Active Electronic Components Market Size, Share & Trends Analysis Report By Product Type (Vacuum Tubes, Semiconductor Devices), By End User (Automotive, Consumer Electronics), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global active electronic components market size was valued at USD 273.7 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 9.2% from 2021 to 2028. The rapidly growing demand for consumer electronics devices, such as smartphones and laptops, is the major factor driving the market. Active electronic components are the integral components of telecom equipment and other networking devices that need an energy source to perform an assigned task. The increasing demand for high bandwidth with low latency among consumers has enabled telecom operators, especially in emerging economies like India, to deploy next-generation 5G network infrastructure. This, in turn, will augment the demand for new IT and telecom equipment, thereby increasing product adoption.

The COVID-19 pandemic has had a substantial impact on the passive and interconnecting electronic components manufacturing industries across the globe. Countries, such as China, Germany, the U.S., Japan, and South Korea, had a significant number of COVID-19 cases compelling the governments to impose restrictions, such as lockdown in highly-affected cities, sealing international borders for trades, and allowing companies to provide employees work-from-home facilities. Fall in production and exports of electronics components, due to the temporary shutdown of production facilities and international borders, significantly affected the overall market growth in Q1 and Q2 of 2020.

Growing automation in the automotive sector has increased the demand for various electronic devices, such as driver assistance systems, DC to AC converters, controllers, power integrated devices, telematics, and Global Positioning Systems (GPS) among others. These devices are widely used in Electric Vehicles (EVs) and autonomous vehicles. Hence, the growing demand for electric cars is estimated to spur product adoption over the forecast period. With the advent of connected technologies, the manufacturing industry is rapidly transforming.

These connected devices help manufacturing facilities increase overall productivity and operational efficiency by delivering ease of operability and reducing the overall downtime. Moreover, with the evolution of industry 4.0, various manufacturing companies are embracing digitalization to streamline operational processes through remote monitoring. Hence, the rising deployment of connected devices across manufacturing facilities is expected to drive the market over the coming years.

Active electronic components have always been integral to defense applications for intelligence gathering, navigation, and communication establishment. Increased defense spending in key countries including the U.S., India, and China will also support the market growth. For Instance, the overall defense spending proposed by the U.S. federal government was around USD 686 billion in 2019.

China is one of the prominent electronics exporters and the U.S. is the major importer from China. However, in 2018, the U.S. levied around 25% import tariffs on Chinese electronics. Therefore, the trade conflicts between the two economies are likely to hinder market growth to some extent. Furthermore, high labor costs in the manufacturing sector across developed countries, such as the U.S., the U.K., and Germany, are anticipated to limit the market growth.

Product Type Insights

In 2020, the semiconductor devices segment held the highest revenue share of over 62% and is estimated to expand further at the fastest CAGR from 2021 to 2028. The segment growth is attributed to the robust adoption of semiconductor devices across several applications including household appliances, mobile phones, Personal Computers (PCs), and network equipment among others. Also, the prevailing trend of miniaturization and developing energy-efficient systems is having a positive impact on the demand for semiconductor devices and related components.

Over the past few years, smartphones have witnessed a massive rise in demand, especially across emerging economies. Also, the demand for 5G chipsets is progressively increasing in the developed economies with the introduction of 5G-enabled smartphones and budding demand for car automation systems and telecom equipment. Therefore, with the increasing production of 5G chipsets, it is presumed that the IC segment may register strong growth during the forecast period. Moreover, the growing investments by market players, such as Intel Corporation and Infineon Technologies AG, in the development of high-processing microchips or microprocessors are estimated to surge the product demand in the IC segment.

End-user Insights

The consumer electronics segment led the global market in 2020 accounting for the highest revenue share of over 33%. The segment is expected to expand further at the fastest CAGR of more than 10% over the forecast period. The growth is primarily attributed to the increasing demand for semiconductor devices for various consumer devices, such as mobile phones, digital cameras, Set-Top Boxes (STB), wearable devices, gaming devices, and others. Furthermore, the demand for networking devices, such as routers, modems, gateways, and repeaters, is increasing, especially in office automation and residential application segments. Thus, with the growing demand for network devices and other IT hardware, the adoption of active electronics components will increase over the forecast period.

With the rising consumer interest in autonomous vehicles, prominent OEMs, such as Waymo, Ford Motor Company, Tesla, Inc., and Volkswagen Group, is deploying autonomous systems in their newly manufactured vehicles. Therefore, demand for these systems is expected to increase product consumption in the automotive segment. Moreover, the adoption of the connected technology for remote patient monitoring coupled with the demand for advanced medical equipment is expected to boost product usage in the healthcare end-user segment over the forecast period.

Regional Insights

In 2020, Asia Pacific held the highest revenue share of over 57% and is estimated to exhibit the fastest CAGR from 2021 to 2028. The market growth in APAC is credited to the presence of a huge consumer electronics sector in the region. It is house to leading consumer electronics manufacturers, such as Samsung Electronics Co., Ltd., BBK electronics (Includes brands such as Vivo, Oppo, Realme), and Xiaomi Corp. Moreover, the demand for several industrial automated systems, including Programmable Logic Controllers (PLCs) and Supervisory Control and Data Acquisition (SCADA) that are designed with electronics systems, is significantly increasing in emerging countries, such as India, China, and South Africa. This, in turn, will drive the product demand in the region.

North America is estimated to be the second-largest regional market over the coming years. With the booming trend for connected cars in the U.S., key telecom giants, such as Verizon Inc. and AT&T Inc., are investing huge amounts in the deployment of the 5G network infrastructure. These next-generation 5G mobile networks are anticipated to provide seamless connectivity to vehicles with infrastructures across the country. In addition, the U.S. government is investing heavily in the development of smart cities across the country. Thus, the deployment of the 5G network infrastructure is anticipated to increase the number of new installations of telecom equipment and other networking devices, thereby driving market growth in the country.

Key Companies & Market Share Insights

Key players are highly focused on launching new products to gain a significant market share and enhance their overall profitability. For instance, in September 2019, NXP Semiconductors N.V. introduced a secure fine-ranging chipset, ‘SR100T’. This chipset is mainly designed for next-generation Ultra-Wide Band (UWB)-enabled mobile devices to provide highly accurate positioning performance. However, some players are focusing on mergers and acquisitions to strengthen their overall market presence. For instance, in June 2019, Infineon Technologies AG acquired Cypress Semiconductor Corp. to strengthen its product offering and market position. Some of the prominent players in the global active electronic components market include:

• Infineon Technologies AG

• NXP Semiconductors NV

• Texas Instruments, Inc.

• Toshiba Corp.

• Intel Corp.

• Maxim Integrated

• Broadcom, Inc.

• Qualcomm, Inc.

• Analog Devices, Inc.

• Advanced Micro Devices

• Microchip Technology, Inc.

• Monolithic Power Systems, Inc.

Active Electronic Components Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global active electronic components market report on the basis of product type, end-user, and region:

• Product Outlook (Revenue, USD Billion, 2017 - 2028)

  • Semiconductor Devices

    • Diodes

    • Transistors

    • Integrated Circuits (ICs)

    • Optoelectronics

  • Vacuum Tubes

  • Display Devices

  • Others

• End-user Outlook (Revenue, USD Billion, 2017 - 2028)

  • Consumer Electronics

  • Networking & Telecommunication

  • Automotive

  • Manufacturing

  • Aerospace & Defense

  • Healthcare

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa (MEA)