by The passive electronic components market is growing rapidly driven by increasing demand for renewable energy sources. Passive components such as resistors, capacitors, and inductors play a vital role in energy storage, power control and distribution applications which are seeing heightened demand given the global focus on transitioning to more sustainable energy solutions.
Passive electronic components are low-cost electronic parts used in conjunction with integrated circuits and active electronic components in a wide range of devices to shape electric current and voltages, store energy electromagnetically, block signals, noise filtration, data retention and power management. They serve important functions within electronic circuits as they can store and release energy intermittently in the form of electric or magnetic fields. Some key applications of passive components include power supply units, power conversion equipment, chargers, motor drives and renewable energy systems such as solar panels and wind turbine generators.
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 in the passive electronic components market include ABB Ltd., LG Chem, Ltd., Samsung SDI Co., Ltd, General Electric Company, and Tesla Inc. These players are engaged in new product development and strategic collaborations to capture more market share.
There is a growing demand for Passive Electronic Components Market Demand from diverse end-use industries such as automotive, healthcare, telecommunications, defense and renewable energy. With sustainability becoming a key priority, demand for components supporting renewable energy infrastructure and energy storage solutions is seeing a major boost.
Leading component manufacturers are expanding their global footprint by setting up new production facilities across high growth regions. They are focusing on emerging markets in Asia Pacific and Latin America to cater to the rising local demand as well as gain cost competitiveness.
Market key trends
One of the major trends driving the Passive Electronic Components Market is the increasing integration of green technologies in industries and daily life. With concerns around climate change mounting globally, manufacturers are actively developing more renewable energy offerings and energy efficient transportation solutions which use advanced passive components to store and manage electricity from natural sources effectively. This is expected to create sustained opportunities for passive component vendors in the coming years.
Porter’s Analysis
Threat of new entrants: New companies entering this market would require significant investments in R&D and manufacturing infrastructure which increases barriers.
Bargaining power of buyers: Large automotive manufacturers and component suppliers have significant bargaining power over component manufacturers due to their bulk purchase order sizes.
Bargaining power of suppliers: Few global players control the raw material supply which gives them bargaining power over component manufacturers in terms of pricing and supply.
Threat of new substitutes: Several new energy efficient products are emerging but established players find it difficult to switch due to costs involved in transition.
Competitive rivalry: Intense competition exists among established players to gain Passive Electronic Components Market Size and Trends and improve technology through continuous innovation.
Geographical Regions
Asia Pacific currently holds the largest share of the passive electronic components market owing to presence of consumer electronics manufacturing hubs in China, Taiwan, South Korea and other developing Asian countries.
North America is projected to grow at the fastest pace during the forecast period due to ongoing expansion of the automotive industry and manufacturing facilities of key players in the US and Canada coupled with innovations facilitating transition to green mobility solutions.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
About Author - Ravina Pandya
Ravina Pandya,a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile
