According to market research firm Fact.MR, the market share of integrated passive devices is expected to reach US$3 billion (US$4.4 billion) by 2032, with an estimated CAGR of 3% during the planned period due to growing demand in the telecom industry.
Integrated passive devices would help reduce the size and power consumption of telecom infrastructure elements and boost the integrated passive device market in the next few years.
By 2022, the 5G industry is estimated to have 89 million subscribers, giving the integrated passive device market room to expand.
In the past year, the United States, Japan, South Korea, the United Kingdom, Germany and China have all rolled out 5G technology. According to the study, this should contribute to the growth of the integrated passive devices market in the coming years.
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Fact.MR also recognized that there is growing demand and competition for embedded passive devices. Manufacturers offer a variety of options at a reasonable price to make them more accessible to customers.
The study also mentioned the following highlights:
1. The consumer electronics segment dominated the market, holding the largest market share of 21.7% in 2020.
2. These components are increasingly being used in various consumer electronic products such as laptops, smartphones, wearables and tablets, among others.
3. The integrated passive components have a number of high-end qualities, including low power consumption, high chip connection, and a tiny footprint, which have promoted their acceptance in miniaturized wearable electronics.
4. Asia-Pacific Integrated Passive Components Market is set to grow in 2021-2028 owing to government measures to expand semiconductor production in the region.
5. Spanish multinational Gestamp, which specializes in the design and manufacture of metal components for automobiles, receives a 200 million euro ($297 million) loan from the European Investment Bank (EIB) to boost its research capabilities improve and make cars lighter, safer and greener, according to the European Commission.
What are the factors hampering the growth of the integrated passive devices market?
The high cost of integrated passive devices compared to discrete components is limiting the growth of the integrated passive device market as well as integrated passive device sales and demand.
The long-term impact is expected to be minimal, according to Fact.MR, as industry leaders work hard to minimize the cost of embedded passive devices.
Low-cost production is critical to maximizing profits. Conventional circuit boards, on the other hand, are standardized for individual discrete components, but not for integrated passive components.
When traditional PCBs are combined with integrated passive devices, they incur additional costs. The cost ratio of a single discrete component to integrated passive components (1.5 x 1.5) is one and a half. This is mainly due to commercialization and widespread use of discrete components.
This first appeared on September 21, 2022 in the CommsWire subscription newsletter.
