Passive and Interconnecting Electronic Components Market - By Type (Passive, Interconnecting), By Application (Consumer Electronics, Automotive, Healthcare, IT & Telecom, Industrial, Aerospace & defense) & Forecast, 2024 - 2032

Passive and Interconnecting Electronic Components Market Size

Passive and Interconnecting Electronic Components Market was valued at USD 196.5 billion in 2023 and is estimated to register a CAGR of over 5% between 2024 and 2032. The automotive industry is rapidly transitioning toward electric and hybrid vehicles, which require sophisticated electronic systems for battery management, power distribution, and energy conversion. These vehicles depend on passive components, such as capacitors, resistors, and inductors, along with interconnecting components, such as connectors and cables, to ensure efficient operation and reliability.
 

According to an IEA report, almost 14 million new electric cars were registered globally in 2023, bringing the total number of Electric Vehicles (EVs) on the road to 40 million. In 2023, over 250,000 new registrations were observed per week. Moreover, modern vehicles are equipped with advanced infotainment systems that provide navigation, entertainment, and connectivity features. These systems require high-performance electronic components to manage audio, video, and data processing. Passive components are crucial for filtering and signal conditioning, while interconnecting components ensure seamless connectivity between various electronic modules.
 

The growing industrial automation is a significant driver for the growth of the passive and interconnecting electronic components market. Industrial automation involves the use of control systems, such as computers and robots, for handling different processes and machinery in an industry. These systems require a wide array of passive components, such as resistors, capacitors, and inductors, for filtering, voltage regulation, and signal processing.
 

Interconnecting components, such as connectors, cables, and wiring harnesses, are essential for establishing reliable connections between different parts of the automation system. Technologies, such as the Industrial Internet of Things (IIoT), robotics, and Artificial Intelligence (AI), are being increasingly integrated into manufacturing processes. These advanced technologies rely on numerous sensors and control systems that require passive components for signal conditioning and power management, and interconnecting components for data and power transmission across devices.
 

The production of passive and interconnecting electronic components relies heavily on raw materials such as copper, aluminum, ceramics, and various rare earth elements. Fluctuations in the prices of these materials can significantly impact manufacturing costs. High and volatile raw material costs can squeeze profit margins for manufacturers and lead to higher prices for end products, potentially reducing demand.
 

Passive and Interconnecting Electronic Components Market Trends

The integration of advanced materials is becoming a significant trend in the passive and interconnecting electronic components market. Manufacturers are increasingly using materials, such as ceramics, polymers, and advanced alloys, to enhance the performance, reliability, and efficiency of components. These materials offer improved electrical, thermal, and mechanical properties, enabling the development of components that can operate under more demanding conditions and provide better performance in various applications. Advancements in manufacturing technologies including automation, precision machining, and additive manufacturing (3D printing) are transforming the production of passive and interconnecting electronic components. These technologies enable manufacturers to produce components with higher precision, better performance characteristics, and greater consistency. Additionally, advancements in semiconductor manufacturing processes are enhancing the capabilities of interconnecting components, leading to improved signal integrity and faster data transmission.
 

With the ongoing trend toward miniaturization in electronics, there is a growing demand for smaller, more compact components with higher density. This trend is driven by the need for lightweight, portable devices and the incorporation of more functionality into smaller form factors. As a result, manufacturers are focused on developing miniaturized passive and interconnecting components that can be integrated into increasingly compact electronic devices without compromising performance. The rollout of 5G networks is creating a substantial demand for advanced passive components and interconnects that can handle higher frequencies and faster data rates. Components, such as antennas, filters, and capacitors, designed for 5G applications are in high demand. This trend is expected to continue as 5G infrastructure expands globally.
 

Passive and Interconnecting Electronic Components Market Analysis

Based on application, the market is divided into consumer electronics, automotive, healthcare, IT & telecom, industrial, aerospace & defense, and others. The consumer electronics segment dominated the global market with a share of over 20% in 2023. Consumer electronics manufacturers are continually introducing innovative products with advanced features and functionalities. These advancements drive the demand for high-performance passive and interconnecting electronic components to support the enhanced capabilities of devices such as smartphones, tablets, laptops, smart TVs, and wearable technology.
 

Components including capacitors, resistors, connectors, and printed circuit boards (PCBs) play critical roles in ensuring the reliability, efficiency, and connectivity of these devices. Moreover, the proliferation of smart devices including smart home appliances, IoT devices, and wearable technology is driving growth in the consumer electronics segment. Smart devices rely on a multitude of sensors, controllers, and communication modules that require passive and interconnecting components for operation. As consumers embrace smart technology for convenience, energy efficiency, and connectivity, the demand for these components continues to grow.
 

Based on type, the market is divided into passive and interconnecting. The passive segment is expected to reach a revenue of over USD 1.5 billion by 2032. With the increasing adoption of electronic devices across industries, such as consumer electronics, automotive, healthcare, and telecommunications, there is a growing demand for passive electronic components. These components including resistors, capacitors, inductors, and transformers, play crucial roles in electronic circuits for functions such as filtering, voltage regulation, signal coupling, and energy storage. The adoption of Industry 4.0 principles and IoT technologies in manufacturing and industrial automation drives the demand for passive components used in sensor networks, data acquisition systems, and control circuits. These components enable connectivity, sensing, and actuation capabilities in smart factories, IIoT deployments, and process automation applications. As industries embrace digitalization and automation, the demand for passive components is expected to increase.
 

Asia Pacific dominated the global passive and interconnecting electronic components market in 2023, accounting for a share of over 30%. Asia Pacific serves as a major manufacturing hub for electronic devices and equipment. Countries, such as China, Japan, South Korea, Taiwan, and Singapore, have well-established electronics manufacturing industries with extensive capabilities in producing passive and interconnecting electronic components. The region benefits from factors, such as skilled labor, advanced infrastructure, and favorable government policies, which attract multinational companies to set up production facilities.
 

Moreover, Asia Pacific is home to some of the largest consumer electronics markets in the world, driven by growing populations, rising disposable income, and increasing urbanization. The region accounts for a significant portion of the global demand for smartphones, tablets, laptops, televisions, and other electronic gadgets, which require a wide range of passive and interconnecting electronic components. According to the GSMA Report 2023, smartphone adoption in China is expected to grow from 81% in 2022 to over 93% in 2030. As consumer electronics continue to evolve and innovate, the demand for components, such as resistors, capacitors, connectors, and PCBs, is expected to grow.
 

In North America, the passive and interconnecting electronic components market is experiencing growth owing to expansion of telecommunications networks, 5G deployment, and the Internet of Things (IoT) ecosystem which necessitate reliable passive and interconnecting components for data transmission, network connectivity, and wireless communication infrastructure. As telecommunications companies upgrade their networks and invest in new technologies, there is a growing demand for advanced electronic components to support these initiatives. Moreover, U.S. aerospace and defense industry is a major consumer of passive and interconnecting electronic components for applications such as avionics, navigation systems, radar systems, communication systems, and missile guidance systems. With ongoing military modernization programs, space exploration initiatives, and commercial aerospace projects, the demand for high-performance electronic components is expected to increase.
 

The Japanese government promotes technological innovation and supports domestic industries through various initiatives, including research grants, subsidies, and collaboration programs. Government-led projects in areas such as smart cities, healthcare technology, and energy efficiency drive the demand for electronic components. Additionally, policies aimed at strengthening supply chain resilience and promoting local manufacturing contribute to the growth of the market in Japan.
 

In South Korea major companies like Samsung, LG, and SK Hynix drive innovation in the semiconductor and electronics industries, creating a high demand for advanced passive and interconnecting electronic components. The continuous development and production of cutting-edge devices such as smartphones, tablets, and other consumer electronics fuel this market's growth. South Korea's consumer electronics market is thriving, with significant contributions from both domestic consumption and global exports. The demand for smart TVs, wearable devices, home appliances, and gaming consoles is continuously rising. This growth necessitates a steady supply of passive and interconnecting components to ensure the functionality and performance of these high-tech products.
 

Passive and Interconnecting Electronic Components Market Share

Murata Manufacturing Co., Ltd. and TDK Corporation hold a significant share of over 3% in the passive and interconnecting electronic components market. Murata Manufacturing Co., Ltd. dominates the market due to several factors. Firstly, it boasts a diverse product portfolio comprising capacitors, inductors, filters, and connectors, meeting various industry needs. Secondly, Murata emphasizes innovation, continuously introducing cutting-edge technologies and products. Thirdly, its strong global presence and distribution network ensure widespread availability and customer support. Finally, Murata's reputation for reliability, quality, and customer satisfaction further solidifies its position as a market leader in this segment.
 

TDK Corporation secures a significant market share in passive and interconnecting electronic components due to several key factors. Firstly, it boasts a comprehensive product lineup encompassing capacitors, inductors, sensors, and connectors, catering to diverse industry demands. Secondly, TDK prioritizes research and development, consistently introducing innovative solutions and technologies. Thirdly, its extensive global presence and distribution network ensure efficient supply chain management and customer support. Lastly, TDK's reputation for quality, reliability, and technological leadership further solidifies its market position.
 

Passive and Interconnecting Electronic Components Market Companies

Major players operating in the passive and interconnecting electronic components industry are:

• Murata Manufacturing Co., Ltd.
• TDK Corporation
• TE Connectivity Ltd.
• AVX Corporation
• Amphenol Corporation
• Vishay Intertechnology, Inc.
• Samsung Electro-Mechanics Co., Ltd.
   

Passive and Interconnecting Electronic Components Industry News

• In October 2023, TDK Corporation launched the PLEA85 series of high-efficiency power of high-efficiency power inductors to extend the operating times of battery-powered wearables and other devices. The series has a low profile due to the use of TDK’s low-loss magnetic material and its thin-film processing techniques. The PLEA85 series, with dimensions of only 1.0 mm (L) x 0.8 mm (W) x 0.55 mm (H), allows engineers to fully utilize low-profile Integrated Circuits (ICs), such as CSP, by downsizing their designs. The bottom electrode and partially L-shaped form on the side make it appropriate for high-density surface mounting, help suppress misplacement during mounting, and improve terminal strength, helping produce a more durable final product.
   
• In March 2023, Murata Manufacturing Co., Ltd. established a 200-mm mass production line in Caen, France, for Silicon Capacitor manufacturing. The line is based on 200 mm wafers, focusing on the latest PICS technology, which has higher performance on electrical characteristics. These products primarily target the mobile handset market with high performances and capacitance values in super small sizes and thicknesses as low as 40 µm.
   

The passive and interconnecting electronic components market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion and Units) from 2021 to 2032, for the following segments:

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Market, By Type

• Passive
  • Resistors
  • Capacitors
  • Inductors
  • Transformers
  • Others
• Interconnecting
  • PCB
  • Connectors
  • Switches & relays
  • Others

Market, By Application

• Consumer electronics
• Automotive
• Healthcare
• IT & telecom
• Industrial
• Aerospace & defense
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA