Interconnects and Passive Components Market Size, Share, Growth, and Industry Analysis, By Type (Capacitor, Inductor, Resistor, Others), By Application (Telecom Industry, Consumer Electronics Industry, Industrial Machinery, Automotive Industry, Others) and Regional Insights and Forecast to 2031

Updated On: 10 June 2024

INTERCONNECTS AND PASSIVE COMPONENTS MARKET REPORT OVERVIEW

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The global Interconnects and passive components market size was USD 153620 million in 2020 and will touch USD 187770 million by 2026, at CAGR of 3.4% during the forecast period.

Electronic circuitry is dependent on interconnects and passive components, which help to persuade and modify electric signals. Signal transmission between various elements of a system occurs through interconnects, which are responsible for the creation of complex systems. This can be as simple as wires or traces on a printed circuit board (PCB) or as advanced as high-speed data handling transmission lines and connectors for power transfer. On the opposite, passive components are unpowered devices that alternate electric characteristics. These consist of resistors, capacitors and inductors used for filtering, attenuation or electricity storage functions; those are essential in signal conditioning, noise suppression and regulation of power.

In the past few years, market for interconnects and passive additives is growing due to multiple elements. One of the principal using thing is the rising call for from exceptional industries which include electronics, automobile, and telecommunications. Interconnects and passive additives helps in go with the flow of electrical alerts and power inside a circuit for which they are very crucial in electronics industry. Nowadays, smartphones and such devices also need small-sized interconnects and passive elements that can give excessive overall performance. Expansion of the consumer electronics is another factor driving the market growth. The sales of passive additives has expanded due to rising demand for electric powered vehicles and growing adoption of advanced driver-aid systems (ADAS). Furthermore, different factors that have boosted its increase include increasing use of internet of things (IoT) as well as roll out of 5G networks. Technological advancements inclusive of miniaturized or excessive-density interconnects coupled with passive additives have also contributed to market boom permitting producers to supply smaller transportable electronic goods.  

COVID-19 Impact: Market Growth Hampered By Pandemic Due to Disrupted Supply Chains 

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

There was a significant negative effect of COVID-19 on interconnects and passive components market. Due to the scaling up of the pandemic, global supply chains were interrupted, affecting the availability of basic materials and components used in the manufacture of interconnects and passive components. Moreover, compelled lockdowns and social distancing measures resulted into reduced production activities that caused delays in manufacturing and lower output. This made customer demand fall leading to lowered sales returns. Furthermore, restrictions on international travel and trade further complicated it as they affected export-import dynamics of the market. Consequently, there were challenges that faced Interconnects and Passive Components market in meeting demand, remaining profitable, and sustaining growth during COVID-19 outbreak.

LATEST TRENDS

"Increasing Adoption of Advanced Materials and Manufacturing Techniques to Drive Market Growth"

In recent years, there has been numerous noteworthy changes in the market for passive additives and interconnects, which are essential in a variety of electronic gadgets and systems. The developing need for faster, more compact, and more effective digital additives in quite a few sectors is the principle force in the back of these modifications. The tendency towards interconnect and passive component miniaturisation and integration is one important development. This is especially true for consumer electronics, as producers are working to reduce the size and weight of their products without sacrificing functionality. Interconnects and passive components that provide excellent performance in a smaller package are therefore in greater demand. The growing use of cutting-edge materials and production processes is another significant development. Using materials like silicon, which provides superior performance and dependability over more conventional materials like copper, is one example of this. Furthermore, complex shapes and superior overall performance are being achieved in passive components and interconnects by way of the use of sophisticated manufacturing methods like 3D printing.

INTERCONNECTS AND PASSIVE COMPONENTS MARKET SEGMENTATION

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By Type

Based on type the global market can be categorized into Capacitor, Inductor, Resistor, Others.

• Capacitor: Capacitors are devices that store energy, by utilizing a field. They are made up of two plates separated by a material. Capacitors serve purposes like energy storage, filtering and decoupling.

• Inductor: Inductors, also referred to as coils or chokes store energy in a field when current passes through them. They consist of a wire coil wound around a core material. Inductors find applications where there is a need for energy storage or suppression of interference (EMI).

• Resistor: Resistors are components designed to restrict the flow of current. Comprising materials like carbon film or metal oxide between two terminals resistors regulate flow, voltage division and impedance matching within electronic circuits.

• Others: In addition, to that passive components, like transformers, diodes and thermistors serve roles in circuits. Transformers handle voltage transformation diodes deal with rectification and switching tasks while thermistors are used for temperature sensing and control purposes.

By Application

Based on application the global market can be categorized into Telecom Industry, Consumer Electronics Industry, Industrial Machinery, Automotive Industry, Others.

• Telecom Industry: In the telecommunication industry, interconnections and passive devices are very much used in mobile phones, base stations, and other devices of communication to enable signal delivery, filtering and impedance matching that promote effective transmission.

• Consumer Electronics Industry: Interconnections and passive components are an essential part of consumer electronics equipment such as laptops, televisions, and game consoles. They are responsible for transmission of power, audio signals as well as video signals to maintain connectivity and seamlessness in performance.

• Industrial Machinery: These components are found in instruments such as CNC machines, robotic arms and automation systems used in industrial machinery. This helps with power distribution, motor control and data transfer resulting to improved efficiency plus dependability of the industrial processes.

• Automotive Industry: Within automotive sector automobiles use interconnects plus passive components for activities like engine management systems safety features outfitted or information entertainment functions. These support electrical power management, improve sensor accuracy while ensuring communication between vehicle’s electrical systems.

• Others: Interconnects and passive components also find applications in aerospace industry medical equipments renewable energy systems etc. They uphold reliable operation on top of being safe factors when it comes to different system performance.

DRIVING FACTORS

"Increasing Demand for Miniaturization to boost the Market Growth"

The interconnects and passive components market growth is primarily being driven by the growing need for electronic devices to be more compact and packaged in high-density formats. Manufacturers are under pressure to create and supply components that can give great performance in a compact form factor, as consumers and industries demand smaller, lighter, and more powerful gadgets. In industries like consumer electronics, where gadgets like wearables and smartphones need compact, effective components to match customer expectations for mobility and performance, this tendency is especially noticeable. The growth of the Internet of Things and linked gadgets is another important factor (IoT). The need for passive components and interconnects that facilitate smooth data transfer and communication is increasing as more devices become networked. These constituents are indispensable for forging dependable connections among devices, sensors, and networks, and they assume a pivotal part in guaranteeing the effectiveness and dependability of Internet of Things.

"Rising Automotive Industry to expand the Market"

The automotive industry is another driving factors for the growth of the market, in particular as vehicles emerge as more and more electrified and connected. Electric cars (EVs), especially, require a variety of interconnects and passive additives to assist their complex electric structures, along with battery control, electricity distribution, and car-to-automobile conversation. As the adoption of EVs keeps to rise, the call for these additives is expected to grow extensively. Technological advancement and innovation are also important drivers of the market. As new materials, plans, and assembling processes arise, they empower the advancement of interconnects and detached parts that proposition further developed execution, higher effectiveness, and more noteworthy dependability. For instance, the adoption of 5G innovation is driving interest for interconnects that can uphold higher information rates and frequencies, while progressions in materials science are empowering the creation of parts with upgraded warm and mechanical properties.

RESTRAINING FACTORS

"Dependency on Other Industries to Impede Market Growth"

One of the significant restrictions in this market is the reliance on different ventures, especially the hardware and semiconductor areas. The interest for interconnects and passive components is firmly connected to the development and advancement in these businesses. For example, the declining interest for PCs and cell phones can straightforwardly influence the interest for uninvolved parts like capacitors and resistors. This interdependency makes the market powerless to changes in these areas, possibly prompting diminished deals and income.

INTERCONNECTS AND PASSIVE COMPONENTS MARKET REGIONAL INSIGHTS

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"North America to Dominate in the Market due to Presence of a Large Consumer Base"

The market is segmented into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

North America has emerged as the most dominant region in the global Interconnects and passive components market share. The presence of key part like TE Network, Amphenol Organization, and Molex, alongside a solid spotlight on mechanical development and Research and development, has added to this region’s dominance. The US's strong car, aviation, and guard businesses, specifically, have been key drivers for the interest for top notch interconnects and passive components.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The Interconnects and passive components market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of wardrobe options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features in Interconnects and passive components, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• AVX Corporation (U.S.)
• Murata Manufacturing (Japan)
• Samsung Electro-Mechanics (South Korea)
• TDK Corporation (Japan)
• TAIYO YUDEN (Japan)
• Fenghua (H.K) Electronics (China)
• KYOCERA Corporation (Japan)

INDUSTRIAL DEVELOPMENT

September 2023: AMETEK, Inc. Purchased United Electronic Industries (UEI) in September 2023 for the aerospace, defence, power, and semiconductor industries. UEI is an expert in creating high-overall performance test that help clients construct smart, honest, bendy, and lengthy-lasting structures.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.