PASSIVE ELECTRONIC COMPONENTS MARKET ANALYSIS

Market Size and Trends

The passive electronic components market is estimated to be valued at US$ 32.45 Bn in 2024 and is expected to reach US$ 46.70 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.3% from 2024 to 2031.

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The market is expected to witness positive growth over the forecast period due to increased demand for passive electronic components from the automobile and telecommunication industries. Key factors such as growing demand for smart homes, smartphones, and connected cars are driving the need for higher capacity and more durable passive components. Additionally, the rise in 5G infrastructure and adoption of Electric Vehicles (Evs) is anticipated to boost the demand for specialized passive components. New technology advancements in capacitors, resistors, and magnetic segments will create new revenue channels for component manufacturers operating in this market.

Rising Demand for Consumer Electronics

The demand for various consumer electronics such as smartphones, tablets, laptops, gaming consoles, cameras, wearables, and home appliances have significantly grown over the past decade. Miniaturization of chipsets and components have enabled manufacturers to integrate more features and functionalities into consumer devices without substantially increasing their size. This allows consumers to remain connected constantly through various smart devices and wirelessly control smart home products for convenience and comfort. As newer generations of devices are constantly being launched in the market with advanced specifications and capabilities, consumers worldwide are upgrading their existing devices more frequently in order to have the latest technologies. With rising disposable incomes as well, people across regions are able to spend more on purchasing the latest smartphones, appliances, and other gadgets for productivity and entertainment needs. This continuous growth in the consumer electronics industry directly increases the requirement for various passive electronic components used inside these devices including capacitors, resistors, inductors, connectors, and others. Component manufacturers are placing larger orders to meet the surging demand from consumer device makers, thus boosting the market growth.

The increasing adoption of electric vehicles globally has emerged as another significant driver for the passive components industry. Electric Vehicles (EVs) require a complex network of passive components within their powertrains and on-board charging systems to efficiently distribute and manage high voltage power flows. Unlike conventional vehicles, EVs deploy advanced lithium-ion battery packs. They also feature more robust charging and power distribution systems, which involve extensive use of various passive components. The push for greener mobility is now compelling leading automakers to invest heavily in developing affordable EVs for mass market consumers. They are launching multiple new electric car models every year and expanding production capacities globally. This widespread shift towards electrification of the automotive sector translates to the magnified demand for specialized passive components that can withstand high temperatures, voltages, and offer longevity under rigorous operating conditions expected inside EVs. With governments raising emission norms as well, the EV market is projected to experience exponential growth over the next decade. This will correspondingly drive higher consumption of passive electronic components needed for the manufacturing of next-gen powertrains as well as supporting charging infrastructure expansion.