Passive Component Market

Key data points: Market size in 2027 = $50.3 million and 2035 = $68.2 million, growth forecast = 3.9% annually for the next 8 years. Scroll below to get more insights. This market report covers trends, opportunities and forecasts in passive component market to 2035 by product (capacitors, resistors, inductors, diode, and transformers), end use (it & telecommunication, consumer electronics, automotive, industrial machinery, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World) Passive Component Market The future of the global passive component market looks promising with opportunities in the IT & telecommunication, consumer electronic, automotive, and industrial machinery markets. The global passive component market is expected to reach an estimated $68.2 million by 2035 from $50.3 million in 2027 with a CAGR of 3.9% from 2027 to 2035. The major drivers for this market are the increasing use of iot devices & connected technologies, the rising demand for 5g infrastructure & communication systems, and the growing use for medical electronic equipment & devices. • Lucintel forecasts that, within the product category, capacitors is expected to witness higher growth over the forecast period due to the increasing demand for energy storage efficiency. • Within the end use category, consumer electronics is expected to witness the highest growth over the forecast period due to the rising adoption of compact consumer electronic devices. • In terms of regions, APAC will remain the largest region over the forecast period due to the strong semiconductor manufacturing and electronics production base. Gain valuable insights for your business decisions with our comprehensive 150+ page report. Sample figures with some insights are shown below. Emerging Trends in Passive Component Market Edit the following content to sound more like natural human speech. Maintain the original structure and organization, including exact phrases and terminology. Correct spelling and grammar. Avoid overly vague or general changes that add or subtract information. Make sure the output is entirely in your own words, and does not contain any background, additional information or details not found in the input. • The passive component market Will Focus on Specialization Rather than Mass Production from 2025 To 2027: Rising component counts in automotive, renewable energy, data centers and other facilities will create an increased demand for smaller, higher performing components. Capacitors, inductors and resistors will see rising demands, particularly with the projected 17 million plus Electric Vehicle sales by 2024. • Higher Integration Will Require Further Miniaturization of Components: Thinner multilayer ceramic capacitors will be required for high density PCBs. Additional component integration will require improved manufacturing precision and create a greater demand for small components over the next five years. • Growing Demand for Passive Components Drives TDK and Manufacturers Toward Indian Production: The automotive industry will continue to increase demands for passive components, as will other markets, causing component manufacturers to reconsider their supply chain. TDK will see a return on their investment with Indian component manufacturing as will other component manufacturers who choose to shift their supply and production facilities to other, less established, markets. • Energy-efficient Power Electronics: The rapidly growing data center power demand (expected at 1,000 TWh by 2026) will create long-term demand for high-reliability passive components. The use of silicon carbide and gallium nitride in power electronics will create additional demand for magnetic components, film capacitors and surge protection devices. • Sustainability and Circular Economy: New version of products will use less material and enhance energy efficiency of the production process, and meet the requirements of lead-free and recyclable packaging. The EU ecodesign and battery regulations will require similar changes to other products. There will be greater emphasis on whole life cycle (including environmental impact) of a product rather than just the electrical performance and price. The focus of passive component manufacturers will be qualifying their products for a specific application rather than increasing their production capacity. The automotive and power electronics will provide the most new business opportunities. The price-sensitive consumer electronics market will remain the same. New business opportunities will be captured by companies building local manufacturing facilities and using high performance materials. Smaller companies will find it more difficult to find new customers due to increased certification and financial requirements. Recent Developments in the Passive Component Market To meet increasing component demands for AI, EVs, 5G and automation, the passive components industry is undergoing capital-intensive growth. The transforming automotive industry, regional trade policies and other geopolitical factors will create supply and demand imbalances in the industry. Lucintel believes continuous improvement in capacity, flexibility, and supply chain resilience of passive components will create a competitive edge in the market. • Increasing Capacity: TDK, Samsung EMC and Murata are investing capital to build new facilities or expand existing ones to produce MLCCs. TDK is investing 200 billion yen for 2025 (ends March 2025) to produce MLCCs for servers and other high end automotive electronics. These investments will improve the supply of high voltage MLCCs and create greater competition for other smaller suppliers. • AI Infrastructure: The rising use of MLCCs, chokes and other passive components in servers to power AI and other data center equipment is creating a growth opportunity for TDK and other passive component suppliers. • Supplier Diversification: Other suppliers are also investing to build passive component manufacturing facilities, particularly in Malaysia, to provide components to customers who are requiring greater localization of their manufacturing. • New Products: Anticipate introductions from Murata of higher voltage (1000+ volts) MLCCs in 2025, along with MLCCs targeted for power and automotive applications with higher capacitance. New designs, utilizing MLCCs with advanced dielectric materials, can reduce the size of power electronic systems and can play a vital role in various automotive and renewable energy systems. • New Partnerships: In 2025, various suppliers entered into joint development agreements, focused on power semiconductor devices based on silicon carbide. Qualification of component systems results in lower levels of competition among suppliers. Firms rely on joint development and joint ventures to help fund the cost of qualification of power electronic systems. The power electronics industry is becoming more consolidated. Based on the direction of government spending, focus on renewable energy and electric vehicles, and growth in the electrical infrastructure, expect the premium segments of the MLCC and power electronic components markets to perform well in the near to medium term. Reasonable growth will hinge on the electrical end-market segments, as slow growth in the consumer electronics market will constrain the overall market potential. Focus on cost of goods sold and a service approach to supply chain management will aid suppliers in improving bottom line performance. Strategic Growth Opportunities in the Passive Component Market Between 2024 and 2026, the active electronics components industry is anticipated to undergo significant transformation as a result of the expansion of electrified forms of transport and other artificial intelligence and communications-related infrastructure. Additionally, the industry is expected to experience considerable upheaval as a result of progress in local- and regional-level supply chain initiatives. As noted by Lucintel, active components manufacturing is expected to change further to meet specific end-customer requirements, and away from high-volume, mass-customization strategies. • Increasing Production of Electric Vehicles: In January 2025, the world's automakers sold over 1.2 million electric vehicles. Each electric vehicle is anticipated to incorporate an increasing number of electrical/electronic components. • Expanding AI Data Center Infrastructures: In January 2025, Microsoft announced it would spend $80 billion to construct and expand AI data centers. As data centers and other computer equipment become more complex, they require additional electrical and electronic components. • Greater Use of Machine Vision and Other Forms of Automation: The international Federation of Robotics (IFR) reported in 2023 that a record 541,302 industrial robots were installed globally. • Localization of Manufacturing: In 2025, the Indian government set a target of 25.83 trillion Indian Rupees (US$ 311.3 billion) for the Electronic System Design and Manufacturing (ESDM) sector by 2026. Focus on local manufacturing will increase the demand for qualified components. • Using Sustainable Materials: As concerns about carbon footprint and product recyclability increase, so will interest in halogen- and lead-free, low-loss materials. Right to Repair rules will go into effect in the EU in July 2026. Similar to the impact of the latest version of EUL, design and sustainability data will impact supplier selection. The market's best opportunities lie in segments with the highest component content per unit. Suppliers should target segments with tight component specifications, and apply application and systems engineering and design. Production in higher-cost regions would improve time to market and bolster profitability. Reliability, responsiveness, and flexibility of suppliers will determine their market share. Product and process innovations for reliability will assist customers to transition to the next level of power architectures and help meet goals to minimize environmental impact. Humanize the following AI-generated content while strictly retaining the original formatting, headings, bullets, spacing, and structure. Do not add or remove bullets or change formatting. Correct grammar and spelling. Delete or explain ambiguity and add clarity where needed. Passive Component Market Drivers and Challenges The passive component industry encounters various economic and non-economic challenges. Active demand for electronics creates opportunities for the industry, while volatile raw material costs, changes in customer requirements and increased industry competition create threats for the industry. Other trends such as localization of manufacturing, miniaturization of components and sustainability are changing the industry landscape. The impact of these trends is most pronounced in the areas of renewable energy, telecommunication, transportation and other industries. The factors responsible for driving this market include: • The Surge in The Adoption of Electronics: There has been a significant increase in the use of electronics across different modes of transport and in various industries, e.g. use of data center electronics to support cloud computing. It is predicted that the energy consumption of data centers will be in the range of 1000 TWh by 2026. • Improved Technology: Miniaturization of components has made it possible to incorporate passive components in higher performance systems. For example, components used in Artificial Intelligence systems and components used in Electric Vehicles. 5G network rolled-out to 2 billion users in 2025 created greater demand for high-frequency components and other passive components. • Automotive Electrification: Traditional combustion vehicles rely less on components to manage and distribute energy. With the increase of battery-powered and electrified vehicles, passive components such as semiconductors and circuit protectors to manage and distribute energy become increasingly critical. With sales reaching 17 million globally in 2024, projections for 2025 are positive (January 2025, International Energy Agency). With continued expansion in the electrification of vehicles, the demand for passive components will increase. • Infrastructure Investment: Increased investment in various sectors such as telecommunications, renewable energy, and semiconductors will create a larger need for manufactured components. Between 2024 and 2030, it is projected that renewable energy will account for over 5,500 GW of new capacity. The deployment of renewable energy and other large-scale projects will create a continuous need for capacitors, resistors, and other electronic components. • Manufacturing Optimization: New materials and manufacturing processes will reduce process variability. The European Chips Act will incentivize over €43 billion in semiconductor manufacturing from 2023 to 2033. Reduced wafer costs will allow for greater regional supply of semiconductors and related components. challenges facing this market include: • Raw-Material Volatility: The price of nickel, copper, and aluminum has a direct impact on production costs. In 2025, copper hit an all-time high of $11,000/metric ton, mostly due to increased global electrification. Raw material prices and availability will continue to impact the electronics industry, and negatively impact margins. Manufacturers will be forced to find new ways to produce their products by redesigning them to use different materials, sourcing materials in different ways, and increasing their efforts to recycle materials. • Supply Chain Disruptions: There are several reasons why materials may not be available when needed, including wars, blocking shipments, and controlling exports. There is only a limited number of companies that produce the components we need for electronics, and if something happens to disrupt operations at one of them, there could be a global shortage of the components needed to make electronics. • Qualification and Compliance Costs: There are several tests and certification that are required by the customers in the auto, aerospace, medical, and industrial fields. Changes in environmental regulations have made it more costly to produce electronics, and brought about longer wait times for customers. Smaller manufacturers are at a greater disadvantage compared to larger ones. The rising adoption of electrification, connectivity, and automation systems, as well as the expansion of data centers and renewable energy systems, will drive growth in the electronics industry and further increase the demand for electronic systems. This increasing trend is anticipated to augment the global need for passive components, such as capacitors and inductors. Continuous advancements in semiconductor and electronic system technologies will increase the need for smaller, higher performing passive components. Raw materials are essential for manufacturing passive components; however, the volatile costs and unpredictable supplies will constrain the passive component market. With the increasing demand for passive components, suppliers will need to automate their production processes, raw material supplies, and business operations and establish sustainable raw material suppliers. Furthermore, suppliers must manage their component inventories and customer qualifications in a manner to ensure continuous and reliable component supplies. List of Passive Component Market Companies Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies passive component market companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the passive component market companies profiled in this report include- • KEMET • KYOCERA AVX Components • Murata Manufacturing • NICHICON • Nippon Chemi-Con • Panasonic • Ryosan • Samsung Electro Mechanics • TAIYO YUDEN • Yageo Passive Component Market by Segment The study includes a forecast for the global passive component market by product, end use, and region. Passive Component Market by Product [Value ($M) from 2019 to 2035]: • Capacitors • Resistors • Inductors • Diode • Transformers Passive Component Market by End Use [Value ($M) from 2019 to 2035]: • IT & Telecommunication • Consumer Electronics • Automotive • Industrial Machinery • Others Passive Component Market by Region [Value ($M) from 2019 to 2035]: • North America • Europe • Asia Pacific • The Rest of the World Country Wise Outlook for the Passive Component Market Localization of the semiconductor industry and related components is fundamentally altering the passive component market. Lucintel expects key investments in this market from 2025 to 2027. During this period, component manufacturers will seek more localized production in combination with advanced multilayer ceramic capacitors (MLCCs) and aluminum electrolytic capacitors. Long-term, supply chains will become more locally concentrated. • United States: Recent investments in defense and related production have resulted in a reshoring of passive component production. In January 2025, Vishay announced a $250 million investment to expand passive component production in the U.S. Over the next several years, this production is expected to supply defense, automotive, and other components of the industrial base, and reduce reliance on Asian production. • China: Localization policies in China continue to support the expansion of advanced capacitor production. In March 2025, Fenghua announced a similar investment to produce and manufact Components to support China's EV and renewable energy production. • Germany: Similar support in the EU for the production of passive components and MLCCs has supported projects in Germany and other EU countries. • India: The Indian government is implementing schemes to promote electronics manufacturing. The Indian government approved the ₹22,919 crore scheme in February 2025, to boost the manufacture of electronics components and related infrastructure. This is expected to result in the establishment of additional manufacturing facilities and supply chain partnerships in the country, and improve domestic production of electronic components for mobile phones, automobiles, and other equipment in the energy and industrial sectors. • Japan: The demand for passive components for automobiles and infrastructure is increasing. In April 2025, Murata Manufacturing limited announced that it would build a new facility at its Izumo plant in Shimane, Japan, at a cost of ¥10 billion. The new facility is expected to produce high-reliability passive components. With this facility, Murata aims to serve customers in the automobiles and other high-speed communication devices. Features of the Global Passive Component Market Market Size Estimates: passive component market size estimation in terms of value ($M). Trend and Forecast Analysis: Market trends (2019 to 2026) and forecast (2027 to 2035) by various segments and regions. Segmentation Analysis: passive component market size by product, end use, and region in terms of value ($M). Regional Analysis: passive component market breakdown by North America, Europe, Asia Pacific, and Rest of the World. Growth Opportunities: Analysis of growth opportunities in different product, end use, and regions for the passive component market. Strategic Analysis: This includes M&A, new product development, and competitive landscape of the passive component market. Analysis of competitive intensity of the industry based on Porter’s Five Forces model. If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more. This report answers following 11 key questions: Q.1. What are some of the most promising, high-growth opportunities for the passive component market by product (capacitors, resistors, inductors, diode, and transformers), end use (IT & telecommunication, consumer electronics, automotive, industrial machinery, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)? Q.2. Which segments will grow at a faster pace and why? Q.3. Which region will grow at a faster pace and why? Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market? Q.5. What are the business risks and competitive threats in this market? Q.6. What are the emerging trends in this market and the reasons behind them? Q.7. What are some of the changing demands of customers in the market? Q.8. What are the new developments in the market? Which companies are leading these developments? Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth? Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution? Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?