Global Diodes Market Size

Diodes Market Analysis

The global diodes market is expected to register a CAGR of 2.5% during the forecast period (2020-2027). Diodes are used in several applications such as surge protection, voltage regulation, switching, and power conversion. The growth of electronics applications in medical, consumer, industrial, and automobile is increasing rapidly, and hence it is driving the diodes market to grow. Some of the factors that are influencing the market growth are:

• Miniaturization of electronic products is happening across consumer electronics segments. Minimal size with minimum power consumption and maximum power delivery is the motive of all electronic manufacturers. Due to this, the demand for innovative and customized diodes is increasing.
• The increasing demand for smartphones with various functions, such as phones that can be used as an FM radio, MP3 player, MP4 player, handheld TV, memo recorder, camera, or even a projector, is increasing. This increased number of signals has increased the requirement for signal routing solutions. These solutions require diodes with smaller size and higher functionality, enabling mobile phone designers to continue pushing for smaller form factors while still providing enhanced features within their design. This technological need is driving the diodes market to grow.
• Increasing demand for electric vehicles is also boosting the market growth of diodes. Various types of diodes are used in the manufacturing process of EVs. According to the International Energy Agency (IEA), in 2021, electric car sales will more than double compared to 2020 and reach 6.6 million. Electric cars represented nearly 9% of the global car market in 2021, with more than tripling the market share from two years earlier.
• This advanced transformation requires manufacturers to continuously upgrade their products in designing, power consumption, processing power, and user interface to acquire a significant market share. To achieve the above-said specifications in their products, companies bear substantial initial costs. Providing higher functional products with minimum price points is a challenge in this market because before reaching economies of scale, a product in this segment always requires an upgradation.
• COVID 19 has a negative impact on the diodes market as it has heavily impacted the supply chain and workforce of the market value chain. Due to the pandemic, most companies have delayed their hardware upgrades and other long-term migration projects. For instance, the launch of the 5G plan has been delayed across many countries for which the launch of commercial 5G services has been postponed. The infrastructures for 5G services require various diodes, and delays also delay the growth of diodes' requirements.