The passive electronic components market is expected to register a CAGR of approximately 4.2% during the forecast period (2020 - 2025)
NEW YORK, Nov. 17, 2020 /PRNewswire/ -- The passive electronic components market is expected to register a CAGR of approximately 4.2% during the forecast period (2020 - 2025). The increasing adoption of digitalization and coupled with increased connectivity and mobility demand is further increasing the complexity of electronics. This is accelerating the demand for passive components in electronics.
Read the full report: https://www.reportlinker.com/p05986877/?utm_source=PRN
- The increasing adoption of digitalization, coupled with increased connectivity and mobility demand, is further increasing the complexity of electronics. This is accelerating the demand for passive components in electronics and automotive applications.
- Consumer electronics have the highest consumption of inductors. Inductors are used for power supply in various complex circuits, to manage the current, and also, as a filter in the circuits to cut off undesirable frequencies.? Consumer goods, such as television sets, wearable devices, and computing devices, keep a steady demand for inductors. However, the newer trend for connected and smart devices is going to see increased circuitry, leading to an increased demand for inductors in the near future. ?
- Furthermore, the PCB miniaturization, advancements in semiconductor and circuit architectures paved way for demand for capacitors in smartphones to increase. On board capacitor deployments in smartphones are typically in the form of multilayer ceramic capacitors class I or class II technology. With 5G adoption increasing, more capacitors will be demanded to suffice the higher efficiency needs. Whereas, a single smartphone consisting components, like chips, camera modules, vibrators, and display, operate within the same voltage level and frequencies. However, since the circuitry for cameras, motors, and speakers requires higher voltage and frequency, multiple inductors are used within a single mobile phone. Accessories, like adapter and headphones, also have inductors in them, hence, making the smartphone segment the biggest consumer of inductors.?
- By defining a component stress-test standard for passive components known as AEC-Q200, which includes a set of tests, a device must pass for it to be qualified. The tests further covers production issues, such as solderability and resistance to soldering heat. This assists the manufacturers to be able to claim greater levels of component reliability. According to the World Economic Forum, more than 12 million fully autonomous cars are expected to be sold per year by 2035, covering 25% of the global automotive market. Therefore, expanding the scope of communicating equipment and devices per vehicles.
- The spread of the COVID-19 coronavirus in 2020 and its impact on the passive electronic components have decreased operation levels across the supply chain, on the component production and raw material production level. This represents a fall in sales among a range of regions and countries. However, the Japanese vendors and allied factories in the region remained stable.
- AVX Corporation warned in a written letter that this constituted a "Force Majeure" situation, directing its product distribution based upon industry. Ohmite kept its China factory for resistors at full operational amid the first quarter of 2020. Whereas, CDE Electronics, a US-based company, announced that short staff due to COVID-19 led to underutilized capacity working in the country.
Key Market Trends
Automotive Industry Expected to Show Significant Adoption
- The automotive electronics are electronic systems used in road vehicles (ignition, radio, telematics, engine management, and in-car entertainment systems, among others). The automotive market is fast emerging to be the most profitable, with increasing opportunities for product innovation. With the increasing demand for hybrid electric vehicles, the need for passive electronic components is on the rise.
- Furthermore, owing to emission and energy concerns, electric vehicles have gained significant prominence. Even with a minor role of capacitors in micro to mild hybrid cars, energy savings can add up to 15%. In contrast, for more significant functions, such as energy storage systems in electrical trams, trains, and subways, energy savings can add up to 25% of the electricity used. Therefore, these factors are motivating automotive vendors to invest in the market studied.
- In March 2020, KEMET Corporation launched new metal composite power inductors, which are ideal for the increasing demands of the automotive market. These new inductors are used in DC to DC switching power supplies, which play an essential role in the growing electrification of modern vehicles.
- Also, resistors are ideal for automotive technicians for diagnosing and testing sensors and monitored circuits. For instance, in March 2020, KOA planned to introduce a new range of wire wound and metal oxide high-power resistors in a ceramic case, which will be dedicatedly used for automotive pre-charge/discharge applications.
Asia-Pacific Expected to Dominate the Market
- The Asia-Pacific region is expected to dominate the market studies in the forecast period, owing to the presence of several market players, such as Panasonic Corporation, TDK Corporation, Murata Manufacturing, and Yageo Corporation, in the region.
- Also, several technological advancements, such as the exponential growth of smartphones in the region, coupled with the number of smartphone users in the countries has been growing, which is poised to drive the market studied in this region.
- Further, smart city initiatives in the region have also been on the rise, which contributes to the growth of inductors in the region. Countries in the Asia-Pacific region, such as China, India, Japan, and South Korea, lead such initiatives. Smart City initiatives propel the growth of digitalization, 5G technology, and the deployment of several IoT sensors.
- The regional market players are viewing strategic investments as a lucrative opportunity for growth in the region. For instance, in January 2020, Yageo Corp. plans to invest NTD 10 billion for local investment. According to the company, Taiwan is a hub of the company's research and development, as well as production. The investment will be aimed at developing high-end items for automotive electronics use and 5G applications.
Competitive Landscape
The competitive landscape of the Passive Electronic Components Market is fragmented owing to the presence of several market players globally. The market players are making several product developments and innovations to capture the maximum market share. Moreover, the market players are considering strategic partnerships and investments to gain maximum market traction.
- April 2020 - Bourns Inc. introduced its new AEC-Q200 compliant series of thick film chip resistors. Also, the company aims to maintain its leadership position in introducing space-saving resistor products by offering its latest Model CRxxxxA series in eight compact form factors—from small 0201 (0603 Metric) up to 2512 (6431 Metric).
- March 2020 - KEMET launched a new family of metal composite power inductors to address the stringent demands of the automotive market. The MPXV product offering enhances the company's METCOM range and is AEC-Q200 qualified for use in the automotive sector. The new power inductors provide efficient power conversion while minimizing Electromagnetic Interference (EMI), and are ideal for use in DC to DC switching power supplies for the growing number of Electronic Control Units (ECUs) found in automotive systems.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Read the full report: https://www.reportlinker.com/p05986877/?utm_source=PRN
About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
Contact Clare: [email protected]
US: (339)-368-6001
Intl: +1 339-368-6001
SOURCE Reportlinker
Share this article