The global active electronic components market size was valued at US$ 299.22 billion in 2021 and is expected to reach over US$ 650.25 Bn by 2030, expanding growth at a notable CAGR of 9.01% from 2022 to 2030.
Active electronic components are devices that can amplify a signal and feature an electronic filter for power gain. An oscillator, integrated circuit, or transistor is examples of active electronic components. These components work in a device to enhance or generate voltage, active power, or current as an alternating current circuit. The global active electronic components market is growing rapidly and will continue to do so in the coming years. In an electronic system, an electronic component is a simple physical device or object that affects electrons or their associated field. The increased need for high transfer speeds with reduced idle time among customers has enabled telecom administrators, particularly in emerging nations such as India, to deliver a cutting-edge 5G business framework. As a result, curiosity in new information technology and telecom hardware will grow, increasing item reception.
Growth Factors
Increasing demand for electronic products with high energy efficiency for emerging applications such as military, satellite, aerospace, and automotive has accelerated the demand for active electronic components market at a rapid pace. Earlier, active electronic components were only used for printed circuit boards and consumer electronics. Rising trend for electric vehicle and hybrid vehicles coupled with increasing focus towards the application of renewable energy predicted to fuel the market growth prominently in the coming years. Several renewable energy fixtures consist of devices like inverters, solar panels, and turbines. These devices are further made up of active electronic components such as photo-transistors and photodiodes.
With the advent of IoT and smart devices, demand for flexible and miniaturized electronic component has risen significantly over the past few years. Further, the fuelling demand for smartphones and other smart handheld devices such as tablets and PDAs are projected to propel the global active electronic components demand prominently during the forecast period.
Market Dynamics
Drivers
Surge in demand for active electronic components in various sectors
Printed circuit boards and consumer electronics were once the sole places where active electronic components were used. However, the military, space & satellite technologies, and vehicle applications have all seen an increase in the use of these gadgets. The market for active electronic components is developing due to increased use of renewable energy and a growing trend toward the use of electric and hybrid cars. UPS and invertors, panels, and solar turbines are only a few examples of renewable energy fixtures or equipment. Photodiodes and photo-transistors are examples of active electronic components.
Restraints
Fluctuation in prices
The greatest issue that these manufacturers have is figuring out how to produce even more electric energy at lower rates than they are now, taking into consideration the fact that raw material prices change greatly.
Opportunities
Growing penetration of smartphones
Smartphones and other wearable gadgets, as well as industrial automation, have boosted demand for active electronic components. The active electronic components market is boosted by rising demand for active electronic components from the automotive and healthcare industries, as well as rising technology usage. The deployment of active electronic components has accelerated as vehicle modernization and demand for technologically advanced automobiles has increased. The market's growth is fueled by the increasing use of active electronic components in consumer products and wearables, as well as the increasing usage of renewable energy resources. The rising use of active electronic components in connected devices is driving active electronic component adoption around the world.
Challenges
High cost of raw materials
The costs of the raw resources required to produce this energy are volatile. They change dramatically from one day to the next, and even throughout the day. In addition, the cost of labor also adds to the final cost of the product. This is a major impediment to the active electronic components market's expansion.
Product Type Insights
Semiconductor devices held nearly half of the revenue share in the global active electronic components market in the year 2021 and analyzed to witness robust growth during the forecast period. The growth of the segment is mainly due to on-going product innovation along with rising demand for energy efficient devices in the market. The semiconductor devices segment is further bifurcated into transistors, diodes, optoelectronic components, and integrated circuits. Out of these, integrated circuits held significant revenue approximately USD 90 Bn in 2019, attributed to the robust rise in demand for integrated circuits incorporated with state of art devices such as vehicle automation systems, laptops, and network devices among others. The significant adoption of semiconductor devices across a variety of applications, including household appliances, personal computers, mobile phones,and network equipment, is credited with the segment's rise. In addition, the current trend of shrinking and the development of energy-efficient systems is boosting demand for semiconductor devices and related components.
Over the past few years, smartphones have registered significant growth in demand, especially across under-developed and developing nations. Additionally, the demand for 5G chipset is increasing enormously in the developed countries with the introduction of 5G-enabled smartphones, along with fuelling demand for vehicle automation systems and other telecom equipment. Thus, the increasing demand for 5G chipset is presumed to offer lucrative growth in the integrated circuits segment.
Regional Insights
North America held the dominant position in terms of revenue in the global active electronic components market in 2021. The federal government of the U.S. is heavily investing in the creation of smart cities around the country. The growth is majorly attributed to the rising adoption of micro-electromechanical systems (MEMS) and renewable energy resources. In addition, the increasing demand for portable electronic devices in the region contributes as the key driver for the growth of active electronic components market. Apart from this, burgeoning trend for connected cars and smart homes in the U.S. has opened up new opportunities for the telecom operator in the region to invest huge amount for the deployment of 5G network infrastructure. For instance, in April 2020, AT&T announced investment of USD 5 Bn in the first quarter of 2020 only for expanding 5G network.
Meanwhile, the Asia Pacific seeks to be the most opportunistic region and projected to supersede North America during the forecast period. The region is expected to witness a CAGR of nearly 10.8% over the forecast period. The growth is mainly driven by the presence of huge consumer electronics market in the region. As per a research conducted by the European Council in 2017, China exhibits lucrative growth of 36-38% in the consumer electronics market in 2017. Along with this, China is the largest producer and exporter of consumer electronic products worldwide. Lucrative features and new technologies have transformed the consumer electronics product and thus flourishing the demand for active electronic components market in the region.
Key Companies & Market Share Insights
The global active electronic components market is fragmented and highly competitive in nature owing to presence of several global along with regional players in the market. The prime strategies adopted by the market players to secure their market position are global expansion, and merger & acquisition to reach out to maximum customers with variable needs. For instance, in June 2020, Diotec Corporation announced to expand its global presence by opening new production facilities worldwide. Similarly, on July 2016, Infineon Technologies AG announced to acquire RF power and Wolf speed Power divisions of Cree Inc. The agreement helped Infineon to strengthen its footprint in semiconductor industry. With this acquisition, the Company has entered into the list of leading suppliers of power and RF power solutions in emerging markets such as renewables, electro-mobility, and next-generation 5G infrastructure relevant for IoT. The company has also established new sales offices in Singapore and South Korea. Furthermore, increasing investment in the active electronic components market has forced market players to develop more effective and attractive components.
Recent Developments
Some of the prominent players in the active electronic components market include:
Report Scope of the Active Electronic Components Market
| Report Highlights | Details |
| Market Size in 2021 | USD US$ 299.22 Billion |
| Growth Rate | CAGR of 9.01% from 2022 to 2030 |
| Largest Market | North America |
| Fastest Growing Market | Asia Pacific |
| Base Year | 2021 |
| Forecast Period | 2022 to 2030 |
| Segments Covered | Product, Regional |
| Companies Mentioned | Infineon Technologies AG, Fairchild Semiconductor International, Inc., Maxim Integrated Products Inc., Texas Instruments, Inc., Analog Devices, Inc., ST Microelectronics NV, Diotec Semiconductor AG, ON Semiconductor, Toshiba Corporation |
Segments Covered in the Report
Global active electronic component market estimates revenue and its growth trend at global, regional, and country levels and offers a comprehensive study of the cutting-edge industry trends in every of the sub-segments from 2017 to 2030. This research study classified global active electronic components market on the basis of product type, and region:
By Product
By End User
By Geography
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