The global market for Electronic Components is projected to reach US$191.8 billion by 2022, driven by the increasing indispensability of electronics in modern life; continuous development of consumer, industrial, medical, automotive and defense electronics; shorter product lifecycles and a parallel increase in opportunities in upstream supply chain.
Electronic components have played significant role in the evolution of several path-breaking technologies that changed the world in the 21st century, including telephones and computers that have revolutionized the world of communications and information technology respectively. The role of electronic components in driving this technology driven world is highly commendable, given their extensive use in a wide range of electronic applications right from traditional computers, telephones, televisions and audio players to more advanced electronic gadgets such as mobile computing devices, mobile phones, LCDs, LEDs, DVD/Blu-Ray players, portable media players, video game consoles, home-theater systems, microwaves and printers among others. As key building blocks of electronic circuitry used in a range of electronic devices, electronic components prove to be backbone for the electronics sector. The market for electronic components is categorized into interconnecting electronic components and passive electronic components that find application in various industries.
Telecommunications, computing and consumer appliances are the most prolific users of electronic components. However, the market in recent years has been gaining considerable opportunities in other electronic market segments such as automotive electronics, medical device electronics, defense and aerospace electronic equipment, including state-of-the-art weaponry, and industrial equipment among others. Product and service innovations and developments in end-use markets create significant opportunities for electronic components. For instance, digitalization of consumer entertainment has led to rapid proliferation of digital media devices such as MP3 players, media servers, DVD and Blu-Ray players, manufacturing of which necessitates use of electronic components. The industry is highly fragmented, characterized by the presence of a large number of manufacturers. Electronic components manufacturing continues to become more and more intricate and dynamic due to ever-changing technology trends in electronic device manufacturing as a result of manufacturers' focus on meeting demanding consumer requirements in terms of product capabilities and features.
The market is on a strong growth path, owing to rising adoption of combined modules such as multichip and system-on-a-chip. They play critical role in the electronics market, and hence the trend towards automation is proving to be beneficial for their demand. Factors such as cost effectiveness, short lead times and availability of such components bode well for the bottom lines of producers. Long-term growth of the market particularly depends on expansion of technology, upgradation and customization of products. Despite opportunities for growth, the market will face several challenges at local, national and international levels. Key challenges include counterfeit products, regulatory issues, raw material prices and availability, and declining margins, which negatively affect future prospects of the market.
Asia-Pacific represents the largest as well as the fastest growing market worldwide with a projected CAGR of about 4.8% over the analysis period. The growth in the region is led by emergence of Asia as a consumption powerhouse for electronics supported by industrialization, digitalization of societies and the ensuing consumerization of electronics; rise of Taiwan, Singapore, China, South Korea as production hubs for semiconductors; time-to-volume production challenges faced by electronic device manufacturers and the ensuing focus on strengthening component supply chains.
Major players in the market include ABB, Abracon LLC, Acme Electric, Alps Electric Co., Ltd., Alstom Signaling, Inc., Amphenol, API Technologies Corp., Datronix Holdings Ltd., Delta Electronics, Inc., Fujitsu Component Ltd., Hitachi AIC, Inc., KEMET Corp., Kyocera Corp., Littelfuse, Inc., Microsemi Corp., Molex, Murata Manufacturing Company, Ltd., Nichicon Corp., Nippon Mektron, Ltd., Panasonic Corp., Payton, Samsung Electro-Mechanics, Schneider Electric SE, Shenzhen Sunlord Electronics Co., Ltd., SiTime Corp., Taiyo Yuden Co., Ltd., TDK Corp., TE Connectivity Ltd., Teledyne Technologies Inc., Token Electronics Industry Co., Ltd., Vishay Intertechnology, and Xiamen Hongfa Electroacoustic Co., Ltd., among others.