Global Embedded Passive Components Market Outlook
Revenue, 2024
$444M
Forecast, 2034
$1.75B
CAGR, 2025 - 2034
14.7%
The Embedded Passive Components industry revenue is expected to be around $509.7 million in 2025 and expected to showcase growth with 14.7% CAGR between 2025 and 2034. The Embedded Passive Components market shows strong growth because different high-tech industries need these components. The market for Embedded Passive Components drives forward because these components serve as essential building blocks for multiple technological advancements including telecommunications and automotive electronics and healthcare devices. The market demand for Embedded Passive Components has increased substantially because of technological advancements and the need for smaller electronic devices with better performance capabilities. The market has gained increased importance because of wireless communication growth and IOT applications which make these components essential for modern digital operations.
The printed circuit board contains Embedded Passive Components which represent miniature versions of standard passive components including resistors and capacitors and inductors. The components provide three main benefits to embedded component PCBs through their compact design, enhanced functionality, and minimized electromagnetic interference. The applications of Embedded Passive Components exist in telecommunications and automotive and healthcare and consumer electronics industries. The increasing demand for these components stems from the recent rise of smart and connected devices.
Market Key Insights
- The Embedded Passive Components market is projected to grow from $444.4 million in 2024 to $1.75 billion in 2034. This represents a CAGR of 14.7%, reflecting rising demand across Consumer Electronics, Telecommunication and Automotive Industry.
- Murata Manufacturing Co. Ltd., TDK Corporation, Kyocera Corporation are among the leading players in this market, shaping its competitive landscape.
- U.S. and China are the top markets within the Embedded Passive Components market and are expected to observe the growth CAGR of 13.2% to 17.6% between 2024 and 2030.
- Emerging markets including Vietnam, South Africa and Chile are expected to observe highest growth with CAGR ranging between 10.3% to 15.4%.
- Transition like Miniaturization Trend is expected to add $65 million to the Embedded Passive Components market growth by 2030.
- The Embedded Passive Components market is set to add $1.3 billion between 2024 and 2034, with manufacturer targeting Automotive & Aerospace & Defense Applications projected to gain a larger market share.
- With Rising demand for miniaturization in electronics, and Advancements in automotive electronics, Embedded Passive Components market to expand 294% between 2024 and 2034.
Opportunities in the Embedded Passive Components
The collaboration between embedded passive components manufacturers and technology firms enables them to create new solutions which meet changing consumer requirements. The strategic partnerships between companies enable them to combine their expertise which also drives expansion of the embedded passive components market.
Growth Opportunities in North America and Asia-Pacific
The embedded passive components market in North America shows significant growth because of fast-growing telecommunications and automotive industries. The North American market demands many embedded passive components because it hosts major technology companies including Google and Apple and automobile manufacturers like General Motors. The production of advanced electronics and automotive systems depends on these components because they improve device performance and minimize both size and cost. Asian manufacturers compete aggressively with North American manufacturers by providing equivalent products at reduced prices. North American manufacturers maintain their competitive position through innovation combined with quality improvements and customized solution development.
The Asia-Pacific region serves as a primary location for embedded passive components market operations because it houses numerous electronics manufacturers across China Japan and South Korea. The Asia-Pacific region experiences rising demand for embedded passive components because consumer electronics continue to grow while automotive and telecommunications industries expand rapidly. The market operates with fierce competition because manufacturers focus on delivering premium products at affordable prices. The market experiences growth because of technological progress and rising R&D investments and expanding use of compact electronic devices.
Market Dynamics and Supply Chain
01
Driver: Rising Demand for Miniaturization in Electronics, and Growth in Telecommunication Infrastructure
The embedded passive components market also experiences growth because of the ongoing trend to make electronics smaller. The market for embedded passive components grows because consumer electronics manufacturers require compact yet efficient components to develop smaller portable devices. The production of smartphones and wearable technology and IoT devices also depends on these essential components which provide compactness and high efficiency. The ongoing expansion and modernization of telecommunication infrastructure worldwide is also another key for the embedded passive components market. These components are also essential in the development of high-speed and reliable communication networks. The surge in data traffic, coupled with the rollout of 5G technology, is also expected to significantly boost the demand for embedded passive components in the telecommunication sector.
The automotiveindustry'stransition to electric and autonomous vehicles also creates rising demand for sophisticated electronic components. The operation of these complex systems also depends heavily on embedded passive components because they deliver fundamental functions including filtering and energy storage and signal conditioning. The embedded passive components market will also experience additional growth because vehicles continue to integrate more electronic systems for safety and comfort and performance enhancement.
02
Restraint: High Manufacturing Costs
The manufacturing of Embedded Passive Components demands intricate production methods which need sophisticated manufacturing approaches and premium materials. The production expenses rise substantially because of these factors which manufacturers subsequently transfer to their final customers. The expensive nature of Embedded Passive Components acts as a market growth limitation because it discourages numerous potential buyers who need cost-effective solutions.
03
Opportunity: Evolving Consumer Needs and Technological Innovations
The fast development of consumer electronics has created a growing market for embedded passive components. The requirement for small yet efficient devices has caused these components to become more widely used in smartphones and laptops and wearable devices. The market demand for embedded passive components will persist which will create a significant market opportunity.
The market demand for embedded passive components has increased because of advanced technologies including IoT, AI and 5G. The technologies need highly efficient, miniaturized and reliable components which embedded passive components provide. The growing use of these technologies across automotive, consumer electronics and telecommunications industries creates a substantial market for embedded passive components.
04
Challenge: Technological Constraints
Embedded Passive Components are highly reliant on technological advancements for performance improvements. However, the pace of technological innovation can sometimes lag, leading to constraints in terms of product development and performance optimization. This lack of technological progress can limit the adoption of Embedded Passive Components in high-performance applications, further impeding market growth.
Supply Chain Landscape
1
Raw Material Suppliers
Alpha Advanced MaterialsSumitomo Metal Mining
2
Component Manufacturers
Murata ManufacturingAVX Corporation
3
Distributors Wholesalers
Arrow ElectronicsFuture Electronics
4
End Users
Consumer ElectronicsAutomotiveTelecommunications
1
Raw Material Suppliers
Alpha Advanced MaterialsSumitomo Metal Mining
2
Component Manufacturers
Murata ManufacturingAVX Corporation
3
Distributors Wholesalers
Arrow ElectronicsFuture Electronics
4
End Users
Consumer ElectronicsAutomotiveTelecommunications
Use Cases of Embedded Passive Components in Consumer Electronics & Telecommunication
Consumer Electronics : Embedded Passive Components are extensively used in consumer electronics such as smartphones, laptops, and tablets. These components, including capacitors and resistors, are integral to the functioning of electronic devices, helping to regulate power flow and maintain signal integrity. Key players in this space include Samsung and Apple, known for their innovative use of these components to enhance device performance and reliability.
Automotive Industry : The automotive industry is another significant user of Embedded Passive Components. In this sector, inductors and resistors are commonly used in various systems such as engine control units, infotainment systems, and advanced driver-assistance systems. Companies like Bosch and Continental AG are leading the market in this application, leveraging the benefits of these components to improve vehicle performance and safety.
Telecommunication : Telecommunication is another domain where Embedded Passive Components find substantial application. Capacitors, resistors, and inductors are used in communication devices and infrastructure to ensure signal quality and reduce noise. Prominent players in this application include Huawei and Cisco, who utilize these components to enhance the efficiency and reliability of their communication solutions.
Recent Developments
The global market for Embedded Passive Components has been witnessing a significant growth trajectory. This surge can be attributed to the increasing demand for miniaturized electronic devices across various industry verticals. The trend towards miniaturization has necessitated the integration of components within the circuit board, thereby propelling the demand for Embedded Passive Components.
December 2024 : Global tech giant, Intel, announced the launch of its new range of embedded passive components, designed to enhance the performance and efficiency of next-generation computing systems
October 2024 : Samsung Electronics unveiled its innovative embedded passive components, aiming to revolutionize the IoT and AI industry with superior energy efficiency and miniaturization
August 2024 : Murata Manufacturing Co., Ltd. secured a patent for its groundbreaking technology in embedded passive components, promising to deliver improved reliability and durability in high-frequency applications.
Impact of Industry Transitions on the Embedded Passive Components Market
As a core segment of the Electrical & Electronics industry,
the Embedded Passive Components market develops in line with broader industry shifts.
Over recent years, transitions such as Miniaturization Trend and Rise of IoT and AI have redefined priorities
across the Electrical & Electronics sector,
influencing how the Embedded Passive Components market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Miniaturization Trend
The embedded passive components industry has undergone a major shift toward miniaturization. The industry follows this trend because various sectors including telecommunications and automotive and consumer electronics need smaller efficient devices. The industries now focus on compact designs and space-efficient integration of multiple functionalities because of this transition. The development of advanced embedded passive components has resulted in smaller size while delivering improved performance. This industry transition is expected to add $65 million in the industry revenue between 2024 and 2030.
02
Rise of IoT and AI
Another notable transition in the embedded passive components industry is the rise of IOT and AI technologies. These technologies require robust and efficient components to function effectively, leading to increased demand for high-quality embedded passive components. This transition has significantly influenced industries such as healthcare, manufacturing, and transportation, where IoT and AI are being increasingly adopted for various applications, driving the need for more sophisticated and reliable embedded passive components.