Active Electronic Components Market Growth & Trends
The global active electronic components market size is estimated to reach USD 529.86 billion by 2028, registering a CAGR of 9.2% from 2021 to 2028, according to a new study by Grand View Research, Inc. Growing demand for active electronics components in the production of smart home appliances, such as refrigerators, air conditioners, and washing machines, is estimated to boost the market growth over the forecast period. Moreover, the anticipated adoption of these components in networking devices and telecom equipment requisite for developing 5G infrastructure is further expected to elevate the market growth from 2021 to 2028.
The growing popularity of wearables, such as smartwatches, Virtual Reality (VR) headsets, and fitness bands, and increased consumer spending on health and entertainment are also anticipated to increase product adoption in the coming years. In addition, voluminous patient data coupled with investments made by the governments and private players worldwide for setting up state-of-the-art healthcare facilities has augmented the adoption of high-tech medical equipment and connected devices, thereby boosting the product demand.
Demand for connected cars is transforming the automotive industry. This has increased the use of advanced electronics in automobiles for multiple applications, such as parking, safety, telematics, and navigation. Thus, the rising demand for advanced electronics in vehicles is expected to drive market growth over the forecast period. Also, demand for advanced microcontrollers or modems to provide robust connectivity to autonomous cars and other critical applications is expected to increase product adoption over the forecast period.
With the rising trend of industry 4.0, the adoption of the Internet of Things (IoT) devices in the manufacturing sector is gradually increasing worldwide. Key manufacturers are opting for new technologies to augment their overall productivity and operational efficiency to ensure profitability. Therefore, the rising adoption of IoT technology for smart manufacturing applications, such as machine-to-machine communication, is estimated to augment the product demand. However, the trade war between the U.S. and China is anticipated to restrict the overall market growth over the forecast period.
Active Electronic Components Market Report Highlights
- The market in India is anticipated to register significant growth due to the rising investments by prominent smartphone manufacturers aimed at establishing their manufacturing facilities in the country
- The Integrated Circuits (ICs) sub-segment held the highest market revenue share of over 55% in 2020 due to the high demand for ICs integrated with state-of-the-art devices, such as smartphone, laptops, vehicle automation systems, and network devices
- Significantly growing product demand across next-generation devices, such as 5G-enabled smartphones, gaming consoles, and other consumer electronics, is estimated to fuel the consumer devices segment growth from 2021 to 2028
- The Covid-19 pandemic has a significant impact on the market in 2020. Several manufacturing companies reported a notable drop in their revenues for Q1 and Q2 of the year 2020
- Several key market players are focusing on mergers and acquisitions to strengthen their market presence and expand their product portfolios