The global electronic components market is estimated to be valued at US$ 498.34 billion in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
The electronic components market comprises various electronic devices that are essential for the functioning of electronic systems. These components include resistors, capacitors, transistors, diodes, integrated circuits, and others. They are widely used in industries such as automotive, consumer electronics, healthcare, aerospace and defense, and telecommunications. Electronic components play a crucial role in enhancing the performance and efficiency of electronic devices, making them an integral part of modern technology.
The increasing demand for consumer electronics, such as smartphones, tablets, laptops, and wearable devices, is one of the key factors driving the growth of the General Electronic Components Market. With advancements in technology and the rising disposable income of consumers, there is a growing demand for innovative and feature-rich electronic products. Additionally, the increasing penetration of the internet and the growing trend of IoT (Internet of Things) devices are further fueling the demand for electronic components.
B) Market Dynamics:
1. Driver: Rising demand for consumer electronics
The increasing adoption of smartphones, tablets, and other electronic devices is driving the demand for electronic components. Consumers today are constantly looking for technologically advanced and innovative products, which has led to the rapid growth of the consumer electronics industry. Electronic components, such as integrated circuits and microprocessors, are crucial for the functioning of these devices, thereby driving the growth of the market.
For example, the demand for high-performance processors and memory chips has increased with the growing popularity of smartphones and other smart devices. The advancements in display technologies, such as OLED and 4K displays, have also contributed to the demand for electronic components.
2. Opportunity: Technological advancements
The rapid technological advancements in the electronic components industry are creating new opportunities for market players. The development of miniaturized and high-performance components has revolutionized various industries, making electronic devices more compact, efficient, and powerful. The continuous innovation in electronic components, such as the introduction of 5G-enabled components and the integration of IoT capabilities, is opening up new avenues for market growth.
For instance, the advent of connected cars and smart homes has increased the demand for electronic components that can support advanced features like automated systems, wireless connectivity, and real-time data processing. This presents significant opportunities for electronic component manufacturers to develop and supply components that cater to these emerging trends.
C) Segment Analysis:
The electronic components market can be segmented based on component type, application, and region. By component type, the market is segmented into passive components, semiconductors, and optoelectronic components. Among these, the semiconductors segment is expected to dominate the market during the forecast period. Semiconductors are widely used in various electronic devices and systems, including smartphones, computers, and automotive electronics.
D) PEST Analysis:
– Political: The political stability of a country can have a significant impact on the electronic components market. Political unrest or conflicts in key manufacturing regions can disrupt the supply chain and affect the availability of components.
– Economic: The economic conditions of a country play a crucial role in the growth of the electronic components market. Stable economic growth, increased consumer spending, and favorable government policies can boost the demand for electronic components.
– Social: The increasing adoption of electronic devices and the growing trend of connected devices are the key social factors driving market growth. Changing consumer preferences and lifestyles also influence the demand for electronic components.
– Technological: Technological advancements, such as the development of advanced materials, miniaturization of components, and the introduction of new manufacturing techniques, are driving the growth of the electronic components market.
E) Key Takeaways:
– The global electronic components market is expected to witness high growth, exhibiting a CAGR of 6.8% over the forecast period, due to increasing demand for consumer electronics and technological advancements.
– Asia Pacific is expected to be the fastest-growing and dominating region in the electronic components market, driven by the presence of major manufacturing hubs and the rising demand for electronic devices in countries like China, Japan, and South Korea.
– Key players operating in the global electronic components market include Panasonic Corporation, Samsung Electronics Co. Ltd., Intel Corporation, Texas Instruments Incorporated, Toshiba Corporation, Sony Corporation, STMicroelectronics N.V., NXP Semiconductors N.V., Infineon Technologies AG, Broadcom Inc., Analog Devices Inc., Murata Manufacturing Co. Ltd., Vishay Intertechnology Inc., ON Semiconductor Corporation, and Renesas Electronics Corporation. These players focus on strategic initiatives such as partnerships, mergers and acquisitions, and product innovations to maintain their market position.