Active and Passive Electronic Components Market Size

Active & Passive Electronic Components Market Analysis

The Active and Passive Electronic Components Market size is estimated at USD 0.7 trillion in 2024, and is expected to reach USD 1.07 trillion by 2029, growing at a CAGR of 8.79% during the forecast period (2024-2029).

Active and passive electronic components are any semiconductor/electronic device's building blocks. With their simple functionalities, these components play a crucial role in powering an electronic system. While active components are part of an electronic circuit that relies on an external power source to modify/control electrical signals, passive electronic components do not need an external power source to function. They use other properties to control the electrical signal.

• The active and passive electronics market witnessed significant growth over the past few years, primarily due to the increasing digitalization of various sectors. This resulted in the growing adoption of consumer electronics across sectors and the rising need for connectivity and mobility. With these developments, the complexity of electronic products also increased. This accelerated the need for components, especially in the automotive and consumer electronics industries.
• One of the current trends in the consumer electronics industry is the growing demand and need for smaller, lighter, and higher-performing electronics, i.e., the miniaturization of electronics and components. Rapid technological advances have led to the availability of products that incorporate multiple features on a single platform.
• The consumer electronics industry is among the major consumer of active and passive electronic components. These components are among the fundamental building blocks of the circuitry in devices such as computers, cell phones, and several other electronic devices. For instance, a transistor performs various functions such as amplification, voltage regulation, switching, signal modulation, and oscillators.
• The raw materials prices, such as silicon, iron, nickel, and molybdenum, have recently seen significant changes. With the pandemic's influence, the global precious metal market is further witnessing adverse effects of supply chain issues, which also impact the market prices. This increase in the price of palladium, nickel, and ruthenium impacts the overall cost of production for specific large-volume components, challenging the market's growth.
• During the COVID-19 pandemic, the demand for active and passive components increased significantly across the medical and healthcare sector to speed up the detection and treatment process as well as to enhance remote patient monitoring capabilities; healthcare institutions significantly invested in advanced electronic devices, which in turn drove the demand for components such as transistors, capacitors, amplifiers, etc.
• For instance, the demand for electrochemical transistors with a modular architecture witnessed a notable increase in use in sensing devices for the rapid quantification of single-molecule-to-nanomolar levels of specific antigens in complex bodily fluids. Furthermore, various use cases of laser-induced graphene field-effect transistors (LIG-FET) for detecting SARS-CoV-2 were also observed during the COVID period. With these components proving beneficial, further technological innovations are expected to open new growth opportunities in the post-COVID-19 period.