Integrated Passive Devices Market Size, Share & Trends Analysis Report By Application (EMS & EMI Protection IPD, RF IPD, LED Lighting, Digital & Mixed Signal IPD), By End-use, By Region, And Segment Forecasts, 2018 - 2025

Report Overview

The global integrated passive devices market size to be valued at USD 2.64 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 11.7% during the forecast period. The growing need for cost-effective and compact size electronics is anticipated to promote industry growth. The development of new materials and advanced integration technologies has contributed to the miniaturization of components to make systems more reliable and compact.

Industry players are emphasizing on introducing convenient fabrication methods such as wafer fabrication to commercialize these devices on a large scale for the purpose of accelerating their adoption across various applications. The application of these devices in IoT and implantable healthcare devices, among others, is expected to drive the demand for IPD-based technologies.

The use of LED products, due to their low power consumption, has accelerated their usage in electronic devices including hard drives, tablets, laptops, routers, and other applications such as healthcare and automotive. The use of RF IPDs facilitates wireless communication that is convenient and hassle-free.

Technologies such as wafer technology are gaining momentum as they deliver higher performance compared to the conventional Copper-Silicon IPD technology. The incorporation of wafer-based devices in electronics, owing to their cost-effectiveness, is expected to accelerate the industry growth over the forecast period. Other materials, such as gold-on-GaAs-based passive products, serve high-end healthcare applications, especially in implant devices.

Integrated Passive Devices Market Trends

The increased use of smart consumer handheld devices and other electronic products such as laptops, and mobile phones have increased the demand for integrated passive devices. The requirement for miniaturization of these devices is increasingly consistent, which is a major factor strengthening the demand for IPDsin the market. For instance, smartphones have witnessed a robust demand for these devices because many features need to be packed in a smaller package. This increased usage has been observed due to several benefits offered by the IPD such as decreased package footprint, enhanced performance, improved reliability, and simpler interconnection ability.

The application of IPD has strong penetration in the automotive and consumer electronics market to aid manufacturers by lowering system costs and compact footprint packaging. These aspects increase the usability of the IPD in different application areas thus, driving the market growth. The integration of IPD which offers performance and energy efficiency, has considerably impacted the growth of the market. Furthermore, the application of IPDs in the IoT, healthcare sector, and LED products due to their low energy consumption, has significantly escalated the sales of the integrated devices market.

The integration of IPD, offering performance and energy efficiency has tremendously increased the subscriptions in the AI and 5G terminal devices, providing an opportunity for market growth. As per the GSM Associations, the number of subscriptions for 5G has been anticipated to surpass USD 1.8 billion by the year 2025. This is expected to strengthen the opportunity for the suppliers and manufacturers to produce IPD energy-efficient 5G devices for the customers. Moreover, the rising demand for portable devices and equipment in the medical sector is expected to provide substantial growth opportunities for the key players to obtain a large share in the market thus, boosting the market growth.

The high cost of IPDs compared to other discrete components, is a major restraint affecting the growth of the market. Besides this, the cycle time for the designing products for the RF tuning of IPDs, is a major challenge as well as a restraint, limiting the growth of the market during the forecast period.

Application Insights

The LED lighting application segment is anticipated to emerge as the fastest-growing segment with a CAGR of over 14%. The growth is characterized by low power consumption and long-lasting performance of LEDs due to their silicon embedded IPD that eliminates the drawbacks of conventional lighting systems. The advantages include effective heat dissipation and high reliability.

EMS and EMI protection IPD is expected to dominate the market and was valued at USD 439.6 million in 2015. The use of these integrated passive components in mobile phones is a significant contributor to the growth of this segment. The products in EMS and EMI protection segments prevent transmission loss and improve signal reception and are presumed to grow remarkably over the next nine years.

End-use Insights

The automotive end-use segment dominated the overall industry and was valued at USD 276.8 million in 2015. The extensive use of integrated passive devices in-car electronics for wireless communication is expected to promote the growth in this segment.

Demand across the consumer electronics application segment is expected to energize the industry growth prospects over the forecast period. The segment is presumed to grow at a CAGR of over 13%. The increasing penetration of smartphones and other IoT devices is the prime factor responsible for integrated passive devices market expansion.

Additionally, technological advancements, such as reduced chip size, have enabled a reduction in the size of electronic devices, which contributes to the increasing adoption of consumer electronics such as mobile phones, LED television, tablets, and laptops.

Regional Insights

The European region dominated the market with revenue of more than USD 398 million in 2015. The growth is characterized by the presence of key vendors such as Infineon Technologies AG, STMicroelectronics, and IPDiA in this region that develop innovative products based on effective research and developments. Furthermore, the developments cater to various applications such as healthcare, automotive, and electronics, thereby attracting huge investments in this region.

Key Companies & Market Share Insights

Prominent players dominating the industry include STATS ChipPAC Ltd., ON Semiconductor, IPDiA, STMicroelectronics, Infineon Technologies AG, Amkor Technology, Inc., and TSMC Ltd.

Industry players are primarily emphasizing on developing sophisticated and innovative products and are significantly investing in research & development activities. The products include highly reliable discrete components that have higher operational efficiency and reduced losses.

Recent Developments

• The manufacturing of lowpower or energyefficient wireless IoT devices has facilitated the  efficientfunctioning of devices. , Recently, Johanson Technology has developed an Integrated Passive Device (IPD) for Semtech's SX1261, SX1262, and LLCC68 LoRa® transceivers.The goal behind this development is to ensure better radio frequency, better range, and signal stability. Hence, this development is expected to increase the demand for these devices in different application areas, thereby increasing the growth duringthe forecast period

• STMicroelectronics, an electronics and semiconductor manufacturing company, collaborated with Microsoft, an ST authorized company, for leading the development of the IoT devices. This collaboration has brought about security features, provided secure boot and storage, and fulfilled customer demands for efficient and trusted solutions. It is thus, expected to boost the growth of this market duringthe forecast period across several regions

• TSMC (Taiwan Semiconductor Manufacturing Company) and Amkor Technology Inc., one of the largest suppliers of the semiconductor industry,collectively outsource and process IPD chips for the new Apple devices. Recently, Apple is expected to enhance the adoption of IPD (integrated passive devices) for introducing their new iPhones and, other products to their customers. This is expected to provide ample opportunities for the manufacturers, to tap a large share of the market, leading to growth duringthe forecast period

Some of the key players operating in the global integrated passive devices market include:

• STATS ChipPAC Ltd.

• ON Semiconductor

• STMicroelectronics

• Infineon Technologies AG

• Amkor Technology, Inc.,

• TSMC Ltd.

Integrated Passive Devices Market Report Scope

Global Integrated Passive Devices Market Segmentation

This report forecasts revenue growth at global & regional levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global integrated passive devices market on the basis of application, end-use, and region.

• Application Scope (Revenue, USD Million; 2014 - 2025)

  • EMS and EMI protection IPD

  • RF IPD

  • LED lighting

  • Digital & mixed-signal IPD

• End-use Scope (Revenue, USD Million; 2014 - 2025)

  • Automotive

  • Consumer electronics

  • Healthcare

  • Others

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

  • Europe

  • Asia Pacific

  • Rest of the World (RoW)