Active Electronic Components Market Size, Share, Growth Analysis, By Product(Semiconductor Devices, Vacuum Tube, Display Devices, and Others), By End-use(Consumer Electronics, Networking & Telecommunication, Automotive, Manufacturing), By Region - Industry Forecast 2024-2031

Drivers

Increasing Demand for Smart Devices

• The growing consumer demand for smart devices, such as smartphones, tablets, smart wearables, and IoT devices, acted as a major driver for the active electronic components market. These devices heavily rely on active components like semiconductors, ICs, and display devices to enable their functionalities. For example, in 2022, the demand for smartphones continued to rise, with manufacturers incorporating advanced semiconductor devices and display technologies to enhance performance and user experience.

Technological Advancements and Digital Transformation

• The rapid advancements in technology, including AI, ML, IoT, and 5G connectivity, were key drivers of the active electronic components market. These technologies require advanced components to enable their implementation and function effectively. For instance, the adoption of 5G networks gained momentum in 2022, driving the demand for active components such as transceivers and amplifiers to support higher data speeds and connectivity.

Restraints

Supply Chain Disruptions

• The active electronic components market faced challenges due to supply chain disruptions in 2022. Factors like shortages of raw materials, geopolitical tensions, trade conflicts, and natural disasters impacted the availability and cost of components. For instance, disruptions in semiconductor supply chains affected various industries, leading to production delays and increased costs for electronic devices and equipment.

Complex Regulatory Environment

• The market also encountered challenges related to a complex regulatory environment. Compliance with stringent regulations regarding product safety, environmental sustainability, and intellectual property rights posed hurdles for market players. Adapting to evolving regulations and ensuring compliance throughout the supply chain required significant resources and expertise.