Demand from the telecom industry paves the way for the rise of the embedded passive device market

The market share of embedded passive devices is expected to reach US$3 billion ($4.4 billion) by 2032 with an estimated CAGR of 3% during the projected period owing to growing demand in the industry telecommunications, according to market research firm Fact.MR.

Embedded passive devices are said to help reduce the size and power consumption of telecommunications infrastructure elements, thereby driving the embedded passive device market over the next few years.

By 2022, the 5G industry is estimated to have 89 million subscribers, giving the market for embedded passive devices room to grow.

Last year, the United States, Japan, South Korea, United Kingdom, Germany and China adopted 5G technology. This could likely contribute to the growth of the embedded passive device market in the coming years, the study notes.

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 it more accessible to customers.

The study also mentions the following highlights:
1. Consumer electronics segment dominated the market and held the largest market share of 21.7% in 2020.
2. There is an increased use of these components in different consumer electronics such as laptops, smartphones, wearable devices and tablets among others.
3. Embedded passive devices exhibit a number of high-end qualities including low power consumption, high chip connection, and small footprint, which has fueled their acceptance in miniaturized handheld electronics.
4. Asia Pacific Embedded Passive Device Market will grow from 2021 to 2028 owing to government measures to expand semiconductor production in the region.
5. The Spanish multinational specializing in the development and manufacture of metal components for automobiles Gestamp, will receive a loan of 200 million euros (297 million dollars) from the European Investment Bank (EIB) to improve its research capacities to produce lighter, safer and more environmentally friendly cars, according to the European Commission.

What are the factors hindering the growth of the Embedded Passive Devices market?
The high cost of embedded passive devices compared to discrete components is limiting the growth of the embedded passive device market as well as the embedded passive device sales and the demand for embedded passive devices.

The long-term impact should be minimal as leading companies in this industry are working hard to minimize the cost of integrated passive devices, according to Fact.MR.

Low cost production is key to maximizing profits. Traditional printed circuit boards, on the other hand, are standardized for individual discrete components, but not for integrated passive devices.

When traditional PCBs are combined with integrated passive devices, they incur additional costs. The cost ratio of a single discrete component to integrated passive devices (1.5 X 1.5) is one and one third. This is mainly due to the commoditization and widespread use of discrete components.

This first appeared in the CommsWire subscription newsletter on September 21, 2022.


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