Active Electronic Components Market to Exceed $521 Bn by 2027
The global active electronic components market is projected to exceed US $521.11 billion by 2027, with a compound annual growth rate of 8.2% during the forecast period of 2020 to 2027, according to market analysts at Precedence Research. In 2019, the market size was valued at US $273.25 billion.
Active electronic components encompass transistors, diodes, triodes, optoelectronic components, photoelectric tubes, and integrated circuits, among others, and require an energy source to operate, typically in the form of a direct current. Generally, every electronic circuit consists of one active electronic component, and they can control and manipulate the flow of electricity through them. Integrated circuits are the most in-demand active electronic component, as they have a wide array of applications. Furthermore, demand for ICs has increased thanks to technological advancements such as flexible ICs and multi-layered ICs.
One of the key factors driving growth is the trend towards autonomous and electric vehicles, which typically use electronic devices such as DC to AC converters, driver assistance systems, power integrated devices, controllers, global positioning systems (GPS), and telematics, amongst others. In addition to this, governments across the world have introduced initiatives to spur the adoption of electric vehicles in a bid to lower carbon emissions and reduce their negative impact on the environment.
Another factor behind growth is the increased penetration of the internet of things (IoT), with consumers preferring smart and connected solutions for ease in controlling and monitoring their devices. Inevitably, this will boost demand for active electronic components in the coming years.
North America dominated the global active electronic components market in 2019. The region has seen explosive growth in connected cars, and telecom providers including AT&T have shifted their focus from traditional networks towards 5G infrastructures, offering seamless connectivity to vehicles. Additionally, the US government has invested significantly in smart city projects, promising huge growth opportunities for the market; in November 2016, the US government announced an investment of US $160 million in smart city initiatives over the next five years.
The Asia Pacific region is projected to see the most significant growth during the forecast period, thanks to the presence of leading consumer electronics manufacturers including BBK Electronics, Xiaomi Corporation, and Samsung, to name a few. Moreover, the region is experiencing rising demand for industrial automated systems such as Supervisory Control and Data Acquisition (SCADA), Programmable Logic Controllers (PLCs), and other automated solutions.