Showing posts tagged 'passive components'
25 August 2021
Automotive electronics market set to grow
With vehicles getting smarter, more connected and more autonomous, the automotive electronics market looks set to soar.
Future growth in numbers
Back in March, Precedence Research predicted the automotive electronics market would hit around US$ 640.56 billion by 2030.
Then, in July, Global Market Insights released research predicting the automotive electronics market would hit around US$ 380 billion by 2027.
Interestingly, measured across the same period, both research reports (which are independent) predict a similar growth pattern. Global Market Insights predicts a 6% CAGR, while Precedence Research predicts a CAGR of 7.64% over a 3-year longer period.
With two separate reports indicating significant annual growth, the automotive electronics market looks set to boom. But wait, there’s more.
A 9.3% CAGR is expected in the automotive electronics market by 2030, according to research by P&S Intelligence. They predict slightly less growth than Precedence Research to 2030, at US$ 615.3 billion (versus $640.56 billion).
There are approximately 1,400 chips in a typical vehicle today, which each chip housing thousands of components on a semiconductor wafer, creating the integrated circuits that power computing, memory and a host of other tasks.
Those are just the chips.
Cars have thousands of other electronic components, including passive, active and interconnecting electronic components, from batteries, sensors and motors, to displays and cameras. Oh, and everything is connected.
All told, a typical car today has more than 50,000 electronic components that enable features like in-car Wi-Fi, self-parking technology, adaptive headlights, semi-autonomous driving technology, keyless entry and powered tailgates.
However, cars are getter smarter and more advanced. Electronic components today make up around a third the cost of a car, which will increase over time as more sophisticated and greater numbers of components are used.
Smarter cars need more components
The future of cars involves electrification, autonomous and self-driving technologies, hyperconnectivity, Internet of Things, augmented reality, artificial intelligence, biometrics and a whole host of next-generation technologies.
How will these be enabled? With electronic components.
Let’s take electrification as an example. An electric car handbook will tell you an electric car has a motor, a battery, an on-board charger, and an Electronic Control Unit (ECU) that controls one or more of the electrical systems or subsystems in the vehicle. Together, these let you drive around, charge, and pop to the shops.
In-between these systems, are hundreds of thousands of electronic components that make them work. You see, an Electronic Control Unit is a single component, containing thousands of smaller components, each performing a critical role.
The automotive electronics market is set to soar because cars and other vehicles will need more components with electrification and next-gen technologies. Sometimes, things can be simple to explain, and this is one of those times.
The electronics industry is facing a global chip and electronic component shortage which is expected to last 2-3 years. As demand for automotive electronics soars, shortages look very likely for certain components like CPUs and memory.
The solution for many companies will be to use an electronics component distributor, to fill gaps in the supply chain and keep things moving.
Electronic component distributors like Cyclops can source hard-to-procure components because we have relationships with the best suppliers in the industry. Contact us today with your enquiries at firstname.lastname@example.org or call 01904 415 415.
10 August 2021
Passive and Interconnecting Electronic Components market to display lucrative growth
The passive and interconnecting electronic components market is predicted to display lucrative growth across all regions over 2020-2025, with North America the dominant market due to the prominence of players in the country.
These predictions come from The Passive and Interconnecting Electronic Components market report from Market Study Report, which you can request a sample of here. The report delivers a rigorous analysis of the market, examining the main growth drivers and restraints, as well as opportunities for revenue cycles.
The passive and IEC markets are forecasted to experience a CAGR (compound annual growth rate) of 3.1% from 2020-2025, with the US market expected to reach $32.3 billion by 2025, up from $28.6 billion in 2020.
Key players in the industry include:
- API Technologies
- AVX Corporation
- ST Microelectronics
- 3M Electronics
- Fujitsu Component
- American Electronic Components
- Eaton Corp.
- Datronix Holding Ltd
As the world gets smarter and demand for passive and interconnecting electronic components increases, small players will also take a bigger role. Trade barriers caused by geography will need to be overcome to meet demand, fuelling an explosion in growth across all developed markets, from Europe to Asia Pacific.
What is fuelling growth?
While the report provides in-depth analysis of factors that will fuel growth, we don’t want to tread on its toes, so we’ll provide a simpler analysis.
The reason the passive and interconnecting electronic component markets are going to experience significant growth over the next several years is because of industry tailwinds and technological advancement. Given today’s technological innovation, it’s no wonder that demand for all types of electronic component is soaring.
Disruptive new technologies, rapid advancement in existing technologies and the adoption of smarter, more connected devices, is fuelling unprecedented demand for everything from passive components to chips.
For example, in 2021, manufacturing of passive components could see an 11% increase, but demand is likely to exceed 15%.
Making supply meet demand
There has been a lot of talk about how the next great technological cycle will fuel growth for the semiconductor industry, but it’s important to recognise that chips are nothing but silicon and metal without other components like passives and IECs.
While supply for some components like display drivers is ticking along, there is a global shortage for other components like active, passive and electro-mechanical components, putting manufacturers in a compromised position.
The shortage for some IECs and passive components is expected to last several years, so making supply meet demand will be a challenge in the near future.
To make supply meet demand, suppliers and manufacturers will need to partner with well-connected distributors. Electronic component distributors are the best-connected players in the supply chain, linking sellers with buyers and vice versa.
Sourcing and allocating shortage electronic components is something that we specialise in at Cyclops. We help source components that are impossible to find, helping to keep supply chains moving and manufacturing plants going.
With the passive and interconnecting electronic components market set to soar, planning is essential to make supply meet demand and capitalise on growth.
31 March 2021
Is There a Passive Component Shortage?
Passive components include resistors, inductors, capacitors and transformers. They are among the most abundant electronic components in the world, but demand could start to outstrip supply this year in some industries.
To help you grasp the exponential growth of the passive component market, the market was valued at USD 30.98 billion in 2020 and is estimated to reach 39.59 billion by 2026 (Mordor Intelligence). That research cites the automotive industry as the key industry driver and Asia-Pacific as the biggest growth market.
Fact is that the world is getting more technologically advanced. Demand for passive components is only going to increase. You could draw a line now and skip five years from now. The line would shoot up. We’d bet money on it.
A short history of passive components
In 2017, a major surge in demand for standard passive components coupled with raw material shortages led to strained capacity. Resistors and transistors were badly needed, and suppliers were quoting 20-30 weeks.
In 2019, demand balanced out, and for the first few months of 2020 demand and supply were perfectly balanced. Then the COVID pandemic hit.
COVID-19 caused supply chain problems as component manufacturers scaled down operations. Meanwhile, as industries absorbed the effects of COVID-19, demand increased, and this put the industry in a sticky situation.
Today, demand for passive components has never been higher. The predicted softening of the market some people made in 2020 has not happened. 2021 is set up to be a boom year for passive components. This could cause shortages.
Why is demand so high today?
The reason for this high demand is investment in new technology. Whether it’s electric cars and charging infrastructure, 5G infrastructure, wireless backhaul, IoT or UAVs, demand for certain components is increasing and factories are struggling to keep up.
The good news is that with increased demand comes new investment in factories and manufacturing output. The risk is that the demand for passive components outstrips supply by such an amount that innovation stagnates.
We don’t think this will happen. However, this may force manufacturers to turn to outdated, legacy components. They can get away with this during prototyping. However, consumer-facing products will need the newest components. This will require a good supply of passive components in 2021 and beyond.
To meet this challenge, inventory management is key. However, sourcing components among fierce competition is a difficult task. You can be outbid and outmanoeuvred when sourcing components. This makes who you know key.
How to deal with the passive component shortage
If 2021 does bring about a passive component shortage, it’s a good idea to have an electronics component supplier like us.
With large stock holdings, global distributor reach, and a sophisticated electronic component search database, Cyclops Electronics can find and deliver day-to-day, shortage, hard-to-find components, and obsolete electronic components.
You can buy passive electronic components with confidence from us. Get in touch if you would like a chat about how we can help you. Our team specialises in sourcing electronic components and we work with all manner of customers.
06 January 2021
Active and passive components to see strong 5G-driven demand
As the international rollout of 5G picks up pace, active and passive component demand is increasing at a rate of knots.
The buildout of 5G infrastructure requires significant investment in active and passive components for a wide range of different devices.
Examples include active antennas with integrated RF radio designs, small cell power base stations, C-RAN architecture and semiconductors.
One of the challenges faced with the 5G rollout this year has been COVID-19, which had immediate effects on global supply in demand. Some of the side effects included increased costs, a slowdown in logistics, and a squeeze on demand.
While these challenges were significant in early 2020 and are likely to remain for some time, the macroeconomics are unlikely to persist in their worst form.
Right now, the manufacturing sector in most countries is bouncing back fast and many manufacturers are having their best ever quarter.
A good example is Taiwan Semiconductor, who are the largest semiconductor foundry in the world. Then you have smaller but vital players like MaxLinear, who make wireless, PON, DSL, and terrestrial products for high-speed internet.
How 5G is driving demand for active and passive components
You can think of 5G as a tide that is going to raise all ships, and active and passive components manufacturers are the ships that will benefit from it most because they will make the components that build out the 5G infrastructure.
It’s easy to see why this is the case with a short list of active and passive components. Let’s start with examples of passive components first:
Now let’s list a few active components:
- Inductors / coils
Now let’s look at a few of the components that will build out 5G:
- Radio towers
- RF receivers
- Fibreoptic cable
Looking at these lists, it’s easy to see why 5G is driving such strong demand for active and passive components.
Can the components sector keep pace?
There are so many different manufacturers of electronic components that it is unlikely that the rollout of 5G will trouble the manufacturing sector.
However, local supply problems may exist for some enterprises. For example, a supplier of radio frequency devices in China may have to temporary shut production at a factory due to a fire or a health hazard. This would affect supply.
The best way for those involved in the rollout of 5G to safeguard their supply of active and passive components is to use an electronic component distributor. Electronic component distributor specialise in the procurement and delivery of electronic components and parts, so they can ensure you always have what you need.
A faster, more connected future awaits
5G will revolutionise our use of the internet in more ways than one, but the buildout is going to take time. Demand for active and passive components is at an all-time high, and competition is increasing for the best components. Having a component distributor on your side is a good way to ensure you can meet the challenge.
Click Here to use our fast component search and enquire with us today!
30 September 2020
What the future holds for passive and interconnecting electronic components
While the world economy is in freefall with the COVID-19 pandemic, with mass unemployment and trade plummeting, the global passive and interconnecting electronic components market is expected to continue growing thanks to demand from the developing world and the rise of 5G infrastructure.
Grand View Research has released forecasts for the passive and interconnecting electronic components market, predicting a compound annual growth rate of 5.3% from 2020 to 2027 with a slowdown from 2020 to 2021 due to COVID-19.
The future is by no means certain and we do not know exactly how badly the world economy will be impacted by the coronavirus outbreak. We do however have models that tell us demand will increase for electronics over time. This spells good news for components manufacturers and the wider electronics industry.
Changes in market demand
As the world economy is adversely impacted by the coronavirus outbreak, demand for electronic components in many verticals will slow. This can be traced back to the reality that in times of uncertainty, consumers are warier of spending money. Less demand for products means a slowdown in production and demand.
However, regardless of the world economy, some regions do have stimulus. The United Kingdom, Japan, China, South Korea and the US are rolling out 5G network infrastructure and this will stimulate the electronics market. Smartphones, tablets, drones and other devices that rely on networking will be key beneficiaries.
So, it isn’t by any means doom and gloom for the global passive and interconnecting electronic components market. Growth is predicted from 2020 to 2027 and the COVID-19 outbreak will only slow down this growth temporarily.
How component sourcing has changed
In response to a fall in demand for products, passive and interconnecting electronic component production has slowed. In addition, a lot of stock hasn’t been used and is sitting in storage until such a time it is needed.
Prior to COVID-19, it was easy to think of component production as being in a state of perpetual motion for it was always present. Demand has fallen but that doesn’t mean it has ceased. Passive and interconnecting electronic components are still being sourced, albeit in smaller batches and more carefully than ever.
Another behaviour we have witnessed is component hoarding. OEMs are unsure of their partner’s manufacturing capabilities in the face of COVID-19. So, they are hoarding components to ensure they can scale up demand when the time is right. This is considered normal behaviour without a global pandemic, but we are seeing more extreme examples as a means to protect manufacturing output. Ultimately, this means there are less components to go around, which drives up the cost of certain components.
How we can help you with sourcing
The future may be uncertain but good preparation will help you through it. As your electronic component distribution partner, we can source components for you with access to all major manufacturers. We can source legacy, obsolete, state-of-the-art and short production run components at prices that suit your margin. Visit our website or click here to use access our component search and enquire with us. We are here to help you with your electronic component needs.
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