July 19, 2024

Increasing demand for IoT devices to boost growth of the General Electronic Components Market

The general electronic components market comprises a wide range of electronic components that are used in various industrial and consumer applications. This includes components such as resistors, capacitors, inductors, connectors, relays, diodes, and transistors among others. General electronic components provide connectivity, regulation, detection and transformation of electrical signals in electronic devices and systems. They are extensively used in various devices such as laptops, smartphones, household appliances, industrial equipment, automobiles and various IoT devices. Favourable demand from consumer electronics and automotive industries along with expanding IoT landscape is expected to drive growth of the global general electronic components market over the forecast period.

The global General Electronic Components Market is estimated to be valued at US$ 498.34 Bn in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends driving the growth of general electronic components market is the rising adoption of IoT devices across the world. IoT technology is facilitating the connection of devices over the internet through sensors and other electronic components. Connected devices are linked through a common network which simplifies data collection and sharing for various applications and uses. This is generating robust demand for electronic components used in IoT devices. Additionally, ongoing transition towards Industry 4.0 is also contributing to market growth. Industry 4.0 promotes connectivity and integration of industrial operations through advanced technologies like internet of things, cloud computing, artificial intelligence, 3D printing etc. This transition is translating into higher demand for general electronic components from industrial automation equipment manufacturers. Components like sensors, controllers, integrated circuits are witness essential in enabling interconnectivity in industrial environment. The flourishing automotive industry worldwide along with demand for autonomous vehicles is another factor driving market revenue owing to use of general electronic components in vehicle infotainment systems, telematics, ADAS systems and electric components.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the general electronic components market requires high R&D investment and manufacturing infrastructure to produce electronic components.

Bargaining power of buyers: The bargaining power of buyers is high due to the presence of large customers like electronic manufacturing companies and supply chain houses with high negotiating power.

Bargaining power of suppliers: The bargaining power of suppliers is moderate due to the presence of multiple component manufacturers and lesser switching costs involved for buyers.

Threat of new substitutes: The threat of new substitutes is low as electronic components have limited substitutes available in the market.
Competitive rivalry: The competitive rivalry is intense among the major electronic component manufacturers.

Key players
Key players operating in the general electronic components market are Panasonic Corporation, Samsung Electronics Co. Ltd., Intel Corporation, Texas Instruments Incorporated, Toshiba Corporation, Sony Corporation, STMicroelectronics N.V., NXP Semiconductors N.V., Infineon Technologies AG, Broadcom Inc., Analog Devices Inc., Murata Manufacturing Co. Ltd., Vishay Intertechnology Inc., ON Semiconductor Corporation, Renesas Electronics Corporation.

Regional analysis
Asia Pacific region dominated the global general electronic components market in 2023 and is projected to maintain its leading position during the forecast period. This is mainly attributed to the presence of major electronic component manufacturers in countries like China, Japan, South Korea, Taiwan. Also, the growing consumer electronic industry and manufacturing hub for large OEMs in the region has been boosting the demand for electronic components.

Key Takeaways
The global General Electronic Components Market is expected to witness high growth, exhibiting CAGR of 6.8% over the forecast period, due to increasing usage of electronic components across various end-use industries like consumer electronics, automotive, industrial, aerospace & defense, healthcare, and telecommunication.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it