Interconnects and Passive Components Market size is expected to reach $250.6 billion by 2026 at a CAGR of 5.8% during the forecast period 2021-2026, owing to the growing number of computing, communications, and consumer electronics (3C) applications drive the passive and interconnect market. Passive components are the building blocks in all kinds of electronic devices and appliances. These components are part of electronic circuitry and have been the major backbone of industries such as computing, communications, and consumer electronics.
Moreover growing trends of highly offline electronic components and optimization of processes in terms of costs and energy saving have led to the increase in advancements in the electronics sector. As a result, continual innovation and introduction of advanced technologies in the consumer electronics sector is thereby supplementing the growth of the overall passive and interconnecting components market worldwide.
Interconnects and Passive Components Market Segment Analysis - By Type
Connectors segment in Interconnects and Passive Components are growing at a CAGR of 7.9% in the forecast period, owing to wide use of connectors across different applications such as automation, robotics, data transfer, and infotainment. Moreover, the demand for optical interconnects and fiber optic connectors in telecommunication and data processing applications boosts the demand for the connector segment. Moreover, growing number of data centres across the globe and surge in government initiatives to increase connectivity in rural areas of the developing economies are expected to provide lucrative opportunities for the market. In 2019, Google had committed to invest $3.3 billion to expand its data centres in Europe in the next two years. In addition countries such as India, China, U.S. and others are investing heavily for the development of advanced robots. In 2020, Chinese government has increased its spending more than $7.6 billion for the development of advanced robots by 2025. As connectors are used for several applications in robots and data centres. Hence these investments are analysed to drive the market in the forecast period 2021-2026.
Interconnects and Passive Components Market Segment Analysis - By Application
Telecommunication segment is growing at a CAGR of 7.6% in the forecast period. In the telecommunications industry, advancements in the technologies such as transition from 4G to Voice over Long-Term Evolution (LTE/4G) and 5G are expected to boost the adoption of passive components and interconnects in the forecast period. Applications of telecommunication include mobile phones, landline phones, set-top boxes, remote controls, base stations, and network equipment. In addition, passive components and interconnects are increasingly used in the telecommunications sector, owing to significant growth in the mobile handset market because of innovations in smartphones. Thus, the increasing demand for passive components and interconnects from computing, communication, and consumer electronics applications is driving the global Interconnects and Passive Components Market.
Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=505426
Report Price: $ 4500 (Single User License)
Interconnects and Passive Components Market Segment Analysis - By Geography
Interconnects and Passive Components market in APAC has held a share of 34.5% in the forecast period. This is due to the easy availability of raw material, cheap labor, and low production cost in this region. Moreover, the high demand for consumer electronics products manufactured in the APAC region, especially China and India, helps in the consistent growth of Interconnects and Passive Components market. With rising income and improved standard of living, the demand for computers; electronic appliances such as mobile phones, LED displays and multifunctional chips have grown rapidly in the country. Furthermore, the inexpensive consumer electronic products manufactured in China have attracted increasing demand from abroad. The Government of China has been continuously encouraging cities to establish industrial parks for electronic component production and are providing aid to research and development (R&D) activities. Moreover government of India is providing several incentives to the manufacturers with an investment of $400 million in the forecast period. Hence these factors drive the market growth.
Interconnects and Passive Components Market Drivers
Rising Adoption of Robots across Industries
Due to increased demand across economies, product manufacturers are adopting robots to automate some of the repetitive processes. According to the Robotic Industries Association, more than 250,000 industrial robots had been installed in the United States alone, which gives an estimate of the penetration of industrial robots. In addition, the industrial robots market has been witnessing huge demand over the past decade, owing to the rising adoption of smart factory systems, of which these robots play a vital part. According to CGTN, China's industrial robot production rose by 29.2% year on year in June to 20,761 units, reaching its highest growth rate in the first half of 2020. According to the data provided by the National Bureau of Statistics, with the growth accelerating from 16.9% in May, China has produced 93,794 units of industrial robots over the past six months, up by 10.3% from the same period last year. As Interconnects and Passive Components are used to deliver signal and power to every part of the robot to activate its functions. Hence these rising adoption of robots will drive the market growth in the forecast period 2021-2026.
Growing Adoption of Passive and Interconnects in Automotive Industry
The shift towards Advanced Driver Assistance Systems (ADAS), such as lane-keeping and adaptive cruise control, to increased levels of vehicle autonomy, is also creating demand for interconnects and passives components. Infotainment systems are also demanding more passives. In addition, the transition to hybrid and eventually fully electronic powertrains will also increase demand for passive components. As hybrid vehicles need sophisticated ECUs to manage the transition between electric and ICE driving, as well as regenerative-braking and battery-charging strategies. Fully electric vehicles exchange the complexity of managing a hybrid powertrain for the challenge of trying to ensure predictable range, fast charging and good performance from still-evolving battery technology. All this demands rich sensing, robust communications, and extensive use of power-electronics devices, and their supporting circuitry, to manage the flow of very large amounts of electrical energy. Moreover, companies such as Panasonic, Nichicon and so on have been developing advanced capacitors for automotive vehicles, Panasonic has developed the EEH-ZE series hybrid aluminium electrolytic capacitors for use in filtering the inputs and outputs of power converters and voltage regulators, and for power and battery decoupling. Nichicon offers UBY aluminium electrolytic capacitors for use in electric power steering and direct-injection engine drive systems. The parts offer higher capacitances and withstand much higher ripple currents than other electrolytic capacitors. Passives manufacturer TDK has responded by creating a range of CeraLink capacitors in low-profile packages, which can act as ripple current suppressors, DC link capacitors, and snubbers. Moreover passive components such as small sensors and multilayer ceramic capacitors are extensively used in the automotive industry for powertrain, infotainment, and safety applications. Hence these growing applications and adoptions in automotive sector will drive the market growth in the forecast period 2021-2026.
Download Sample Report @ https://www.industryarc.com/pdfdownload.php?id=505426
Interconnects and Passive Components Market Challenges
Declining Profit Margins of Manufacturers
Advances in device technology are lowering hardware costs, the increase in cost is due to the constant demand for more sophisticated and diversified types of products. The counterfeiting of products is directly impacting the prices of passive components and interconnects. Furthermore, the aggressive competition among players from various regions results in the decline in prices of passive components and interconnects. This adversely affects the cost of new product development or advanced technology-driven products. Hence these factors hamper the market growth in the forecast period 2021-2026.
Interconnects and Passive Components Market Landscape
Product launches, acquisitions, Expansions, Partnerships and R&D activities are key strategies adopted by players in the Interconnects and Passive Components market. In 2020, the market of Interconnects and Passive Components industry outlook has been fragmented by several companies. Interconnects and Passive Components top 10 companies include Ametek, Inc., Amphenol Corporation, AVX Corporation, Chogori Technology Co., Ltd, Cisco Systems, Inc., Delphi Automotive LLP, Hirose Electric Co., Ltd, Hon Hai Precision Industry Co., Ltd., Hubbell Incorporated (Burndy LLC), HVP Global, LLC, among others.
Acquisitions/Technology Launches
In June 2019, AVX Corporation, a leading manufacturer and supplier of passive components and interconnect solutions, has attended Electronic Distribution Show (EDS) and launched new passive component and interconnect solutions, and promoted several forthcoming product introductions slated for market release in the coming months.
Key Takeaways
Interconnects and Passive Components market in APAC has held a share of 34.5% in the forecast period. This is due to high demand for consumer electronics products manufactured in the APAC region, especially China and India, which helps in the consistent growth of Interconnects and Passive Components market.
Connectors segment in Interconnects and Passive Components are growing at a CAGR of 7.9% in the forecast period, owing to wide use of connectors across different applications such as automation, robotics, data transfer, and infotainment.
Telecommunication segment is growing at a CAGR of 7.6% in the forecast period. In the telecommunications industry, advancements in the technologies such as transition from 4G to Voice over Long-Term Evolution (LTE/4G) and 5G are expected to boost the adoption of passive components and interconnects in the forecast period.
Interconnects and Passive Components top 10 companies include Ametek, Inc., Amphenol Corporation, AVX Corporation, Chogori Technology Co., Ltd, Cisco Systems, Inc., Delphi Automotive LLP, Hirose Electric Co., Ltd, Hon Hai Precision Industry Co., Ltd., Hubbell Incorporated (Burndy LLC), HVP Global, LLC, among others.
Related Reports :
A. High and Medium Passive Components Market
https://www.industryarc.com/Report/15633/high-medium-power-passive-components-market.html
B. Radio frequency components Market
https://www.industryarc.com/Report/15806/radio-frequency-components-market.html
For more Electronics Market reports, please click here
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.
