected to capture a significant market share during the forecast period

The Asia Pacific is expected to capture a significant passive and interconnecting electronic components market share during the forecast period. This is because labor is inexpensive, raw materials are easily accessible, and production costs are low in this area. Furthermore, the APAC region's strong consumer electronics demand—particularly from China and India—contributes to the market's steady expansion for passive and interconnecting electrical components. The demand for computers and other electronic equipment, such as mobile phones, LED displays, and multipurpose processors, has increased quickly in the nation due to growing incomes and better living standards. Moreover, there is a growing international market for low-cost consumer electronics made in China. The Chinese government has consistently supported research and development (R&D) endeavors and encouraged the establishment of industrial parks in Chinese cities to facilitate the manufacture of electronic components. Additionally, the Indian government is offering several incentives to enterprises that spend $400 million within the projected term.

On the other hand, North America is expected to grow substantially over the projected period. Leading telecom companies like Verizon Inc. and AT&T Inc. are heavily investing in the deployment of 5G network infrastructure due to the surge in popularity of connected cars in the United States. It is expected that cars with infrastructures across the nation will have uniform connections due to this next-generation 5G mobile network. However, given the current COVID-19 outbreak, it is anticipated that the industrial implementation of 5G may be delayed. Furthermore, huge amounts of money are being spent nationwide by the US government to construct smart cities. The market for passive and interconnecting electronic components is expected to be driven by the projected increase in new installations of telecom equipment and other networking devices brought about by the implementation of 5G network infrastructure in the upcoming years.

Passive And Interconnecting Electronic Components Market: Competitive Analysis

The global Passive And Interconnecting Electronic Components market is dominated by players like:

• TDK Corporation
• Samsung Electro-Mechanics
• AVX Corporation
• Vishay Intertechnology Inc.
• Mouser Electronics Inc.
• Murata Manufacturing Co. Ltd.
• Taiyo Yuden Co. Ltd.
• Hosiden Corporation
• Yageo Corporation
• Nichicon Corporation
• Panasonic Corporation
• Fujitsu Component Limited
• Fenghua (HK) Electronics Ltd.
• Rohm Co. Ltd.
• United Chemi-Con
• TE connectivity
• Molex Incorporated

The global Passive And Interconnecting Electronic Components market is segmented as follows:

By Component

• Passive
  • Resistors
  • Inductors
  • Transformers
  • Capacitors
• Interconnecting
  • Printed Circuit Boards
  • Relay and Switches
  • Connectors
  • Others

By Industry Vertical

• Consumer Electronics
• Automotive
• Healthcare
• IT & Telecom
• Industrial
• Aerospace and Defense

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa