May 22, 2024
Active Electronic Components Market

Active Electronic Components Market is Estimated to Witness High Growth Owing to Advancements in Semiconductor Fabrication Technology

The active electronic components market includes a wide range of products such as integrated circuits, transistors, microcontrollers, and optoelectronics devices that are used for controlling and monitoring electrical systems. These components find applications across various end-use industries including consumer electronics, automotive, industrial, healthcare, and telecommunications. They help in optimizing circuit performance and enabling technological advancements by providing features such as low power consumption, high processing power, and miniaturization. The advent of new fabrication technologies has allowed semiconductor manufacturers to enhance transistor density and integrate more components into chipsets while reducing costs compared to discrete components.

The Global active electronic components market is estimated to be valued at US$ 661.18 Bn  in 2024 and is expected to exhibit a CAGR of 8.9% over the forecast period from 2024 to 2031.

Key Takeaways
Key players operating in the Active Electronic Components Market Growth are Infineon Technologies AG, Advanced Micro Devices, Inc., STMicroelectronics N.V., Microchip Technology, Inc., Analog Devices, Inc., Broadcom Inc., NXP Semiconductors N.V., Intel Corporation, Monolithic Power Systems, Inc., Texas Instruments Incorporated, Qualcomm Inc., Renesas Electronics Corporation, Semiconductor Components Industries, LLC, and Toshiba Corporation. The major players are focusing on strategic collaborations and new product launches to garner greater market share.

The key opportunities in the market include growing demand for active components from automotive and industrial automation applications owing to incorporation of advanced driver-assistance systems, infotainment controls, and industrial IoT technologies. Moreover, increasing 5G network rollouts around the world will spur demand for radiofrequency and power amplifier components.

Advancements in semiconductor fabrication technologies such as 7 nm and 5 nm node sizes, FinFET transistors, System-on-Chip (SoC) solutions, and 3D packaging techniques are allowing manufacturers to produce more powerful and efficient components for applications such as AI, machine learning, edge computing, and cloud platforms.

Market Drivers
The major drivers contributing to the growth of the active electronic components market are –

Emergence of new technologies: The development of advanced technologies across industries is creating demand for active components that are optimized to support applications such as AI, autonomous vehicles, robotics, internet of things. Consumerization of technologies is also propelling market growth.

Growth in end-use industries: Rising electronics consumption, increasing automotive production, expansion of telecom and data center infrastructure are boosting demand from key end-use verticals. This is encouraging component manufacturers to ramp up production volumes.

Government initiatives: Favorable government policies supporting indigenous semiconductor manufacturing along with focus on next-gen communications networks like 5G and 6G are positively impacting the market.

Current Challenges in the Active Electronic Components Market:

The Active Electronic Components Market is facing various challenges which can hinder its growth. Supply chain disruptions caused due to trade restrictions and pandemic have increased the uncertainty in the market. Rising material and component costs are putting pressure on the profit margins of manufacturers. Growing demand for miniaturization of components is testing the innovation capabilities of players. Design complexities are also increasing with advancement in technologies like artificial intelligence and internet of things. However, growing R&D investments and innovative product launches can help players overcome these challenges and capture more opportunities in the coming years.

SWOT Analysis
Strength: Growing demand for advanced technologies like AI, IoT and 5G offering huge opportunities.

Weakness: Design complexities and rising costs associated with developing miniaturized components.

Opportunity: Growing demand for advance electronic components from automotive industry undergoing electrification.

Threats: Trade restrictions and intellectual property thefts can impact global supply chains.

The active electronic components market in United States holds the largest share currently owing to presence of leading players and growing investments in technologies. However, Asia Pacific region is expected to witness fastest growth during forecast period due to expanding electronics manufacturing base in countries like China, South Korea and Taiwan along with growing domestic demand from industries like automotive, consumer electronics and telecommunications. Countries in North America and Europe are also expected to remain major revenue generators owing to advanced electronics manufacturing ecosystem and focus on innovation.

While United States holds the largest share currently, but China is emerging as fastest growing regional market for active electronic components. This is attributed to China’s position as global manufacturing hub for electronics coupled with expanding domestic market driven by rising electronics consumption. Government support for indigenous semiconductor industry is also fueling growth. Other Asian countries like South Korea, Taiwan and India are also expected to register strong growth during forecast period due to electronic system exports as well as growing domestic demand from automotive and manufacturing sectors undergoing digitization.

*Note:
1.  Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it