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Market Study on Interconnects and Passive Components: With Digitalization and Vehicle Electrification Gaining Ground, PMR Forsees Automotive Sector Demands to Provide Lucrative Opportunities for Manufacturers!
The global interconnects and passive components market size grew from US$ 180 billion in 2021 to US$ 187.6 billion by 2022. Over the next ten years, global interconnects and passive component sales are likely to soar at 6.1% CAGR. By the end of 2032, total market value is expected to exceed US$ 343 billion.
Demand for interconnects and passive components is forecast to remain high in automotive sector. As per the latest report, automotive segment is projected to thrive at 5.8% from 2022 to 2032. Thus, it will generate lucrative revenue-generation opportunities for interconnect and passive component manufacturers.
Key Trends Shaping the Market:
Interconnects are used in automotive and consumer electronics to transmit signals and power between different components of a circuit. Passive components, however, are used to manipulate these signals.
Passive components only influence the flow of power and do not require any external power source for their functioning. These include resistors, transformers, capacitors, inductors, etc. that are used in industrial settings.
Interconnect structures, including printed circuit boards, switches, and relays are used to connect two or more circuit elements electrically.
Interconnects and passive components have become critical components in electronic devices for their proper functioning. Hence, companies manufacturing these products will witness lucrative opportunities during the forthcoming decade as digitalization and automation continue to penetrate their roots.
In recent years, demand for consumer devices such as smartphones has skyrocketed globally due to rapid digitalization. This in turn has created enormous demand for interconnects and passive components, and the trend is expected to continue during the assessment period.
Growing production and sales of medical devices, industrial machinery, solar panels, industrial machines, etc. is likely to elevate interconnect and passive component demand. This is because interconnects and passive components have become essential components in these electronic products.
Another key factor that is expected to create growth prospect for the manufacturers of interconnects and passive components is the rising adoption of electric and hybrid vehicles.
Increasing environmental concerns and rising fuel costs have compelled both customers and automakers to shift towards electric vehicles. Electric vehicles require various electronic products for their proper functioning. Thus, rising sales of electric vehicles will create high demand for interconnects and passive components.
Passive components and interconnects are critical for the performance and reliability of various automotive systems. This includes engine management, infotainment, and safety systems.
Interconnects and passive components are also essential for the development of electric and autonomous vehicles, which require advanced interconnects and passive components to operate safely and efficiently.
In 2020, the total number of automobiles sold worldwide was around 58 million units, which increased to around 67 million in 2022. It is projected that around 73 million automobiles will be sold globally by 2027. This will uplift interconnect and passive component demand during the assessment period.
Leading companies are expanding their portfolios by launching new products with enhanced features such as better efficiency. For instance, recently X6S MLCC was launched by YAGEO Group, a leading passive component service provider. The new product feature higher capacitance and smaller size to meet industrial application requirements.
| Attributes | Key Insights |
|---|---|
|
Global Interconnects and Passive Components Market Size in 2022 |
US$ 187.6 billion |
|
Projected Interconnects and Passive Components Market Value in 2032 |
US$ 343 billion |
|
Value-based CAGR (2022 to 2032) |
6.1% |
|
United States Market CAGR (2022 to 2032) |
5.1% |
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As per the latest report from Persistence Market Research (PMR) latest report, global sales of interconnects and passive components grew at around 4.1% CAGR from 2017 to 2021. Over the forecast period 2022 to 2032, the worldwide market is forecast to exhibit a CAGR of 6.1%. It is anticipated to create an absolute $ opportunity of US$ 155.5 billion during the forecast period.
Interconnects and passive components are crucial for the design and construction of electronic circuits in a wide range of applications, from consumer electronics to industrial automation and automotive systems. Their performance, reliability, and efficiency can significantly impact the overall performance of an electronic system.
The increasing demand for consumer electronics, such as smartphones, laptops, and home entertainment systems, is expected to contribute to the expansion of the interconnects and passive components industry.
As consumers demand smaller, lighter, and more powerful devices with longer battery life, manufacturers are turning to advanced interconnects and passive components to meet these demands.
In consumer electronics such as smartphones, laptops, and televisions, interconnects such as flexible printed circuits and ribbon cables are used to connect various components. This includes the screen, battery, and motherboard.
Passive components such as capacitors and inductors are used in power management circuits to regulate voltage levels and minimize noise.
There were around 14 billion mobile devices in operation in the world in 2020 which increased to around 15.9 billion by 2022. It is projected that by 2025 there will be around 18.2 billion mobile devices in operation in the world. This will create high demand for interconnects and passive components.
Robust growth of the automotive and aerospace industries is another key factor that will impact interconnects and passive component sales. These industries require high-performance components that can withstand harsh environments and extreme temperatures.
Interconnects and passive components play a critical role in the automotive industry, enabling the transmission and manipulation of signals between electronic components in vehicles. These components are essential for the performance, safety, and reliability of modern vehicles.
Interconnects are used to connect various components, such as sensors, control modules, and displays. Passive components are also used extensively in automotive applications to filter out noise, store energy, and control the flow of current. These components include inductors, capacitors, and resistors.
Interconnects and passive components are critical for the performance and reliability of many automotive systems, such as engine management, infotainment, and safety systems.
Development of electric and autonomous vehicles that require advanced interconnects and passive components to operate safely and efficiently are expected to create new prospects for the market.
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Get a Customized VersionRegionally, Asia Pacific is expected to remain at the epicenter of the interconnects and passive components industry. It will create lucrative revenue-generation opportunities for interconnect and passive component manufacturers/.
In 2022, Asia Pacific interconnects and passive components industry size reached US$ 95.2 billion. Over the projection period, sales of interconnects and passive components across Asia Pacific is likely to surge at a robust pace. By 2032, Asia Pacific market is projected to reach US$ 174.2 billion.
Rising production and sales of consumer electronics and thriving automotive sector are key factors driving Asia Pacific market.
In 2021 China produced around 2.1 million passenger cars while Japan and India produced 660,000 and 360,000 cars respectively. With the rising production of passenger cars in the region, demand for interconnects and passive components is also projected to increase. This will foster market development during the assessment period.
Surging demand for infotainment systems and driver assistance systems along with expansion of 5G infrastructure will also boost sales in Asia Pacific.
What is the Sales Forecast for the United States Interconnects and Passive Components Market?
The United States interconnects and passive components market is projected to reach a massive valuation of US$ 50.1 billion by 2032. Total interconnect and passive component sales in the United States are likely to surge at 5.1% CAGR through 2032, creating an absolute $ opportunity of US$ 19.5 billion.
Rising demand for interconnects and passive components across booming consumer electronics, medical device, and defense sectors will drive the United States market.
The United States has a significant smartphone market in the world. There were around 307 million smartphone users in the United States in 2022. It is projected that by 2030 total number of smartphone users in the country will reach around 338 million. This will create high demand for interconnects and passive components.
Interconnects enable the transfer of signals and power between different parts of a smartphone's circuitry. Hence, increasing smartphone penetration is anticipated to make the United States a lucrative market for interconnects and passive component manufacturers during the assessment period.
How is China Interconnects and Passive Components Market Performing?
As per Persistence Market Research (PMR), China interconnects and passive components market is set to witness a CAGR of 7.7% during the assessment period. It is anticipated to create an absolute $ growth of US$ 47.3 billion through 2032.
Over the next ten years, sales of interconnects and passive components across China will remain positive, with overall market revenue likely to exceed US$ 90.6 billion by 2032.
Increasing penetration of smartphones and rising popularity of electric vehicles are key factors that are expected to elevate demand for interconnects and passive components in China.
China has a predominant smartphone market in the world. In 2022, there were around 1.06 billion smartphone users in China which is expected to reach around 1.18 billion by 2026. With the increase in the use of smartphones, demand for interconnects and passive components is projected to increase rapidly.
Interconnects and passive components have also become essential parts of modern electrical and autonomous vehicles. Hence, electrification of automotive sector will open a plethora of opportunities for the manufacturers of interconnects and passive components during the assessment period.
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Which Product Type is Expected to Generate Most Opportunities for Manufacturers?
The passive components segment is likely to create maximum growth opportunities for interconnect and passive component manufacturers. This is due to rising usage of passive components in a wide range of modern electronic devices.
As per the new report, passive components segment is expected to grow at a CAGR of 6.0% from 2022 to 2032. Historically, from 2017 to 2021, the target segment exhibited 4.0% CAGR.
Passive components are fundamental electrical circuit building elements that do not require an external power source to work. They include transformers, inductors, capacitors, resistors, and filters.
Passive components are widely used in electronic devices and systems to perform a variety of functions, such as filtering out noise, storing energy, and limiting current flow.
For instance, resistors are used to restrict the flow of electrical current in a circuit and convert electrical energy into heat. Capacitors, on the other hand, store electrical energy and release it over time, and are used to filter out unwanted frequencies in a circuit.
Passive components play an essential role in the design and function of electronic circuits. The selection of appropriate passive components can significantly impact the performance of a circuit, and careful consideration must be given to the specifications and requirements of a given application when choosing these components.
Growing production and sales of various electronic devices is expected to fuel passive component sales during the assessment period. This will further boost the target segment and create opportunities for manufacturers.
Which is a Highly Remunerative Application of Interconnects and Passive Components?
According to Persistence Market Research (PMR), adoption of interconnects and passive components will remain high in automotive sector. The automotive segment is forecast to progress at a CAGR of 5.8% from 2022 to 2032.
Interconnects and passive components play a vital role in the automotive industry by enabling the transmission and manipulation of signals between electronic components.
Interconnects such as wiring harnesses and connectors are used to connect various components, such as sensors, control modules, and displays. These components must be designed to withstand harsh environments, including extreme temperatures, humidity, vibration, and shock.
Passive components such as capacitors, resistors, and inductors are used in various automotive applications. This includes engine management, safety systems, and infotainment. They are essential for filtering out noise, storing energy, and controlling the flow of current.
Capacitors, for example, are used to smooth voltage fluctuations, while resistors are used to reduce electrical noise. Interconnects and passive components also play a critical role in the development of electric and autonomous vehicles, where they are used extensively in power management and sensor systems.
Increasing popularity of electric and autonomous vehicles is anticipated to play a key role in elevating interconnects and passive component demand.
Leading manufacturers of interconnects and passive components include TE Connectivity Limited, Amphenol Corporation, Molex Incorporated, Hirose Electric Co., Ltd., Delphi Automotive LLP, Koch Industries, Japan Aviation Electronics Industry, AVX Corporation, Cisco, and Panasonic Corporation.
These players are aiming at developing novel products to meet changing end user demand. They are also rigorously investing in research and development and employing other strategies such as partnerships, partnerships, acquisitions, and agreements to boost their revenues.
Recent Developments:
| Attribute | Details |
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Market Size (2022) |
US$ 187.6 billion |
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Projected Market Size (2032) |
US$ 343.0 billion |
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Anticipated Growth Rate (2022 to 2032) |
6.1% CAGR |
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Forecast Period |
2022 to 2032 |
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Historical Data Available for |
2017 to 2021 |
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Market Analysis |
US$ Million for Value |
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Key Regions Covered |
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Key Countries Covered |
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Key Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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By Product Type:
By Application:
By Region:
The global market was valued at US$ 180 billion in 2021.
The global interconnects and passive components market size reached US$ 187.6 billion in 2022.
The worldwide interconnects and passive components industry is projected to reach US$ 343 billion by 2032.
The global market for interconnects and passive components exhibited a CAGR of 4.1% from 2017 to 2021.
Global interconnects and passive component demand is set to rise at 6.1% CAGR through 2032.
Automotive segment is expected to lead the interconnects and passive components industry.
Japan and Korea markets are likely to thrive at 6.4% and 6.7% CAGRs respectively through 2032.
Registering a CAGR of 4.7%, the United Kingdom interconnects and passive components industry is expected to reach US$ 8.9 billion by 2032.
