The global active electronic component market holds the potential to attain a CAGR of 10% during the forecast period (2016-2022), believes Market Research Future (MRFR). The market can touch a valuation of USD 330 billion by the end of 2022, adds MRFR.
Primary Drivers and Top Barriers
Increasing penetration of smartphones as well as other wearable devices, along with industrial automation, has boosted the demand for active electronic components. Soaring demand for active electronic components in the healthcare and automotive sectors combined with surging adoption of MEMS technology benefits the global active electronic components market.
Increasing modernization of vehicles coupled with mounting demand for luxury and technologically advanced vehicles has also led to a high adoption of active electronic components. Growing applications of active electronic components in consumer goods paired with rising use of renewable energy resources induce market growth. In addition, advancing use of active electronic components in connected devices has helped the market achieve further success over the years.
The market also profits from surging concerns about energy efficiency and the rising trend of IoT, which is prompting players to come up with low-cost and energy-efficient active electronic components. Moreover, frequent technological advancements and accelerated demand from developing economies are believed to be working in favor of the active electronic components market.
The global active electronic components market has been carefully studied by MRFR and has been narrowed down to segments like product type and end-users.
Considering the product type segment, the market includes optoelectronic devices, integrated circuits, semiconductor devices, vacuum tubes, display technologies, and others. The integrated circuits had been the leading segment, valued at USD 76.96 Billion in 2016. The segment shows signs of achieving a growth rate of 11.42% in the following years.
The end-users in the active electronic components market are healthcare, information technology consumer electronics, aerospace & defense, automotive, and others. The consumer electronics sector controls the largest share in the global active electronic components market, thanks to the surging demand for smart devices along with the growing disposable incomes in developing countries. As a result, the consumer electronics segment can attain a CAGR of 11.95% during the review period, and its value in 2016 was estimated at USD 73.5 Billion.
The report offers a thorough geographical distribution of the global active electronic components market across North America, Asia Pacific (APAC), Europe, and the Rest of the World (RoW).
North America is expected to reign over the global active electronic components market, predominantly owing to the mounting demand for business intelligence and security system. Surge in IoT, along with rising automation across industries in the region also adds to the market strength. Surging adoption of renewable energy sources as well as micro-electromechanical systems will also induce market growth in the region.
APAC can cross its current position in the global market and garner a better position in subsequent years. The regional market growth is the result of a high demand for energy-efficient devices along with the rising adoption of smartphones. Countries like India, China, and Japan are the top-performing markets for active electronic components in the region, thanks to the increasing penetration of high-tech devices, advancements in auto electronics, and surging digitization, among others.
Rapid industrialization, as well as digitization, strong economic growth, increased need for miniaturization and development of auto electronics, can help Europe gain momentum in the worldwide market in the years ahead.
Significant companies shaping the worldwide active electronic components market include Renesas Electric Corporation (Japan), Texas Instruments, Inc. (U.S), Analog Devices, Inc. (U.S.), Maxim Integrated (U.S.), Panasonic Corporation (Japan), Toshiba Corporation (Japan), STMicroelectronics (Switzerland), NXP Semiconductors N.V. (Netherlands), Hitachi AIC Inc. (Japan), Infineon Technologies AG (Germany), to name a few.