Active Electronic Components Market by Product (Semiconductor Devices, Vacuum Tube, Display Devices, and Others), End-user (Consumer Electronics, Networking & Telecommunication, Automotive, Manufacturing, Aerospace & Defense, Healthcare, and Others), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032

Active Electronic Components Overview

Active electronic components are elements within an electronic circuit that actively control the flow of electrical current. Active components rely on an external power source, unlike passive components, which do not require power and respond to current and voltage. It can amplify, switch, or control signals. Common examples include transistors, which can strengthen and switch electronic signals; integrated circuits containing numerous components on a single chip; diodes permitting one-way current flow; operational amplifiers with high-gain capabilities; thyristors and triacs for power control, and voltage regulators to maintain a constant output voltage. Microcontrollers and microprocessors also fall into this category, executing computations and tasks in electronic systems. Active components are vital in modern electronics, enabling the creation of complex devices like computers, smartphones, audio amplifiers, and various other electronic systems.

Global Active Electronic Components Market Analysis

The global active electronic components market size was $304.97 billion in 2022 and is predicted to grow with a CAGR of 5.4%, by generating a revenue of $502.51 billion by 2032.

COVID-19 Impact on Global Active Electronic Components Market

During the COVID-19 pandemic, the global supply chain experienced disruptions due to factory closures, transportation restrictions, and raw material shortages, resulting in production delays and longer lead times for active electronic components. The demand for electronic devices fluctuated during the pandemic, with increased demand for products like laptops, tablets, and communication devices driven by the shift to remote work and online learning. However, there was a decline in demand for automotive and industrial electronic components due to challenges faced by these industries. The economic slowdown influenced consumer spending and business investments, further affecting the demand for electronic devices and active electronic components. As countries and industries began to recover, the demand for active electronic components stabilized to some extent, but recovery trajectories varied across regions and sectors.

The pandemic also accelerated the adoption of digital technologies, leading to increased demand for active electronic components in various applications. Geopolitical tensions and trade issues added complexity to the market dynamics.

Technological Advancements to Drive the Market Growth

The active electronic components market is driven by various factors that shape its growth and development. Among these factors is the continuous stream of technological advancements in the electronics industry, prompting the demand for sophisticated and high-performance components. The consumer electronics sector, including smartphones, wearables, and smart TVs, contributes significantly to this market’s expansion, as these devices heavily rely on active components like processors and sensors. Moreover, the automotive industry's increasing integration of electronics in vehicles for ADAS, infotainment, and electrification purposes further fuels the demand for these components. Industrial automation, medical devices, networking and telecommunications, renewable energy, and the rise of IoT applications also play crucial roles in propelling the market growth.

To know more about global active electronic components market drivers, get in touch with our analysts here.

Supply Chain Disruptions to Restrain the Market Growth  

The active electronic components market faces several restraining factors that impact its growth and stability. The major factor is supply chain disruptions, as the industry heavily relies on global supply networks vulnerable to natural disasters, geopolitical tensions, and pandemics. High development costs can deter small and medium-sized manufacturers from competing. At the same time, stringent regulatory compliance, encompassing safety, environmental standards, and material restrictions, increases manufacturing complexities and expenses. Moroever, trade tariffs and policy changes can disrupt components' flow across borders and impact manufacturing costs.

Rise of IoT and Smart Devices to Drive Excellent Opportunities

The rise of IoT and smart devices has fueled demand for active electronic components, enabling connectivity and enhancing functionality. Additionally, the deployment of 5G technology has increased the need for active electronic components like RF filters and high-speed data converters. Automotive electronics, with features like infotainment systems and ADAS, rely heavily on these components. The adoption of renewable energy sources and the ongoing advancements in consumer electronics, medical devices, and AI-driven applications further contribute to the market's potential. Moreover, the Industry 4.0 revolution and the increasing adoption of wearables drive opportunities for active electronic components. All these factors are creating massive growth opportunities for the market.

Global Active Electronic Components Market Share, by Product, 2022

The semiconductor devices sub-segment accounted for the highest market share in 2022. Semiconductor devices dominate the active electronic components market due to a combination of critical factors.  The ability of semiconductor devices to be miniaturized and integrated has led to the development of compact electronic devices and systems. Cost-effectiveness achieved through efficient manufacturing processes has made semiconductors affordable for various applications. Moreover, they offer reliability and longevity, outperforming many other components, making them ideal for continuous operation. Their inherent power efficiency is crucial for portable devices and extends battery life. Besides, the versatility of semiconductor devices allows for diverse components, from transistors to microprocessors, to meet various system needs. The digital revolution, heavily reliant on semiconductor-based logic circuits and microprocessors, has further boosted the growth of this sub-segment.

Global Active Electronic Components Market Share, by End-user, 2022

The consumer electronics sub-segment accounted for the highest market share in 2022. Consumer electronics has dominated the active electronic components market due to several key factors. The high demand for personal devices, such as smartphones, tablets, and wearables, has led to a surge in production and sales of these gadgets. This is driving the need for active components like microprocessors, memory chips, sensors, and power management ICs. Rapid technological advancements in consumer electronics and frequent product iterations require updated and advanced active electronic components to support new features and functionalities. The trend towards miniaturization and integration in consumer devices necessitates highly compact and integrated active electronic components. Moreover, the growth of the Internet of Things (IoT) and connected appliances has further boosted the demand for components enabling wireless communication and data processing.

Global Active Electronic Components Market Share, by Region, 2022

The Asia-Pacific active electronic components market generated the highest revenue in 2022. The Asia-Pacific region has emerged as a dominant force in the market due to various factors. With its established manufacturing hub comprising countries like China, Japan, South Korea, Taiwan, and Singapore, the region can produce active electronic components on a large scale. A skilled labor force supported by favorable government policies further enhances its production capabilities. The booming customer electronics market, driven by expanding demand for smartphones, tablets, and other electronic devices, has dominated the region. Moreover, the commitment of region towards technological advancements, research and development, and cost-effective manufacturing processes has kept it at the forefront of innovation. Also, the presence of an efficient supply chain network and successful exports to other regions have supported its market position. Furthermore, the rising trend of industrial automation in sectors like automotive and manufacturing has spurred demand for active electronic components, supporting the regional market growth.

Competitive Scenario in the Global Active Electronic Components Market

Product development and investments are common strategies followed by major market players. One of the leading market players in the industry is STMicroelectronics N.V. In June 2023, STMicroelectronics released a family of high-side octal switches combined with galvanic isolation for increased robustness. RDS (on) less than 260 mΩ improves energy efficiency and protection diagnostics, enabling reliability and troubleshooting.

Some of the leading active electronic components market players are Infineon Technologies AG, Advanced Micro Devices, Inc., STMicroelectronics N.V., Microchip Technology, Inc., Analog Devices, Inc., Broadcom Inc., NXP Semiconductors N.V., Intel Corporation, Monolithic Power Systems, Inc., Texas Instruments Incorporated and Qualcomm Inc.