Telco industry demand paves way to integrated passive devices market boom

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

Integrated passive devices would aid reducing size and power consumption of telecom infrastructure items, boosting the integrated passive devices market in the next years.

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

Last year, United States, Japan, South Korea, United Kingdom, Germany, and China adopted 5G technology. This may likely contribute to the growth of the integrated passive devices market in the following years, the study noted.

Fact.MR also recognized that there is a growing demand and competition for integrated passive devices. Manufacturers are offering a variety of options at a reasonable price to make it more accessible to customers.

The study also mentioned the following highlights:
1. The consumer electronics segment dominated the market and held the largest market share of 21.7% in 2020.
2. There is increased usage of these components in different consumer electronics products such as laptops, smartphones, wearables, and tablets, among others.
3. The integrated passive devices have a number of high-end qualities, including low power consumption, high chip connection, and a tiny footprint, which has fueled their acceptance in miniaturized hand-held electronics.
4. The Asia Pacific integrated passive devices market will grow from 2021 to 2028 due to government measures to expand semiconductor production in the region.
5. Spanish multinational company specializing in developing and manufacturing metal components for automobiles Gestamp, will receive a €200 million ($297 million) loan from the European Investment Bank (EIB) to upgrade its research capabilities to produce lighter, safer, and environmentally friendly cars , according to the European Commission.

What are the factors hindering the growth of the integrated passive devices market?
The high cost of integrated passive devices compared to discrete components limits the growth of the integrated passive device market as well as sales of integrated passive devices and demand for integrated passive devices.

The long-term impact is projected to be minimal because leading companies in this sector are working hard to minimize the cost of integrated passive devices, according to Fact.MR.

Low-cost production is critical for profit maximization. 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 suffer 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 mostly due to the commoditization and widespread use of discrete components.

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


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