Through-hole Passive Components Market Size, Share & Trends Analysis Report By Component, By Leads Model (Axial Leads, Radial Leads), By Application, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global through-hole passive components market was valued at USD 35.06 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.4% from 2022 to 2030. The growth can be attributed to the growing penetration of connected devices and the continuously growing demand for through-hole passive components in the medical and automobile industries. The introduction of Programmable Logic Controllers (PLC), the industrial computers that are used to operate various electrical and mechanical processes, are often fitted with through-hole passive components because of their durability; through-hole passive components are drilled on printed circuits boards and not attached superficially, making them more robust and capable of handling various pressures and forces more efficiently compared to non-through hole passive components.

Industry 4.0 or the fourth industrial revolution also acts as a catalyst for the high demand for through-hole passive components. For instance, Germany’s Ministry for Economic Affairs and Climate Action launched programs such as Autonomics for Industry 4.0 and Smart Service World programs to boost its industry 4.0 agenda, offering initial funds of over EUR 100 million. Such supporting initiatives are expected to drive market growth as every automated or non-automated machinery has through-hole passive components such as an inductor, capacitor, resistors, diodes, etc.

The growing adoption of connected devices, such as security systems, smart meters, gaming consoles, home appliances, and smartphones across industries, is driving the demand for innovative through-hole passive components. Manufacturers are also focusing on providing breakthrough solutions, which could drive the increased use of through-hole passive components in connected devices. An increasing number of IoT end-node applications demand connected devices operating on batteries that can last for months and years without the need for battery replacement or maintenance which is creating lucrative opportunities for the growth of the industry.

Government initiatives aimed at supporting industrial automation are also creating promising growth opportunities for the industry over the forecast period. For instance, under its industry 4.0 program, South Korea plans to operate 30,000 smart factories by the end of 2022 and 20 smart industrial zones by 2030; such initiatives are expected to increase the adoption of through-hole components. In addition, the growing applications of Human-Machine Interfaces (HMIs), which allow humans to communicate with machines, are also driving the adoption of through-hole passive components.

COVID-19 Impact

The COVID-19 pandemic had a substantial impact on the global through-hole passive components manufacturing industry. Initially, the rapidly rising number of COVID-19 cases across countries such as China, Germany, the U.S., Japan, and South Korea compelled governments to levy stringent regulations on movement, including lockdowns in highly affected cities, sealing international borders for trade, and requiring companies to allow their employees to work from their homes. The temporary shutdown of production facilities and international borders across several countries globally led to a decline in the overall sales of passive components during 2020.

Component Insights

The capacitor segment accounted for a revenue share of 43.53% in 2021 and is expected to witness a CAGR of over 4% over the forecast period. The growing popularity of the capacitor segment is attributed to the rising demand for electronics and electrical products in markets such as medical and healthcare, industrial, telecommunication, and automotive. Most of these markets involve the use of power circuit boards directly or indirectly in multiple devices, such as major medical devices, industrial robots, home appliances, and network devices, to carry out operations such as receiving and transfer of data signals.

These circuit boards have through-hole passive components integrated into them to carry out tasks such as the configuration of circuits, power stability, and power conversion, which are crucial for an electronic gadget to function properly. Therefore, with the growing production of several types of home appliances, industrial digital devices, and other consumer electronic goods, the demand for capacitors is projected to grow rapidly over the forecast period.

The sensors segment is expected to be the fastest-growing segment, registering a CAGR of 11.2% over the forecast period. Sensors are components that react to changes in the environment and help to indicate the changes through outputs on displays. They offer a wide range of applications, including fault detection, temperature measurement, smart lighting, animal tracking, traffic monitoring, autonomous braking, and high-end security features in the automobile industry (such as Advanced Driver Assistance Systems (ADAS) and autonomous driving). These factors are contributing to segment growth.

Lead Type Insights

The axial lead segment dominated the lead type market with a market share of 75.47% in 2021 and is also expected to witness the highest CAGR of 6.7% over the forecast period. A lead or more leads that protrude from either end of a component is called an axial lead component. These are used in many electrical and electronic devices. Electrolytic capacitors, diodes, carbon, wire-wrapped resistors, and many more components have axial lead designs. The utilization of batteries, fuses and LED bulbs also has an axial lead configuration. Such components are used in washing machines, refrigerators, CPUs, laptops, etc. The growth in the electronic gadget market and consumer electronics are the driving factors.

Application Insights

The consumer electronics segment held the largest revenue share of 33.0% in 2021. The segment growth can be primarily attributed to the increasing demand for through-hole passive components for several consumer devices, smartphones, wearable devices, set-top boxes, and smart home appliances. Furthermore, the growing use of these components in game consoles, digital video cameras, television sets, MP3 players, and digital still cameras, among others, is driving the adoption of through-hole passive components in the consumer electronics segment. Smartphones offer consumers the functionality of digital cameras, MP3 players, portable game consoles, and portable GPS devices, among others, in a single device. Thus, the increasing penetration of smartphones and the growing number of new product launches by smartphone manufacturers are further fueling the growth of the segment.

The industrial segment is expected to witness the fastest CAGR of 9.3% over the forecast period. The demand for security cameras, sensor-based devices, and robotic systems is increasing rapidly across industrial applications such as process automation and remote monitoring. Additionally, the adoption of robots in manufacturing has increased which further increases the adoption of through-hole passive components. For instance, as per the data issued by the International Federation of Robotics, 517,385 industrial robots were sold in 2021, which accounted for a growth rate of 31% on a year-on-year basis.

Regional Insights

Asia Pacific held a market share of 48.91% in 2021 and is also expected to emerge as the fastest-growing region, with a CAGR of over 7% over the forecast period. The growth of the regional market can be attributed to the lucrative opportunities it offers for supplying through-hole passive components in several industries such as automotive, consumer electronics, and industrial applications. Rapid implementation of robotic processes in Japan, South Korea, India, and China across various industries and industry verticals, especially in automotive and consumer electronics industries, is driving the demand for through-hole passive components across the region.

The initiatives being pursued by various governments in the Asia Pacific, such as India’s Scheme for Manufacturing Electronic Components and Semiconductors, which envisages the government giving incentives to component manufacturers, are expected to play a vital role in driving the growth of the regional market over the forecast period

Key Companies & Market Share Insights

The market is fragmented and is anticipated to witness increased competition due to the presence of several players. Most key players belong to the U.S. and Japan. A considerable amount of revenue share is held by four major players Vishay, TDK Corporation, Murata Manufacturing Co., Ltd, and Panasonic Holding Corporation. The remaining market share is distributed among several media as well as small players. New product launches and mergers & acquisitions are the key strategies adopted by these players to gain a significant foothold in the market. Several key players are launching new components with better performance to expand their market share, broaden their product portfolio, and for regional expansion. Some prominent players in the global through-hole passive components market include:

• Vishay Intertechnology, Inc.

• YAGEO Group

• Murata Manufacturing Co., Ltd.

• KYOCERA AVX Components Corporation

• Panasonic Holdings Corporation

• Bourns, Inc.

• TDK Corporation

• TE Connectivity

• Microchip Technology Inc.

Through-hole Passive Components Market Report Scope

Global Through-hole Passive Components Market Segmentation

This report forecasts revenue growths at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global through-hole passive components market report based on component, leads model, application, and region:

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

  • Resistors

  • Capacitors

  • Inductors

  • Diodes

  • Transducers

  • Sensors

  • Others

• Leads Model Outlook (Revenue, USD Million, 2017 - 2030)

  • Axial Leads

    • Resistors

    • Capacitors

    • Inductors

    • Diodes

    • Transducers

    • Sensors

    • Others

  • Radial Leads

    • Resistors

    • Capacitors

    • Inductors

    • Diodes

    • Transducers

    • Sensors

    • Others

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

  • Consumer Electronics

    • Mobile Phones

    • Personal Computers

    • Home Appliances

    • Audio & Video Systems

    • Storage Devices

    • Others

  • IT & Telecommunication

    • Telecom Equipment

    • Networking Devices

  • Automotive

    • Driver Assistance Systems

    • Infotainment Systems

    • Others

  • Industrial

    • Industrial Automation & Motion Control

    • Mechatronics & Robotics

    • Power Electronics

    • Photovoltaic Systems

    • Others

  • Aerospace & Defense

    • Aircraft Systems

    • Military Radars

    • Others

  • Healthcare

    • Medical Imaging Equipment

    • Consumer Medical Devices

    • Others

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Vietnam

    • Singapore

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa