Radio Frequency (RF) Components Market Size, Share & Trends Analysis Report By Product (Power Amplifier, Filters, Duplexer), By Application (Consumer Electronics, Military, Automotive), And Segment Forecasts, 2019 - 2025

Industry Insights

The global radio frequency components market size was valued at USD 18.06 billion in 2018 and is expected to ascend at a CAGR of 14% from 2019 to 2025. Continuous innovations and advancements in mobile handset technology owing to continuing transition from 2G, 3G to 4G/LTE, LTE-Advanced, LTE-Advanced Pro, and 5G leads to the rising need for maximizing power efficiency and spectrum range of the mobile devices. This, in turn, is expected to spur the demand for RF components in the forecast period.

IoT solutions require enhanced wireless connectivity, thereby driving the need for new and advanced RF components. Moreover, increasing sales of smartphones owing to constant product development offering improved performance, biosensors, long battery life, and more AI features and increasing popularity of low-end smartphones in emerging countries will boost the RF components market. Thus, the requirement of low-power ICs for maximizing battery life and to reduce charging time in smartphones is expected to spur the demand for RF components. Increasing adoption of IoT across industrial, residential, and consumer applications is expected to impel the product demand.

Furthermore, a number of applications and products, such as home robots, smart wearables, self-driving cars, and smart manufacturing solutions and tools, are being integrated with IoT-related technologies, leading to an increased scope of usage for the product. However, the requirement of features, such as longer battery life, low-power wireless connections, and diversified sensors, in these products and applications are pushing RF component manufacturers and solution designers to focus more technological developments in their deliverables. Owing to the aforementioned factors, the market is anticipated to attain a significant growth in the years to come.

Technological advancements in the fields of cellular mobile and wireless communication, including the development and deployment of 5G networks, are driven by the increasing demand for broadband services and faster speeds for mobile internet connectivity. Moreover, like most new generations of mobile internet connectivity, the 5G network has greater coverage area and reduced latency than the previous generations. Thus, the adoption of 5G networks in wireless communication will lead to the need for low-frequency, tall antenna macro cell sites for larger area coverage, which, in turn, will proliferate the for RF components.

However, rise in the cost of raw materials is anticipated to negatively impact the RF components market. Primary raw materials used in the production of RF components include silicon wafers, a variety of chemicals, and photoresist materials. Shortage of such raw materials due to increasing demand from manufacturers has resulted in industry-wide price adjustments and delivery delays. For instance, there is a rise in the prices of silicon wafers due to their growing demand in the semiconductor industry.

Product Insights

Based on product, the market has been segmented into filters, duplexer, power amplifiers, antenna switches, and modulators and demodulators. The power amplifiers segment held over 30% of the overall market share in 2018. It is expected to witness significant growth over the forecast period as well. Increasing applications of power amplifiers in HDTV, GSM, Radar, Point-to-Point Microwave, LTE & 5G signal amplification, etc. are anticipated to spur the segment growth over the forecast period. The filters segment is estimated to exhibit rapid growth over the forecast years, which is primarily attributed to rapid growth in the user base of mobile devices and 4G LTE networks. The antenna switches segment is estimated to witness a steady growth rate over the forecast years. This can be attributed to the increasing experimentation with switch architectures, rising applicability, and advancement of IoT technologies resulting in the development of small, inexpensive, and energy-efficient solutions.

Application Insights

Based on application, the market has been segmented into consumer electronics, automotive, military, and wireless communication. The consumer electronics segment accounted for more than 60% of the overall market in 2018. The segment is further expected to witness substantial growth over the forecast period. This may be attributed to the rising disposable income and increasing spending on consumer electronic devices, such as smartphones, tablets, laptops and notebooks, smart wearables, and smart home accessories. Extensive usage of IoT technologies and technological advancements like the incorporation of AI functions (voice recognition/controls) in TVs and set-top boxes are also driving the product demand in consumer electronics.

Furthermore, government mandates for the installation of set-top boxes in a number of countries is estimated to fuel the segment growth further. The automotive sector is also anticipated to witness rapid growth from 2019 to 2025 owing to increasing demand for connectivity features, such as navigation systems, Bluetooth, location tracker, music system, and central locking systems, in vehicles. Increasing number of automation solution installations in vehicels is also expected to drive the product demand in this segment.

Regional Insights

North America emerged as the leading regional market in 2018 due to quick adoption of advanced technologies and well-established telecommunication sector in the region. According to the International Telecommunication Union (ITU), in 2016, the percentage of individuals using internet in U.S. and Canada stood at 76.17% and 91.16% respectively. The market in Asia Pacific is anticipated to witness the fastest growth during the forecast period.

This growth is attributed to rising disposable income and resultant rise in the adoption of consumer electronics with connectivity features. Rising demand for better connectivity and mobility solutions along with increasing number of internet users in the region is also anticipated to drive the market. China, in particular, is expected to witness a significant growth on account of heavy investments by multinational companies in collaboration with Chinese government towards the 20 new semiconductor fab projects, which are to be completed by 2020, across the country.

Radio Frequency Components Market Share Insights

Key industry participants compete on the basis of the development of inexpensive products that offer higher flexibility and performance along with faster access to mobile data. Manufacturers also invest in the development of products with energy-efficient components based on materials, such as Gallium Nitride (GaN) and Silicon Carbide (SiC).

Furthermore, companies are focusing on new specialty technologies, such as RF and 3D-intelligent sensors, targeting 5G and IoT applications. Leading companies in the market include Broadcom, Inc.; Fujitsu Limited; International Quantum Epitaxy Plc; NXP Semiconductors N.V.; Renesas Electronics Corporation; Murata Manufacturing Co. Limited; Taiwan Semiconductor Manufacturing Co. Limited; Texas Instruments, Inc.; and TDK Corporation.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest 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 radio frequency components market report on the basis of product, application, and region:

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Filters

  • Duplexer

  • Power Amplifiers

  • Antenna Switches

  • Modulators & Demodulators

  • Others

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Consumer electronics

    • Mobile phones

    • Tablets

    • Smart TVs & set top boxes

    • Laptops & notebooks

  • Automotive

  • Military

  • Wireless Communication

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa (MEA)