Integrated Passive Devices Market Forecasts to 2030 - Global Analysis By Passive Device, Substrate, Wireless Technology, End User and By Geography

According to Stratistics MRC, the Global Integrated Passive Devices Market is accounted for $2.22 billion in 2024 and is expected to reach $4.43 billion by 2030 growing at a CAGR of 12.23% during the forecast period. Integrated Passive Devices (IPDs) refer to miniaturized electronic components that are fabricated directly onto a substrate, often using semiconductor fabrication techniques. These devices consolidate multiple passive components, such as resistors, capacitors, and inductors, into a single package, thereby reducing size, weight, and manufacturing complexity. IPDs are widely used in modern electronic systems where space is constrained, such as mobile phones, wearables, and IoT devices.

According to the India Brand Equity Foundation (IBEF), the Indian appliances and consumer electronics market was valued at US$ 9.84 billion in 2021 and is expected to be valued at US$ 21.18 billion by 2025.

Market Dynamics:

Driver:

Rising demand for high-frequency applications

Integrated Passive Devices are becoming integral in mobile communication, IoT devices, and automotive electronics due to their compact size, improved performance, and cost-effectiveness compared to discrete passive components. These devices offer advantages such as reduced footprint on circuit boards, enhanced reliability, and better signal integrity, crucial for high-frequency operations. With the proliferation of 5G networks and the expanding IoT ecosystem, the need for miniaturization and efficiency in electronic components has intensified. This trend is prompting manufacturers to innovate and expand their IPD offerings, catering to the evolving needs of modern technology.

Restraint:

Design complexity

However, designing these integrated devices requires intricate knowledge of various disciplines including materials science, circuit design, and manufacturing processes. The complexity arises from the need to optimize electrical performance, thermal management, and reliability while ensuring compatibility with existing electronic systems. Moreover, achieving high yields and maintaining cost-effectiveness further complicates the design process. As a result, companies investing in IPDs must navigate these challenges to capitalize on the market's potential.

Opportunity:

Rising radio frequency applications

As wireless communication technologies like 5G continue to proliferate, there is a heightened demand for compact and efficient RF components. IPDs, which integrate passive components such as resistors, capacitors, and inductors into a single device, offer substantial advantages in terms of miniaturization, performance, and reliability. Their ability to streamline manufacturing processes and reduce overall system footprint makes them particularly attractive for RF applications in smartphones, IoT devices, automotive electronics, and medical devices. Moreover, the increasing complexity and performance requirements of RF circuits necessitate advanced integration techniques provided by IPDs.

Threat:

Declining profit margins of manufacturers

Integrated Passive Devices, which include components like capacitors, resistors, and inductors integrated into a single package, face significant challenges due to reduced profitability among their producers. As profit margins shrink, manufacturers may cut back on research and development investments, limiting innovation and the introduction of advanced IPD technologies. Furthermore, reduced profitability can lead to constrained marketing budgets, hindering efforts to promote and educate potential customers about the benefits of IPDs over traditional discrete passive components.

Covid-19 Impact:

Initially, disruptions in the global supply chain caused manufacturing delays and component shortages, affecting IPD production and delivery schedules. As lockdowns and restrictions were imposed worldwide, demand for consumer electronics fluctuated, leading to uncertain market conditions and reduced investments in technology upgrades. Additionally, the shift towards remote work and digitalization accelerated the demand for devices with robust connectivity and efficiency, influencing the types of IPDs sought by manufacturers. Despite these challenges, the pandemic also spurred innovation in IPD designs, emphasizing smaller form factors, lower power consumption, and enhanced performance to meet evolving consumer needs.

The Baluns segment is expected to be the largest during the forecast period

Baluns segment is expected to be the largest during the forecast period. These devices are crucial in converting between balanced and unbalanced signals in radio frequency (RF) applications, facilitating efficient signal transmission and reception. In IPD, which integrates multiple passive components like resistors, capacitors, and inductors into a single package, baluns serve to optimize circuit performance by minimizing signal loss and ensuring impedance matching. This capability is particularly valuable in wireless communication systems, where maintaining signal integrity and maximizing efficiency are paramount.

The Glass Wafer segment is expected to have the highest CAGR during the forecast period

Glass Wafer segment is expected to have the highest CAGR during the forecast period. Glass wafers offer several advantages over traditional substrates like silicon or ceramic, including superior electrical properties, thermal stability, and manufacturability at smaller scales. Glass wafers enable higher integration densities and precise fabrication of IPDs with reduced parasitic effects, enhancing overall circuit performance. Their compatibility with advanced manufacturing techniques such as photolithography and etching further boosts their appeal for IPD applications. Moreover, glass's excellent transparency in certain wavelengths can also be leveraged for optoelectronic applications in IPDs.

Region with largest share:

Asia Pacific region commanded the largest share of the market over the extrapolated period. Integrated Passive Devices, which combine multiple passive components into a single package, are becoming increasingly crucial in electronics manufacturing, particularly in consumer electronics, telecommunications, and automotive sectors across the region. These devices offer advantages such as smaller footprint, improved performance, and reduced assembly costs, aligning with the region's emphasis on compact, high-performance electronics in the region. Furthermore, Asia Pacific's robust manufacturing base and technological expertise make it a prime hub for IPD development and production.

Region with highest CAGR:

Europe region is poised to hold profitable growth during the projection period. The region's regulatory framework prioritizes environmental conservation, which compels IPD manufacturers to develop energy-efficient and eco-friendly solutions. Policies supporting technological advancement and research funding further stimulate growth in the sector. These regulations create a conducive environment for businesses to invest in IPD technologies, driving competitiveness and fostering a robust market ecosystem. Moreover, compliance with European standards enhances market credibility and facilitates international market access, attracting global investments.

Key players in the market

Some of the key players in Integrated Passive Devices market include NXP Semiconductors, Murata Manufacturing Co., Ltd, Infineon Technologies AG, Taiwan Semiconductor Manufacturing Company, Samsung Electro-Mechanics, Qualcomm Technologies, Inc, TDK Corporation, Yageo Corporation, Skyworks Solutions, API Technologies and Kyocera Corporation.

Key Developments:

In May 2022, STMicroelectronics, an electronics and semiconductor manufacturing company, collaborated with Microsoft, an ST authorized company, for leading the development of the IoT devices. This collaboration has brought about security features, provided secure boot and storage, and fulfilled customer demands for efficient and trusted solutions.

In March 2022, MACOM Technology announced availability of its 128 GBaud Transimpedance Amplifiers (TIAs) and Modulator Drivers for coherent optical networking applications. MACOM's new products support long-haul, metropolitan and Data Center Interconnect (DCI) optical module applications.

Passive Devices Covered:

• Diplexers
• Customized IPDs
• Couplers
• Baluns
• Resonators
• Attenuators
• Power Splitters/Combiners
• Other Passive Devices

Substrates Covered:

• Glass Wafer
• Silicon
• Ceramic
• Other Substrates

Wireless Technologies Covered:

• Cellular
• Bluetooth
• Wireless local-area Network
• Other Wireless Technologies

End Users Covered:

• Automotive
• Consumer Electronics
• Aerospace & Defense
• Healthcare
• IT & Telecommunication
• Energy and Utility
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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