Electronic Components Market Size, Share, Trends, Report 2024 to 2033

Electronic Components Market Size and Growth 2024 to 2033

The global electronic components market size was valued at USD 390.98 billion in 2024 and is expected to be worth around USD 871.73 billion by 2033. It is growing at a compound annual growth rate (CAGR) of 10.1% over the forecast period 2024 to 2033.

The electronic components market is experiencing rapid growth due to increasing demand for smart devices, automation, and IoT-enabled products. The rise of electric vehicles (EVs), 5G technology, and artificial intelligence (AI) is driving significant innovation in this sector. Governments worldwide are also investing in semiconductor manufacturing to reduce dependency on imports, boosting local production. Furthermore, consumer demand for high-performance gadgets and increased industrial automation is accelerating market expansion. The shift toward renewable energy and smart infrastructure also plays a crucial role. As companies focus on sustainability, eco-friendly components with lower power consumption are gaining traction. This continuous evolution ensures a steady rise in the market’s growth potential.

What is an Electronic Component?

Electronic components are basic building blocks used in electronic circuits to control and process electrical signals. These components include resistors, capacitors, diodes, transistors, and integrated circuits (ICs). Each serves a specific function: resistors limit current, capacitors store and release energy, diodes control the flow of current, and transistors amplify or switch electrical signals. ICs combine multiple components into a single chip, enabling complex functionalities in small devices. Electronic components are essential in various industries, including consumer electronics, automotive, telecommunications, and industrial automation. Devices like smartphones, laptops, medical equipment, and smart home appliances rely on these components for efficient performance. With advancements in technology, modern components are becoming smaller, more efficient, and highly durable.

Key Insights Beneficial to the Electronic Components Market:

• Rising Demand: The adoption of IoT devices is expected to exceed 25 billion by 2030, increasing the need for electronic components.
• Automotive Growth: The electric vehicle industry is set to grow at a CAGR of over 20%, fueling demand for advanced semiconductors.
• 5G Expansion: Over 70% of mobile users are expected to switch to 5G by 2027, requiring high-performance electronic components.

Report Highlights

• Asia Pacific holds the largest share of the global electronic components market, accounted 41.30% in 2023.
• Europe has generated revenue share of 26.70% in 2023.
• U.S. electronic components market size was valued at USD 54.83 billion in 2023.
• By type, the active components segment has accounted 46.10% of the total revenue share in 2023.
• By application, the automotive segment accounted for 26.10% of the total revenue share in 2023.

Electronic Components Market Growth Factors

• Rising Demand for Consumer Electronics: Customer needs and preferences in the electronics sector are evolving at an unprecedented pace. With looming shortages in certain commodities, customers are increasingly relying on advanced tools and resources for risk mitigation and long-term forecasting. They are actively collaborating with distributor partners to stay abreast of rapid market changes and leveraging these partnerships to maintain steady inventory flow.
• Proliferating in 5G Technology: Faster speeds, lower latency, and more bandwidth are some of the features offered by 5G technology. It is one of the revolutionary developments in wireless communication. The 5G technology opens up different forms of applications such as virtual reality, autonomous driving, and remote surgery. The electronic component industry has innovated products such as radio frequency transistors, filters, and power amplifiers that operate at millimeter wave frequencies to meet the demands and requirements for implementing 5G. In addition, special antennas and RF components, including beamforming modules, improve support for massive MIMO technology and ensure optimized signal strength and quality.
• Advancements and Expansion in IoT: In the electronic manufacturing sector, where devices are revolutionizing product design, usage, and manufacturing, the Internet of Things (IoT) plays a vital role. The integration of sensors and connectivity with the machines and devices allows the manufacturers to lower downtime, enable predictive maintenance, gain real-time insights into production processes, and improve overall efficiency. Furthermore, the development of smart factories can help in output maximization, resource allocation, and quality control and is being aided by the Industry 4.0 concept, which combines automation, artificial intelligence, and data analytics.

Electronic Components Market Trends

• Rising Shift Towards Sustainability: Due to rising e-waste, global regulatory pressure, and environmental awareness sustainability has become a top priority for the electronics industry. Companies embracing sustainability can tend to attract the interest of both government agencies and consumers. A more environmentally friendly direction is being followed by market players such as printed electronics, biodegradable sensors, and organic electronics.
• Use of Advanced Materials in Electronic Components: There has been a drift from conventional dependence on silicon in the semiconductor industry toward cutting-edge materials with exceptional conductivity and thermal management qualities, like graphene and gallium nitride. For broadening the application areas beyond consumer electronics companies are focusing on high-performance gallium nitride (GaN) semiconductor materials that have various applications including industrial motor control, electric vehicles, and power grid systems. Meanwhile, SixLine Semiconductor is pioneering carbon nanotube processing in the US, offering semiconductor-grade nanotubes for high-performance transistor channels that benefit the manufacturing of wireless, computing, and sensor components.
• Increasing Focus on Renewable Energy: The increasing focus on renewable energy sources and sustainability is opening a new market for the electronic components market. There has been a strong demand for components for energy storage systems, wind turbines, infrastructure for charging electric vehicles, solar power systems, and energy-efficient appliances. The growing market for electronic components can gain profit through the development of eco-friendly and energy-efficient components.
• Growing Need for Advanced Sensors: In some industries and applications, such as the Internet of Things, healthcare, automotive, and industrial, sensors are indispensable. There is a growing need for highly accurate, sensitive, and dependable technologically advanced sensors. A few of the sensor types that are employed include biomedical, environmental, optical, MEMS, and biological sensors. Additionally, intelligent sensing and data collection are aided by the integration of sensors with various components, including wireless modules and microcontrollers.

Report Scope

Electronic Components Market Dynamics

Drivers

Increased Government Support and Incentives

• Government support and incentives help in promoting energy-efficient buildings which are major factors driving the market for electronic components. The growing adoption of electronic components is further motivated by programs that offer tax credits for energy-efficient buildings and financial support for the installation of cutting-edge electronics. For instance, the National Policy on Electronics is positioned in India as a global hub for Electronics System Design and Manufacturing (ESDM) by advancing the country's ability to develop critical components, like chipsets, thereby creating an atmosphere that helps the industry to compete in a global environment.

Growing Advancement in Manufacturing and Industry 4.0

• The use of Industry 4.0 concepts and advanced manufacturing techniques tends to benefit the electronic components market. Also, there has been a growing demand for parts used in robotics, machine vision, industrial control systems, smart sensors, and industrial automation which leads to market growth. Furthermore, to meet the changing needs of the manufacturing sector, the development of components that improve automation, connectivity, and data analytics capabilities is highly required leading to driving the market.

Restraints

Failure Associated with Electronic Components

• There are numerous ways in which any electronic components can fail, including overheating, overcurrent or overvoltage, ionizing radiation, mechanical shock, stress or impact, and many more. Some of the most frequent types of failure are related to packaging, contacts, printed circuit boards, relays, semiconductors, passive elements, and MEMS. The recurring failures are a cause of concern and thus are hampering the market's growth.

Strict Environmental Regulations

• With over 50 million tons of e-waste already generated annually worldwide, governments are enacting and tightening environmental regulations to curb this growing threat to climate and environmental goals. From 2024 and going forward, manufacturers may have to pay a cost to comply with recycling, emission limits, recovery targets, and other regulations—especially as international coordination grows.

Opportunities

Rising Integration of AI Across Industries

• As artificial intelligence becomes more prevalent semiconductors and sensors are expected to see rapid demand in applications ranging from smart devices to driverless cars. Companies specializing in AI chips and MEMS sensors are likely to see increasing demand. The increasing adoption of AI in the medical device and healthcare industry also presents great opportunities. From diagnostic imaging to remote patient monitoring, AI and sensors will bring greater efficiency, accuracy, and connectivity to healthcare.

Miniaturization and Integration of Electronic Components

• Miniaturization of electronic devices involves packing more transistor nodes onto a smaller integrated circuit (IC). The IC is then incorporated into the intended system or device so that, once assembled, the system can perform the desired function. This makes the technology smaller yet more powerful. Market players are focusing on designing and manufacturing miniature electronic elements that allow industries to incorporate advanced features into the products while reducing the overall environmental footprint. In addition, miniaturization saves space in the product package and can expand potential features and functionalities without increasing the size.

Challenges

Rising Uncertainty in Demand and Economics

• With high inflation, rising interest rates, the threat of recession, and ongoing trade disputes, the operating environment for the electronic components industry is challenging. Demand fluctuations in key markets such as computers, smartphones and automotive could persist, especially if overall consumer sentiment and spending continue to weaken.

Disruption in Supply Chain

• Recent years have underscored the glaring vulnerabilities of complex global technology supply chains. Disruptions from the pandemic, climate events, and geopolitical conflicts have led to component shortages that have thrown industries from automotive to mobile into turmoil.

Electronic Components Market Segmental Analysis

Type Analysis

Active Components: The active components segment was leading region and accounted share of 46.10%. The growing use of active components across a wide range of sectors, such as consumer electronics, industrial automation, automotive, and telecommunications is anticipated to drive market growth. Furthermore, it is also anticipated that the growing number of product launches by market players is expected to propel market expansion. Renesas unveiled a brand-new automotive intelligent power device (IPD) in January 2023 that adapts and securely regulates power distribution in automobiles to satisfy the demands of the upcoming E/E (electrical/electronic) designs.

Passive Components: The passive components segment accounted for 32.40% of the total revenue share in 2023. A passive component can only receive energy, it can either dissipate, absorb, or store in an electric or magnetic field. Passive elements do not require any electrical energy to operate. Passive components receive the electrical energy and either convert it or store it in the form of a magnetic or electric field. An electrical signal cannot be produced, amplified, or oscillated by passive components. The passive components primarily resist, store, or control the flow of electrical current or voltage in a circuit without actively generating or amplifying signals. Some examples of passive components are resistors, capacitors, inductors, diodes, and coils.

Electromechanic Components: The electromechanic components segment has garnered share of 21.50%. Components that contain both mechanical and electrical components are known as electromechanical components. These components work by converting electrical signals into mechanical motion. They help in building a bridge that connects the mechanical and electronic domains so that motion or data can be transmitted. They are an essential component in numerous electronic systems and find use in a vast range of applications, right from basic switches to intricate motors.

Application Analysis

Automotive: The automotive segment has dominated the market in 2023 with revenue share of 26.10%. There has been a rise in the usage of electronic components in automobiles owing to the dependence of automobiles on safety systems and other electronic components. The usage of electronic components for boosting the propulsion systems' efficiency and performance is a standard procedure. The electronic components facilitate communication between the powertrain systems of an automobile and enable the sharing of sensor signals while managing the operations of the systems. Powertrain systems use sensors for turbine speed, transmission oil temperature, and throttle position.

Telecommunication: The telecommunications segment has held share of 23.40% in 2023. Technological developments in the telecommunications industry are constantly expanding, from 4G to Voice over Long-Term Evolution (LTE/4G) and 5G. Telecommunications applications include things like network equipment, base stations, mobile phones, landlines, set-top boxes, and remote controls. In addition, the telecommunications industry is using more and more electronic components due to the remarkable expansion of the smartphone industry and the resulting rise in the mobile phone market.

Consumer Electronics: The consumer electronics segment accounted for 20.30% of the total revenue share in 2023. The rising demand from emerging markets is driving the rapid growth of the consumer electronics industry. As a result of the global increase in consumer spending, many countries are producing more consumer electronics, which is in turn fueling the sector's rapid expansion. Some of the most frequently used electronic components in the consumer electronics industry are microcontrollers, LEDs, transistors, sensors, operational amplifiers, capacitors, integrated circuits (ICs), inductors, resistors, batteries, connectors, power converters, and others.

Healthcare: Electronics have become an important part of established and commonly used medical innovations around the world. From patient monitors to diagnostic imaging systems to infusion devices, the use of electronics is widespread. Electronics has made a positive and valuable contribution to the medical field. Knowledge of the application of electronics in medical technology contributes to the development of medical electronic devices. The development of new medical electronic devices is based on the miniaturization and integration of technologies that lead to the production of portable, wearable, and unobtrusive devices at low cost.

Industrial Machinery: Many modern industrial machines use electronic components that enable automation in the production processes, help in controlling machines and equipment, collect and analyze huge amounts of data, and implement artificial intelligence-based systems. Resistors, capacitors, LEDs, transistors, inductors, diodes, crystals and oscillators, and electromechanical components such as relays and switches, ICs, and connectors are some of the most commonly used electronic components in industrial machinery.

Others: The others segment includes energy & utilities and aerospace & defense. The energy & utilities industry is accountable for the safe, reliable, sustainable generation, transmission, and distribution of resources for improving grid stability which is critical in ensuring that utilities maintain power despite several unexpected causes and risks. Electrical components are essential to the operation of power grids. Energy management systems, SCADA systems, and smart grid technologies all rely on microprocessors and communications devices to monitor and control power flow, balance supply and demand, and improve overall grid reliability. Batteries and control systems are two kinds of electronic components that are used for storing energy, which can be used in the future. The electrical components used in the aerospace industry are designed in a way that they can tolerate temperature, shock, vibration, and altitude extremes associated with high-altitude operations. Right from barrier terminal blocks for aircraft engines to RFI filters for communications systems, electrical components help the aerospace industry to grow. Land, sea, and air forces worldwide are purchasing cutting-edge technologies that include electronic warfare systems, targeting systems, night vision devices, thermal imaging systems, and missile defense systems to gain a competitive advantage. Electronic technology has therefore been essential to defense systems in applications such as missile launchers, aircraft systems, cockpit controls, space rocket launchers, and military radars.

Electronic Components Market Regional Analysis

What makes Asia-Pacific the leader in the electronic components market?

The Asia-Pacific electronic components market size was estimated at USD 147.71 billion in 2023 and is expected to reach around USD 360.02 billion by 2033. Asia Pacific is home to some of the world's largest semiconductor producers, including companies in China, Taiwan, South Korea, Japan, and Taiwan. Many nations are making significant infrastructure investments for the production of semiconductors. Advanced node technology is being led by Taiwan and South Korea, while China is making significant investments to move toward self-sufficiency. Furthermore, there's a boom in demand for consumer electronics like wearables, laptops, tablets, and smartphones in the local market. This increasing demand for the latest consumer electronics owing to the ever-growing population and rising income in countries like China, India, Japan, and South Korea.

Why is the North America region expected to show fastest growth in the electronic components market?

The North America electronic components market size was reached at USD 78.33 billion in 2023 and is projected to hit around USD 190.91 billion by 2033. North America has various industries such as automotive, consumer electronics, aerospace, telecommunications, and healthcare present in the region, with an advanced technological infrastructure that is driving the electronic components market. Owing to the rising popularity of smartphones, tablets, laptops, wearable technologies, and other consumer electronics, there is a high demand for microprocessors, sensors, displays, memory chips, and other electronic components. Further, prominent manufacturers of semiconductors and electronic components, including Broadcom, Texas Instruments, NVIDIA, Qualcomm, and Intel, are also present in North America.

Why does Europe hold a significant share of the electronic components market?

The Europe electronic components market size was accounted for USD 95.49 billion in 2023 and is predicted to surpass around USD 232.75 billion by 2033. Europe has a significant number of producers of electronic components and a well-established electronics industry. The UK, France, and Germany are among the countries in Europe that hold a significant market share. The region prioritizes cutting-edge manufacturing techniques, innovation, and high standards of quality. The three main industries driving the European market for electronic components are automotive, industrial, and telecommunications.

LAMEA Electronic Components Market Trends

The LAMEA electronic components market was valued at USD 36.12 billion in 2023 and is expanding to USD 88.04 billion by 2033. The expanding automotive and healthcare industries in Latin America are driving up demand for electronic components. Brazil possesses an established automotive sector which is home to some prominent market players in automobiles, trucks, and motorbikes. Some of the companies operating in the Brazilian market include Volkswagen, Fiat, General Motors, and Ford. The nation's need for electric cars is also rising. In addition, owing to the expanding healthcare industry there are numerous prospects for growth within the United Arab Emirates (UAE). To enhance patient care and promote innovation, the UAE government has made substantial investments in healthcare infrastructure and technology.

Electronic Components Market Top Companies

• TDK Corporation
• KYOCERA AVX Components Corporation
• Murata Manufacturing Co., Ltd.
• Samsung Electronics Co., Ltd.
• Panasonic Corporation
• Texas Instruments Incorporated
• NXP Semiconductors N.V.
• Analog Devices, Inc.
• Infineon Technologies AG
• Advanced Micro Devices
• Broadcom Inc.
• STMicroelectronics N.V.
• Amphenol Corporation
• Littelfuse, Inc.
• Monolithic Power Systems, Inc.
• Intel Corporation
• ON Semiconductor Corporation
• Renesas Electronics Corporation
• Hitachi Ltd.
• Watts Electronics Pvt. Ltd.
• Toshiba Corp.
• TE Connectivity Ltd.
• ABB Ltd.
• Amphenol Corporation

Most companies are actively conducting research and development. They find that this will enable them to create the next generation of active electronic component products that can generate even more energy than the previous generations. In November 2023, Renesas Electronics expanded its 32-bit microcontroller with a new RX device for industrial sensor systems. The microcontroller is used for various applications that require quick and precise measurements of analog signals.

Players such as Infineon Technologies AG, ABB Ltd., and Murata Manufacturing Co., Ltd., have a wide range of products, and recent advancements propelling the market's expansion. For instance, Murata Manufacturing Co., Ltd. launched the GRM188D72A105KE01 in November 2023. It is a multilayer ceramic capacitor with a 1 µF capacitance used in 48 V power supply lines in data centers, servers, and base stations. This product is approximately 67% smaller in volume and 49% smaller in area than other 2012 M-size multi-dimensional ceramic capacitors because of Murata's new, proprietary technology. Therefore, such major players demonstrate leadership and impact the dynamic electronic components market through their strategic initiatives and creative thinking.

CEO Statements

Ian Mason, CEO of Electrocomponents:

• "There is today a relentless trend in electronics innovation which is driven by consumer demand. New technologies are governed by higher levels of integration, better performance and ever evolving ecological considerations."

P Raja Manickam, CEO of Tata Electronics OSAT:

• "Grids are increasingly becoming smart grids, so there are huge opportunities for the electronics market in this space."

Recent Developments

• In September 2024, Infineon Technologies AG launched the XENSIV PAS CO2 5V sensor, designed to improve energy efficiency in buildings by optimizing ventilation based on actual occupancy. This sensor uses photoacoustic spectroscopy (PAS) technology and is designed to reduce carbon emissions from heating, ventilation, and air conditioning (HVAC) systems.
• In June 2024, Texas Instruments (TI) introduced the industry's first gallium nitride (GaN) integrated power module (IPM), designed to facilitate the development of smaller and more energy-efficient high-voltage motors. This innovative technology aims to improve performance in applications such as electric vehicles and industrial automation by reducing the size and improving the efficiency of power systems.
• In February 2024, leading passive component manufacturer Murata increased the number of high-grade monolithic ceramic chip capacitors (MLCC) in its range. The GJM022 series expands the world's smallest high-Q capacitor with a voltage rating of 100 V and is intended for high-frequency module applications such as those found in cellular infrastructure.
• In January 2024, a distribution agreement was announced between Panasonic Industrial Automation and Mouser Electronics, Inc., the authorized worldwide distributor of the latest electrical components and industrial automation solutions. Panasonic Industrial Automation offers a range of technologically advanced sensors, programmable controllers, human-machine interfaces, servo motors, and drives.

Market Segmentation

By Type

• Active Components
  
  • Diodes
  • Integrated Circuit (IC)
  • Transistors
  • Others (Emitters and Vaccum Tubes)
• Passive Components
  
  • Resistor
  • Inductors
  • Capacitor
  • Others (Detectors and Antennas)
• Electromechanic Components
  
  • Motor
  • Relays
  • Switches
  • Others (Terminal & Connectors, and Cables)

By Application 

• Automotive
• Telecommunication
• Consumer Electronics
• Healthcare
• Industrial Machinery
• Others

By Region

• North America
• Europe
• APAC
• LAMEA