PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1584112
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1584112
Passive & Interconnecting Electronic Components Market size was valued at USD 170,970.43 Million in 2023, expanding at a CAGR of 5.12% from 2024 to 2032.
Passive and interconnecting electronic components are key elements in electronic circuits that enable effective signal management and energy flow without the need for an external power source. Passive components, including resistors, capacitors, inductors, and transformers, play important role in filtering, storing, and regulating electrical energy. Meanwhile, interconnecting components such as connectors, switches, and circuit boards create pathways for signals and power to travel between different parts of a system. Collectively, these components are crucial for a wide range of applications, spanning from consumer electronics to industrial machinery, ensuring reliable performance and efficiency in electronic systems.
Passive & Interconnecting Electronic Components Market- Market Dynamics
Expansion of 5G services, with the increased demand for high-speed internet connection among consumers to propel market demand
The deployment of 5G network infrastructure is advancing rapidly in key countries, including China, the U.S., South Korea, the UK, and Japan. According to the GSM Association, global 5G coverage has increased from 4% in 2019 to 32.5% in 2022. This expansion of 5G services, coupled with the rising demand for high-speed internet connectivity among consumers, has significantly boosted the demand for 5G devices across various sectors, including industrial, automotive, and consumer electronics. Additionally, the adoption of Internet of Things (IoT) devices is driving a swift transformation in the industrial sector. Industrial IoT devices enhance productivity and operational efficiency in manufacturing facilities by simplifying operations and minimizing system downtime. With the emergence of the fourth industrial revolution (Industry 4.0), many manufacturing plants are integrating connected devices to streamline processes through remote monitoring. As a result, the increasing deployment of IoT devices in applications such as automation and motion control is expected to further stimulate market growth. Moreover, the growing proportion of the geriatric population and the prevalence of diseases such as diabetes and hypertension have led to increased demand for electronic medical devices that monitor conditions like blood pressure and glucose levels. Medical device manufacturers are responding by introducing affordable and reliable equipment. Various passive and interconnecting electronic components are crucial in ensuring the reliability and affordability of these medical devices. For instance, blood glucose meters and blood pressure monitors rely heavily on passive components, creating substantial demand for these components from the medical industry.
Passive & Interconnecting Electronic Components Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 5.12% over the forecast period (2024-2032)
Based on Component segmentation, interconnecting was predicted to show maximum market share in the year 2023
Based on Application segmentation, consumer electronics was the leading type in 2023
On the basis of region, North America was the leading revenue generator in 2023
The Global Passive & Interconnecting Electronic Components Market is segmented on the basis of Component, Application, and Region.
The market is divided into two categories based on Component: Passive and Interconnecting. In 2023, the interconnecting segment accounted for the largest revenue share, driven by the demand for reliable and secure connections between various electronic components within circuits. Connectors allow manufacturers to easily assemble, repair, or upgrade components in electronic systems, offering the versatility essential in today's fast-paced technological landscape. This adaptability reduces costs and fastens product development timelines, making connectors pivotal for ensuring the seamless and efficient operation of electronic devices.
The market is divided into six categories based on Application: Consumer Electronics, Automotive, IT & Telecommunication, Industrial, Healthcare and Others. In 2023, consumer electronics segment led the market in by application, largely due to the increasing demand for devices such as smartphones and home appliances. According to the GSM Association's 2023 report, over half of the global population owned a smartphone, contributing to a growing need for passive and interconnecting electronic components. Additionally, the rise of smart devices is further fueling growth in this segment.
Passive & Interconnecting Electronic Components Market- Geographical Insights
This market caters to a geographically scattered customer base, spanning North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. Participating nations within these regions create sub-segments within the market. North America is expected to maintain its dominance in the market, driven by the rising adoption of advanced technologies and increasing industrial automation. Significant investments from regional governments and businesses in technologies such as Artificial Intelligence (AI) and the Internet of Things (IoT) are propelling the demand for a diverse range of passive and interconnecting electronic components.
Companies operating in the passive and interconnecting electronic components market implement various strategies to strengthen their competitive edge. A primary focus is on innovation, with ongoing research and development dedicated to creating smaller, more efficient, and high-performance components that meet the evolving demands of modern electronics. Establishing strategic partnerships with original equipment manufacturers (OEMs) and technology providers enhances the integration of these components into new applications, particularly in sectors like IoT and automotive systems. Marketing efforts highlight the vital role of these components in improving product performance and reliability, specifically targeting designers and engineers. Furthermore, companies are pursuing global expansion to capitalize on emerging markets, ensuring their products align with regional needs and regulatory standards.
In March 2024, KEMET, a division of the YAGEO Group, announced the launch of its T581 capacitors, which comply with the Military Performance Specification Sheets MIL-PRF-32700/2. Rated at 35V, these capacitors are designed to meet the rigorous requirements of military applications by providing MIL-PRF-certified components and utilizing the excellent volumetric efficiency of polymer tantalum technology, particularly advantageous in high-efficiency fast-switching DC/DC converters.