Market Trends of Passive Electronic Components Industry
The Consumer Electronics and Computing Industry in the Inductors Segment is Expected to Hold a Significant Market Share
- Inductors have a significant function in the regulation of voltage, noise filtration, and current control within electrical circuits. Their usage is widespread in consumer electronics due to their strong reliance on DC power. In switched-mode power devices in various consumer products, inductors serve as energy storage components to generate DC current. The market is anticipated to experience increased demand due to the expanding consumer electronics sector and growing investments in the industry.
- Inductors are of utmost importance in the consumer electronics sector as they serve multiple purposes. They are utilized for power management, signal filtering, and suppressing electromagnetic interference. In consumer electronic devices like televisions, digital set-top boxes, smartwatches, printers, and audio equipment, inductors act as crucial components. Their primary function is to ensure a steady power supply and eliminate noise, thereby ensuring reliable signal transmission. By carefully selecting and designing inductors, the performance of consumer electronics is optimized, ultimately enhancing the overall user experience. The incorporation of inductors in these devices leads to improved efficiency, stability, and reliability.
- Due to numerous technological advancements, there has been a significant surge in the utilization of consumer electronic devices in recent years. The incorporation of various technological enhancements has captivated customers, leading to a higher demand for inductors. The introduction of touch screens and other advanced functionalities in consumer electronics has further fueled the need for inductors within the industry. With the increasing number of product launches in the consumer electronics sector, there is a growing demand for inductors in the industry.
- Smartphones have become integral components for the utilization of inductors. Typically, high-frequency inductors find their application in mobile phones, which have now become indispensable in day-to-day lives. The incorporation of high-frequency inductors enables faster and more stable internet browsing, facilitates staying updated with the latest social events at any time and place, enhances call quality, and elevates the overall mobile phone user experience.
- Smartphone technology is experiencing rapid growth in comparison to other technologies due to its strong reliance on consumer demand. The quantity of inductors in mobile phones experiences a substantial rise with every successive generation of the mobile communication network. As smartphones continue to evolve and their adoption rate expands, particularly in developing nations, additional avenues for expansion arise. The surge in 5G smartphones and the escalating investments in the manufacturing of 5G mobile phones are projected to amplify the need for inductors.
- Ericsson's most recent report disclosed that the global count of smartphone mobile network subscriptions nearly reached 6.4 billion in 2022, and it is projected to surpass 7.7 billion by 2028. It is noteworthy that China, India, and the United States are at the forefront, boasting the highest number of smartphone mobile network subscriptions. Although sales plateaued in 2022, the rising average selling price of smartphones is anticipated to propel the market in the forthcoming years.
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Asia-Pacific is Expected to Witness Significant Growth in the Inductors Segment
- The demand for inductors is primarily felt in Asia-Pacific, with many countries, like Japan, China, South Korea, and Taiwan, hosting massive companies and foundries for several major passive electronic powerhouses. The consumer electronics market in Asia-Pacific is expected to witness consistent growth, driven by the popularity of smart appliances, innovative high-end products, and new smartphones. As a result, the demand for inductors is also expected to increase, fueled by the expanding sales in the region.
- China, in particular, has excelled in innovation and brand building, securing its position as the global leader in the production and sales of consumer electronics, as stated by the Ministry of Industry and Information Technology. With increasing investments in the region to enhance production capabilities, the consumer electronics market is poised for growth.
- The Ministry of Electronics and Information Technology (MeitY) in India has forecasted that the electronics manufacturing sector in the country will achieve a worth of USD 300 billion by 2026, with mobile phone sales taking the lead in the market. As per ICEA, mobile phone sales were estimated at USD 40 billion in 2022 and are anticipated to rise to USD 80 billion by 2026. These governmental efforts to enhance the mobile phone production capabilities in the region are expected to consequently generate demand for inductors.
- As per the GSMA report, India is anticipated to emerge as the leading country in Asia-Pacific by 2030, with 1.3 billion smartphone connections. The region boasts some of the most rapidly expanding 5G markets, and by 2028, Ericsson predicts that 5G will constitute 57% of mobile subscriptions in India, totaling 699.8 million subscriptions. Consequently, the market is anticipated to be propelled by the demand for mobile phones, facilitated by extensive internet penetration and innovative imaging technology.
- Ericsson predicts that by the end of 2028, the number of 5G subscriptions in Southeast Asia and Oceania will reach approximately 620 million. This indicates that 5G will surpass other technologies and become the dominant choice for subscribers, with a penetration rate of 48%. Furthermore, it is projected that the region will have nearly 30 million 5G subscriptions by 2022. Such increasing 5G deployment initiatives are expected to enhance the market opportunities.
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