The global market for Discrete Diodes is projected to cross US$6.5 billion by 2024, driven by the indispensability of power management components in electronics; and innovation in diode designs specific to application needs.
Defined as basic building blocks of an electronic circuit, discrete diodes allow current to flow in only one direction and opposes flow in the opposite direction. This feature enables discrete diodes to protect electronic circuits from voltage surges. Discrete diodes find extensive use in tuning TV and radio receivers, generating radio frequency oscillations and for producing light. Discrete diodes are part of many ubiquitous devices such as automobiles, communications equipment, computer & computer peripherals, and various consumer electronics. The market for discrete diodes is linked to the health of electronics manufacturing. With the global economy on a steady path to recovery and with electronics emerging to be the backbone of development of modern civilization, the market for discrete diodes is projected to witness healthy growth.
The market is mature and characterized by product commoditization and intense pricing pressures. Commoditized is driven by volume, with 'price' being the decisive factor influencing consumer purchase decisions. Given that the diode itself is a mature semiconductor technology, manufacturers face challenges in achieving product differentiation. High end-user bargaining power is a major factor that hinders price increases, resulting in diode producers operating at low margins. With most players operating on wafer thin profit margins, the market is witnessing consolidation as larger players acquire synergistic smaller players for a broader product portfolio comprising of sophisticated solutions. The market is also characterized by high barriers to entry, with capital required for research & development and establishment of production facilities, and well-established distribution networks posing to be a key hurdle for prospective players to foray into the market. Electronic Contract Manufacturers are the primary consumers of discrete diodes. Originally emerging as a cost-effective manufacturing solution, Electronic Contract Manufacturers (ECMS) have evolved from being Original Equipment Manufacturers to Original Design Manufacturers, providing and sharing R&D costs with electronics manufacturers.
Asia-Pacific represents the largest as well as the fastest growing market worldwide, with a CAGR of 5.2% over the analysis period. The growth in the region is led by factors such as robust electronics manufacturing sector supported by strong domestic demand for electronics and the rise of outsourced electronics contract manufacturing in low cost Asian countries; and growing use of electronics in automobiles, aircraft, medical equipment, and industrial machines, among others.
Key players in the market include Central Semiconductor Corp., Diodes Incorporated, Hitachi Ltd., Infineon Technologies AG, IXYS Corporation, M/A-Com Technology Solutions, Microsemi Corporation, Kyocera Corporation, NXP Semiconductors, ON Semiconductor Corporation, Panasonic Corporation, Renesas Electronics Corporation, ROHM Co., Ltd., Semikron International GmbH, Semtech Corporation, Shindengen Electric Manufacturing Co. Ltd., STMicroelectronics N.V., Toshiba Corporation, and Vishay Intertechnology, Inc. among others.