Electronic Components Market

The global electronic components market size was valued at USD 233.61 billion in 2024 and is projected to reach approximately USD 405.30 billion by 2032, growing at a CAGR of 7.13% during the forecast period from 2024 to 2032. Asia Pacific is expected to dominate the electronic components market from 2024 to 2032, driven by the rapid growth in the automotive and communication sectors in this region.

Key Takeaways:

• Leading Region: Asia Pacific is anticipated to capture the largest market share in the electronic components market during the forecast period.
• Top Segment by Type: The active segment is expected to hold the largest market share over the forecast period.
• Fastest Growing Application: The automotive segment is forecasted to grow at the highest CAGR in the electronic components market from 2024 to 2032.

Segmentation Analysis

By Type:

• Active Components:
  • Active components are anticipated to dominate the electronic components market, driven by their crucial role in converting electrical energy into other forms of energy. They include components like transistors, integrated circuits, diodes, and semiconductors, which are widely used in modern electronic devices.
  • The increasing demand for consumer electronics, advanced automotive systems, and telecommunication devices is a major growth factor for active components.
• Passive Components:
  • Passive components, such as resistors, capacitors, and inductors, play a significant role in storing energy in the form of electric fields or magnetic fields.
  • The growing adoption of passive components in power distribution and electronic circuit applications is expected to support steady growth in this segment.
• Electro Mechanic Components:
  • Electromechanical components, which include relays, switches, and connectors, are essential for applications requiring mechanical movement to perform electronic operations.
  • The segment’s growth is driven by its extensive use in automation and control systems across various industries, including automotive, industrial machinery, and consumer electronics.

By Application:

• Automotive:
  • The automotive segment is expected to grow at the highest CAGR, driven by the increasing integration of electronic components in modern vehicles for advanced driver-assistance systems (ADAS), electric vehicle (EV) components, infotainment systems, and connectivity features.
  • Rising demand for electric and hybrid vehicles is significantly boosting the adoption of electronic components in the automotive industry.
• Communication:
  • The communication segment includes components used in telecommunications infrastructure, mobile devices, and wireless communication technologies.
  • Growth in this segment is supported by the expansion of 5G networks and increasing demand for smartphones and other connected devices.
• Computing:
  • The computing segment comprises components used in computers, laptops, servers, and data centers.
  • Increasing investments in cloud computing, artificial intelligence (AI), and data processing capabilities are driving the demand for electronic components in this segment.
• Industrial:
  • The industrial segment is seeing robust growth due to the adoption of automation and Industry 4.0 technologies, which require reliable and efficient electronic components for machinery, robotics, and control systems.
  • Companies are increasingly investing in digital transformation and smart manufacturing, leading to higher demand for electromechanical and passive components.

Regional Insights

Asia-Pacific:

• Dominant Market Position: Asia-Pacific is expected to lead the global electronic components market from 2023 to 2032, driven by its strong manufacturing base and significant presence of key electronic component manufacturers in countries like China, Japan, South Korea, and Taiwan.
• Growth Drivers: The region’s growth is fueled by increasing investments in industrial automation, the expanding automotive industry, and the rising demand for consumer electronics like smartphones, laptops, and wearable devices.
• Key Markets: China and India are key markets within this region, with growing production capacities and government support for technology and manufacturing sectors.

North America:

• Technological Innovation Hub: North America is known for its innovation in electronic technologies, with high demand for components in sectors such as aerospace, defense, and telecommunications.
• Adoption of Advanced Technologies: The region’s market is also driven by the adoption of advanced technologies, including AI, IoT, and 5G networks, particularly in the U.S. and Canada.
• Automotive Growth: The increasing production of electric vehicles and the integration of smart electronics in the automotive sector are contributing to the region’s market expansion.

Europe:

• Focus on Sustainability: Europe’s electronic components market is growing steadily, with a strong emphasis on sustainability and energy-efficient technologies.
• Key Industries: The automotive sector in Germany, the telecommunications sector in the U.K., and the industrial automation sector across the region are significant contributors to the market.
• Regulatory Influence: Strict regulations regarding energy consumption and eco-friendly products are encouraging the adoption of advanced electronic components.

Latin America and Middle East & Africa:

• Emerging Markets: These regions are emerging markets for electronic components, with increasing investments in infrastructure and technological advancements.
• Growth Opportunities: Growing industrialization and urbanization, particularly in countries like Brazil, South Africa, and the UAE, are creating new opportunities for electronic component manufacturers.
• Telecommunications and Automotive: Rising demand for enhanced communication infrastructure and automotive components is further driving market growth in these regions.

Market Dynamics

Growth Factors:

• Demand for Advanced Technology Integration: The rapid advancements in technology, particularly in AI, machine learning, and IoT, have led to increased demand for electronic components in smart devices and industrial applications.
• Rise in Electric Vehicles (EVs): The growing automotive industry, particularly the rise of electric and autonomous vehicles, is significantly boosting the need for specialized electronic components for vehicle control systems and battery management.
• Industrial Automation: The shift towards Industry 4.0 and increased adoption of automation in manufacturing processes is propelling the need for electromechanic and active components.

Challenges:

• Supply Chain Disruptions: The global supply chain disruptions, caused by geopolitical tensions and natural disasters, have impacted the availability of raw materials and components, leading to delays in production and higher costs.
• High Costs of Advanced Components: The high costs associated with advanced electronic components, especially those used in cutting-edge technologies, can be a barrier for small and medium-sized enterprises in adopting these products.
• Counterfeit Products: The presence of counterfeit and low-quality products in the market poses a significant threat to manufacturers and end-users, affecting overall market credibility.

Opportunities:

• Expansion in Emerging Markets: The growing industrialization and technological adoption in emerging markets, such as Southeast Asia, Africa, and Latin America, present significant expansion opportunities.
• Miniaturization and Efficiency Improvements: Innovations in the miniaturization of components and improvements in their efficiency are opening new avenues for the development of compact and energy-efficient electronic devices.
• Green Technologies: The increasing emphasis on green and sustainable technologies is leading to higher demand for eco-friendly electronic components, particularly in Europe and North America.

Key Players:

Prominent players operating in the electronic components market include:

1. STMicroelectronics
2. Murata Manufacturing Co., Ltd.
3. Amphenol Corporation
4. Texas Instruments Incorporated
5. NXP Semiconductors
6. Kyocera Corporation
7. Omron Corporation
8. ABB Ltd.
9. ON Semiconductor
10. Infineon Technologies AG
11. TDK Corporation
12. Samsung Electro-Mechanics
13. Analog Devices, Inc.

Market Scope

Report Coverage:

Segments Covered in the Report

By Type

1. 1. Active
   2. Passive
   3. Electro Mechanic

By Application

• 1. Automotive
  2. Communication
  3. Computing
  4. Industrial
  5. Others

By Geography

• 1. North America
  2. Europe
  3. Asia-Pacific
  4. Latin America
  5. Middle East and Africa