Active Electronic Components Market

Active Electronic Components Market is Estimated to Witness High Growth Owing to Increased Demand for Smart Consumer Electronics


The active electronic components market involves components like integrated circuits, transistors, and other active components that control electron flow or act as electronic switches within an electronic device or system. Active components are an integral part of everyday electronic devices from smartphones and computers to industrial equipment and vehicles. They perform critical functions like signal processing, power control, and data conversion. Rising demand for advanced technologies such as 5G, smart homes, autonomous vehicles, and IoT is driving the need for more powerful and efficient active components.

The Global active electronic components market is estimated to be valued at US$ 661.18 Bn  in 2024 and is expected to exhibit a CAGR of 8.9% over the forecast period from 2024 to 2031.

Key Takeaways
Key players operating in the Active Electronic Components Market Growth 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, Qualcomm Inc., Renesas Electronics Corporation, Semiconductor Components Industries, LLC, and Toshiba Corporation.

Key opportunities in the market include growing demand for discrete power devices and new applications in sectors like e-mobility and renewable energy. Rapid digitalization and the increasing number of connected IoT devices are also creating more opportunities for active component manufacturers.

Globally, the market is witnessing rapid expansion especially in Asia Pacific due to increasing electronics manufacturing activity and a large consumer base in countries like China, India, and South Korea. North America and Europe are also major markets driven by presence of major tech companies and adoption of advanced technologies.

Market drivers
Increased demand for smart consumer electronics fueled by the proliferation of smart devices is one of the key drivers for the active electronic components market. More powerful components are needed for applications like AI-based image and speech recognition. Growing electric vehicle production is another key market driver since these vehicles require a large number of active components for functions like battery management and infotainment systems.

PEST Analysis
Political: The active electronic components market is regulated by various environmental and safety standards set by regulatory bodies. Regulations around the use of hazardous materials can influence production processes.
Economic: Fluctuations in global economic conditions can impact the demand for electronic devices and thereby influence the growth of this market. A growing economy usually leads to higher spending on electronics.
Social: Changing consumer preferences towards miniaturization and higher performance standards in mobile devices and consumer electronics is driving innovation in this space. People’s increasing reliance on technology impacts demand.
Technological: Advancements in chip design, manufacturing processes, and new technologies like AI/ML, 5G, and IoT are creating new opportunities while also raising costs of R&D. Integration of more functionalities into smaller footprints poses technical challenges to development.

North America is currently the largest regional market for active electronic components in terms of value, accounting for approximately 35% of the total share. This can be attributed to the presence of major electronics and semiconductor manufacturers in countries like the United States. The Asia Pacific region, led by countries such as China, South Korea and Japan, has emerged as the fastest growing regional market and is expected to surpass North America in terms of market size by 2029. This growth is supported by government initiatives to promote domestic manufacturing as well as increasing overseas investments by global players to capitalize on low-cost production advantages.

The fastest growing geographical region for the active electronic components market over the forecast period is expected to be Central and Eastern Europe. This growth can be credited to rising electronics consumption driven by growing incomes, urbanization and population trends. In addition, the region offers attractive incentives and lower costs for setting up semiconductor fabrication facilities compared to developed markets, leading to new investments in the electronics space. Countries like Poland, Czech Republic, Romania and Russia are anticipated to be at the forefront of this emerging high growth opportunity.

1.  Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it