The active electronic components market comprises of products such as integrated circuits (ICs), transistors, and diodes. These components are building blocks in electronic devices and their demand is driven by rising usage in consumer electronics, smartphones, computers, automotive vehicles, and industrial equipment. Active components offer advantages like low power consumption, miniaturization, high efficiency, and longevity. With technology advancement, these components have become essential building blocks in a wide range of electronic devices.
The Global active electronic components market is estimated to be valued at US$ 661.18 Bn in 2024 and is expected to exhibit a CAGR of 8.9% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Active Electronic Components Market Growth are Infineon Technologies AG, Advanced Micro Devices, Inc., STMicroelectronics N.V., Microchip Technology, Inc., Analog Devices, Inc., Broadcom Inc., NXP Semiconductors N.V., Intel Corporation, Monolithic Power Systems, Inc., Texas Instruments Incorporated, Qualcomm Inc., Renesas Electronics Corporation, Semiconductor Components Industries, LLC, and Toshiba Corporation. These players are focusing on developing new and innovative products to gain a competitive advantage.
The growing usage of electronic devices across various industries along with rising demand for energy efficient and compact components is driving the market. Consumer electronics is the largest application segment for active electronic components. Smartphones, laptops, tablets, and other handheld devices require large number of integrated circuits, transistors, and diodes.
Ongoing technological advancements are leading to development of new generation active components like FinFET transistors, gallium nitride transistors, and embedded passive devices. These new components offer higher efficiency, speed and integration than previous versions. Their adoption is increasing in applications like 5G infrastructure, electric vehicles, renewable energy equipment and AI/ML systems.
Market Trends
- Miniaturization of active electronic components: Ongoing research in nanotechnology and 3D fabrication techniques is leading to development of miniature integrated circuits, transistors and other active components. Their small size enables developing compact smartphones, wearables and other electronics.
- Growing adoption of gallium nitride (GaN) technology: GaN components have higher efficiency, power handling capability and frequency capabilities than silicon. Their usage is increasing in fast charging power adapters, data centers, renewable energy converters and electric vehicles.
Market Opportunities
- Growth in electric vehicles industry: Rising sales of EVs will drive demand for efficient and durable active components used in motor control units, battery management systems and other subsystems.
- Adoption in renewable energy sector: Active components are indispensable for efficient operation of solar panels, wind turbines and other green energy equipment. This presents an opportunity for market growth.
Impact of Covid-19 on Active Electronic Components Market
The Covid-19 pandemic has significantly impacted the growth of the active electronic components market. During the initial phases of the pandemic, lockdowns and restrictions imposed worldwide disrupted the supply chains and halted production facilities. This led to a decline in demand for active electronic components from end-use industries like consumer electronics, automotive, industrial, and healthcare. However, as lockdowns eased in late 2020 and 2021, the market started recovering steadily aided by rising demand for electronic devices supporting remote working and learning. The pandemic also spurred demand for medical devices and diagnostics equipment boosting the need for active electronic components in the healthcare sector.
Though the market declined initially, industry experts believe that long term prospects remain positive. Post pandemic recovery has accelerated digital transformation trends driving increased usage of devices, cloud services, IoT, and connectivity solutions. The demand for high-performance computing, artificial intelligence, 5G infrastructure is rising exponentially which will propel the active electronic components market in the coming years. Automotive sector is focusing on developing advanced driver-assistance systems and electric vehicles requiring abundant active electronic devices. Healthcare sector investments are growing for telemedicine, remote patient monitoring, and medical diagnostics which rely heavily on active electronic technologies.
Europe Active Electronic Components Market
Europe accounts for a major share of the global active electronic components market in terms of value. Countries with well-established electronics industry like Germany, UK, France dominate Europe's market. Strong manufacturing base of consumer electronics, automotive, industrial equipment drives regional demand. European automakers are investing heavily in advanced driver-assistance technologies requiring sensor components, microcontrollers supporting ADAS and infotainment systems. Europe has a strong presence of semiconductor design companies spurring innovation in areas like SoC design, RF technology, power electronics. Growth is expected from renewable energy segment where active components are used in solar panels and wind turbines. Healthcare sector expansion for digital diagnostics, connected medical devices will further aid Europe market.
Asia Pacific- Fastest Growing Region for Active Electronic Components Market
The Asia Pacific region holds the distinction of being the fastest growing market for active electronic components globally. This can be attributed to factors like availability of low-cost manufacturing talent pool, business-friendly policies adopted by China, Taiwan, South Korea and other southeast Asian nations. The regional electronics manufacturing hub status has lured numerous fabless chip design companies and contract manufacturers to set up base. Countries like China, South Korea, Taiwan, Japan and India have a large consumer base which has boosted sales of devices like smartphones, laptops, appliances and infrastructure equipment driving components demand. 5G rollouts and digital transformation goals of regional economies focused on connectivity solutions will positively impact Asia Pacific active electronic components market over the forecast period.
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