Global active electronic components market was valued at USD 273.7 million in 2020. It is expected to increase at a compound annual rate (CAGR of 9.2%) between 2021 and 2028. This market is driven by the rapidly increasing demand for consumer electronics such as laptops and smartphones. The active electronic components of telecom equipment or other networking devices are essential components that require an energy source to complete a task. Telecom operators in emerging countries like India have been able to implement next-generation 5G network infrastructure because of the growing demand for bandwidth and low latency. This will increase product adoption and boost the demand for IT and telecom equipment.
The global COVID-19 pandemic had a significant impact on passive and interconnecting electronics components manufacturing industries. Many COVID-19 cases were reported in countries such as China, Germany and the U.S. as well as South Korea. This forced governments to place restrictions such as locking down cities that are most affected, closing international borders to trade and allowing employees to work from home. The temporary closure of international borders and production facilities caused a significant drop in exports and production of electronic components. This had a major impact on overall market growth for Q1 and Q2 2020.
The automotive industry is becoming more automated. This has led to an increase in demand for electronic devices such as driver assistance systems and DC-to AC converters. Controllers and power integrated devices are also needed. Telematics and Global Positioning Systems (GPS), among others, are some of the other electronic devices that have increased in demand. These devices are used extensively in Electric Vehicles (EVs), and autonomous vehicles. Accordingly, electric car adoption is expected to grow over the forecast period due to the increasing demand. The manufacturing industry is changing rapidly with the advent of connected technology.
Manufacturing facilities can increase productivity and operational efficiency through the use of connected devices. They also make it easier to operate and reduce downtime. Many manufacturing companies have begun to embrace digitalization as a way to improve their operations through remote monitoring. Market growth is expected to be driven by the increasing deployment of connected devices in manufacturing facilities.
Defense applications that involve active electronic components for navigation, intelligence gathering, and communication establishment have been a part of defense since the beginning. The market growth will be supported by increased defense spending in key countries like the U.S., India and China. The U.S. federal government proposed a total defense spending of USD 686 billion for 2019.
China is a major electronics exporter and the U.S. is the largest importer from China. In 2018, however, the U.S. imposed 25% import tariffs upon Chinese electronics. The trade disputes between the two economies will likely limit market growth. Market growth will be limited by high labor costs in the manufacturing industry across developed countries like the U.S., U.K. and Germany.
The semiconductor devices segment had the highest revenue share at 62% in 2020 and will continue to grow at the fastest CAGR between 2021 and 2028. This segment's growth can be attributed to widespread adoption of semiconductor devices in a variety of applications, including home appliances, mobile phones, and network equipment. The prevailing trend towards miniaturization and the development of energy-efficient systems has had a positive effect on the demand for semiconductor components and related parts.
Smartphones have seen a huge rise in demand over the last few years, particularly in emerging economies. With the introduction of 5G smartphones, and the growing demand for telecom equipment and car automation systems, the demand for 5G chipsets is steadily increasing in developed countries. The increasing production of 5G chipsets suggests that the IC market will experience strong growth over the forecast period. The IC segment will experience a surge in product demand due to the increasing investments made by market players like Intel Corporation and Infineon Technologies AG in high-processing microchips.
In 2020, the consumer electronic segment dominated the global market with a 33% revenue share. This segment is forecast to grow at a faster CAGR of over 10% during the forecast period. This is due to the growing demand for semiconductor devices that can be used in various consumer devices such as smartphones, digital cameras, set-top boxes (STB), wearables, gaming devices, etc. In addition, there is a growing demand for networking devices such as modems and gateways, routers, repeaters, and modems. This is especially true in the office automation and residential segments. The demand for IT hardware and network devices is increasing, which will lead to an increase in the use of active electronics components.
Popular OEMs, including Waymo, Ford Motor Company, Tesla, Inc., Volkswagen Group, have begun to deploy autonomous systems in new vehicles. This is in response to consumer interest in these vehicles. These systems are expected to drive up automotive product consumption. The adoption of connected technology for remote patient monitoring, in conjunction with the increased demand for medical equipment, is expected to increase product usage in this segment.
Asia Pacific had the largest revenue share at over 57% in 2020 and will likely experience the fastest CAGR between 2021-2028. APAC's market growth is due to the large consumer electronics industry in the region. It houses some of the world's most prominent consumer electronics companies, including Samsung Electronics Co. Ltd., BBK electronic (Includes brands like Oppo, Realme, and Vivo), as well as BBK electronics. In emerging countries like India, China and South Africa, there is a significant increase in demand for industrial automation systems such as Supervisory Control and Data Acquisition and Programmable Logic Controllers. This will increase the region's product demand.
North America will be the second-largest region market in the next few years. Due to the growing popularity of connected cars in America, major telecom companies, like Verizon Inc. and AT&T Inc. are investing large amounts in 5G network infrastructure. The next-generation 5G mobile network will provide seamless connectivity for vehicles connected to infrastructures throughout the country. The U.S. government has also invested heavily in the development smart cities throughout the country. The 5G network infrastructure deployment is expected to drive market growth by increasing the number of devices and equipment that can be used for telecom.
To gain significant market share and increase their profitability, key players are keen to launch new products. NXP Semiconductors N.V. launched SR100T, a secure, fine-ranging chipset in September 2019. This chipset was designed to deliver high-quality positioning performance on next-generation Ultra-Wide Band (UWB-enabled) mobile devices. Some players are now focusing on mergers or acquisitions to increase their market share. Infineon Technologies AG purchased Cypress Semiconductor Corp. in June 2019 to expand its product range and strengthen its market position. The following are some of the most prominent players in active electronic components markets worldwide:
Infineon Technologies AG
NXP Semiconductors, NV
Texas Instruments, Inc.
Toshiba Corp.
Intel Corp.
Maxim Integrated
Broadcom, Inc.
Qualcomm, Inc.
Analog Devices, Inc.
Advanced Devices
Microchip Technology, Inc.
Monolithic Power Systems, Inc.
Up Market Research published a new report titled “Active Electronic Components Market research report which is segmented by End User (Consumer Electronics, Automotive), by Product Type (Semiconductor Devices, Vacuum Tubes), By Players/Companies Microchip Technology Inc, Qualcomm Inc, Infineon Technologies AG, Broadcom Inc, Toshiba Corp, Advanced Micro Devices, Analog Devices Inc, Monolithic Power Systems Inc, NXP Semiconductors NV, Maxim Integrated, Intel Corp, Texas Instruments Inc”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
Report Attributes | Report Details |
Report Title | Active Electronic Components Market Research Report |
By End User | Consumer Electronics, Automotive |
By Product Type | Semiconductor Devices, Vacuum Tubes |
By Companies | Microchip Technology Inc, Qualcomm Inc, Infineon Technologies AG, Broadcom Inc, Toshiba Corp, Advanced Micro Devices, Analog Devices Inc, Monolithic Power Systems Inc, NXP Semiconductors NV, Maxim Integrated, Intel Corp, Texas Instruments Inc |
Regions Covered | North America, Europe, APAC, Latin America, MEA |
Base Year | 2020 |
Historical Year | 2018 to 2019 (Data from 2010 can be provided as per availability) |
Forecast Year | 2028 |
Number of Pages | 203 |
Number of Tables & Figures | 143 |
Customization Available | Yes, the report can be customized as per your need. |
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by End User (Consumer Electronics, Automotive), by Product Type (Semiconductor Devices, Vacuum Tubes).
Active Electronic Components Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
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Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the Active Electronic Components Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
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