According to the MarketsandMarkets forecast, the passive and interconnects market is expected to be valued at USD 187.55 billion by 2022, growing at a CAGR of 4.41% between 2017 and 2022. The growth of passive and interconnects market is attributed  to advancements in industrial M2M communication technology and rising industrial automations, increasing demand for miniaturized and high-performance electronic devices, proliferation of automotive infotainment and consumer electronics, and high demand for passive component and interconnects in computing, communication and consumer electronics (3C) applications.. However, declining profit margins of the manufacturers and overall drop in the commodity prices are restraining factors for the market growth.

Of all the major applications, the automotive sector is expected to exhibit highest growth in the overall passive and interconnect market during the forecast period. The growth of the automotive segment is mainly propelled by the introduction of infotainment and internet of things technology in automobiles which helps to add an extra comfort and convert traditional automobiles to smart automobiles.

The passive and interconnects market by product type comprises passive components and interconnects. Interconnects is expected to show higher growth between 2016 and 2022, due to increasing adoption of automation, robotics and infotainment in different industry sectors. Interconnects comprises of products which are used in almost every electronic and electrical device either to establish a connection or to transfer the data.

Passive Components

Passive components can interrupt, resist, or affect a current flow but cannot control it. Few examples of passive components are resistors, inductors, capacitors, and transformers. These components are responsible for the flow of current in the electric circuit to help the circuit to operate efficiently.

Resistors (R) are one of the most frequently used passive components, which carry a certain value of resistance that helps in the obstruction of electric current passing through the circuit. These components are used to limit current, divide voltages, and adjust signal levels. Inductors (L) are two terminal devices that store energy in the form of magnetic field when electrical current is flowing through them. The third passive component is the capacitor (C) that stores energy in the form of electric charge producing a static potential difference across the plates. Transformer is a static device that transforms electric energy from one circuit to another without any electrical connection and with the help of mutual induction between the two windings. Diode is a two terminal device named as anode and cathode, which helps the current to flow in one direction and limits the flow of current in the opposite direction.

Interconnects

Interconnect is an electrical or optical connection that connects two or more devices together. Few examples of interconnects are printed circuit boards (PCBs), connectors, switches, and relays. These components are responsible for the flow of current between two electric circuits and conductors. PCB electrically connects the electronic components using conductive tracks, pads and other features etched from the copper sheets onto a non-conductive substrate. The connector connects two conductors so that electric energy can flow between the two conductors. Switch is used to make or break an electric connection. Relay is another classification of interconnect which is also called as electrically operated switch. Connectors are the fastest growing product segment due to their use in various applications to establish a mechanical as well as electrical connectivity. The major share of connectors is captured by data processing application due to the fact that large amount of connectors and adapters are being utilized in personal computers and for networking purposes.

Of all the regions, APAC held the largest market share in 2016 and expected to grow at the highest CAGR between 2017 and 2022. The growth in APAC is primarily due to the easy availability of raw material, cheap labor and low production-cost in this region. Adoption of robotics across industries and advances in capacitors will be significant in creating demand in the coming years.

The major players in the passive and interconnects market are TE Connectivity Ltd. (Switzerland), Amphenol Corporation (US), Molex Incorporated (US), Hirose Electric Co., Ltd. (Japan) and Delphi Automotive LLP (UK). These players have adopted various strategies such as new product developments, partnerships and contracts, and business expansions to cater to the needs of the passive and interconnects market.

To speak to our analyst for a discussion on the above findings, click Speak to Analyst