Global active electronic components market size was around US$271.4 Bn in 2021 and is likely to experience over 8% expansion in revenue through the end of 2029.
Escalating Demand from Electronics, and Automotive Industries Drives Active Electronic Components Market Ahead
Active electronic components are integral parts of telecom equipment and other networking devices that require electricity to perform a given task. They are integral components of consumer electronics devices such as smartphones and laptops. Rapidly growing consumer electronics demand is driving the growth of global active electronic components market. Growing demand for high bandwidth and low latency has enabled telecom operators, particularly in developing countries like India, to implement the next-generation 5G infrastructure. New IT and telecom equipment will thus be in greater demand, resulting in increased product adoption. Demand for electronic devices has increased as the automotive industry embraces automation. These devices include driver assistance systems, DC to AC converters, controllers, power-integrated devices, telematics, and global positioning systems (GPS). Consequently, the growing demand for electric cars is expected to spur product adoption over the forecast period since these devices are commonly used in electric vehicles (EVs) and autonomous vehicles.
There is an expected rise in the active electronic components market due to the increasing demand for efficient and reliable electronic products. These components were originally used mainly in printed circuit boards, and consumer electronics but are now used in satellites, space, military applications, and automobiles. To contribute to the appeal for active electronic components in the coming years, it is necessary to increase the use of electric and cross-bred vehicles and appropriate sustainable power sources. Solar panels, turbines, and inverters make up many sustainable energy installations.
Growing Ubiquity of Connected Technology-enabled Devices Accelerate Expansion of Active Electronic Components Market
With the advent of connected technologies, manufacturing is undergoing rapid changes. These connected devices increase productivity and operational efficiency in manufacturing facilities by providing ease of operation and reducing downtime. Furthermore, as industry 4.0 evolves, many manufacturing companies are adopting digital technology to streamline operations using remote monitoring. As a result, the market is expected to grow over the next few years as connected devices are increasingly deployed across manufacturing facilities. As part of intelligence gathering, navigation, and communication establishment, active electronic components have always been integral to defence applications. The growth of active electronic components market will thus also be supported by higher defence spending of the world’s key economies such as the US, India, and China. According to the US federal government, defense spending in 2019 is estimated to be around US$686 Bn. The US is the top importer of Chinese electronics, and China is one of the top exporters. However, in 2018, the US imposed a 25% tariff on Chinese electronics. Due to trade conflicts between the two economies, market growth is expected to be somewhat hindered. Moreover, labour costs are expected to limit market development across developed countries, including the US, the UK, and Germany.
Active Electronic Components Market: COVID-19 Impact
During last year's COVID-19 outbreak, many governments realized that this was a very dangerous virus that needed to be contained. They implemented lockdowns and quarantines to stanch its spread. This caused great damage because many industries were forced to temporarily halt or significantly slow down production. Many active electronic component manufacturers found that their operations had to be dramatically slowed down due to COVID-19. This led to severe electrical energy shortages throughout the world.
Active Electronic Components Market Picks Pace as Industrial Automation Firms up, and Smartphone Sales Ramp up
The active electronic components market has grown with the increasing demand for active electronic components from the automotive and healthcare industries and industrial automation. Active electronic components are in high demand from smartphones and other wearable gadgets, as well as increasing technology use. Increasing vehicle modernization and demand for technologically advanced automobiles have accelerated the deployment of active electronic components. Active electronic components are increasingly used in wearables and consumer products, and renewable energy resources are becoming increasingly popular. Around the world, active electronic component adoption is driven by the growing use of connected devices.
Fluctuation in Prices and High Cost of Raw Materials to Hamper Active Electronic Components Market Growth
Manufacturers are struggling to figure out how to produce even more electric energy at lower rates than they are currently, considering raw material prices fluctuate dramatically. It is difficult to predict the cost of raw resources required to produce this energy because they vary dramatically daily and even throughout the day. In addition, labour costs add significantly to the final product's price. These factors severely hinder the growth of the active electronic components market.
Semiconductor Devices to Dominate Active Electronic Components Market
Globally, semiconductor devices accounted for the largest share of the revenue in active electronic components in 2021 and are expected to grow robustly during the forecast period. Ongoing product innovation and growing demand for energy-efficient devices are the main factors driving the market's growth in this segment. Semiconductors are used in a wide range of applications, from household appliances to personal computers to mobile phones to network equipment, contributing to the segment's growth. Growing demand for semiconductor devices and related components is also driven by the current trend of shrinkage and energy-efficient systems. Smartphones have seen a massive rise in demand in recent years, particularly in emerging economies. Diodes, transistors, integrated circuits, and optoelectronic components make up the semiconductor devices segment of the active electronic components market. Integrated circuits are the most common semiconductor devices used in electronic devices. Also, with the introduction of 5G-enabled smartphones as well as the growing demand for car automation systems and telecom equipment, the demand for 5G chipsets is progressively growing in developed countries as well.
Consumer Electronics Remain Dominant in Active Electronic Components Market
In the forecast period, the consumer electronics segment held the largest market share, and it is anticipated that it will continue to rule the active electronic components market during the forecast period. Demand for semiconductor devices for various consumer devices, including mobile phones, digital cameras, Set-Top Boxes (STB), wearable devices, and gaming devices, is also attributed to the growing number of consumer devices that use them. Networking devices, including routers, modems, gateways, and repeaters, are also in high demand, especially in office automation and residential applications. Thus, active electronics components will become increasingly popular with the increasing demand for network devices and other IT hardware over the forecast period. However, in response to the increasing consumer interest in autonomous vehicles, major OEMs, including Waymo, Ford Motor Company, Tesla, Inc., and Volkswagen Group, are integrating autonomous systems into their newly manufactured vehicles. As a result, vehicle consumption is expected to rise due to the high demand for these systems.
Active Electronic Components Market Witnesses Asia Pacific Reign Supreme with the Largest Consumer Electronics Hub
Over the forecast period, it is anticipated that the Asia Pacific market will account for the largest revenue share. It is credited to the region's large consumer electronics market for its growth. Samsung Electronics Co., Ltd., BBK electronics, Xiaomi Corporation, and BBK electronics (including brands such as Vivo, Oppo, and Realme) are just a few of the largest consumer electronics manufacturers in the Asia Pacific. In addition, emerging countries such as India, China, and South Africa are experiencing an increase in the demand for several industrial automated systems, including Programmable Logic Controllers (PLCs) and Supervisory Control and Data Acquisition (SCADA) systems with electronic systems. This will, in turn, drive the demand for products in the region. During the pre-COVID-19 world, India was the world's fastest-growing economy. As the masses in India become wealthier, they want to invest more money in electronic devices that consume more energy, including smartphones and mobile devices. Demand for devices that produce large amounts of electricity in a short period of time is causing a surge in demand.
The North American market is projected to experience stable revenue growth throughout the forecast period. Connected cars have become an increasingly popular trend in the United States, and key telecom giants such as Verizon Inc., and AT&T Inc. are investing heavily in deploying 5G networks. Vehicles will be able to connect seamlessly with infrastructures across the country with the new 5G mobile networks. Additionally, the US government is investing heavily in developing smart cities across the country, which is expected to drive growth in the country's market for telecom equipment and other networking devices with the deployment of the 5G network infrastructure. The use of renewable energy resources and the trend towards electric and hybrid vehicles are expected to support the growth of the active electronic components market in North America during the next few years.
Global Active Electronic Components Market: Competitive Landscape
NXP Semiconductors N.V. introduced the new SR100T secure fine-range chipset in September 2019. It is designed primarily for next-generation Ultra-Wide Band (UWB)-enabled mobile devices that need highly accurate positioning. Additionally, in June 2019, Infineon Technologies AG acquired Cypress Semiconductor Corp., strengthening its product offering and market position.
A few of the players in the active electronic components market include Infineon Technologies AG, NXP Semiconductors NV, Texas Instruments, Inc., Toshiba Corp., Intel Corp., Maxim Integrated, Broadcom, Inc., Qualcomm, Inc., Analog Devices, Inc., Advanced Micro Devices, Microchip Technology, Inc., and Monolithic Power Systems, Inc.
Global Active Electronic Components Market is Segmented as Below:
By End User
Key Elements Included In The Study: Global Active Electronic Components Market
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