ACTIVE ELECTRONIC COMPONENTS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Active Electronic Components Market Size and Trends

The Active Electronic Components Market is estimated to be valued at US$ 363.16 Bn in 2024 and is expected to reach US$ 661.18 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.9% from 2024 to 2031.

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The market is expected to witness positive growth over the forecast period. Smart technologies and IoT applications are expected to drive the demand for active electronic components. Emerging sectors such as electric vehicles and renewable energy are further expected to open new avenues for the market growth. Semiconductor shortages experienced during the pandemic temporarily disrupted the supply chain, however investments in capacity expansions are expected to smoothen supply over the coming years. Rising demand from applications in data centers, consumer electronics and automotive coupled with government support for semiconductor manufacturing are expected to provide opportunities for sustainable market expansion.

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The demand for advanced smart electronic devices has been rapidly increasing over the past few years. With the growing capabilities of semiconductors and electronic components, manufacturers have been able to develop a wide variety of smart devices with novel features and functionalities. Smartphones have become vastly more intelligent compared to early cellular phones, featuring powerful processors, advanced displays, high resolution cameras, and a whole host of sensors. Consumer electronics such as smart TVs, wearables, and smart home appliances now have extensive connectivity and automated functionalities. Advanced driver assistance systems and infotainment consoles in automobiles incorporate a multitude of electronic control modules and complex embedded systems.

This rising complexity and intelligence of modern electronics has greatly boosted the demand for sophisticated active electronic components. Sophisticated power management ICs, microprocessors, memory and storage devices, and cutting-edge wireless communication chips are some of the key components that have enabled the new capabilities in smartphones, laptops, vehicles, and other smart systems. As these devices progress towards narrower form factors with even higher performance levels, greater levels of component integration are required. Manufacturers are under constant pressure to develop application-specific integrated circuits, system-on-chips, and hybrid modules with improved functional integration. This need for finely optimized active components tailored to specific system-level requirements is a major driver propelling the market growth. With the continued digitization and network connectivity of more product categories, the momentum behind complex smart systems looks set to ensure sustained demand growth for advanced electronic components in the coming years.

Pressure to Reduce System Power Consumption

With the proliferation of battery-powered mobile devices and energy efficiency becoming a critical design priority, there is growing pressure on component manufacturers to deliver semiconductors and modules with ultra-low power characteristics. The demand for longer battery life in smartphones, tablets, and wearable devices before needing recharge has prompted chip developers to focus on power optimization techniques. Manufacturers are engineering active components like processors, wireless transceivers, and display driver ICs with capabilities such as dynamic voltage and frequency scaling, specialized low-power modes, and finely granular power management protocols. At the same time, passive components are advancing with traits such as ultra-low equivalent series resistance to minimize power losses.

As internet of things (IoT) and edge computing expand into a wider array of applications with embedded systems, energy efficiency is a major commercialization factor.