As the world is heading swiftly towards digitalization with advanced technology, the global market for active electronic components is witnessing rapid growth in the last few years.
Researchmoz provides key insights into the global active electronic components market including trends, drivers, and restraints of the market.
The global active electronic components market is expected to expand at a CAGR of 8.4% between 2019 to 2027.
The trends in the active electronic components market are witnessing growth, owing to a surge in the demand for consumer goods such as laptops, smartphones, smart wearables, gaming consoles, and other advanced devices. Further, the world moving towards 5G networks is also driving the market growth. The key players in the global active electronic components market are quickly leveraging the latest technology to gain market share and increase their profitability.
Factors Driving and Restraining the Market
Some of the major factors that are driving the global active electronic components market are-
- Automotive Sector: The increasing demand for electric and connected vehicles with embedded GPS, drivers’ assistance, telematics, and digitalized parking is paving the way for the expansion of the active electronic components market. The automotive giants are heavily investing in electric car manufacturing to meet the rising demand for the same, and to cater to the needs for 5G infrastructure the telecom players are spending on the active electronic components.
- Consumed Goods: Since the advent of technology, digital products and services have become a part and parcel of every household. The rising sales of smartphones, laptops, tablets, etc. are attributed to the market growth. The onset of covid- 19 pandemic has played a significant role in the demand for phones, laptops, and tablets as not only the work population that are working from remote, even the schools are operating online. This has risen the demand for routers, high bandwidth, and networking devices, thus taking the market growth of active electronic components to newer heights. Also, the market for energy-efficient and sustainable power to attribute towards the growth of the active electronic component market.
Although there are several factors that contribute to the expansion of the active electronic components market, there are a few factors that may hinder the growth to some extent:
Trade Relationship between U.S.A and China: China happens to be the largest exporter of active electronic components, however, there is a trade conflict between China and the U.S.A with regard to imports, and this might hinder the growth of the global active electronic components market to some extent.
However, the good news is the availability of state-of-the-art healthcare facilities and remote patient handling by the clinics and wellness houses is projected to spur the demand for the active electronic components.
The global active electronic components market is definitely expecting a boom in the coming years, thanks to the availability of advanced technology and consumers’ increased purchasing power. Several factors including the government’s spending on military intelligence and navigation, and investments in smart city projects are likely to augment the active electronic components market in the near future. Of all, the semiconductor market is likely to dominate due to the surge in sales of consumer goods and 5G enabled devices.
The market will witness the entry of new players to cash in on the market growth and widen their market presence.
The global active electronic components market is highly fragmented with severe competition among the key players. Several players are focused on mergers and acquisitions to expand their product range and capitalize on market presence. While some other players looking to launch innovative products using technology to the best. Also, many companies are setting up new facilities in new regions to leverage geographical expansion. For instance, Diotec Corporation is setting up new facilities to start the manufacturing of electronic components. Some of the prominent players include-
- Texas Instruments, Inc.
- Maximum Integrated
- Analog Devices, Inc.
- Qualcomm, Inc.
- Broadcom, Inc.
- Microchip Technology, Inc.
- Monolithic Power Systems, Inc.
- Infineon Technologies AG
- Toshiba Corp.
- Intel Corp.
- NXP Semiconductors NV.
- The global active electronic components market is projected to grow at a CAGR of 8.4% during the forecast period 2019 to 2027
- The global market is expected to register significant growth due to the rising trends in the demand for smartphones, smart wearables, and many market players trying to establish manufacturing units for active electronic components.
- Rising demand for electric and crossbreed vehicles is expected to boost the market to a great extent in the near future. The automotive industry is said to be largely focussing on electric and autonomous vehicles.
- The growing need for 5G enabled devices and infrastructure is likely to have a positive impact on the global active electronic components market during the forecast period 2019 to 2027
- The trade relations between China and the U.S.A may hamper the market growth.
- Among all the segments, the semiconductors segment is projected to register the highest growth in the active electronic components market during the forecast period.
- Major players in the market are expected to strengthen their business ties via mergers, acquisitions and collaborations
End-user Disposition (Revenue, USD Billion, 2019 – 2027)
- Consumer Electronics
- Networking & Telecommunications
- Défense and Aerospace
Product Disposition (Revenue, USD Billion, 2019 – 2027)
- Semiconductor Devices
- Integrated Circuits (ICs)
- Vacuum Tubes
- Display Devices
Regional Disposition (Revenue, USD Billion, 2019 – 2027)
- North America
- Asia Pacific
- South Korea
- Latin America
- Middle East & Africa (MEA)