Integrated Passive Device Market size is set to surpass USD 2 billion by 2026, according to a new research report by Global Market Insights Inc.
The market revenue is driven by the rising demand for miniaturized and high-performance electronic circuits for consumer electronics devices. IPDs offer several high-end features, such as energy efficiency, high durability, and increased functionality, compared to discrete components. In addition, these devices can be fitted into confined spaces, increasing their adoption in smartwatches, fit bits, smartphones, tablets, and others. The rising demand for wearable electronics across developed economies is likely to boost the adoption of IPDs. According to a report generated by Pew Research Center, 21% of U.S. adults regularly wear smart watches or wearable fitness trackers. The growing uptake of wearable devices will significantly boost the market expansion.
Design-related complexities associated with silicon-based integrated passive devices are restraining the market growth. The silicon-based IPDs have low life cycle and are difficult to modify after their fabrication. In addition, these IPDs require high scale integration and advanced packaging, increasing the overall manufacturing costs. However, the market players are innovating new IPDs with glass material as an alternative to traditional silicon material, which will overcome design complexity.
Technological innovations in glass-based integrated passive devices
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The glass segment in the integrated passive device market is anticipated to expand at a CAGR of 8% during the forecast period. The glass-based integrated passive devices offer high resistivity, low RF coupling, and energy efficiency, accelerating the market demand. In addition, glass-based material offers necessary insulation and smaller thermal coefficient, ensuring smooth performance of IPDs.
Rising adoption of integrated passive devices in telecommunication base stations
The telecommunication segment held a market share of 19% in 2019 and is expected register growth of 9.5% from 2020 to 2026. The growth is credited to the rising adoption of IPDs in telecom base station equipment such as antenna, modems, routers, wireless transceivers, analog-to-digital converters (ADCs), among others. These IPDs offer higher frequency and bandwidth with low distortion in network communication, accelerating their adoption in the telecom base station equipment. The advent of 5G communication technology will further boost the adoption of integrated passive devices in 5G base stations.
Browse key industry insights spread across 200 pages with 229 market data tables and 23 figures & charts from the report, “Integrated Passive Device Market Size By Material Type (Silicon, Glass), By Passive Devices (Baluns, Filters, Couplers, Diplexers, Customized Integrated Passive Devices (IPD)), By Application (Radio Frequency (RF) IPD, Digital & Mixed Signal, Electrostatic Discharge/Electromagnetic Interference (ESD/EMI), By Industry Verticals (Automotive, Consumer Electronics, Telecommunication, Aerospace & Defense, Medical & Healthcare), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 - 2026” in detail along with the table of contents:
Surging demand for integrated passive filter devices in connected cars
The filters segment accounted for 23% integrated passive device market share in 2019 and is rapidly growing at over 9% CAGR through 2026. The market growth is attributed to integration of filter devices into vehicle telematics, infotainment systems, and in-vehicle communication systems. These filters offer low signal distortion, enhanced communication, and higher noise suppressions, increasing their adoption in vehicle-to-vehicle (V2V) communication systems. Several automotive OEMs including BMW, Volkswagen, PSA Group, etc., are emphasizing on development of autonomous vehicles and connected car solutions. The proliferation of connected cars will boost the adoption of integrated passive filter devices.
Proliferation of IoT connected devices will accelerate the market opportunities for RF IPD application
The RF IPD application segment is projected to witness around 9% growth rate till 2026 owing to the increasing adoption of RF IPDs in internet of things (IoT) and connected devices. The RF IPDs offer smaller footprint and low-power consumption and support higher frequency bands that are essential for the IoT devices ecosystem. According to Microsoft Dynamics 365, Manufacturing Trends 2019 Report, the global IoT spending reached USD 772 billion in 2018 and will surpass USD 1 trillion in 2020. The rising spends on IoT ecosystem by enterprises will add new IoT connections in the coming years. This will further contribute to the adoption of RF IPDs in new IoT devices.
Rising penetration of smart homes devices in the U.S. will boost the adoption of IPDs in North America
The North America integrated passive device market held more than 20% revenue share in 2019 and will grow at 9% CAGR during 2020-2026 impelled by rising penetration of smart home connected devices in the U.S. According to the January 2020 press release by Consumer Technology Association, around 69% of the total households in the U.S. have at least one smart home technology product in their household. The smart home devices, such as smart TVs, robotic vacuums, smart speakers, smart meters, etc., are integrated with integrated passive devices for high performance and device miniaturization.
Key players operating in the market are Murata Manufacturing Co. Ltd., STMicroelectronics, Texas Instruments, ON Semiconductors, Micron Technology Inc., Johnson Technology, 3DiS Technologies, and STATS ChipPAC Ltd. The key players in the market focus on strategic collaboration and acquisition activities and view product development and innovation as lucrative path for the market expansion. In October 2020, STMicroelectronics announced the acquisition of SOMOS Semiconductor, a fabless semiconductor company, which specializes in RF front-end module products for cellular IoT and 5G markets. Through this acquisition, the company will strengthen its IPDs and silicon-based power amplifiers product portfolio.
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