The size of the worldwide market for electronic components, estimated at USD 192.22 billion in 2022, is projected to increase at a CAGR of 7.8% from 2023 to 2032, reaching USD 369.1 billion by 2032, according to Adroit Market Research.
Rapid technical breakthroughs and the ongoing need for smaller, more feature-rich, and efficient electronic gadgets have created a vibrant and fiercely competitive market for electronic components.
Innovation and miniaturization are important forces in this dynamic environment, propelling the creation of cutting-edge components that stretch the limits of electronics. The electronic component market continues to be a vital centre for innovation, influencing the course of the larger electronics industry as the demand for smart devices, automation, and connectivity rises. The innovative innovations that define the present period are made possible by this market, which highlights its vitality.
Throughout the course of the projection, the active segment is anticipated to take the biggest market share. A number of industries, including consumer electronics, automotive, telecommunication, industrial automation, and others, are using active components more frequently, which is responsible for the segment’s rise. In addition, the increasing number of product releases is anticipated to fuel market expansion.
It is anticipated that during the course of the projected period, the communication category will gain a sizeable market share. Due to technical advancements like Voice over the Next Generation (LTE/4G) and 5G, which will eventually replace 4G, it is anticipated that the utilization of electronic gadgets in the telecommunications sector would increase throughout the projected period.
Applications in the telecommunications industry include base stations, mobile phones, landlines, remote controllers, network equipment, and set-top boxes. Furthermore, the telecom sector is employing an increasing number of electronic components due to the considerable growth of the smartphone business and the ensuing rise in the mobile handset market. It follows that these variables are anticipated to drive the market for the duration of the forecast timeframe.
Asia Pacific is expected to lead the market over the forecast period of time. This results from low production costs in this region, cheap labor, and easy access to raw resources. Furthermore, the Asia Pacific region’s high demand for consumer electronics created in China and India in particular has led to a steady expansion of the market for passive and linking electronic components. As living standards have improved and income levels have grown, the nation has witnessed a dramatic growth in demand for computers as well as other electronic gadgets, including mobile phones, LED displays, and multipurpose processors. Additionally, low-cost consumer electronics made in China are gaining popularity outside. To aid in the production of electronic components, the Chinese government has traditionally encouraged the creation of industrial parks in Chinese cities and sponsored research and development (R&D) projects.
October 2023.Samsung Foundry reports that 3nm GAA transistors will be produced in large quantities. Future chip prices and competitiveness may be impacted by this breakthrough, which offers significant performance and efficiency gains for next-generation chips.
Tensions in the US-China trade marginally ease. Though worries still exist, better ties may stabilize supply chains and lessen component shortages.
November 2023. Chip companies release impressive Q3 results: TSMC and Intel exhibit endurance in the face of persistent obstacles, suggesting that the business is still viable.
Growing AIoT market. There is a growing need for low-power, miniature electronic components due to the growing usage of AIoT devices.