Passive and Interconnecting Electronic Components Market Size

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.

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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.