Integrated Passive Devices Market Analysis

Integrated Passive Devices Market (Global, 2024)

Introduction

The INTEGRATED PASSIVE DEVICES MARKET is expected to experience significant growth, as the demand for miniaturized and efficient electronic components continues to rise across industries. These devices, which combine multiple passive components such as resistors, capacitors, and inductors in a single package, are becoming essential in the design of modern electronic systems. This market is mainly driven by the growing demand for compact and lightweight solutions in applications such as consumer electronics, telecommunications, automobiles, and industrial products. These devices are becoming more complex and sophisticated, and as technology evolves, manufacturers are focusing on improving the performance and reliability of these devices, while reducing their production costs. As these devices not only save space, but also improve signal integrity and reduce assembly time, they are increasingly used by engineers and design engineers. The growing trend toward automation and the Internet of Things is expected to further drive the demand for these devices, as they play a critical role in enabling smarter and more efficient electronic systems.

PESTLE Analysis

Political

In 2024, the IC market is influenced by the various political factors, such as government policy promoting the development of the semiconductor industry. For example, the U.S. government has allocated about 52,000,000,000 yen through the CHIPS Act to support domestic semiconductor production, which directly affects the IPD industry by encouraging domestic production and reducing reliance on foreign suppliers. Also, tariffs imposed on imported components will have a significant effect on the cost structure and supply chain of IPDs. In some cases, the tariff is as high as 25 percent.

Economic

The economic situation in the Integrated Passive Devices market in 2024 will be influenced by inflation and the rate of consumer spending. Early in 2024, the rate of inflation in the United States was 3.2%, which affects the purchasing power of consumers and businesses. This situation can cause fluctuations in the demand for integrated passive devices. The number of employees in the semiconductor industry is expected to exceed 1,200,000 in 2024, which indicates a healthy labor market that will support the growth of the IPD market through the availability of qualified personnel.

Social

Social trends in 2024 are increasingly directed towards the conservation of resources and energy efficiency, which directly affects the IPS market. In the early part of 2024, a survey of consumers showed that 68 per cent prefer energy-efficient and environment-friendly products. This has driven IPS manufacturers to develop IPS that not only meet performance standards but also conform to the principles of eco-friendliness. In addition, the rise of smart home devices, of which 30 per cent of American households have adopted, is driving demand for integrated passive solutions that can enhance the performance of the devices.

Technological

INTEGRATED PASSIVE DEVICES MARKET - The IPD market is expected to grow at a CAGR of nearly 6% from now to 2024. The industry is seeing a shift towards miniaturization and integration of passive components, and companies are investing over $ 1 billion in research and development to develop new IPDs. Also, the advent of 5G technology is expected to require IPDs with higher frequencies and better performance. By 2024, it is estimated that there will be about 1.5 billion 5G devices in use worldwide, which will drive the demand for IPDs.

Legal

In 2024, legal factors affecting the Combined Passive Devices market will be based on the compliance with international standards and regulations governing the use of electrical components. The RoHS directive, for example, bans the use of certain harmful substances in the manufacture of electrical products, thus affecting the design and manufacturing of IPDs. Companies must also cope with the patent system. In 2024, more than 200 patents relating to IPD technology will have been filed. The patent system highlights the competition and the importance of intellectual property rights in this sector.

Environmental

Environmental considerations are increasingly influencing the market for ICs. By 2024, the regulations on the disposal of discarded equipment will have tightened, and the European Union will have adopted a directive that requires manufacturers to ensure the proper disposal of ICs. This will have led to an estimated 15% increase in the use of sustainable materials in the production of ICs. In addition, the companies will have invested more than 500 million dollars in green production, which will reduce the amount of carbon dioxide released by the production of ICs.

Porter's Five Forces

Threat of New Entrants

The INTEGRATED PASSIVE DEVICES MARKET has a moderate degree of protection from competition due to the significant investment required for technology and production. The market is growing, but the established players have strong brand recognition and customer loyalty, which could deter new entrants. However, as the demand for miniaturization increases, new companies may enter the market.

Bargaining Power of Suppliers

The bargaining power of suppliers in the IC market is relatively low. There are many suppliers of raw materials and components, which creates a very competitive market. If the price rises or the quality declines, the manufacturer can easily switch to another supplier. The other thing is that some companies have a vertical business structure, and the power of suppliers is even weaker.

Bargaining Power of Buyers

The Integrated Passive Devices Market is characterized by a high bargaining power of buyers. This is mainly due to the presence of many suppliers and the low switching costs for buyers. Since the buyers are well-informed about the product specifications and the price, they can bargain more effectively. The growing demand for customized solutions is also influencing the suppliers.

Threat of Substitutes

The threat of substitutes in the IC market is moderate. The only alternatives are discrete components, but the unique advantages of ICs in size reduction and performance increase are the ones that make the threat of substitutes moderate. However, as the technology develops, there may be some new substitutes that will change the market dynamics.

Competitive Rivalry

The competition is high in the INTEGRATED PASSIVE DEVICES MARKET, driven by the presence of many established players and the rapid pace of technological development. Companies are constantly innovating in order to differentiate their products and increase market share. The intense price competition that is a result of the competition for the best price further intensifies the rivalry.

SWOT Analysis

Strengths

• High integration capabilities leading to reduced size and weight of electronic devices.
• Enhanced performance and reliability due to fewer interconnections.
• Growing demand in consumer electronics, automotive, and telecommunications sectors.

Weaknesses

• High initial development and manufacturing costs.
• Limited flexibility in design modifications once integrated.
• Dependence on advanced manufacturing technologies and materials.

Opportunities

• Increasing adoption of IoT devices driving demand for compact solutions.
• Emerging markets showing growth potential for consumer electronics.
• Technological advancements in materials and processes enhancing product capabilities.

Threats

• Intense competition from alternative technologies and traditional passive components.
• Potential supply chain disruptions affecting raw material availability.
• Rapid technological changes leading to obsolescence of existing products.

Summary

In 2024, the INTEGRATED PASSIVE DEVICES MARKET is characterized by high integration capabilities and growing demand in various industries, particularly in the areas of consumer electronics and the automotive industry. The market is challenged by high development costs and limited design flexibility. Opportunities lie in the increasing use of IoT devices and the development of new manufacturing techniques. Threats are primarily the intense competition and the disruption of the supply chain. Strategic focus on innovation and cost management is key to success in this evolving market.