Chip Resistor Market Size is anticipated to grow at a notable pace over 2021-2027, primarily driven by the ongoing digitization in different industries worldwide. Moreover, advancements in data capture, sensors, computing power, connectivity, and robotics are enabling companies to now make enhancements in materials to improve their production, supply chains, and services, thus pushing in the demand for chip resistors.
Chip resistors are used to regulate the current flow in a system or a device, while also being used to drop the voltage or maintain the current at a certain level. They are further used in various applications like industrial, consumer electronics, and automotive to protect, control, and operate circuits.
However, fluctuations in raw material prices are expected to challenge the market growth through the forecast period. Nevertheless, latest industry developments by new entrants in the market are poised to generate growth opportunities for the overall industry. For instance, Vishay Intertechnology had in May 2021, launched a new high precision thin film chip resistor for medical, industrial, aerospace, and defense applications - Vishay Sfernice P2TC.
Thick-film chip resistors are gaining immense traction across the market owing to the product’s low cost and expansive applicability in a diverse range of consumer electronics devices. These resistors offer high resistance values, robust temperature performance, and high voltage capability and are integrally non-inductive. Thick-film chip resistors are suitable for demanding requirements of aerospace, medical, and downhole applications.
Based on the application spectrum, the growth across chip resistor market is predicted to come from automotive and transportation sectors. This can be ascribed to the rising application of electronics in automobiles along with rapid developments in electric vehicles. Besides, subtle growth in the automotive industry is slated to have a positive impact on global market.
The growth is estimated to come from Asia Pacific on the grounds of the ongoing developments and expansion of the consumer electronics manufacturing sector, paired with robust economic growth of the region. Prolific surge in the adoption of EVs in the region would also increase the demand for these integrated circuits in the ensuing years. With developments of hybrid and electric vehicles, the demand for efficient resistors with high leakage detection properties will expand.
Murata Manufacturing Co., Ltd, CTS Corporation, Bourns, Inc, Panasonic Corporation, Yageo Corporation, Samsung Electro-Mechanics (Samsung Group), TE Connectivity, Vishay Intertechnology, Inc., and others some of the prominent companies functioning in the global chip resistor market. These conglomerates are leaving no stone unturned to gain a competitive edge in the market by undertaking industry practices like acquisitions, collaborations, and mergers.
Analyzing COVID-19 impact on chip resistor market size
The semiconductor industry has been facing severe downfall since 2020. This can be reasoned to the acute shortage of electronic chips worldwide caused attributed to lockdowns, transport restrictions and other regulatory norms due to the coronavirus pandemic. Moreover, halt in production of various automobiles, electronic gadgets, and others is projected to weaken the growth spectrum of the global market.