Active Electronic Components Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Semiconductor Devices, Vacuum Tubes, Display Devices), By End-user (Consumer Electronics, Automotive), By Region, By Competition, 2018-2028

Market Overview

Global Active Electronic Components Market has valued at USD 306 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 7.4% through 2028. The Global Active Electronic Components Market is experiencing robust growth, propelled by the relentless expansion of the electronics industry across diverse sectors. Active electronic components, which include semiconductors, transistors, integrated circuits, and amplifiers, form the fundamental building blocks of virtually all electronic devices, from smartphones and laptops to automotive systems and industrial machinery. Several factors drive the market's upward trajectory, including the proliferation of smart and connected devices, the rise of 5G technology, and the growing adoption of electric vehicles. As consumer preferences shift towards cutting-edge electronics, there's an escalating demand for high-performance components that offer increased functionality, energy efficiency, and miniaturization.

Key Market Drivers

Increasing Demand for Consumer Electronics

The active electronic components market is experiencing significant growth due to the increasing demand for consumer electronics, including smartphones, tablets, and wearable devices. As consumers continue to seek more advanced and feature-rich devices, the need for high-performance active electronic components is rising at a rapid pace. These components, such as microprocessors, memory chips, and power management ICs, play a crucial role in powering and enabling the functionality of consumer electronic devices.

One of the primary drivers behind the rising demand for consumer electronics is the constant desire for technological advancements. Consumers are constantly seeking devices with improved capabilities, enhanced features, and better performance. This drive for innovation has led to the development of smartphones with faster processors, larger memory capacities, and more efficient power management systems. Similarly, tablets and wearable devices are also becoming increasingly sophisticated, offering a wide range of functionalities and connectivity options. To meet the growing expectations of consumers, manufacturers of consumer electronics are relying heavily on active electronic components. Microprocessors, for instance, are the brain of electronic devices, responsible for executing instructions and performing calculations. As the demand for faster and more efficient devices increases, the need for advanced microprocessors with higher processing power and improved energy efficiency becomes crucial.

Memory chips are another essential component in consumer electronics, as they store and retrieve data quickly. With the increasing amount of data generated and consumed by users, the demand for larger memory capacities is on the rise. This is particularly evident in smartphones, where users store a vast amount of photos, videos, and applications. As a result, manufacturers are constantly developing memory chips with higher storage capacities and faster data transfer rates. Power management ICs play a vital role in optimizing energy consumption and extending battery life in consumer electronic devices. With the growing reliance on portable devices, such as smartphones and wearable devices, consumers expect longer battery life and efficient power management systems. Power management ICs enable devices to regulate power usage, maximize energy efficiency, and provide a seamless user experience.

Growing Adoption of Internet of Things (IoT) Devices

The increasing presence of Internet of Things (IoT) devices in numerous industries is driving the need for active electronic components. These components, such as sensors, microcontrollers, and wireless communication modules, play a crucial role in collecting and transmitting data for IoT devices. With the continuous expansion of the IoT ecosystem, there is a growing demand for active electronic components that are smaller in size, more energy-efficient, and cost-effective, in order to facilitate seamless connectivity and efficient data processing. The proliferation of IoT devices has revolutionized various industries, including healthcare, manufacturing, transportation, and agriculture, among others. These devices are embedded with sensors that can monitor and collect data from the surrounding environment. For instance, in healthcare, IoT devices can track patients' vital signs, enabling remote monitoring and timely intervention. In manufacturing, IoT devices can monitor equipment performance and detect anomalies, leading to predictive maintenance and improved operational efficiency. In transportation, IoT devices can provide real-time data on traffic conditions, enabling optimized route planning and reducing congestion. In agriculture, IoT devices can monitor soil moisture levels and weather conditions, facilitating precision irrigation and maximizing crop yield.

To enable the seamless functioning of these IoT devices, active electronic components are essential. Sensors, for example, are responsible for capturing data from the physical world and converting it into electrical signals. Microcontrollers, on the other hand, act as the brain of IoT devices, processing the collected data and executing commands. Wireless communication modules enable the transmission of data between IoT devices and the cloud or other devices, facilitating real-time monitoring and control. As the IoT ecosystem continues to expand, there is a need for active electronic components that are smaller in size. This miniaturization is crucial to accommodate the increasing number of IoT devices in various applications. Smaller components also allow for more flexibility in design and integration, enabling IoT devices to be seamlessly embedded into everyday objects.

Furthermore, power efficiency is a critical consideration for IoT devices. Many of these devices are battery-powered or operate in remote locations where power supply may be limited. Therefore, active electronic components need to be energy-efficient to prolong battery life and ensure continuous operation. This includes optimizing power consumption during data collection, processing, and wireless communication. Cost-effectiveness is another important factor driving the demand for active electronic components in the IoT industry. As the number of IoT devices increases, the cost of components becomes a significant consideration. Manufacturers are constantly striving to develop cost-effective solutions without compromising on performance and reliability.

Advancements in Automotive Electronics

The automotive industry is currently experiencing a major shift as it embraces advanced electronics and connectivity features. This transformation is primarily driven by the integration of active electronic components, including microcontrollers, sensors, and power management ICs. These components play a vital role in enabling various advanced technologies in vehicles, such as advanced driver assistance systems (ADAS), infotainment systems, and electric vehicle technologies. As the demand for electric vehicles and autonomous driving capabilities continues to rise, the automotive sector is witnessing a significant growth in the adoption of active electronic components. One of the key drivers behind this transformation is the increasing demand for electric vehicles. With the growing concerns over environmental sustainability and the need to reduce carbon emissions, electric vehicles have gained significant traction in recent years. Active electronic components are essential for the efficient functioning of electric vehicles, as they control and manage various aspects of the vehicle's electrical systems, including battery management, motor control, and power distribution. These components ensure the optimal performance and safety of electric vehicles, thereby driving their widespread adoption.

Furthermore, the rise of autonomous driving capabilities has also contributed to the growth of active electronic components in the automotive sector. Autonomous vehicles heavily rely on advanced sensors, microcontrollers, and other electronic components to perceive their surroundings, make real-time decisions, and navigate safely on the roads. These components enable the implementation of sophisticated ADAS technologies, such as adaptive cruise control, lane-keeping assist, and automatic emergency braking, which enhance the safety and convenience of driving. As the development and deployment of autonomous vehicles continue to progress, the demand for active electronic components is expected to further increase. In addition to electric vehicles and autonomous driving, the integration of advanced electronics and connectivity features has also revolutionized the infotainment systems in vehicles. Modern vehicles are equipped with advanced multimedia interfaces, touchscreen displays, voice recognition systems, and connectivity options, allowing occupants to access a wide range of entertainment, communication, and navigation services. Active electronic components enable the seamless integration and operation of these features, providing a rich and immersive user experience.

Rising Demand for Energy-Efficient Solutions

The increasing focus on energy efficiency and sustainability has led to a surge in the need for active electronic components that facilitate energy-efficient solutions. These components, including power management ICs, energy harvesting modules, and LED drivers, are crucial in optimizing energy consumption across a wide range of applications such as smart homes, industrial automation, and renewable energy systems. Power management ICs are instrumental in regulating and controlling power distribution, ensuring that energy is efficiently utilized, and wastage is minimized. Energy harvesting modules enable the capture and conversion of ambient energy sources, such as solar or kinetic energy, into usable electrical power, thereby reducing reliance on traditional energy sources. LED drivers, on the other hand, are responsible for efficiently driving and controlling the power supplied to LED lighting systems, resulting in reduced energy consumption and longer lifespan of the LEDs. These active electronic components are essential in achieving energy efficiency goals, reducing carbon footprint, and promoting sustainable practices in various sectors, ultimately contributing to a greener and more environmentally friendly future.

Key Market Challenges

Rapid Technological Advancements

One of the significant challenges in the global active electronic components market is the constant pace of technological advancements. As technology continues to evolve at a rapid rate, active electronic components must keep up with the latest innovations to remain relevant and competitive. This poses a challenge for manufacturers and suppliers who need to invest in research and development to stay ahead of the curve. Additionally, the short product life cycles in the electronics industry further intensify the challenge, as components can quickly become obsolete. To address this challenge, companies must prioritize continuous innovation and invest in cutting-edge technologies to develop active electronic components that meet the ever-changing demands of the market.

Increasing Complexity and Miniaturization

Active electronic components are becoming increasingly complex and miniaturized, posing challenges in terms of design, manufacturing, and reliability. As electronic devices become smaller and more powerful, the components within them must also shrink in size while maintaining optimal performance. This requires advanced manufacturing techniques and materials, as well as stringent quality control measures. Moreover, the complexity of active electronic components, such as integrated circuits and microprocessors, demands sophisticated design capabilities and specialized expertise. To overcome this challenge, companies should invest in research and development to enhance their design and manufacturing capabilities. Collaboration with industry partners and academic institutions can also foster innovation and knowledge sharing, enabling the development of advanced techniques and materials for complex and miniaturized active electronic components.

Stringent Regulatory Compliance

The global active electronic components market is subject to stringent regulatory compliance requirements, particularly in areas such as safety, environmental impact, and electromagnetic compatibility. Compliance with regulations such as RoHS (Restriction of Hazardous Substances) and REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) is essential to ensure the marketability and acceptance of active electronic components. However, keeping up with evolving regulations and ensuring compliance throughout the supply chain can be challenging for companies. To address this challenge, organizations should establish robust compliance management systems, conduct regular audits, and stay updated on regulatory changes. Collaboration with regulatory bodies and industry associations can also provide valuable guidance and support in navigating the complex landscape of regulatory compliance.

Increasing Competition and Price Pressure

The global active electronic components market is highly competitive, with numerous players vying for market share. This intense competition puts pressure on companies to differentiate their products and services while maintaining competitive pricing. Price pressure can erode profit margins and hinder investments in research and development, innovation, and quality improvement. To overcome this challenge, companies should focus on value creation by offering unique features, superior quality, and excellent customer service. Developing strong relationships with customers and suppliers can also help in negotiating favorable pricing and maintaining a competitive edge. Additionally, companies should explore new market segments and geographies to diversify their customer base and reduce dependence on specific regions or industries.

Key Market Trends

Increasing Demand for Active Electronic Components

The global market for active electronic components is witnessing a surge in demand due to the growing adoption of advanced technologies across various industries. Active electronic components, such as transistors, integrated circuits, and diodes, play a crucial role in amplifying, switching, and controlling electrical signals in electronic devices. With the rapid advancements in sectors like telecommunications, consumer electronics, automotive, and healthcare, the need for high-performance active electronic components is on the rise.

One of the key drivers of this demand is the increasing complexity and miniaturization of electronic devices. As devices become smaller and more sophisticated, the demand for compact and efficient active electronic components is growing. These components enable the development of smaller, lighter, and more powerful devices, meeting the evolving needs of consumers and industries.

Rise in Internet of Things (IoT) Applications

The global market for active electronic components is experiencing significant growth due to the increasing adoption of Internet of Things (IoT) applications. IoT refers to the network of interconnected devices that can communicate and exchange data with each other. These devices rely on active electronic components to process and transmit data, enabling seamless connectivity and automation.

The proliferation of IoT applications across various sectors, including smart homes, industrial automation, healthcare monitoring, and smart cities, is driving the demand for active electronic components. These components are essential for sensor integration, wireless communication, and data processing in IoT devices. As the IoT ecosystem expands, the demand for active electronic components is expected to grow further.

Focus on Energy Efficiency and Sustainability

Energy efficiency and sustainability have become key considerations in the design and manufacturing of electronic devices. Active electronic components play a vital role in improving energy efficiency by reducing power consumption and optimizing performance. As governments and organizations worldwide prioritize environmental sustainability, the demand for energy-efficient active electronic components is increasing.

Manufacturers are investing in research and development to develop active electronic components that consume less power, generate less heat, and have a longer lifespan. These components enable the development of energy-efficient devices, contributing to reduced carbon emissions and lower energy costs. The focus on energy efficiency and sustainability is expected to drive the growth of the global active electronic components market.

Integration of Active Electronic Components with Advanced Technologies

The integration of active electronic components with advanced technologies, such as artificial intelligence (AI) and Internet of Things (IoT), is a significant trend in the market. AI algorithms can optimize the performance of active electronic components by analyzing data and making real-time adjustments. This integration enhances the functionality and efficiency of electronic devices, enabling intelligent automation and decision-making.

Furthermore, the integration of active electronic components with IoT technologies enables seamless connectivity and data exchange between devices. This integration opens up new opportunities for applications such as smart homes, smart cities, and industrial automation. Manufacturers are focusing on developing active electronic components that can seamlessly integrate with these advanced technologies, driving the growth of the global market.

Segmental Insights

Product Type Insights

The semiconductor segment dominated with a revenue share of 57.5% in 2022 and is also anticipated to witness the fastest CAGR of over 7.0% during the forecast period. ICs, the sub-segment of semiconductor devices, dominated the overall market with a revenue share of 55.3% in 2022 and is also to witness the fastest CAGR of over 8.1% in the forthcoming years. A semiconductor substance exists between the insulator and the conductor, which controls and regulates the current flow in electrical devices and equipment. As a result, it has become an essential component of electronic chips used in computing components and various electronic devices, such as solid-state storage.

An SMD (Surface Mount Device) Electronic Component made of multiple transistors, diodes, resistors, and capacitors in a tiny semiconductor chip are an Integrated Circuit (IC). ICs, or Integrated Circuit Electronic Components, are small and light, providing more significant outcomes while using less power. An Integrated Circuit (IC) is the integration or assimilation of several electronic components (primarily transistors) on a chip (or single device) constructed of semiconductor material. ICs are extensively utilized in various applications such as televisions, mobile phones, laptops, audio players, routers, etc.

End-user

The consumer electronics segment held the largest revenue share of 31.1% in 2022. It is expected to grow at the fastest CAGR of over 7.0% during the forecast period. The expansion is primarily due to rising demand for semiconductor devices for various consumer electronics such as digital cameras, mobile phones, gaming devices, wearable devices, Set-Top Boxes (STB), and others. Moreover, networking equipment such as modems, routers, repeaters, and gateways are in great demand, especially in the office automation and home application segments. Active electronics components are predicted to increase over the forecast period due to increased demand for network devices and other IT equipment.

In June 2022, Nokia Corporation, a Finland-based telecommunication, IT, and consumer electronics company, launched a new Fiber-ToThe-Home (FTTH) kit to help service providers deliver fiber networks to rural regions in the U.S. The package contains all the equipment and licenses for the operator to set up a standard 1,000-home community. The package includes active equipment for the central office (OLT or the optical line terminal), a fiber termination device for the home (ONT or the optical network terminal), and Wi-Fi modules inside the house. Over a single port, the kits support GPON and XGS-PON.

The automotive segment is anticipated to grow at a considerable CAGR of 7.2% throughout the forecast period. Automotive manufacturers worldwide focus on integrating various electronics and technology to attract customers. The increasing popularity of premium and ultra-luxury vehicles has considerably influenced the automotive active electronic components market. Vehicles' reliance on electronic components and safety systems has grown significantly in recent years, resulting in increased use of electronic components in vehicles. Electronic components are frequently used to increase the functioning and efficiency of powertrain systems. These components let an automobile's powertrain systems exchange messages and sensor signals while also managing their operations. In powertrain systems, turbine speed, transmission fluid temperature, and throttle position sensors are all used.

Regional Insights

Asia Pacific held the leading revenue share of 54.5% in 2022. Asia Pacific dominates the global electronics sector and is regarded as a manufacturing powerhouse for consumer electronics. Due to a variety of favorable factors, including relatively lower labor costs, the availability of a large pool of highly skilled workers, rising foreign direct investments, government initiatives supporting the production of electronic components, and preferential trading access to Europe and North America, Asia Pacific has emerged as the most prominent electronics manufacturing and exporting region. China, India, Vietnam, and Malaysia are among the leading Asia Pacific economies helping to drive the region's electronics sector growth. Over the projection period, these economies will likely strengthen their position in the semiconductor sector and grow their share of the worldwide market.

North America is anticipated to grow at a considerable CAGR of 6.3% throughout the forecast period. In North America, the adoption of connected cars is gaining significant traction, particularly in the U.S. Leading telecom services providers, such as Verizon Inc. and AT&T Inc., are investing aggressively in deploying the next-generation 5G network infrastructure to provide unified connectivity between vehicles and the network infrastructure. The outbreak of the COVID-19 pandemic may have delayed the industrial deployment of 5G in the U.S. But the U.S. government is trying to overcome this delay by investing aggressively in rolling out highly efficient network infrastructure and building smart cities. As such, the installation of telecom equipment and other networking devices is expected to gain traction in line with the unabated rollout of 5G network infrastructure across North America, thereby driving the growth of the North America active electronic components industry over the forecast period.

Recent Developments

• In June 2023, 5G Radios Shrinked with NXP’s NewTop-Side Cooling for RF Power, New top-side cooling packaging technology for RFpower enables smaller, thinner and lighter radio units, supporting quick andeasy deployment of 5G base stations.
• In June 2023, STMicroelectronics launched a groupof octal high-side switches combined with galvanic isolation for increasedrobustness. An RDS(on) of less than 260 mΩ improves energy efficiency andprotection diagnostics enable reliability and troubleshooting.
• In June 2023, Onsemi collaborated with Unikie andCoreHW and introduced an end-to-end positioning system that enables the simplerand faster development of more accurate, cost-effective, and power-efficientasset tracking solutions.
• In June 2023, Qualcomm announced a new satelliteIoT solution enabling uninterrupted remote monitoring and asset tracking.
• In May 2023, NIO and NXP Collaborated on 4D ImagingRadar Deployment. NXP's imaging radar technology enables NIO to significantlyimprove sensor resolution, extend detection range and enable the highest levelsof autonomous driving.
• In April 2023, Infineon Technologies AG announcedThe industry's first LPDDR memory to enable next-generation automotive E/Earchitectures. Infineon's SEMPER™ X1 LPDDR Flash provides secure, reliable, andreal-time code execution, which is critical for automotive domain and zonecontrollers.
• In April 2022, Intel Joined MITRE Engenuity’sSemiconductor Alliance to accelerate research, development, and prototyping ofsemiconductors.
• In March 2023, Onsemi launched an ultra-low-power,automotive-grade wireless microcontroller with Bluetooth Low Energyconnectivity.

Key Market Players

• Infineon Technologies AG
• AdvancedMicro Devices, Inc.
• STMicroelectronicsN.V.
• MicrochipTechnology, Inc.
• AnalogDevices, Inc.
• BroadcomInc.
• NXPSemiconductors N.V.
• IntelCorporation
• MonolithicPower Systems, Inc.
• TexasInstruments Incorporated
• QualcommInc.
• RenesasElectronics Corporation
• SemiconductorComponents Industries, LLC

Report Scope

In this report, the Global Active Electronic Components Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below

• Active Electronic Components Market, By Product Type

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• Active Electronic Components Market, By End-user Vertical

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• Active Electronic Components Market, By Region

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