The global wirewound variable resistors market is expected to witness significant growth over the forecast period owing to rise in demand in varied application areas. Escalated demand for electronic devices and equipment can be attributed as a key factor for surges in demand. Most consumer electronics and commercial electronic equipment have inbuilt wirewound resistors to avoid damage owing to transfer of excess current. These resistors provide damage protection to electronic gadgets by resisting fluctuations in the flow of extra electricity near its threshold voltage. These find extensive applications in circuit breakers or as fuses. Owing to its high-power capabilities, these resistors are extensively used in circuit breaking applications. Such resistors can be used as components in large circuit breaking devices or may be used as circuit breakers themselves. By enhancing the inductive effect in these resistors, they can be used as current sensors as well as temperature sensors, ultimately augmenting its application areas. Markets of end-products such as electronic devices that use variable resistors are expected to gain traction over the forecast period.
High turnovers and replacements of home appliances and electronic devices such as LCD monitors, mobile phones, and digital cameras are instrumental in escalating the demand for resistors. Low technology barriers and an abundance of raw materials have accelerated the production of these resistors. An abundance of opportunities is drawing more vendors for investing in the wirewound variable resistors market. The existing market players are investing heavily in research and development activities to enhance the functionalities of wirewound variable resistors. Manufacturers have focused on developing small-sized resistors that can be easily mounted into smaller electronic equipment. Moreover, manufacturers are developing resistors with high-precision to provide greater reliability, multiple functioning, superior performance, and longer life span. Fewer technological barriers, low set-up costs, and initial investments have spurred many domestic and international vendors to invest in this market. This has made the wirewound variable resistors market highly competitive. In addition, aggressive export strategies have contributed remarkably to market augmentation.
Wirewound variable resistors can be categorized into two major types. It comprises precision and power resistors. Furthermore, they can be classified on the basis of applications. These resistors find applications in current sensors, potentiometers, and temperature sensors.
Adoption of alternative technologies such as chip resistors has caused a significant decline in demand for wirewound variable resistors. Easy entry of vendors into the market has given rise to cut-throat competition. The price competition has largely reduced the profit margins of wirewound variable resistors market players, subsequently declining their revenues. Furthermore, the market shares of existing players have gone down significantly. Prevailing pecuniary conditions have a direct impact on the market. Macroeconomic conditions such as the global recession and economic slowdown have adversely affected the market. Onset of financial crisis has led to a decline in the production capacities and has subsequently hampered the market growth. Moreover, counterfeit products have decelerated the market growth.
Geographically, the wirewound variable resistors market is expected to gain traction in the Asia Pacific region. Presence of several developing economies in the region is expected to drive the market. The availability of cost-efficient labor in countries such as India, Taiwan, and China is expected to bolster the market augmentation. Moreover, abundance of raw materials and their availability at economical rates have led to large-scale offshore manufacturing of these resistors. The presence of several electronics manufacturing companies in the Asia Pacific region has accelerated the demand for these resistors. The market is expected to gain prominence in the European region, especially in countries such as the UK and Germany. Rising proliferation of consumer electronics can be attributed as a major reason for market expansion in this region. Higher production capacities in countries such as the U.S. and Canada are expected to bolster the market growth in the North American region.
The key market players dominating the wirewound variable resistors market are 1-Source Electronic Components, ADI American Distributors Inc., Cougar Electronics Corp., Jameco Electronics, KRL Bantry Components, Inc., Mod-Tronic Instruments Ltd., Novotechnik U.S. Inc., Ohmite Manufacturing Co., Taiwan Volt Electronics Co., and Voltronics, Inc.
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The exponential spread of COVID-19 worldwide has had an adverse impact on the semiconductor industry with manufacturing facilities temporarily shut, leading to a significant slowdown in the production. The outbreak could result in disruption across the ecosystem with several supply chain participants shifting their production facilities outside China, thereby reducing their over-reliance on China. Lockdowns imposed by the governments in the wake of the Covid-19 outbreak has not only affected manufacturing but also hauled consumer demand for semiconductor devices. Our analysts predict a decline in semiconductor revenue by over 1% in 2020 as compared to that in 2019. The report will account for Covid19 as a key market contributor.