Passive and Interconnecting Electronic Components Market Size & Share 2025 – 2034

Passive and Interconnecting Electronic Components Market Size

The global passive and interconnecting electronic components market was valued at USD 180.2 billion in 2024 and is estimated to grow at a CAGR of 6.9% to reach USD 345.7 billion by 2034. The growth of the market is attributed to factors such as the rise of the Internet of Things (IoT) and increasing demand for advanced automotive electronics.

The rapid proliferation of the Internet of Things (IoT) is one of the leading factors driving the demand for passive and interconnecting electronic components market. The basic building blocks of the Internet of Things are electronic components. Electronic components designed for long-term use are critical to the dependability and longevity of any IoT device. The Internet of Things allows smart gadgets to communicate with one another. Integrated circuits (ICs), printed circuit boards (PCBs), diodes, sensors, microcontrollers, accelerometers, and other electrical components are used in IoT equipment and devices.
 

Other passive electronic components found in IoT devices include capacitors, wire wound resistors, nichrome resistors, transformers, and discrete inductors. Moreover, IoT components are becoming smaller as technology advances. Energy-efficient IoT components are critical for future growth. IoT is now being used in a variety of applications, including consumer appliances, industrial monitoring, automotive, environmental monitoring, health monitoring, smart cities and buildings, agricultural projects, and more.
 

According to Statista, in 2025, The electronic products & components market is projected to generate a value-added output of $1.5 trillion in 2025, with a value-added margin of 30%. The per capita value-added contribution is expected to reach $214.5. The total market output is forecasted at $4.9 trillion in 2025, with a compound annual growth rate (CAGR) of 1.50% for value-added and 2.09% for overall output from 2025 to 2029. 
 

The automotive industry is another significant driver, with increasing demand for electronic systems in vehicles for functions such as advanced driver assistance systems (ADAS), infotainment, and electric powertrains. Passive components dominate the count on ADAS systems. These components play a major role in improving system reliability. They have an impact on overall system reliability and contribute extremely positive performance. The latest technological upgrades that are happening in the circuits of autonomous cars such as the mid-complexity ECU containing 200 capacitors, and the next-generation self-healing capacitors will help eliminate 200 potential failure points in the circuit. These devices are enabling technology for failsafe power supplies and regulators in automobile circuits.
 

Passive and Interconnecting Electronic Components Market Trends

• One of the key trends in the market is the rising adoption of electronics in various industries, including automotive, healthcare, and consumer electronics. The growing adoption of smartphones, gaming consoles, and home appliances continues to develop and advance the demand for passive components such as resistors, capacitors, and inductors.
   
• Another significant trend is the miniaturization and integration of electronic devices, such as smartphones and wearable devices, driving the demand for smaller and more efficient passive and interconnecting electronic components. This trend focuses on reducing component sizes without impacting performance. A prime example is Murata Manufacturing's development of a multilayer ceramic capacitor (MLCC) measuring just 0.25 x 0.125 mm, one of the smallest in the world. This innovation highlights the growing use of advanced materials and techniques to create smaller, more efficient passive components, enabling enhanced device performance in increasingly compact electronic devices.
   
• One of the trends that is gaining traction is the rapid expansion of 5G infrastructure worldwide. The growing 5G infrastructure is driving the demand for components such as network equipment, switches, base stations, and routers ultimately driving the passive and interconnecting electronics market. These components are essential for supporting high-speed connectivity and the rising market for connectivity devices. Countries such as U.S., China, India, South Korea, ANZ, and Japan are driving the need for the passive and interconnecting components
   

Passive and Interconnecting Electronic Components Market Analysis

Based on the type, the market is segmented into passive components and interconnecting components.
 

• The passive components market accounted for USD 101 billion in 2023. A passive component, also known as a passive device, is an electronic component that can only receive energy, which it can either dissipate, absorb, or store in an electric field or a magnetic field. Passive components do not need any form of independent electrical power to operate. It includes resistors, capacitors, inductors, transformers and more. The growing importance of passive components is driving their demand.
   
• The interconnecting component market accounted for USD 68.4 billion in 2022. Interconnecting components are used in various industrial applications, such as Computer motherboards. Connectors and sockets on motherboards allow for the integration of CPUs, RAM, and expansion cards, facilitating communication between these components. This increasing integration of interconnecting components its driving its demand.
   

Learn more about the key segments shaping this market

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Alt tag - Passive and Interconnecting Electronic Components Market Share, By Application, 2024

Based on applications, the passive and interconnecting electronic components market is divided into consumer electronics, automotive, healthcare, IT & telecom, industrial, aerospace & defense, and others. These are further bifurcated into sub segments like smartphones & tablets, laptops & desktops, televisions & home appliances, in-vehicle infotainment, safety & security systems, driver assistance systems, engine control systems, telecom equipment, networking devices and more.
 

• The consumer electronics type market is expected to account for 24.7% of the global market in 2024. The proliferation of consumer electronics like smartphones, tablets, laptops, desktops, televisions, and home appliances drives demand for passive and electronic components. These devices rely on components such as resistors, capacitors, inductors, semiconductors, and connectors for performance, energy efficiency, and connectivity, fueling market growth.
   
• The automotive market is expected to account for 22.9% of the global passive and interconnecting electronic components market in 2024. The automotive segment, including infotainment, safety & security, driver assistance, and engine control systems, relies on passive and electronic components like resistors, capacitors, semiconductors, and sensors for performance, safety, and connectivity.
   
• The healthcare market is expected to account for 8.3% of the global market in 2024. Electronic components have become an important part of established and commonly used medical innovations around the world. From patient monitors to diagnostic imaging systems and infusion devices, the use of electronics is widely spread.
   
• The IT & telecom market is expected to account for 18.3% of the global passive and interconnecting electronic components market in 2024. In the IT & Telecom sector, telecom equipment and networking devices rely on passive and electronic components. Telecom equipment, including base stations and routers, depends on advanced components for signal processing and power management. Networking devices such as switches and modems use these components to ensure data transmission, reliability, and network security.
   

The industrial market is expected to account for 13.7% of the global market in 2024. The industrial sector, including automation & robotics, power generation, and industrial control systems, relies on passive and electronic components like sensors, semiconductors, and capacitors for efficiency and control ultimately driving the growth of the market.
 

• The aerospace & defense market is expected to account for 10% of the global market in 2024. The market, spanning aerospace & defense, military communications, weaponry systems, and aircraft safety systems, relies on semiconductors, sensors, and capacitors for performance and reliability.  
   

Alt tag - U.S. Passive and Interconnecting Electronic Components Market Size, 2021-2034 (USD Billion)

In 2024, North America accounted for the largest share of 35.3% of the global passive and interconnecting electronic components market. The large share of this market is attributed to the ongoing technological advancements.
 

• In 2024, the U.S. passive and interconnecting electronic components industry accounted for USD 54.9 billion. United States market is likely to be driven by the rising global demand, ongoing technological advancements, and increasing investment in automation and digitalization.
   
• The Canada passive and interconnecting electronic components market is expected to reach USD 20 billion by 2034. The market for Canada passive and interconnecting electronic components is driven by factors such as smartphones, televisions, home appliances, and gaming consoles. Nevertheless, emerging players are gaining traction in the market, with Xiaomi being a prime example. Known primarily for its smartphones, Xiaomi has been making notable progress in the industry.
   

In 2024, Europe accounted for a share of 21.8% of the global passive and interconnecting electronic components market. Factors supporting growth of Passive and Interconnecting Electronic Components in Europe are industrial electronic components, artificial intelligence, robotics, and the Internet of Things (IoT).
 

• The Germany passive and interconnecting electronic components market is expected to reach USD 17.4 billion by 2034. The Germany is the largest electronics producer in Western Europe and the fifth largest worldwide. The country is one of the leading global producers of industrial electronic components and ranked number one in Western Europe for telecommunications. Due to Germany's strength in electronic components, the country still sees an increase of its share of West European electronics output.
   
• The UK passive and interconnecting electronic components market is expected to grow at a CAGR of 5.4% during the forecast period. The UK market is the adoption of advanced technology, such as artificial intelligence, robotics, and the Internet of Things (IoT), which have the potential to improve overall efficiency and productivity while reducing costs.
   
• France passive and interconnecting electronic components market is expected to grow at a CAGR of 9.1% from 2025 to 2034. The consumer electronics industry is evolving with the rising demand for smart, internet-connected devices in the market. As 5G connectivity expands globally, these devices offer consumers enhanced automation and control, presenting significant growth opportunities for businesses in this sector.
   
• Italy market is expected to reach USD 7.2 billion by 2034. The market for passive and interconnecting electronic components in Italy is driven by increasing adoption of industrial and home appliance products.
   
• Spain passive and interconnecting electronic components market is projected to reach USD 4.7 billion by 2034. The growth of passive and interconnecting electronic components in Spain remained an attractive place for automotive electronics with large investments engaged by car parts suppliers. In the consumer product, Spain also maintained a dynamic household appliances industry and Spanish companies recently became more active in some professional markets like telecommunications, defence and aerospace.
   

In 2024, Asia Pacific accounted for a share of 30.4% of the global passive and interconnecting electronic components market. These components are used to provide specific functions such as resistance, capacitance, and inductance are supporting the market growth in the region.
 

• The China passive and interconnecting electronic components industry is expected to grow at a CAGR of 7.5% during the forecast period. China has one of the major automotive manufacturers bases that is supporting the market expansion. In the passive and interconnecting electronic component category, Chinese manufacturers push on with miniaturization. Chip or SMD types have seen increasing demand in 5G communications, mobile and consumer electronics, automotive and medical applications.
   
• Japan is expected to account for a share of 17% of the passive and interconnecting electronic components market in Asia Pacific. According to Statista, in 2024, the Japanese producer price index (PPI) for passive and interconnecting electronic components and devices stood at around 107.58 index points on average, increasing compared to the previous year. Within the preceding decade, this was the highest PPI for electronic components recorded.
   
• South Korea passive and interconnecting electronic components market is expected to grow at a CAGR of 10.3% during the forecast period. Innovation in the passive and interconnecting electronic components sector is reshaping global manufacturing processes. The global value chain for passive components, alongside the broader information and communication technology (ICT) services industry, plays a critical role in the evolution of global value chains and Industry 4.0, driving significant advancements in efficiency and connectivity.
   
• Passive and interconnecting electronic components industry in India is expected to grow at a highest CAGR of 9.2% during the forecast period. India is the opportunity market for passive electronic components. These components are used to provide specific functions such as resistance, capacitance, and inductance. They are known for their durability, reliability, and low cost, making them popular choices in many electronic systems. They are easy to integrate into a wide range of circuits.
   
• The passive and interconnecting electronic components market in ANZ is expected to grow at a CAGR of 7% during the forecast period. The adoption of passive and interconnecting electronic components in ANZ is attributed by factors such as consumer electronics, computers, and peripherals, as well as in equipment for measurement, testing, navigation, control, irradiation, electromedical, communication, and electrotherapeutic devices. Their role is essential in ensuring connectivity and functionality across diverse industries.
   

In 2024, Latin America accounted for a share of 3.4% of the global passive and interconnecting electronic components market.
 

• Brazil passive and interconnecting electronic components industry is expected to grow at a CAGR of 4.3% during the forecast period. Brazil is actively advancing its passive and interconnecting electronic components sector through strategic initiatives and investments. In September 2024, the Brazilian government committed BRL 186.6 billion to drive industrial digitalization, allocating BRL 7 billion annually to stimulate research and innovation in chip and electronics supply chains, benefiting applications like solar panels, smartphones, and personal computers.
   
• Mexico passive and interconnecting electronic components market is expected to grow at a CAGR of 6.3% during the forecast period. Mexico's passive and interconnecting electronic components sector is experiencing significant growth, driven by strategic government initiatives and private sector investments. The Mexican government has implemented the Decree for the Promotion of the Manufacturing, Maquila, and Export Services Industry (IMMEX Decree), aiming to enhance the competitiveness of the export sector by simplifying compliance factors and reducing logistics and administrative costs.
   

In 2024, Middle East and Africa accounted for a share of 9.2% of the global passive and interconnecting electronic components market. The increased push towards R&D, particularly in the fields of AI, robotics, and electronics, are major factors driving market growth.
 

• In 2024, UAE accounted for 23.5% of the Middle East & Africa passive and interconnecting electronic components industry. The UAE is investing heavily in R&D, particularly in the fields of AI, robotics, and electronics. Institutions like the Khalifa University and the UAE University are creating specialized programs and research centers focused on electronic components, fostering both talent and innovation in the sector.
   
• Saudi Arabia passive and interconnecting electronic components market is expected to grow at a CAGR of 6.4% during the forecast period. Saudi Arabia is actively advancing its passive and interconnecting electronic components sector through strategic initiatives and investments. The government has identified the ICT sector as a strategic area, focusing on software, hardware, Internet of Things (IoT), Artificial Intelligence (AI), Big Data, and cloud services.
   
• South Africa Passive and Interconnecting Electronic Components market will reach USD 3.8 billion by 2034. South Africa passive and interconnecting electronic components sector is experiencing significant growth, driven by strategic government initiatives and private sector investments. The Department of Trade, Industry and Competition has implemented the Customized Sector Program (CSP) to support the growth of the electrotechnical industry, enhance global awareness of South African capabilities, and assist contract manufacturers in accessing large-scale contracts from multinational corporations.
   

Passive and Interconnecting Electronic Components Market Share

The market is competitive and highly fragmented with the presence of established global players as well as local players and startups. The top 5 companies in the global ambient light market are Murata Manufacturing Co., Ltd., TDK Corporation, TE Connectivity Ltd., AVX Corporation, Amphenol Corporation, collectively accounting for a share of 35%. These companies are competing in the market by offering advanced technological capabilities in developing and manufacturing ceramic capacitors. In November 2023, Fukui Murata Manufacturing Co. Ltd, a manufacturing subsidiary of Murata Manufacturing Co. Ltd, announced its plans to establish a new R&D base, Ceramic Capacitor R&D Center, near Echizen-Takefu Station in Fukui Prefecture. The establishment of the Ceramic Capacitor R&D Center aims to improve the company's technological capabilities in developing and manufacturing ceramic capacitors, which is Murata Manufacturing’s core business.
 

TDK Corporation is a leading global manufacturer of passive electronic components, particularly known for its advanced capacitors, inductors, and ferrite materials. The company plays a crucial role in the passive and interconnecting electronic components market by continuously innovating in miniaturization and high-performance components to meet the growing demand in automotive, consumer electronics, and industrial applications. TDK's focus on developing multilayer ceramic capacitors (MLCCs) and high-efficiency power inductors has significantly contributed to market growth. With its strong R&D investments, TDK has expanded its product portfolio to support the electrification of vehicles, 5G infrastructure, and renewable energy systems.
 

TE Connectivity Ltd. is a key player in the interconnect solutions market, specializing in connectors, relays, and sensor technologies. The company is a dominant force in the market due to its high-reliability solutions tailored for industries such as automotive, aerospace, healthcare, and industrial automation. TE Connectivity's advancements in high-speed data connectors and robust electrical interconnectivity make it a preferred supplier for modern electronic devices, electric vehicles (EVs), and communication systems. Additionally, its product innovation in miniaturized and high-durability connectors ensures seamless integration in harsh environments, further strengthening its market leadership.
 

AVX Corporation, a subsidiary of Kyocera Corporation, is renowned for its comprehensive range of capacitors, resistors, filters, and circuit protection devices. The company significantly contributes to the passive and interconnecting electronic components market through its focus on high-performance and application-specific passive components for automotive, telecommunications, and medical electronics. AVX has been at the forefront of developing next-generation tantalum capacitors, ceramic capacitors, and thin film technologies, catering to the increasing demand for compact and high-reliability components. Its continued investment in research and collaboration with OEMs ensures its strong presence in emerging technologies, including IoT devices and energy-efficient power systems.
 

Passive and Interconnecting Electronic Components Market Companies

The top 5 companies operating in the Passive and Interconnecting Electronic Components industry are:

• Murata Manufacturing Co., Ltd.
• TDK Corporation
• TE Connectivity Ltd.
• AVX Corporation
• Amphenol Corporation
   

Passive and Interconnecting Electronic Components Industry News

• In November 2023, KYOCERA AVX announced the launch of its first safety-certified MLCCs, the new Class X1/Y2 KGK Series and Class X2 KGH Series and expanded its extensive portfolio of commercial surface-mount MLCCs. The KGK Series Class X1/Y2 and KGH Series Class X2 safety capacitors are available in two dielectrics, NP0/C0G and X7R, and are rated for 250VAC and operating temperatures extending from -55°C to +125°C.
   
• In June 2022, TDK Corporation developed the new TFM201208BLE series of inductors optimized for space constrained smartphone power circuits. These are available in 0.24, 0.33 and 0.47 µH versions. The TFM201208BLE series offers the much-needed value to smartphone OEMs delivering the necessary high current and low resistance.
   

This Passive and Interconnecting Electronic Components market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) & (Volume Unit) from 2021 to 2034, for the following segments:

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Market, By Type

• Passive
  • Resistors
  • Capacitors
  • Inductors
  • Transformers
  • Others
• Interconnecting
  • PCB
  • Connectors
  • Switches & relays
  • Others

Market, By Application

• Consumer electronics
  • Smartphones & tablets
  • Laptops & desktops
  • Televisions & home appliances
  • Others
• Automotive
  • In-vehicle infotainment
  • Safety & security systems
  • Driver assistance systems
  • Engine control systems
  • Others
• Healthcare
  • Imaging systems
  • Patient monitoring systems
  • Therapeutic equipment
  • Others
• IT & telecom
  • Telecom equipment
  • Networking devices
• Industrial
  • Automation & robotics
  • Power generation
  • Industrial control systems
  • Others
• Aerospace & defense
  • Military communications
  • Weaponry systems
  • Aircraft safety systems
  • Others
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa