Active Electronic Components Market Size, Share & Trends Analysis Report By Product Type (Semiconductor Devices, Vacuum Tubes, Display Devices), By End-user (Consumer Electronics, Automotive), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global active electronic components market size was valued at USD 304.30 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 6.6% from 2023 to 2030. Active electronic components are incorporated into circuits to amplify electrical input signals and generate electricity. These components can act as AC circuits in electronic equipment, increasing power and voltage. All active components require an energy source, usually derived from a DC circuit. Increasing demand for active electronic components in numerous sectors and widespread usage of connected devices are some of the reasons driving this market’s growth.

The increasing popularity of smartphones, laptops, and other wearable devices, as well as increased industrial automation, has raised the demand for active electronic components. The global market benefits from increased demand for active electronic components in the healthcare and automotive industries owing to the fast use of MEMS technology. One of the most significant advantages of active electronic components is the ability to manage tiny inputs of electricity to match a greater power output. The most active components are semiconductors such as diodes, transistors, and integrated circuits.

The automotive industry is undergoing fast change, and there is a rising market for electric vehicles, thus increasing global adoption of different autonomous vehicle technologies. Numerous vehicle applications use the above-mentioned technologies, including parking assistance, safety airbags, telematics, and navigation. Additionally, a considerable rise in consumer smartphone use is anticipated to fuel the booming electronic components market's expansion throughout the projected years.

The growth is expected to be further driven by the probable introduction of active electronic components to produce network and communication equipment for 5G infrastructure. As a result, it is anticipated that the high demand for these systems will fuel the growth. To attract more customers, automotive manufacturers worldwide are concentrating on integrating numerous electronics and technology into their products. The growing popularity of premium and ultra-luxury automobiles significantly impacts the automotive active electronic components industry.

In July 2022, NXP Semiconductors announced a collaboration agreement with Hon Hai Technology Group to create platforms for a new generation of smart connected automobiles. Hon Hai, an electronics manufacturer and technology solution provider, aims to leverage NXP's automotive technology portfolio and long-standing experience in safety and security to offer architectural innovation and platforms for electrification, connectivity, and safe autonomous driving which in turn will drive the demand of active electronic components in the automotive industry.

COVID-19 Impact

The COVID-19 pandemic significantly affected market capacity in the component supply chain. Wuhan, a Chinese city at the epicenter of the COVID-19 epidemic, is home to various electrical and mechanical providers. Because the region was under lockdown, industries could not operate at full capacity. Furthermore, the virus's proliferation throughout China had a severe influence on a variety of businesses. Because of the widespread distribution of COVID-19, component shortages have increased.

Parts could not be manufactured or exported from several countries such as Malaysia, the Philippines, or Indonesia. As a result, OEMs all over the world were unable to import and produce their products. France, the U.S., Germany, Iran, Korea, Spain, Italy, and China were among the worst-affected nations in terms of growing COVID-19 cases and reported deaths as of March 2020. Adopting lockdowns, travel restrictions, and corporate closures caused a significant fall in the growth curve of numerous economies worldwide.

The epidemic is still causing havoc in all aspects of the supply chain, including the components market. The advancement of technologies such as artificial intelligence, 5G, and cloud computing continues to allow and drive demand in various industries, including consumer electronics, automotive, healthcare devices, and industrial and energy items. At the same time, virus outbreaks continue to damage many semiconductor firms, those that are part of the semiconductor ecosystem, and many other essential components. Government rules requiring decreased workforces or temporary shutdowns aggravated labor shortages, constraining components, and part supply.

Product Type Insights

The semiconductor segment dominated with a revenue share of 57.5% in 2022 and is also anticipated to witness the fastest CAGR of over 7.0% during the forecast period. ICs, the sub-segment of semiconductor devices, dominated the overall market with a revenue share of 55.3% in 2022 and is also to witness the fastest CAGR of over 8.1% in the forthcoming years. A semiconductor substance exists between the insulator and the conductor, which controls and regulates the current flow in electrical devices and equipment. As a result, it has become an essential component of electronic chips used in computing components and various electronic devices, such as solid-state storage.

An SMD (Surface Mount Device) Electronic Component made of multiple transistors, diodes, resistors, and capacitors in a tiny semiconductor chip are an Integrated Circuit (IC). ICs, or Integrated Circuit Electronic Components, are small and light, providing more significant outcomes while using less power. An Integrated Circuit (IC) is the integration or assimilation of several electronic components (primarily transistors) on a chip (or single device) constructed of semiconductor material. ICs are extensively utilized in various applications such as televisions, mobile phones, laptops, audio players, routers, etc.

End-user Insights

The consumer electronics segment held the largest revenue share of 31.1% in 2022. It is expected to grow at the fastest CAGR of over 7.0% during the forecast period. The expansion is primarily due to rising demand for semiconductor devices for various consumer electronics such as digital cameras, mobile phones, gaming devices, wearable devices, Set-Top Boxes (STB), and others. Moreover, networking equipment such as modems, routers, repeaters, and gateways are in great demand, especially in the office automation and home application segments. Active electronics components are predicted to increase over the forecast period due to increased demand for network devices and other IT equipment.

In June 2022, Nokia Corporation, a Finland-based telecommunication, IT, and consumer electronics company, launched a new Fiber-ToThe-Home (FTTH) kit to help service providers deliver fiber networks to rural regions in the U.S. The package contains all the equipment and licenses for the operator to set up a standard 1,000-home community. The package includes active equipment for the central office (OLT or the optical line terminal), a fiber termination device for the home (ONT or the optical network terminal), and Wi-Fi modules inside the house. Over a single port, the kits support GPON and XGS-PON.

The automotive segment is anticipated to grow at a considerable CAGR of 7.2% throughout the forecast period. Automotive manufacturers worldwide focus on integrating various electronics and technology to attract customers. The increasing popularity of premium and ultra-luxury vehicles has considerably influenced the automotive active electronic components market.

Vehicles' reliance on electronic components and safety systems has grown significantly in recent years, resulting in increased use of electronic components in vehicles. Electronic components are frequently used to increase the functioning and efficiency of powertrain systems. These components let an automobile's powertrain systems exchange messages and sensor signals while also managing their operations. In powertrain systems, turbine speed, transmission fluid temperature, and throttle position sensors are all used.

Regional Insights

Asia Pacific held the leading revenue share of 54.5% in 2022. Asia Pacific dominates the global electronics sector and is regarded as a manufacturing powerhouse for consumer electronics. Due to a variety of favorable factors, including relatively lower labor costs, the availability of a large pool of highly skilled workers, rising foreign direct investments, government initiatives supporting the production of electronic components, and preferential trading access to Europe and North America, Asia Pacific has emerged as the most prominent electronics manufacturing and exporting region.

China, India, Vietnam, and Malaysia are among the leading Asia Pacific economies helping to drive the region's electronics sector growth. Over the projection period, these economies will likely strengthen their position in the semiconductor sector and grow their share of the worldwide market.

North America is anticipated to grow at a considerable CAGR of 6.3% throughout the forecast period. In North America, the adoption of connected cars is gaining significant traction, particularly in the U.S. Leading telecom services providers, such as Verizon Inc. and AT&T Inc., are investing aggressively in deploying the next-generation 5G network infrastructure to provide unified connectivity between vehicles and the network infrastructure.

The outbreak of the COVID-19 pandemic may have delayed the industrial deployment of 5G in the U.S. But the U.S. government is trying to overcome this delay by investing aggressively in rolling out highly efficient network infrastructure and building smart cities. As such, the installation of telecom equipment and other networking devices is expected to gain traction in line with the unabated rollout of 5G network infrastructure across North America, thereby driving the growth of the North America active electronic components industry over the forecast period.

Key Companies & Market Share Insights

The market is fragmented and is anticipated to witness increased competition due to several players' presence. Major players are spending heavily on research and development activities to integrate advanced technologies in active electronic components used for consumer electronics. Automotive has intensified the competition among these players. The key players in the active electronic components industry include Samsung Semiconductor, Inc.; Qualcomm Inc.; SK Hynix Inc.; Intel Corporation; and Broadcom Inc. These prominent players are pursuing various strategic initiatives, including mergers & acquisitions and new product launches, to strengthen their foothold in the market, capture a significant market share, and improve overall profitability. Some prominent players in the global active electronic components market include:

• 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

• Toshiba Corporation

Recent Developments

• In June 2023, 5G Radios Shrinked with NXP’s New Top-Side Cooling for RF Power, New top-side cooling packaging technology for RF power enables smaller, thinner and lighter radio units, supporting quick and easy deployment of 5G base stations.

• In June 2023, STMicroelectronics launched a group of octal high-side switches combined with galvanic isolation for increased robustness. An RDS(on) of less than 260 mΩ improves energy efficiency and protection diagnostics enable reliability and troubleshooting.

• In June 2023, Onsemi collaborated with Unikie and CoreHW and introduced an end-to-end positioning system that enables the simpler and faster development of more accurate, cost-effective, and power-efficient asset tracking solutions.

• In June 2023, Qualcomm announced a new satellite IoT solution enabling uninterrupted remote monitoring and asset tracking.

• In May 2023, NIO and NXP Collaborated on 4D Imaging Radar Deployment. NXP's imaging radar technology enables NIO to significantly improve sensor resolution, extend detection range and enable the highest levels of autonomous driving.

• In April 2023, Infineon Technologies AG announced The industry's first LPDDR memory to enable next-generation automotive E/E architectures. Infineon's SEMPER™ X1 LPDDR Flash provides secure, reliable, and real-time code execution, which is critical for automotive domain and zone controllers.

• In April 2022, Intel Joined MITRE Engenuity’s Semiconductor Alliance to accelerate research, development, and prototyping of semiconductors.

• In March 2023, Onsemi launched an ultra-low-power, automotive-grade wireless microcontroller with Bluetooth Low Energy connectivity.

• In January 2023, Renesas announced a new automotive intelligent power device (IPD) that safely and flexibly controls power distribution in vehicles to meet the requirements of next-generation E/E (electrical/electronic) architectures.

Active Electronic Components Market Report Scope

Global Active Electronic Components Market Segmentation

This report forecasts market revenue growths at global, regional, as well as at country levels and offers an analysis of the qualitative and quantitative industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global active electronic components market report based on product type, end-user, and region:

• Product Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Semiconductor Devices

    • Diode

    • Transistors

    • Integrated Circuits (ICs)

    • Optoelectronics

  • Vacuum Tube

  • Display Devices

  • Others

• End-user Outlook (Revenue, USD Million, 2017 - 2030)

  • Consumer Electronics

  • Networking & Telecommunication

  • Automotive

  • Manufacturing

  • Aerospace & Defense

  • Healthcare

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia-Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa