PASSIVE ELECTRONIC COMPONENTS MARKET ANALYSIS

Regional Analysis

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North America has been the dominant region in the passive electronic components market owing36.2% in 2024. The presence of major component manufacturers as well as strong demand from the automotive, telecommunications and defense sectors have cemented North America's leadership position. Many leading global passive component brands have their headquarters and core research and development centers located in the U.S., allowing them to cater effectively to the needs of customers. The favorable business environment and infrastructure support have also encouraged companies to invest heavily and expand their manufacturing footprint over the years. As a result, North America accounts for the largest share of global production and enjoys strong export demand from other regions as well.

However, Asia Pacific has emerged as the fastest growing regional market for passive electronic components in recent times. Rapid growth of the electronics manufacturing industry across China, Taiwan, South Korea, and other Southeast Asian nations is the biggest driver. With many global OEMs and ODMs setting up large scale production centers to tap into lower costs, there is a massive and sustained increase in demand for passive components from the region every year. The thriving consumer electronics sector as well as the advancement of 5G infrastructure roll out are other factors accelerating the consumption of passive components in Asia Pacific. Countries like China have also emerged as a critical exporter, posing competition to traditional suppliers through competitive pricing and shorter lead times. The burgeoning electronics industry, growing urbanization and rising disposable incomes point towards continued momentum for passive component demand from Asia Pacific in the foreseeable future.