Active Electronic Components Market is growing rapidly over ~10% of CAGR and is expected to reach at USD ~ 330 billion by the end of forecast period. Active electronic components are electronic products that are designed to produce atomic reactions in electrical systems by displacing electrons. This activity generates the energy that these electrical systems need to function and operate.
They produce electrical energy which is measured in volts. The electronics industry has passive electronic components as well but these don’t generate energy through atomic reactions. Instead, they store electrical energy for further use.
COVID-19 was indeed a novel virus that disturbed the world last year. Many governments realized early on that this was indeed a very dangerous virus that needed to be contained. They did so by imposing temporary lockdowns and quarantines. This had limited effect. Many industries were affected because they were forced to either halt operations altogether temporarily or dramatically slow operations down.
The active electronic components market was one of the markets and industries that was adversely affected by COVID-19. Many manufacturers found that they had to dramatically slow operations down. This resulted in severe shortages of electrical energy in many parts of the world.
Smartphones are becoming more sophisticated all of the time. People can hardly wait to upgrade to the latest version of Android or Apple iPhone. Smartphones are guzzlers of electric energy. Their rapidly growing popularity is one of the factors that is driving breakneck growth in the active electronic components market.
The Internet of Things (IoT) is also driving growth in the active electronic components market. The Internet of Things includes wearable devices like the FitBit watch. It has requirements in terms of infrastructure in terms of data storage devices, computers, etc…All of this infrastructure will need large amounts of electrical energy to operate efficiently.
Many manufacturers in the active electronic components market are enticed by the high CAGR that the market projects in the near term. They are responding by investing heavily in research and development to come up with electronic systems that are capable of initiating even bigger electrical reactions in less time. The objective is to make money by generating large amounts of electrical energy. They store any unused energy to use later.
The prices of the raw materials needed to generate this energy are not stable. They fluctuate widely from day to day and even throughout the day. This is a major factor that is holding back growth in the active electronic components market.
Perhaps the greatest challenge that these manufacturers face lies in finding ways to generate even more electrical energy at prices that are lower than what they are today keeping the fact that raw material prices fluctuate widely into account.
The CAGR for the active electronic components market is projected to be 10% by forecast 2023.
Texas Instruments is a major American player in the active electronic components market. It has managed to remain competitive and retain its dominant position in the market by investing heavily in research and development. This company has managed to design a new generation of electronic devices that are capable of generating much more energy in shorter periods of time and at lower prices than in the past.
By product type
The active electronics components market can be further divided into the product type segment. This segment consists of
The largest sub-sector in the product type segment is integrated circuits. It currently generates revenue of USD 76.96 billion (as of 2016.) Its current CAGR is 11.42%.
The active electronic components market can be further divided into the end-user segment. This segment consists of:
In the end-user segment, the largest sub-sector is the consumer electronics sector. Its revenue turnover was USD 73.5 billion in 2016. Its current CAGR is 11.95%.
The active electronics components market can be broken down into the following regions:
The North American region currently has the largest regional market share. The European Union comes in second place. It’s followed by the Asia-Pacific region.
One main reason why the North American region has the largest market share of all of the regions in the world is that security systems are used heavily in the nations that comprise the North American continent (Canada, Mexico, and the United States of America.) The United States of America especially has many homes and commercial operations using security and or closed-circuit TV cameras and systems. Given the growing concern over break-ins, security systems are projected to increase in popularity in The United States of America over the next few years. This will generate huge demand for devices that can produce large amounts of electrical energy fairly quickly.
Another key industry that is growing rapidly in the United States of America and Canada is the business intelligence industry. This industry relies heavily on energy generation and consumption to operate optimally. This is driving rapid growth in the active electronic components market.
The Asia-Pacific region has the highest regional CAGR of all of the regions in the world. What is driving growth in this region is the rapidly growing demand for a variety of devices that consume large amounts of electrical energy. These include smartphones, mobile devices, wearable devices, etc…
Also, many economies in the Asia-Pacific region are growing rapidly. This is fueling rapid demand for devices that can generate large amounts of electrical energy fairly quickly. This is also part of the reason why the global CAGR for the active electronic components market is so high, at least for the near term.
The economies of India and China are growing quickly. In fact, India was the world’s fastest-growing economy in the pre-COVID-19 world. As the masses get richer in India they want to invest more money in electronic devices that consume large amounts of energy. Such devices include smartphones and mobile devices. This is generating huge demand for devices that can generate large quantities of electrical energy in a few minutes.
The same trend is occurring in China. In fact, as the populations in both of these countries become more technologically sophisticated and better educated, demand for electrical energy generating devices in the active electronic components market is expected to skyrocket.
Other trends that are driving growth in the active electronic components market in the Asia-Pacific region include the fact that smart devices are getting smaller and smaller in size and the fact that smart cars are starting to become popular. This is especially true in Japan. The fact that India and China are industrializing rapidly is a contributing factor as well.
There are three nations in the Asia-Pacific region that are driving growth in the regional active electronic components market. These are China, India, and Japan.
The active electronic components market is a highly competitive industry. Many companies are attracted to this market by its high CAGR. The market also has relatively low barriers to entry. Companies are finding that they can generate enough economic revenue to stay financially viable only if they engage in research and development, enter into strategic partnerships, and/or merge with/acquire other companies.
Most companies are actively doing research and development. They find that by doing so they can create the next generation of active electronic components products that can generate even more energy than the previous generations were able to. They also find that this can give them the sustainable competitive advantage that they need to attempt to become industry leaders by creating products that the competition can neither quickly nor easily imitate.
Mergers and acquisitions and joint ventures allow companies to have access to resources in the quantities that allow them to do better research and development and marketing. They find that they have an easier time entering into new markets and retaining and strengthening their current position in existing ones.
Analog Devices is a major American player. It has managed to create and retain its superior industry profile by investing heavily in research and development to develop devices that can generate more energy faster, it has also come with devices that are energy efficient.
List of Companies
The CAGR for the active electronic components market is 11.95%. The United States may have the largest market share but the Asia-Pacific region is gaining fast because it has the highest regional CAGR.
|Market Size||USD 330 billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||product type, end-users|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Hitachi AIC Inc. (Japan), Infineon Technologies AG (Germany), Texas Instruments, Inc. (U.S), Analog Devices, Inc. (U.S.), NXP Semiconductors N.V. (Netherlands), Panasonic Corporation (Japan), Toshiba Corporation (Japan), STMicroelectronics (Switzerland), Renesas Electric Corporation (Japan) and Maxim Integrated (U.S.)|
|Key Market Opportunities||Global demand in ICT market for smartphones and other wearable devices, and the dramatic growth for smart automobiles, industry machinery and infrastructure.|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
Increasing sales of smartphones and wearable devices are expected to fuel demand for active electronic components over the next few years.
Hitachi AIC Inc. (Japan), Panasonic Corporation (Japan), Renesas Electric Corporation (Japan), and Toshiba Corporation (Japan) are some of the key players expected to contribute to the expansion of the market in the region.
The segments of the market, by product type, are semiconductor devices, display technologies, vacuum tubes, optoelectronic devices, and others.
The consumer electronics segment is projected to expand at 11.95% CAGR.
North America, owing to its technological advancements, is likely to lead the market with a dominant share.