May 29, 2024
Passive Electronic Components Market

Passive Electronic Components Market Is Expected To Be Flourished By Growing Focus On Energy Efficient Electronics

Passive electronic components such as capacitors, resistors, and inductors are basic building blocks that are widely used in the manufacturing of various electronic circuits and devices. They are essential for numerous applications across industries such as consumer electronics, telecommunication, automotive, healthcare, and defense. Rising demand for smartphones, laptops, wearable devices, and other consumer electronic gadgets has been driving the sales of passive components over the past few years. Further, the growing focus on energy efficient electronics owing to rising energy costs and stringent government regulations toward power consumption has created new opportunities for manufacturers of passive components.

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, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

The growing focus on energy efficient electronics as highlighted in the heading has been a key driver favoring the passive electronic components market growth. Passive components are essential to optimize circuit performance and energy consumption in electronic devices. They help reduce power dissipation and improve efficiency. Further, the replacement and upgradation of existing infrastructure is another major factor propelling the demand. Most passive components have shorter lifespan and need periodic replacement. The increasing repairs and refurbishment of existing electronics augur well for the market.

Segment Analysis

The Passive Electronic Components market can be segmented into Capacitors, Resistors, Inductors, and Others. The Capacitors segment dominates the market with over 35% share owing to increasing use of capacitors in consumer electronics, industrial machineries, transportation systems, power supply units and more. Capacitors help in energy storage, frequency selection and filtering.

PEST Analysis

Political: Policy support for electric vehicles and expanding charging infrastructure in various countries, especially the US and China, is boosting demand.

Economic: Growing electronics industry, increasing electronics consumption, rising income levels and standard of living in developing nations provide growth opportunities.

Social: Rising environmental awareness and consumer preference for green technologies are propelling the adoption of electric vehicles.

Technological: Advancements in battery technology, focus on integrating lithium-ion batteries and solid-state batteries in vehicles and consumer electronics contribute to market growth.

Key Takeaways

The global Passive Electronic Components Market Share is expected to witness high growth.

Regional analysis:

Asia Pacific dominates the market and is expected to maintain its leading position during the forecast period. China, South Korea, Taiwan, and India are major contributors to growth in this region due to rising electronics and EV production.

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., LG Chem, Ltd. and Samsung SDI Co., Ltd. dominate the market owing to their extensive product portfolio and widespread distribution network.

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