Market Trends of Inductor Industry
Automotive Industry Segment is Expected to Register Significant Growth
- The increase in hybrids and electric vehicles (EV-type cars) is rapidly reducing the environmental burden and increasing the number of ECUs (electronic control units), thereby leading to stronger demand for electronic components whose miniaturization and further performance improvements have been rising.
- Additionally, the popularity of electric cars is increasing. Following significant technological advancements, consumers are now more interested in plug-in electric vehicles. Plug-in automobiles are becoming more widely available and useful as a result of substantial technological advancements in both the range of electric vehicles and the availability of public charging stations. According to IEA, the total stock of electric cars stood at 16.5 billion in 2021. As a result, the growing market for these vehicles will offer further growth opportunities to power inductor manufacturers.
- Over the recent years, automobile electrification has evolved with the progress of automated driving, such as ADAS, and various electronic devices, such as vehicle-mounted cameras, radars, LiDAR, and ECU, have been installed in automobiles. However, since components are often confined to limited space, they are required to be miniaturized and must be able to withstand high temperatures. In August 2022, TDK Corporation announced the launch of the new MLJ1608WG Series of multilayer inductors. These small parts are intended for Power over Coax (PoC) installations in automobiles. The performance of automobile cameras has significantly improved as a result of the widespread adoption of advanced driver assistance systems (ADAS). As a result, there is an increasing need for interfaces with more speed and capacity. Vehicle camera systems that use LVDS transmission are employing a PoC strategy, which combines power and data transmission into a single coaxial cable.
- Furthermore, the Panasonic Corporation introduced a new power inductor in January 2022 that may be utilized in automotive applications, including autonomous driving systems and sophisticated driver support systems.
- Also, with the vision of automated driving, the lineup of reliable high-frequency inductors for safety functions is being explored in the market. Therefore, the rising trend of connected or autonomous vehicles will also offer massive opportunities for RF inductor manufacturers to expand their presence.
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Asia-Pacific Region is Expected to Dominate the Market
- The demand for inductors is primarily felt in the Asia-Pacific region. China is the single largest source of demand for inductor components in the current market scenario, owing to its rapidly growing semiconductor industry and automation in the industrial sector.
- Additionally, the Asia-Pacific region is on the path to becoming the world's largest 5G region by 2025, led by pioneering 5G markets, such as Australia, China, Japan, and South Korea, according to the latest edition of GSMA's Mobile Economy report. The number of commercial 5G network launches in these markets is expected to reach 675 million by 2025, which is more than half of the total global 5G launches.
- Moreover, smart city initiatives in the region have also been on the rise, contributing to the growth of inductors in the region. Countries in the Asia-Pacific region, such as China, Japan, and South Korea, lead in terms of such initiatives. The Indian government has outlined USD 7.8 billion for the automobile and auto component sector in Production-Linked Incentive (PLI) schemes. These initiatives create a high potential for using inductors across the automotive, transportation, and energy utilities.
- Furthermore, the Asia-Pacific area has seen an increase in the production of electric vehicles. By the end of 2023, nearly 13 million electric vehicles would be produced in China, according to fka GmbH. Following this, it was anticipated that South Korea and Japan will each produce a sizable number of electric vehicles by 2023. These trends will drive the market growth during the projected period.
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