Interconnects and Passive Components Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component (Passive, Interconnects), By Application (Consumer Electronics, IT & Telecommunications, Automotive, Industrial, Aerospace & Defense, Healthcare and Others), By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 201.62 Billion
CAGR (2026-2031)	4.89%
Fastest Growing Segment	Interconnects
Largest Market	Asia Pacific
Market Size (2031)	USD 268.50 Billion

Market Overview

The Global Interconnects and Passive Components Market will grow from USD 201.62 Billion in 2025 to USD 268.50 Billion by 2031 at a 4.89% CAGR. Interconnects and passive components serve as the fundamental physical and functional building blocks of electronic circuits, where interconnects facilitate signal and power transmission between devices, and passives such as resistors and capacitors regulate electrical flow. The market is currently being propelled by the rapid electrification of the automotive sector, particularly the production of electric vehicle powertrains, alongside the extensive global deployment of high-speed 5G telecommunication infrastructure. These drivers create a sustained demand for high-reliability, miniaturized components. Illustrating this steady trajectory, according to ZVEI, in 2025, the global market for electronic components was projected to grow by 3 percent, reflecting continued industrial requirements despite economic headwinds.

However, the sector faces a significant challenge regarding the volatility of raw material prices. The fluctuating costs of essential metals like copper, nickel, and palladium can unpredictably erode manufacturing margins and disrupt supply chain stability. This financial uncertainty complicates long-term production planning and forces manufacturers to frequently adjust pricing strategies, which can delay the seamless delivery of components required for large-scale integration projects and impede broader market expansion.

Key Market Drivers

The surging adoption of Electric Vehicles (EVs) and Advanced Driver-Assistance Systems (ADAS) acts as a primary catalyst for the interconnect and passive component industry. Modern automotive architectures require a significantly higher density of high-voltage connectors, Multi-Layer Ceramic Capacitors (MLCCs), and precision resistors to manage power management systems, battery control units, and autonomous sensing modules. This electrification trend creates a robust pipeline for specialized components designed to withstand harsh thermal and vibration environments while managing increased electrical loads. Underscoring this momentum, according to the International Energy Agency (IEA), April 2024, in the 'Global EV Outlook 2024', global electric car sales were projected to reach 17 million units in 2024, representing a substantial volume increase that directly correlates with heightened demand for automotive-grade electronic components.

Simultaneously, the rapid expansion of 5G telecommunications infrastructure and hyperscale data centers is reshaping demand for high-frequency interconnects and miniaturized passives. As network densification increases to support AI and IoT applications, there is a critical need for components that ensure signal integrity and low latency across massive antenna arrays and server racks. This infrastructure buildup is evidenced by the accelerated uptake of next-generation connectivity; according to Ericsson, June 2024, in the 'Ericsson Mobility Report', approximately 160 million 5G subscriptions were added globally in the first quarter of 2024 alone, necessitating continuous hardware upgrades. Reflecting the broader impact of these sectoral upswings on the supply chain, according to the Electronic Components Industry Association (ECIA), in 2024, the component sales trend sentiment index climbed to 108.4 in August, indicating a return to positive growth expectations across the passive and interconnect markets.

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Key Market Challenges

The volatility of raw material prices acts as a significant brake on the Global Interconnects and Passive Components Market by destabilizing the cost structures necessary for consistent manufacturing. When the prices of essential metals such as copper and nickel fluctuate unpredictably, manufacturers face immediate pressure on their operating margins. This financial unpredictability makes it difficult for companies to secure long-term supply contracts or maintain stable pricing for their end clients, often resulting in delayed project timelines and cautious inventory management. Consequently, the capital that would otherwise be invested in capacity expansion or production scaling is often diverted to absorb these variable input costs.

This direct strain on financial performance is substantiated by recent industry data. According to IPC, in December 2024, 45 percent of electronics manufacturers reported rising material costs, a factor that coincided with a recorded contraction in profit margins and new orders. Such persistent inflationary pressure on inputs directly hampers the industry's ability to seamlessly meet the rising demand from the automotive and telecommunication sectors, effectively limiting the market's overall growth potential despite strong application drivers.

Key Market Trends

The market is experiencing a decisive shift toward ultra-miniature passive component form factors, driven primarily by the escalating density requirements of hyperscale AI servers and high-performance computing clusters. As data center architectures evolve to support generative AI workloads, manufacturers are compelled to integrate thousands of Multi-Layer Ceramic Capacitors (MLCCs) into increasingly compact board spaces without compromising thermal stability or power efficiency. This densification trend is not merely about size reduction but involves engineering passives with significantly higher capacitance per unit volume to handle the rapid load transients of modern AI accelerators. Underscoring this aggressive growth trajectory, according to Murata, December 2025, in the 'AI Server MLCC Growth Forecast' update, the company revised its outlook for AI server-grade MLCC shipments, projecting a 30 percent compound annual growth rate (CAGR) through 2030 due to increased component counts per baseboard.

Concurrent with the demand for miniaturization, the Emergence of Biodegradable and Sustainable Component Materials has solidified as a critical trend, fundamentally separating environmental compliance from mere regulatory adherence. Industry stakeholders are moving beyond basic conflict mineral reporting to actively engineering interconnects and substrates from recyclable bio-plastics and non-toxic alloys to meet circular economy mandates. This transition is motivated by the need to secure long-term supply chain resilience and appeal to ESG-conscious procurement strategies in the automotive and consumer electronics sectors. Highlighting this strategic prioritization, according to IPC, April 2025, in the 'Wired for Change: Electronics Industry Sentiment on Sustainability' report, a global survey revealed that 59 percent of electronics manufacturing companies are actively planning to expand their sustainable material initiatives in 2025 to capitalize on green competitive advantages.

Segmental Insights

Based on recent industry analysis, the Interconnects segment is projected to emerge as the fastest-growing category within the Global Interconnects and Passive Components Market. This accelerated expansion is primarily driven by the critical necessity for seamless data, signal, and power transmission across increasingly complex electronic architectures. The robust proliferation of 5G telecommunications infrastructure and the rapid electrification of the automotive sector are key factors necessitating high-performance connection solutions. Consequently, the demand for robust interconnects that maintain signal integrity in these dense environments is outpacing that of passive components, securing the segment's leading growth trajectory.

Regional Insights

Asia Pacific holds the dominant position in the global interconnects and passive components market, driven by its established role as a central hub for electronics manufacturing. The region benefits from extensive production capabilities in China, Japan, and South Korea, fueling demand for components in consumer electronics, automotive systems, and industrial automation. Additionally, the presence of major semiconductor foundries and a strong supply chain ecosystem supports high-volume manufacturing. Continued investments in telecommunications infrastructure and rapid urbanization further sustain the regional market leadership without relying on external imports for critical components.

Recent Developments

• In October 2024, TE Connectivity announced the launch of its MCON 1.2 NextGen and NextGen Plus sealed locking lance connector series. These new interconnect products were engineered to withstand harsh automotive environments while offering a reduced carbon footprint through optimized material selection and design efficiency. The connectors featured a standardized interface suitable for a wide range of applications, including traditional internal combustion engines and modern e-mobility architectures. The release aimed to meet the automotive industry's growing requirements for smaller, more robust, and sustainable connectivity components for vehicle wiring harnesses.
• In September 2024, Murata Manufacturing Co., Ltd. unveiled the world's smallest multilayer ceramic capacitor (MLCC), featuring a pioneering 006003-inch size (0.16 mm x 0.08 mm). This research breakthrough represented a volume reduction of approximately 75% compared to the previous smallest 008004-inch size product available in the market. The component was developed to address the increasing demand for miniaturization in compact electronic devices, such as smartphones and wearable technology. By utilizing proprietary materials and high-precision manufacturing processes, the company successfully achieved this level of miniaturization while maintaining essential electrical performance.
• In September 2024, Molex introduced the VaporConnect Optical Feedthrough Modules, a new connectivity solution designed specifically for data centers employing two-phase immersion cooling. This product launch addressed the technical challenges of routing optical signals in and out of immersion tanks by providing reliable, leak-tight optical feedthroughs. The modules were engineered to protect optical transceivers from immersion fluids while facilitating the deployment of high-performance computing and generative AI workloads. This innovation allowed for the seamless upgrade and maintenance of optical interconnects within immersion cooling systems without compromising the tank's integrity.
• In July 2024, Amphenol Corporation announced a definitive agreement to acquire the mobile networks businesses of CommScope for $2.1 billion in cash. This strategic transaction included the purchase of the Outdoor Wireless Networks segment and the Distributed Antenna Systems business. The acquisition was designed to expand the company’s portfolio of advanced interconnect and antenna solutions for next-generation wireless networks. Management anticipated that the combined expertise would accelerate innovation in base station antennas and related interconnect technologies, thereby strengthening the company's position in the global mobile infrastructure market.

Key Market Players

• TE Connectivity Corporation
• Amphenol Corporation
• Molex, LLC
• Kyocera Corporation
• AVX Corporation
• Yageo Corporation
• STMicroelectronics N.V.
• Vishay Intertechnology, Inc.
• Murata Manufacturing Co., Ltd.
• KEMET Corporation

By Component	By Application	By Region
Passive Interconnects	Consumer Electronics IT & Telecommunications Automotive Industrial Aerospace & Defense Healthcare and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Interconnects and Passive Components Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Interconnects and Passive Components Market, By Component:

• Passive
• Interconnects

• Interconnects and Passive Components Market, By Application:

• Consumer Electronics
• IT & Telecommunications
• Automotive
• Industrial
• Aerospace & Defense
• Healthcare and Others

• Interconnects and Passive Components Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE