Electronic Components Market Size, Share & Industry Analysis, By Type (Active Component (Diodes, Transistors, Integrated Circuit (IC), and Others), Passive Component (Resistor, Capacitor, Inductors, and Others), and Electromechanical Component (Motor, Switches, Relays, and Others)), By Industry (Telecommunication, Automotive, Industrial Machinery, Consumer Electronics, Healthcare, and Others), and Regional Forecast, 2024-2032

The global electronic components market size was valued at USD 363.93 billion in 2023 and is projected to grow from USD 393.63 billion in 2024 to USD 847.88 billion by 2032, exhibiting a CAGR of 10.1% during the forecast period (2024-2032).

 Electronics is transforming across various industries by transferring information into electrical signals and using high-speed processing technology to perform consistently and quickly. These components are the building products of any electronic device and come in various sizes and shapes.

Moreover, the advancement of technologies such as smartphones, laptops, and other consumer electronics continues to allow and drive demand for these components. For instance,

• In August 2023, Foxconn, a Taiwan-based company, invested around USD 16 billion by setting up an electronics component manufacturing facility in Tamil Nadu, India, by introducing a mobile component manufacturing facility and creating more direct and indirect jobs across India.

The COVID-19 pandemic considerably affected the market capacity in the component supply chain. Due to social distancing, various electrical and mechanical providers and industries could not operate at full capacity. Furthermore, the widespread distribution of the pandemic created a shortage of developing electronic elements.

Electronic Components Market Trends

Miniaturization and Integration of Electronic Components by Market Players Propels the Market Growth

This miniaturization revolution is restructuring the technology industry by allowing the creation of miniature devices with a wide range of applications. Nanoscale electronics are changing the working environment, from wearable technology to biomedical implants.

The market players focus on designing and manufacturing miniature electronic elements, allowing the industries to integrate into the products with advanced features while reducing the overall environmental footprint. Furthermore, miniaturization keeps space within the product enclosure and can expand potential features and functionality without increasing size. For instance,

• In June 2023, Toshiba Electronic Devices & Storage Corporation launched a 100V N-channel power MOSFET with Toshiba’s next-gen process, U-MOS X-H. The product focuses on uses such as hot swap circuits and switching circuits on the industrial equipment used for communications base stations and data centers.

Thus, component miniaturization provides various benefits, allowing the market players to make product development more effective and efficient and a growing opportunity for the market.

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Electronic Components Market Growth Factors

Increasing Development and Expansion of IoT Devices Drives Market Growth

The growing adoption of Internet of Things (IoT) is quickly transforming various industrial sectors, connecting everyday devices, from smart homes to manufacturing, and improving real-time data collection. Innovations, such as secure communication protocols and low-power consumption microcontrollers are developing growing opportunities in electronics manufacturing.

Furthermore, the continuous expansion of the IoT creates growing opportunities for these components due to the growing demand for sensors, wireless communication modules, microcontrollers, and other elements to enable connectivity, device control, and data collection. Various companies are developing specialized components to meet the requirements of IoT applications. For instance,

• In June 2023, Powercast, the wireless power specialists, collaborated with Nichicon, an electronic components manufacturer, to add radio frequency charging capabilities to Nichicon's new Small Lithium Titanate Oxide Rechargeable Batteries into small devices such as wireless thermometers, IoT sensors, and medical devices.

Thus, the development and expansion of IoT devices drive the market growth.

RESTRAINING FACTORS

Maintaining Quality with Cost-Efficiency and Obsolete Electronic Components to Hamper Market Growth

Balancing cost-efficiency with quality is a continuous challenge in electronic components due to price fluctuations and market demands impacting components' overall cost. In addition, these components can become outdated due to technology advancements, withdrawal of the components by manufacturers, or changes in market demand.

The obsolete electronic elements entail reactive or manual processes that lead to human error, long lead times and excessive costs to the organization. Furthermore, high temperature, undue current, and mechanical stress lead to the breakdown of various electronic elements. The constant risk of such failures in the systems limits the adoption of these components by restraining the electronic components market growth.

Electronic Components Market Segmentation Analysis

By Type Analysis

Increasing Demand for Active Components Across Various Industries Drives Segment Growth

Based on type, the market is segmented into active components, passive components, and electromechanical components.

The active components segment is expected to hold the highest market share over the forecast period due to the increasing application of active components in various industries, including automotive, consumer electronics, telecommunication, industrial automation, and others. The active components supply electrical energy to the circuit or provide power gain in the circuit and carry energy in one way or another, such as integrated circuits, batteries, diodes, and others. Moreover, the growing product launches are expected to propel the market growth. For instance,

• In September 2023, TDK Corporation launched a sample kit comprising ten different types of ultra-compact TVS diodes. The five diodes are used for general purposes, which protect against overvoltage on applications such as tablets, smartphones, wearables, notebooks, and network components. The other five diodes are used for high-speed interfaces.

The passive component segment is expected to grow with the highest CAGR during the forecast period. The growth is attributed to the increasing digitalization of various industries, which is creating a rise in the adoption of consumer electronics across the sectors and an increase in the demand for mobility and connectivity. In addition, with electronics and electronic devices getting more complex, the increasing consumer demand for minor or slim devices enables companies to develop more miniature components. For instance,

• In January 2024, TDK Corporation launched its new inductor KLZ2012-A series. These multilayer inductors are developed for automotive audio bus applications with superior inductance tolerance and high durability. The new KLZ2012-A series provides operation up to 150 °C, which is critical for its application in high-temperature automotive surroundings.

By Industry Analysis

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Rising Demand for Electronic Components in the Automotive Industry to Boost Automotive Segment Growth

Based on Industry, the market is divided into telecommunication, automotive, industrial Machinery, consumer electronics, healthcare, and others.

The automotive segment holds the highest market share. The growth is attributed to the adoption of driver assistance systems. The usage of electronic components in manufacturing electric vehicles has expanded the rising reliance of cars on safety systems and other electronic elements. It is a common practice to employ these components to improve the performance and efficiency of powertrain systems. These parts provide communication between the powertrain systems and allow higher levels of autonomous driving and technology breakthroughs, such as the availability of high-performance computers or light detection and ranging sensors. For instance,

• According to IEA’s Global Electric Vehicle Outlook, more than 10 million electric cars will be sold globally in 2022, and the sales are expected to grow by another 35% or 14 million in the year. This explosive growth of electric cars’ share of the overall car market has risen from 14% in 2022 and is set to increase further to 18% in 2023.

The telecommunication segment is expected to grow at the highest CAGR due to technological advancements in network equipment, such as the shift from 4G to LTE/4G and 5G. The 5G network created a revolutionary innovation for the communication industry, providing fast and low latency connectivity to significantly expand its use cases across various sectors. Moreover, the telecom industry demands more electronic components due to the smartphone industry's expansion and the mobile handset market's subsequent rise. For instance,

• In November 2023, Foxconn invested around USD 250 million by introducing a new production plant in Vietnam, including telecom and electric vehicle (EV) components. Through the investment, the company focuses on producing electric vehicle components, controllers and other products to meet coming development needs.

REGIONAL INSIGHTS

Geographically, the market is studied across North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

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Asia Pacific holds the highest part in the electronic components market share and is expected to grow at the highest CAGR during the forecast period due to the easy accessibility of raw materials and lower labor and production costs in the region. Moreover, the market for interconnecting these components is growing due to the strong demand for consumer electronics in regions, particularly in China, India, Japan, and Taiwan. In addition, countries across the region have seen a sharp increase in computer demand driven by the popularity of intelligent appliances, innovative high-end products, and new smartphones. For instance,

• In February 2024, Murata Electronics, a vital supplier of Apple's electronic components, introduced a new manufacturing facility in Lamphun province, Thailand. This new factory will produce multilayer ceramic capacitors, a flagship product for Murata. These components will enhance the constancy of various mobile devices such as computer servers, smartphones, data sensors, automobiles, and satellites.

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North America shows prominent growth in the market due to the presence of market players, advanced technological infrastructure, and strong presence in industries, such as consumer electronics, automotive, aerospace, and telecommunications. In addition, the demand for consumer electronic devices pushes the need for various electronic components, such as sensors, microprocessors, displays, and memory chips. For instance,

• In January 2024, Littelfuse, Inc. introduced the SM10 Varistor, a Metal Oxide Varistor designed to provide superior temporary surge protection in automotive electric vehicles, electronics, and other applications.

Europe is expected to hold a significant market share during the forecast period due to growing number of investments and technological advancement, collaborating with the regional manufacturing companies by enabling customers to have high availability of connectivity solutions and enhancing design capabilities. For instance,

• In January 2024, TTI, Inc., a distributor in the electronic components sector, partnered with Rosenberger, a manufacturer of high-voltage, high-frequency, and fibre-optic interconnect solutions, to expand the range of products available to electronics designers and buyers and offer them a comprehensive portfolio to meet their specific application requirements.

List of Key Companies in Electronic Components Market

Market leaders Focus on Expanding their Product Offerings to Drive Market Growth

Key players in the global market, such as TDK Corporation, KYOCERA AVX Components Corporation., Murata Manufacturing Co., Ltd., Panasonic Corporation, Amphenol Corporation, Littelfuse, Inc., and others are focused on expanding their product portfolio to geographic boundaries by introducing specific solutions and reaching to a new customer base, thus improving revenue.

List of Key Companies Profiled:

• TDK Corporation (Japan)


• KYOCERA AVX Components Corporation. (U.S.)


• Murata Manufacturing Co., Ltd. (Japan)


• Panasonic Corporation (Japan)


• Amphenol Corporation (U.S.)


• Littelfuse, Inc. (U.S.)


• TE Connectivity. (Switzerland)


• Vishay Intertechnology, Inc. (U.S.)


• Analog Devices Inc. (U.S.)


• SAMSUNG ELECTRO-MECHANICS (South Korea)

KEY INDUSTRY DEVELOPMENTS:

• November 2023: Murata Manufacturing Co., Ltd. developed and started manufacturing the GRM188D72A105KE01, a multilayer ceramic capacitor with a capacitance of 1 µF used in 48 V power supply lines in servers, base stations, and data centres. The new technology of Murata proprietary permitted this product to be over 67% less in volume and 49% less in area than other 2012M size (GRM21BC72A105KE01) multidimensional ceramic capacitors.


• November 2023: Renesas Electronics enhanced its 32-bit microcontroller with a new RX device for industrial sensor systems. The microcontroller is developed for systems that require accurate and fast analogue signal measurements.


• October 2023: Vishay Intertechnology, Inc. introduced new wet tantalum capacitors with airtight seals. The STH electrolytic capacitors provide thermal shock up to 300 cycles for aerospace and avionics applications.


• September 2023: TE Connectivity collaborated with AVIVA Links Inc., the automotive connectivity company, designing advanced multi-gigabit links for vehicle networks, the first Automotive SerDes Alliance solutions for high-resolution displays and sensors in autonomous and software-defined vehicles.


• September 2023: Vishay Intertechnology, Inc. launched its new manufacturing facility in Mexico to mass-manufacture power inductors, small electronic components for computers, handheld devices, automotive electronics, and other applications.

REPORT COVERAGE

An Infographic Representation of Electronic Components Market

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The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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