Active Electronic Components Market Growth |
The active electronic components market involves the manufacturing and sale of
semiconductors, transistors, and microchips that can actively amplify or switch
electronic signals. Some key products in this space include integrated
circuits, LEDs, sensors and optoelectronics. Active electronic components find
applications in various consumer electronics devices like smartphones,
computers, gaming consoles and industrial devices. Integrated circuits allow
manufacturers to pack more functions into smaller devices with lower power
consumption.
The Global Active Electronic Components Market is estimated to be valued at US$ 661.18 Bn in 2024 and is expected to exhibit a CAGR of 8.9% over the forecast period
from 2024 to 2031.
Key Takeaways
Key players operating in the Active
Electronic Components Market Growth are Infineon Technologies AG,
Advanced Micro Devices, Inc., STMicroelectronics N.V., Microchip Technology,
Inc., Analog Devices, Inc., Broadcom Inc., NXP Semiconductors N.V., Intel
Corporation, Monolithic Power Systems, Inc., Texas Instruments Incorporated,
Qualcomm Inc., Renesas Electronics Corporation, Semiconductor Components
Industries, LLC, and Toshiba Corporation.
Key players operating in the active electronic components market are focusing
on development of more efficient and compact components to meet the increasing
power and performance needs of applications. Companies are also investing in
new fabrication technologies like 7nm node for manufacturing integrated
circuits with greater transistor densities.
The growing demand for battery-powered portable consumer electronics is driving
the need for components with lower power consumption. With innovation in areas
like 5G, artificial intelligence and autonomous vehicles, applications
requiring high processing capabilities are rising rapidly.
Active electronic component manufacturers are expanding their global reach
through strategic partnerships and acquisitions. This allows companies to
address new markets, gain new capabilities and better serve customers across
major regions.
Market drivers
The rising demand for consumer electronics across the world is a key driver for
the active electronic components market. Advanced chips with more processing
power are fundamental to enabling technologies in smartphones, laptops,
wearables and other devices. Increasing digitization and internet penetration
are also driving the need for high-performance components in data centers,
networking infrastructure and communication applications. Furthermore, growth
in industries like automotive, healthcare, manufacturing and industrial
automation creates steady demand for sensors, power modules and other
specialized components. The advent of new paradigms like Industry 4.0 and the
industrial internet of things requires reliable electronic components for
implementation.
Impact of Geopolitical Situation on Active Electronic Component Market Growth
The Active Electronic Component Market is facing uncertainties due to the
geopolitical situation across various regions. The ongoing war between Russia
and Ukraine has disrupted the supply chains and trade relations between Europe
and Eastern markets. This is negatively impacting the demand and availability
of key raw materials for IC manufacturing in the European Union. Manufacturers
are facing higher costs and production issues.
Furthermore, the imposition of economic sanctions on China and Russia by
Western nations is affecting transnational collaborations and technology
transfers in the semiconductor sector. This leaves many companies with limited
options to expand manufacturing capacity and pursue global partnerships. The
fast changing policy scenarios have increased political and economic risks for
long term investments.
Some strategies that can be adopted to mitigate risks include diversifying
supplier networks across different geographic regions, developing alternate
local sourcing channels, building strategic inventories, and focusing on
security of intellectual property. Geopolitical stability and cooperative trade
policies between major economies will be critical for sustained market growth
in the coming years.
Geographical Regions with High Market Concentration
Currently, Asia Pacific has the highest market concentration for Active
Electronic Components in terms of value sales. This region accounts for over
40% of the global market revenue due to strong manufacturing hub presence in
countries like China, South Korea, Taiwan and Japan. The region is home to
leading foundries like TSMC and manufacturing operations of top chipmakers.
North America is the second largest regional market supported by semiconductor
design companies based in the United States. Meanwhile, Europe is working to
reduce dependence on Asian suppliers and boost domestic chip production through
new policy initiatives. Recovery of automotive demand post pandemic is also
driving market growth in Germany.
Fastest Growing Regional Market
The Active Electronic Component Market in Central and Eastern Europe is
anticipated to exhibit fastest growth through the forecast period supported by
ongoing investment programs. Countries like Poland, Czech Republic and Romania
offer competitive advantages of skilled workforce and proximity to Western
European markets. This makes the region an attractive investment destination
for global foundries and OSAT companies seeking to expand presence close to
end-use industries.