Passive Electronic Components Market is Trending towards Sustainable Energy Storage by Cost-effectiveness
Passive Electronic Components Market Demand |
The passive electronic components market comprises of
discreet passive components such as resistors, capacitors, and inductors that
are commonly used for specialized applications involving signal processing,
power control, voltage regulation, noise filtering, timing and more. These
components dissipate minimal or no power during operation and provide ease of
manufacturing, miniaturization, and cost-effectiveness. The global passive
electronic components demand has been rising notably over the years due to increasing
digitization across industries enabled by technologies such as IoT, AI, and
cloud computing.
The Global Passive Electronic Components
Market is estimated to be valued at US$ 41.66 Bn in 2024 and is expected to
exhibit a CAGR of 9.8% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the passive electronic components market are ABB Ltd.,
LG Chem, Ltd., Samsung SDI Co., Ltd, General Electric Company, and Tesla Inc.
ABB Ltd is a leading provider of power and automation technologies while LG
Chem, Samsung SDI and Tesla are prominent battery manufacturers focusing on
R&D to improve battery storage technologies.
The growing Passive
Electronic Components Market Demand
and advancement of connectivity technologies are fueling the passive electronic
components market. Passive components provide critical circuit functions and
energy storage capabilities in various consumer electronic products helping to
miniaturize device size. Emerging applications in wearables, smartphones, and
tablets require increasingly advanced passive component solutions to support
higher power, thinner profiles and faster processing speeds.
Globally, the passive components market is expanding rapidly across developed
as well as developing regions. The increasing electronics manufacturing and
R&D activities in Asia Pacific region particularly in China, India, Taiwan
and South Korea are driving next generation innovations. Moreover, strategic
partnerships between passive component suppliers and OEMs are helping
accelerate global market penetration.
Market Key Trends
The cost-effectiveness of passive electronic components is a major market
trend. Passive components constitute a major portion of total electronic system
cost however their prices have been consistently declining over the past few
years owing to technological advancements, material innovations and economies
of scale. Today surface mount technologies allow higher component densities and
integration levels reducing board space. This cost reduction is enabling wider
proliferation of passive devices across diverse applications. Additionally, the
emergence of new materials such as organic and printed electronics is expected
to drive further cost improvements supporting accelerated adoption of
disruptive technologies.
Porter's
Analysis
Threat of new entrants: New companies find it difficult to enter this market as
it requires large investments and well-established supply chains.
Bargaining power of buyers: Buyers have moderate bargaining power due to the
availability of substitutes and fragmented market with multiple manufacturers.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to
the availability of alternative components and commoditized nature of products.
Threat of new substitutes: Threat of substitutes is high as new energy
technologies can disrupt established product lines and supply chains.
Competitive rivalry: Intense competition exists among existing players to gain
market share.
Geographical Regions
Asia Pacific accounts for the largest share of the Passive
Electronic Components Market Regional Analysis in terms of value due to
growing electronics manufacturing hub in China, Taiwan, South Korea and other
developing nations.
North America is expected to witness the fastest growth during the forecast
period owing to high demand for electric and hybrid vehicles where passive
components are core components along with expanding renewable energy sector in
the region.
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Insights on- Passive
Electronic Components Market
About
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