The Electronics Components Market is Powering Technology Advancement with Miniaturization

 The general electronics components industry plays a pivotal role in the development and functionality of various electronic devices. Components like capacitors, resistors, inductors, transistors, integrated circuits etc. are essential building blocks in any electronic circuit. Miniaturization of components has allowed manufacturers to develop compact yet powerful devices. The growing need for smart miniaturized devices across automotive, industrial, consumer electronics and telecommunication sectors is driving higher consumption of general electronic components. The Global General Electronic Components Market is estimated to be valued at US$ 498.34 Bn in 2024 and is expected to exhibit a CAGR of 6.8% over the forecast period from 2023 to 2030.

Key Takeaways

Key players operating in the general electronic components market are Panasonic Corporation, Samsung Electronics Co. Ltd., Intel Corporation, Texas Instruments Incorporated, Toshiba Corporation, Sony Corporation, STMicroelectronics N.V., NXP Semiconductors N.V., Infineon Technologies AG, Broadcom Inc., Analog Devices Inc., Murata Manufacturing Co. Ltd., Vishay Intertechnology Inc., ON Semiconductor Corporation, Renesas Electronics Corporation. Miniaturization of components has unlocked new opportunities for product innovation and integration. The rapid pace of new product launches across various end-use industries has propelled demand for electronic components.

Rising penetration of IoT devices and automation in industries has significantly increased the usage of electronic components. Applications ranging from consumer appliances to factory robots rely on electronic components to function. Global electronics sales surpassed USD 1.5 trillion in 2021 indicating strong underlying demand. Emerging economies in Asia Pacific and Latin America are expected to drive the next wave of demand growth.

The automotive industry is undergoing massive transformation with mechatronics and smart connectivity becoming core technologies. Electronic control units, sensors and other components are seeing increased consumption with rising electrification and autonomous driving. Furthermore, 5G deployment is boosting the network infrastructure upgrade cycle benefiting semiconductor companies.

Market Key Trends
The miniaturization trend in electronics is a key driver for the components industry. Leading manufacturers are focusing on developing compact sized components without compromising on performance. This allows fitting high-end functionality into small form factors. Ongoing advancements in materials science and semiconductor fabrication technologies are enabling achievement of this goal. The transition to compact wide bandgap materials like Silicon Carbide and Gallium Nitride for power components is another major trend. Their superior switching capabilities fulfill the need for more efficient power conversion and management in several applications.

Porter's Analysis

Threat of new entrants: New electronic component manufacturers find it difficult to enter this market due to high R&D costs and existing customers loyalty towards established brands.

Bargaining power of buyers: Large electronics manufacturers have significant bargaining power over component suppliers due to their huge purchase volumes and ability to play suppliers against each other.

Bargaining power of suppliers: Leading electronic component manufacturers have strong bargaining power over electronics OEMs and system integrators due to their proprietary technology and intellectual property.

Threat of new substitutes: Alternative component technologies rise as substitutes but necessitate huge investments that discourage changes.

Competitive rivalry: Intense competition exists among incumbent suppliers to gain technological advantage and market share through scaling up production capacity.

Geographical Regions
Asia Pacific accounts for the largest share of the general electronic components market in terms of value currently, mainly driven by large electronics manufacturing bases in China, South Korea, Taiwan and other Southeast Asian countries. These regions collectively captured over 60% of global market value in 2023 owing to supply chain and manufacturing cluster advantages.

North America is projected to exhibit the fastest growth in the general electronic components market during the forecast period of 2023 to 2030. This is attributed to increased investments by US-based companies in semiconductor fabrication and innovative technologies such as IoT, artificial intelligence and autonomous driving to strengthen domestic manufacturing capabilities and supply chains.