Integrated Passive Devices Market Size

Integrated Passive Devices Market size exceeded USD 1 billion in 2019 and is poised to grow at a CAGR of over 9% between 2020 and 2026. The market growth is owing to the proliferation of emerging technologies, such as artificial intelligence and 5G technology, across the globe.

Integrated passive devices offer high-performance, miniaturized footprint, and energy efficiency in AI and 5G terminal devices, accelerating their demand in the market. According to the GSM Association, the total number of global 5G connections is projected to surpass 1.8 billion by 2025. This will further boost the opportunity for IPD manufacturers to produce miniaturized and power-efficient 5G devices.

The rising adoption of in-vehicle infotainment (IVI) systems and advanced telematics has further boosted the integrated passive devices market demand in the automotive sector. Ultra-miniaturized RF passive devices are extensively incorporated into GPS systems, instrument clusters, and other vehicle electronic devices. Integrated passive devices offer high durability, increased functionality, and energy efficiency and can be fitted into confined spaces, increasing their adoption in advanced vehicle systems. In addition, major automotive OEMs are emphasizing on development of ADAS and self-driving cars, which will further increase the adoption of IPDs in vehicle electronics.

The COVID-19 pandemic has severely impacted the semiconductor industry, restraining the growth opportunities for integrated passive devices market. According to the Semiconductor Industry Association, the global semiconductor sales decreased by 3.6% in the first quarter of 2020 due to disruption in supply-chain activities due to COVID-19 pandemic. Along with this, several major consumer electronics and automotive OEMs have halted their manufacturing operations due to several lockdown scenarios by the government. This has declined the adoption of integrated passive devices for a short-term period.  

Integrated Passive Devices Market Analysis

In 2019, the silicon-based integrated passive devices market dominated over 75% revenue share and is projected to witness growth of around 9% through 2026. Silicon-based IPDs offer high insulation, small thermal coefficient, and improved device performance. The performance of IPD can be further improved with the integration of thick metal and dielectric layer to achieve high capacitance density in comparison with typical IC technology. The silicon-based integrated passive devices can be grinded to 100 micrometer thickness through several packaging options such as wire bonding, micro bumping, and copper pads.

The integrated passive devices market players are adopting several new techniques with silicon materials to enhance the IPDs performance. For example, the integration of 3D passive components into silicon helps integrated passive device manufacturers to deliver high density capacitor, Zener diode, and high-Q inductor in a single silicon die. The designing time of integrated passive devices on silicon depends upon the complexity of circuit, which can be reduced by using application-specific design tools and circuits.

The baluns segment held around 30% integrated passive devices market share in 2019 and is expected to register 10% growth rate till 2026. The market growth is majorly driven with the rising adoption of baluns in antenna systems such as broadcast, radio communication, among others. These devices offer a cost-effective cabling structure with long-distance transmission, accelerating their integration with various data and powerline communications for automotive, smart home, and other applications.

The proliferation of smart home and connected devices in the developing nations will impel the demand for baluns in the integrated passive devices market. According to GSMA, there will be approximately 13 billion new IoT connections around the globe in 2025, majorly driven by smart home and smart building verticals. The smart home vertical will encounter around two billion new connections. To cater to the high demand in the market, the companies are continuously innovating new products.

The digital & mixed signal segment in the integrated passive devices market will expand at a CAGR of around 11% during the forecast period propelled by the rising demand for implantable electronics and digital and mixed signal ICs in the medical sector. Integrated passive devices offer low power, small size, and high performance for various medical monitoring systems, including ECG, pulse oximetry, and blood analysis, which require precise analog for digital conversion.

The increasing demand for portable equipment in the medical sector will further boost the opportunities for integrated passive device manufacturers to deliver small footprint and low-power devices. The industry players are continuously developing new products and accelerating their innovation capabilities to gain a highly competitive edge over other players.

The consumer electronics segment is anticipated to grow at 10% CAGR during 2020-2026. The growth is attributed to increasing adoption of these components in various consumer electronics devices such as smartphones, laptops, tablets, wearables, among others. The integrated passive devices offer several high-end features, such as low power consumption, high chip connectivity, and smaller footprint, fueling their adoption in miniaturized hand-held gadgets.

Increasing innovations in advanced packaging technology led several device manufacturers to produce high-performance compact-sized integrated passive devices to serve the growing smartphone industry. For instance, in May 2020, TSMC announced the launch of wafer-level integrated passive device technology. Through this launch, the company aims to achieve high volume production of 5G terminal devices majorly smartphones for Apple. This will increase the adoption of IPD in consumer electronics devices.

Asia Pacific integrated passive devices market will witness a growth rate of over 10% from 2020 to 2026 led by supportive government initiatives toward expansion of semiconductor manufacturing in the region. For instance, in October 2020, the Ministry of Science and ICT, Government of South Korea announced to set an ambitious goal to develop 50 artificial intelligence (AI) semiconductor systems by 2030. The government also announced a funding of approximately USD 60.8 million to help local chip manufacturers in R&D activities to meet this ambitious objective. In addition, the country plans to become the AI leader in the coming years and has announced to spend approximately USD 843.9 million by 2029.

Integrated Passive Devices Market Share

Key players operating in the integrated passive devices market are :

• Murata Manufacturing Co. Ltd
• STMicroelectronics
• Texas Instruments
• ON Semiconductors
• Johnson Technology
• 3DiS Technologies
• STATS ChipPAC Ltd

Companies are focusing on continuous research and development activities to provide technologically advanced products than their competitors. In August 2020, Johnson Technology announced the development of its new filter/balun-based integrated passive devices designed for Semtech’s Long Range & Low Power LoRa and LoRa Smart Home RF transceivers.

The integrated passive devices market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2026 for the following segments:

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Market, By Material Type

• Silicon
• Glass
• Others

Market, By Passive Devices

• Baluns
• Filters
• Couplers
• Diplexers
• Customized IPD
• Others

Market, By Application

• RF IPD
• Digital & Mixed Signal
• Electrostatic discharge/electromagnetic interference (ESD/EMI)
• Others

Market, By Industry Verticals

• Automotive
• Consumer electronics
• Telecommunication
• Aerospace & defense
• Medical & Healthcare
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Taiwan
• Latin America
  • Brazil
  • Mexico
• MEA
  • South Africa
  • GCC