Active Electronic Components Market By Product (Display Devices, Vacuum Tubes, Semi-Conductor Devices), By End-User (Healthcare, Aerospace And Defense, Manufacturing), & Region for 2024-2031

Active Electronic Components Market - 2024-2031

The increase in technological innovation & advancement, and the consumer electronics market growth in the sector. Thus, the growing technological innovation & advancement, and the consumer electronics market surge the growth of market size surpassing USD 321.86 Billion in 2024 to reach the valuation of USD 613.62 Billion by 2031.

Rising use of smart devices and IoT are becoming more and more popular in developing countries and small-scale industries due to their affordability, flexibility, and ease of interaction with others. Thus, the use of smart devices and IoT are gaining popularity in emerging countries enabling the market to grow at a CAGR of 8.40% from 2024 to 2031.

Active Electronic Components Market: Definition/ Overview

Active electronic components are distinguished from their passive counterparts by their ability to generate, magnify, or switch electrical impulses. These components are powered by an external voltage source and are constructed from specialized materials like silicon, which can be precisely tuned for specific electronic behaviors. The transistor, a fundamental active component, is utilized as a miniature amplifier or switch, while diodes are employed for controlling current flow in one direction. These components are extensively used in various applications, from basic light switches to sophisticated medical equipment.

Integrated circuits (ICs), also known as microchips, are compact units that incorporate numerous active components into a single silicon chip. The functionality of multiple distinct components is integrated into these engineering marvels, which are found in a wide range of devices, from cell phones to industrial control systems. Through the manipulation and control of electrical signals, active components are responsible for enabling the remarkable capabilities of modern electronics, making them essential in nearly all electronic devices.

Whether Technological Innovation & Advancement have any Implications on the Growth of the Active Electronic Components Market?

Technological innovation and advancement have been identified as the primary drivers for the growth of the active electronic components market. A significant impact on this sector has been observed due to rapid developments in semiconductor manufacturing and miniaturization techniques. The market's expansion is being driven by the increasing demand for compact, high-performance, and energy-efficient electronic devices.

The landscape of modern electronics has been transformed by innovations in transistors, integrated circuits, and microprocessors. These advancements have paved the way for the creation of sophisticated devices such as wearables, smartphones, and Internet of Things (IoT) gadgets. As a result, the need for active electronic components has been amplified across various industries.

The growth of the consumer electronics market has been recognized as another key factor propelling the demand for active electronic components. A steady stream of cutting-edge components has been necessitated by the widespread adoption of computers, tablets, smartphones, smart TVs, and other personal electronics, as these components are crucial for enhancing functionality, performance, and user experience. The rising use of smart devices and IoT has been identified as a significant driver for the active electronic components market. The proliferation of IoT and smart devices across various sectors, including healthcare, industrial automation, and home automation, has led to an increased demand for sensors, microcontrollers, and communication modules - components that are essential for connectivity and intelligent functionality.

How Does the Supply Chain Disruptions in Emerging Countries Impede the Growth of the Active Electronic Components Market?

Supply chain disruptions in emerging countries have been identified as a significant impediment to the growth of the active electronic components market. The global supply chain for electrical components, characterized by its complexity, is particularly vulnerable to unforeseen events such as pandemics, natural disasters, and geopolitical tensions. As a result of these interruptions, shortages of essential components, production delays, and increased costs have been experienced, severely impacting the ability of companies to meet market demand.

In addition to supply chain challenges, several other factors have been observed to hinder the market's growth. The rapid pace of technological change in the electronics industry has been recognized as a formidable challenge for manufacturers. Significant investments in new technologies and processes have been required to maintain competitiveness, a strategy that has been associated with considerable costs and risks.

Environmental and regulatory compliance has emerged as another major hurdle for the industry. The use of hazardous materials and processes in the production of electronic components has necessitated strict adherence to environmental laws and regulations. Consequently, businesses have been compelled to invest in sustainable practices and technologies, leading to increased operational costs.

Category-Wise Acumens

How does the Increasing Demand for Advanced Electronic Systems Foster the Growth of Semi-Conductor Devices?

The semiconductor devices segment is dominating the active electronic components market. This rise is attributed to the increasing demand for advanced electronic systems across various industries. A surge in the adoption of smartphones, tablets, and other consumer electronics has been noted, driving the need for more sophisticated semiconductor components. In the automotive sector, a shift towards electric and autonomous vehicles has been witnessed, necessitating the integration of complex semiconductor devices for power management and control systems. The expansion of 5G networks has further fueled the demand for high-performance semiconductors capable of handling increased data processing and transmission speeds.

The Internet of Things (IoT) revolution has also contributed to the segment's growth, as a wide array of connected devices has been introduced, each requiring semiconductor components for functionality. Additionally, advancements in artificial intelligence and machine learning technologies have led to the development of specialized semiconductors designed for these applications. The ongoing miniaturization trend in electronics has been addressed by semiconductor manufacturers through the production of increasingly compact and efficient devices.

How Does the Increased Demand for TVs, Computers, Smartphones, and Other Devices Surge the Growth of Consumer Electronics Segment?

Increased demand for TVs, computers, smartphones, and other devices is the leading cause of the growth of the consumer electronics segment. This surge in demand can be attributed to several interconnected factors. Rapid technological advancements are constantly being made, leading to the introduction of new and improved features in electronic devices. As a result, consumers are enticed to upgrade their existing gadgets to enjoy enhanced functionality and performance. The desire for cutting-edge technology is further fueled by aggressive marketing campaigns and the social status associated with owning the latest devices.

Changing lifestyles and work patterns are also contributing to the expanding market. With the rise of remote work and digital entertainment, a greater reliance on electronic devices is being observed. Computers and smartphones are becoming essential tools for both professional and personal use, while smart TVs and gaming consoles are increasingly sought after for home entertainment. Furthermore, the growing disposable income in many regions is enabling more consumers to afford these devices. As economies develop and middle-class populations expand, particularly in emerging markets, a larger customer base is being created for consumer electronics. The interconnectedness of devices through the Internet of Things (IoT) is further propelling demand. Consumers are motivated to purchase multiple compatible devices as more gadgets can be seamlessly integrated into smart home ecosystems.

Country/Region-wise Acumens

How Does the Increase in demand for consumer electronics, automotive components, and other electronic equipment Surge the Growth of the Active Electronic Components Market in North America?

Asia Pacific region is the dominating region in the active electronic components market. A significant increase in demand for consumer electronics, automotive components, and other electronic equipment has been observed, primarily driven by the region's rapidly growing economies, with China at the forefront. This economic boom has been accompanied by a parallel rise in the demand for active electronic components that power these devices. As both consumers and businesses in the region increasingly adopt more advanced technologies, a continuous growth in the need for sophisticated electronic components has been noted, further solidifying the region's leadership in this sector.

The dominant position of Asia Pacific in the active electronic components market has been further reinforced by the substantial presence of major electronics manufacturers in the region. Many of the world's leading electronics companies have established their operations in this area, capitalizing on the availability of cost-effective labor and a readily accessible pool of skilled workers. These manufacturers have been able to better meet global demand by reducing production costs and enhancing supply chain efficiency. The prominent position of the Asia Pacific region in the Active Electronic Components Market can be attributed to a combination of factors, including economic growth, increasing consumer demand, and strategically located manufacturing capabilities.

How does the Burgeoning Healthcare Expenditure and Increasing Awareness of Medication Safety Foster the Growth of the Active Electronic Components Market in North America?

North America is the emerging market for the active electronic components market driven by the rising prevalence of connected vehicles, particularly in the United States. Major telecom operators, including AT&T Inc. and Verizon Inc., are making substantial investments in the deployment of 5G network infrastructure. This advanced infrastructure is deemed essential for enabling seamless connectivity between vehicles and broader network systems, thereby facilitating enhanced features and user interfaces in connected automobiles. The automotive industry's drive to incorporate more connected technologies has been identified as the main factor fueling the region's increasing demand for active electronic components.

Despite an initial setback in the industrial deployment of 5G due to the COVID-19 outbreak, the US government's ambitious goals have not been deterred. Significant investments are being directed towards the development of smart cities and the implementation of high-efficiency network infrastructure. These initiatives are expected to accelerate the installation of networking devices and telecom equipment, aligning with the ongoing expansion of the 5G network across North America. Consequently, it is projected that the growing demand for advanced electronic components, driven by the need for reliable and efficient network connectivity, will support the expansion of the Active Electronic Components Market in North America throughout the forecast period.

Competitive Landscape

The Active Electronic Components Market continues to change and evolve with innovations and also new technologies. There is a continuous promotion of new materials and the improvement of sensors. Cloud-based delivery by companies needs to meet new requirements and demands of industries. The market share for the active electronic components market is an intense and consistently evolving field where new and old players are still fighting for occupation.

Some of the key players operating in the active electronic components market include:

Hitachi AIC, Inc.

Qualcomm, Inc.

Broadcom Inc.

Panasonic Corporation

Renesas Electronics Corporation

Maxim Integrated

Intel Corporation

Semiconductor Components Industries LLC

Latest Developments

In June 2023, NXP announced a new top-side cooling packaging technique for RF power, resulting in the miniaturization of 5G radios. The rapid and simple deployment of 5G base stations has been facilitated by this technology, which enables the production of smaller, lighter, and thinner radio components.

In June 2023, STMicroelectronics announced a line of octal high-side switches with galvanic isolation to enhance robustness. Improved energy efficiency, dependability, and troubleshooting capabilities have been made possible through the incorporation of protective diagnostics with an RDS (on) of less than 260 mΩ.