Report Details

Global Passive Components Market (by Type, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)

  • Published: 4th Nov 2023
  • Pages: 155
  • Format : Pdf

Market Insight:

Passive electronic components are those that do not generate electricity and are incapable of power gain. Passive electronic components collect energy and operate without the need of electricity. 

Given the increasing use of MLCCs in different developing industries and applications (e.g., 5G infrastructure, 5G SP, server/cloud, and automotive), demand for total passive components is likely to rise steadily over the next five years. The global passive components market is projected to reach US$39.68 billion by 2023. The market is expected to grow at a CAGR of 5.44% during the forecast period of 2022-2027, with multilayer ceramic capacitors (MLCCs) being the dominant product and a key growth driver.

Segment Covered:    

  • By Type: On the basis of the type, the report provides the bifurcation of the market into three segments: capacitors, resistors and inductors. The capacitors segment held a major share in the market. The future of the capacitor market looks promising with opportunities in the computer, telecom, consumer electronics, automotive, and industrial sectors. On the other hand, the resistors segment is expected to grow at a significant CAGR in the forthcoming years owing to the growing demand for electronic devices among individuals.
  • Capacitors By Type: In terms of capacitor type, the report provides the bifurcation of the passive components market into four segments: Ceramic MLCC, aluminum, tantalum and others. The Ceramic MLCC segment held a major share in the market. This was being followed by aluminum segment. Ceramic MLCCs are capable of achieving high capacitance and miniaturization in harsh environments. They can be fitted easily in narrow and unforgiving spaces. The increase in MLCC content per device in various end-applications such as smartphone (from 4G to 5G), PC (from standard to high-end platform), wearables, networking (from 4G to 5G), server (platform upgrade), and automobile (from conventional to EV) would boost the ceramic MLCC market growth in the coming years.
  • Inductors By Application: According to the inductors by application, the report splits the market into five segments: communication, other communication, computing, auto and industrial & others. The communication segment held a major share in the market. Growing adoption of 5G smartphones facilitate many emerging technologies such as mobile payments, remote monitoring and controlling and many other technologies. Thus, with growing advancement in communication industry, the demand for inductors in communication field is expected to flourish during forecasted years.           

Geographic Coverage: 

The report provides insight into the passive components market based on the geographical operations, namely North America, Europe, Asia Pacific, and Rest of the world. The countries covered in North America region are the US, Mexico, Canada, while Europe includes UK, Germany, France, Italy and Rest of Europe. Moreover, China, Japan, Asia excluding China & Japan are included in the Asia Pacific region.

Asia Pacific held the largest share in the market, owing to rapid urbanization in the developing markets such as India and China which has surged the demand for passive components in the cities. Within North America, the US is leading the market, due to rising demand for smart home devices, implementation of Industry 4.0, and rising environmental concerns over limiting carbon emissions. Whereas, in the Europe region, Germany is dominating the market due to growth in automotive sector.

Top Impacting Factors:

Growth Drivers

  • Surging Demand for Electric vehicles
  • Rising Demand For Network Devices  
  • Growing Complexity of Electronic Devices  
  • Consumers’ Desire For Safer And Faster-charging Devices In Consumer And Automotive           


  • Increasing Metal Prices Impacting the Cost of Producing Components 
  • IC Supply Shortage          


  • Accelerating Adoption of 5G Smartphones    
  • Adoption of IoT Devices 
  • Smart Grid 
  • Miniaturization                   

Driver: Surging Demand for Electric vehicles  

The increase in inductors and electric vehicles (EV-type cars) is rapidly reducing the environmental burden and increasing the number of ECUs (electronic control units), thereby leading to stronger demand for electronic components whose miniaturization and further performance improvements have been rising. The growing market for these vehicles will offer additional growth opportunities to power inductor manufacturers. Electric vehicles, plug-in inductors, and other motor vehicles deploy electric drive trains. These drive trains are creating a significant demand for electronic components and subsystems. In these vehicles, aluminum electrolytic and film capacitors are used in drive-train applications, including boost inverters, DC/DC converters, motor inverters, onboard chargers, and wall chargers, thus propelling the overall passive components market in coming years.

  • Challenge: Increasing Metal Prices Impacting the Cost of Producing Components

The increased cost of metals substantially impacts the mass-produced electronic components used in the consumer electronics and automotive industries. The variable costs for manufacturing passive electronic components are between 40% and 50%, while the fixed costs are between 15% and 20%. Metal costs, as a proportion of the total cost of goods sold, may account for approximately 25% of large producers' expenses. Consequently, increases in the prices of palladium, nickel, and ruthenium affect the total cost of production for specific high-volume components. In addition, external factors such as mine closures, labor disputes, refinery closures, and speculation are anticipated to contribute to the price increases of critical metals used in the mass manufacturing of passive electronic components market.

  • Trend: Smart Grid

Electrical grids include several components such as wires, switches, resistors, capacitors, inductors, and transformers, among others; wherein the smart grid system adds a digital communication and remote-control facilities. Smart grids facilitate two-way communication, aiding end users in energy management, minimizing power disruptions, and transporting the required amount of electricity. The main components of a smart grid include smart meters and a communication channel. Smart meters are capable of enhancing electrical grid efficiency, reliability, and security. Various components such as soft magnetic components are used in smart meters ensure communication between the location of customers and the remote center. As a result, the increasing smart grid initiatives by the government followed by smart meter installations are expected to drive the passive electronic components market considerably over the forecast period.   

The COVID-19 Analysis:     

The novel coronavirus pandemic and the resulting lockdowns have negatively impacted numerous manufacturing and service industries by hampering both the supply-side and demand-side supply chains. The passive component’s raw materials supply chain is affected by supply disruptions caused by the COVID-19 outbreak. Proximity to production sites impacted by the pandemic (China and Taiwan) and volatile materials supply showcased that chip resistors are the largest red flag. Asia-Pacific countries, such as Malaysia, faced several closures of passive components production sites due to the rise in the COVID-19 outbreak. For instance, in June 2021, Bourns Magnetic Components announced the closure of its Malaysia production site, and no shipments will be made from the manufacturing factory due to the complete lockdown. 

Analysis of Key Players:      

The passive components market is consolidated, where, TDK Corporation, Panasonic Corporation and Yageo Corporation are major market players. Japanese makers are leaders in many key passive component categories (e.g., MLCC, inductor, and film capacitor). The key players in the global passive components market are:

  • Panasonic Corporation
  • TDK Corporation
  • Murata Manufacturing Co., Ltd
  • Kyocera Corporation
  • Eaton Corporation plc
  • Vishay Intertechnology, Inc.
  • Taiyo Yuden Co. Ltd
  • Yageo Corporation
  • Walsin Technology Corporation
  • KOA Corporation 
  • TE Connectivity Ltd.
  • ROHM

Some of the strategies among key players in the market for passive components market are mergers, acquisitions, and collaborations. For instance, in 2022, Vishay Intertechnology, Inc. introduced a new series of screw-terminal aluminum electrolytic capacitors that allow designers to pack more energy storage into less space. Available in 11 case sizes ranging from 35 mm by 60 mm to 90 mm by 220 mm. Whereas, Kyocera Corporation has developed a new thin-film process technology for making unique silicon (Si) substrates for gallium nitride (GaN)-based micro-light sources, including short-cavity lasers and micro-LEDs.

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