Electronic components market to hit $1 trillion by 2032 at 6.9% CAGR

Allied Market Research published a report, titled, "Electronic Components Market by Type: Global Opportunity Analysis and Industry Forecast, 2024-2032". According to the report, the electronic components market was valued at $0.6 trillion in 2023. It is estimated to reach $1 trillion by 2032, growing at a CAGR of 6.9% from 2024 to 2032.

Electronic components are devices important for electrical circuitry and functioning. Integrated circuits (ICs) pack many electronic components such as transistors, resistors, capacitors, and more. into one chip thereby making it possible to have more complex functioning in a smaller space. 

Electronic devices depend on these elements for functions ranging from rectification and signal modulation to amplification and feedback systems. Diodes allow current flow only in one direction, while sensors detect and measure various physical parameters for automation and feedback purposes. Optoelectronic devices manipulate light for communication, sensing, or display purposes. This is how today’s modern electronics equipment with cutting-edge technology has come about across different industrial sectors. 

The electronics components market is expected to witness notable growth owing to a surge in urbanization and the proliferation of smart city projects. Moreover, the adoption of electronics components in the healthcare sector is expected to provide lucrative opportunities for the growth of the market during the forecast period. On the contrary, high initial investment limits the growth of the electronics components market. 

Drivers include: technological advancements and innovation advancements; growing demand for connected devices and IoT solutions, and increasing adoption of electric vehicles. There are opportunities for emerging technologies in developing countries. The restraint can be from supply chain disruptions.

Active components segment to maintain leadership status
Based on type, the active components segment held the highest market share in 2023, accounting for more than half of the global electronics components market revenue and is estimated to maintain its leadership status throughout the forecast period, owing to its indispensable role in powering electronic devices and systems, including amplifying signals, regulating currents, and controlling electronic circuits. However, the passive components segment is projected to manifest the highest CAGR of 7.9% from 2024 to 2032.

Ditto for consumer electronics segment
On the basis of application, the consumer electronics segment held the highest market share in 2023, accounting for nearly one-third of the global electronics components market revenue, and is estimated to maintain its leadership status throughout the forecast period. However, the automotive segment is projected to manifest the highest CAGR of 9.5% from 2024 to 2032, owing to the widespread adoption of electronics components in the next-generation electric vehicle solution globally. 

Asia-Pacific to maintain its dominance by 2032
On the basis of region, Asia-Pacific held the highest market share in terms of revenue in 2023, accounting for more than half of the electronics components industry revenue owing to the region's robust manufacturing ecosystem, technological advancements, and increasing demand for electronic devices across various industries such as consumer electronics, automotive, and telecommunication. The Asia-Pacific region is expected to hold the leading position during the forecast period of 2024-2032 with a CAGR of 7.9%.