Market Trends of Thick Film Resistor Industry
Automotive Segment is Expected to Hold Significant Market Share
- Thick film resistors are commonly used in automotive applications due to their high reliability and stability in harsh environments. They provide high heat, moisture, and shock resistance, making them suitable for use in automotive electronic circuits. Automotive-grade thick film chip resistors are widely available in size 12, resistance values, and working voltages. These resistors are often AEC-Q200 compliant, meaning that they meet the rigorous testing and requirements set by the Automotive Electronics Council (AEC) for use in automotive applications.
- Further, thick film resistors are commonly used in electric vehicles, particularly hybrid ones. They offer high power density, stability, and reliability in a compact package, making them an ideal choice for voltage conversion, battery management, and motor control applications. Additionally, thick film resistors can assist in reducing the final cost of the end product 1, making them an attractive option for manufacturers looking to optimize both performance and cost efficiency in their electric vehicles. The EV sales have increased in 2022, according to International Energy Agency, and accounted for a 1.02 million number of electric vehicles. Such instances indicate the growing demand for Thick film resistors in the automotive sector. Further, the high adoption of EVs to completely phase out dates of ICE engines set by various governments will drive the growth of thick film resistors in the automotive sector.
- ADAS use a range of sensors and technologies to enhance safety and improve driving experience. Thick film resistors are often used in measuring and regulating current to different components in ADAS, such as cameras, sensors, and control units. They are valued for their precision, stability, and durability in harsh environments. Some examples of ADAS applications that use thick film resistors include telematics control units, ADAS cameras, body electronics, and battery management systems. According to World Economic Forum, more than 12 million fully autonomous cars are expected to be sold annually by 2035, covering 25% of the global automotive market. This would create an opportunity for the studied market to grow.
- Moreover, Automotive thick film resistors are utilized in a variety of applications in automobiles. The resistor aids in the control of current and voltage flow in circuits. It also contributes to the stability of the electrical system by dispersing heat energy. Furthermore, it prevents damage to other vehicle components caused by excessive heat generation. Furthermore, these resistors are used to measure electrical signals. As a result, they play a crucial role in assuring the safety and proper operation of automobiles. According to BEA (Bureau of Economic Analysis), In 2022, the United States will produce around 1.8 million automobiles. This reflects an increase of around 13% over the previous year. Such huge production would create an opportunity for the studied market to grow.
- To meet the various demands of the customers, the firms in the market are providing various products. For example, Yageo's automotive grade, double power thick film chip resistors are available in case sizes ranging from 0402 to 1206, with resistance ranges of 1 - 22M, tolerances of 0.5%, 1%, 5%, and TCRs of 100, 200 ppm/°C, and power ratings ranging from 1/8 W to 1/2 W. Established systems such as engine control, power steering, gearbox, climate control, lighting, and ABS are undergoing massive changes. Still, relatively new systems such as car-to-car communications, driver assistance, self-steering, and self-parking are also undergoing similar transformations that necessitate more resistors and capacitors. Deeper integration within the automotive environment pushes passive component performance to the limit.
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Asia Pacific Region is Expected to Witness a High Market Growth
- The Asia-pacific region is one of the most important markets for thick film resistors owing to the rapid growth in the region's telecom, consumer electronics, and automotive industries. The automotive industry is proliferating in China, and the country is playing a critical role in the global automotive market. The Chinese government regards its automotive industry, along with the auto parts sector, as one of its country's crucial industries. The Central Government of China estimates that China's automobile output would reach 30 million units by 2020 and 35 million units by 2025, which is expected to drive studied market demand.
- Additionally, 5G would play a pivotal role as automakers strive to incorporate vehicles into the Internet of Things. Asia-Pacific's increasing 5G infrastructure and service initiatives would offer lucrative opportunities for autonomous vehicles to penetrate the region, thereby boosting the growth of the studied market.
- Moreover, the government of Japan is striving to triple the availability of 5G services in the country over the next two years (2023-2025). The government plans to cover 95% of the Japanese population by March 2024. Mobile carriers in Japan have prioritized developing their networks in urban areas since the introduction of 5G in the year 2020. But only 30% of the population has access to the new and advanced technology. The communications ministry carried out consultations with local telecom firms and has established a goal of achieving 95% coverage by the end of fiscal 2023, 97% by fiscal 2025, and 99% by fiscal 2030. Such instances would boost the adoption of thick film resistors.
- Thick film resistors are widely used in the consumer electronics industry due to their low cost and high reliability. They are often used in surface mount devices, heating elements, and integrated passive devices. Thick-film technology can also manufacture large-tolerance capacitors and resistors compatible with surface-mount technology (SMT). According to the National Bureau of Statistics of China, China produced approximately 32.66 million completed computers in April 2022. Such huge production of consumer products would drive the studied market.
- The players in the market are developing new products to cater a wide range of needs of the customer. For example, recently, ROHM has designed LTR100L thick-film shunt resistors for industrial and consumer applications. Shunt resistors, which are frequently employed to detect current in battery protection and motor drive circuits, require increased accuracy to improve reliability and assure high-efficiency operation. Energy savings have been emphasized in the industrial and consumer sectors in recent years, with attempts being made to cut power consumption during drive operation by employing motor inverters. At the same time, as the power of applications increases, protective circuits become more vital in these domains.
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