The global active electronic components market was valued at US$ 273.25 billion in 2019 and expected to hit US$ 521.11 Bn by 2027, growing at a compound annual growth rate (CAGR) of 8.2% during the forecast period from 2020 to 2027.
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 at a rapid pace. Earlier, active electronic components were only used for printed circuit boards and consumer electronics. Rising trend for electric 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.
Product Type Insights
Semiconductor devices held nearly half of the revenue share in the global active electronic components market in the year 2019 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.
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 2019. 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.
Some of the prominent players in the active electronic components market include:
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 2016 to 2027. This research study classified global active electronic components market on the basis of product type, and region:
By Product Type
By Regional Type
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