Passive & Interconnecting Electronic Components Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Passive, Interconnecting), By Application (Consumer Electronics, Automotive, Healthcare, IT & Telecom, Industrial, Aerospace & defense), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 196.72 Billion
CAGR (2026-2031)	5.71%
Fastest Growing Segment	Healthcare
Largest Market	Asia Pacific
Market Size (2031)	USD 274.51 Billion

Market Overview

The Global Passive & Interconnecting Electronic Components Market will grow from USD 196.72 Billion in 2025 to USD 274.51 Billion by 2031 at a 5.71% CAGR. Passive and interconnecting electronic components function as the foundational hardware for electrical circuits, where passive devices like resistors and capacitors regulate signals without external power, and interconnects such as printed circuit boards and connectors link disparate system elements. The market is primarily supported by the accelerating production of electric vehicles, the widespread integration of industrial automation, and the expansion of advanced telecommunications infrastructure. According to the Electronic Components Industry Association (ECIA), in 2024, the top 50 worldwide authorized distributors achieved a collective sales growth of 4.8 percent, driven largely by robust activity in the Asian region.

However, a significant challenge impeding broader market expansion is the persistent volatility in the global supply chain caused by geopolitical trade fragmentation. These disruptions create unpredictability in the availability of critical raw materials and logistical pathways, leading to fluctuating production costs that can delay manufacturing schedules and constrain the industry's ability to fully capitalize on rising demand.

Key Market Drivers

The proliferation of electric and autonomous vehicles acts as a primary catalyst for the passive and interconnecting electronic components market, necessitating high-reliability hardware capable of handling elevated voltages and thermal stress. Modern electric drivetrains require a substantial increase in the volume of multilayer ceramic capacitors and power resistors to manage battery systems and on-board chargers efficiently. According to the International Energy Agency (IEA), April 2024, in the 'Global EV Outlook 2024', electric car sales reached nearly 14 million units in 2023, creating a surge in demand for automotive-grade components. This automotive evolution directly supports the broader component ecosystem by driving manufacturing volumes. According to IPC, in 2024, total North American printed circuit board shipments in August increased by 35 percent compared to the same month in the previous year, highlighting the intensified production of interconnecting structures essential for modern electronics.

Concurrently, the expansion of 5G telecommunications infrastructure drives significant requirements for high-frequency passive devices and radio frequency interconnects. The deployment of dense antenna arrays and small cells necessitates miniaturized inductors and filters that ensure signal integrity across wider bandwidths without increasing the physical footprint of base stations. This infrastructure build-out is scaling rapidly to meet consumer connectivity needs. According to Ericsson, June 2024, in the 'Ericsson Mobility Report', service providers added 160 million 5G subscriptions globally during the first quarter of 2024 alone, fueling the continuous procurement of specialized connectors and passive elements required for network densification.

Download Free Sample Report

Key Market Challenges

The persistent volatility in the global supply chain, driven by geopolitical trade fragmentation, acts as a primary obstruction to the growth of the Global Passive & Interconnecting Electronic Components Market. This fragmentation fractures established logistical networks, causing erratic availability of essential raw materials and finished interconnects. As trade barriers and tariffs rise, manufacturers encounter sudden spikes in procurement costs and extended lead times, which destabilizes pricing structures and delays critical manufacturing schedules. Consequently, suppliers are frequently unable to maintain the consistent output levels necessary to satisfy the intensifying requirements of the electric vehicle and industrial automation sectors, forcing a contraction in potential market throughput.

The magnitude of this disruption is evident in recent industry sentiment regarding operational risks. According to IPC, in August 2024, 44 percent of electronics manufacturers reported being very or extremely concerned about the impact of trade policies and tariffs on their operations. This statistic underscores how geopolitical instability forces companies to prioritize risk mitigation over capacity expansion. By introducing significant unpredictability into the production ecosystem, these trade dynamics directly limit the industry’s ability to capitalize on rising demand, effectively braking overall market momentum.

Key Market Trends

The Miniaturization of Component Footprints to Ultra-Small Case Sizes is accelerating rapidly, driven by the intensifying density requirements of artificial intelligence accelerators and high-performance computing clusters. As data center architectures evolve to handle massive processing loads, manufacturers are scaling production of ultra-compact multilayer ceramic capacitors that deliver high capacitance without consuming valuable board space. This structural shift toward high-density passive components is evidenced by the changing revenue mix of major suppliers. According to Chosun, November 2025, in the article 'AI server and EV demand drives MLCC supercycle', Samsung Electro-Mechanics reported that the share of its MLCC sales attributed to AI servers expanded significantly from 3 percent in 2023 to 9 percent in 2024, highlighting the critical industry pivot toward miniaturized, high-value components for next-generation computing infrastructure.

Concurrently, the Transition Toward Sustainable and Eco-Friendly Material Compositions is reshaping manufacturing priorities as the industry aligns with global decarbonization mandates and circular economy principles. Suppliers are increasingly re-engineering product lines to incorporate bio-based polymers and recycled materials, while also optimizing component efficiency to lower operational carbon footprints for end-users. This commitment to environmental stewardship is yielding measurable results in the reduction of greenhouse gas emissions. According to TDK Corporation, August 2025, in the 'Sustainability Report 2025', the company announced that the CO2 reduction contribution from its products reached 7.038 million tons in the fiscal year ending March 2025, representing a 35.2 percent increase compared to the previous year, underscoring the growing market impact of eco-efficient electronic solutions.

Segmental Insights

The Healthcare segment represents the fastest-growing category in the Global Passive & Interconnecting Electronic Components Market, driven by the intensifying demand for digital diagnostic and monitoring tools. This expansion is largely fueled by an aging global population and the rising incidence of chronic conditions, which necessitate continuous medical observation. Additionally, the increasing adoption of telemedicine and remote patient monitoring has created a strong requirement for reliable, compact electronic components within connected medical devices. Consequently, manufacturers are prioritizing the production of durable interconnects and passive elements that ensure the consistent functionality of these essential healthcare systems.

Regional Insights

Asia Pacific holds the dominant position in the global passive and interconnecting electronic components market due to its expansive electronics manufacturing sector. The region benefits from a high concentration of production facilities in China, Japan, and South Korea, which generate continuous demand for components used in consumer devices, industrial automation, and automotive applications. Additionally, government initiatives supporting infrastructure development and favorable trade policies strengthen local supply chains. The presence of major original equipment manufacturers allows the region to sustain high production volumes and maintain its leadership in the global industry.

Recent Developments

• In October 2024, TE Connectivity announced the launch of a next-generation sealed locking lance connector series, designed to provide robust connectivity in harsh automotive environments. Unveiled at a major industry event in Germany, the redesigned wire-to-wire and wire-to-module connectors offered a significant reduction in carbon footprint through optimized design and material choices. The series featured a standardized interface that remained backward compatible with existing solutions, addressing the automotive industry's need for smaller, more sustainable, and highly reliable components. This development provided vehicle manufacturers with a versatile inline power connectivity solution capable of meeting stringent sealing and performance criteria.
• In September 2024, Molex introduced a new thermal management connectivity solution designed to support the intense demands of generative AI and machine learning in high-performance data centers. The company unveiled optical feedthrough modules optimized for two-phase immersion cooling systems, which streamlined the connection between optical transceivers inside immersion tanks and external cabling infrastructure. This innovation featured a cassette-based design that bolted directly onto the tank, ensuring a reliable seal and simplifying installation by minimizing external patching. The launch aimed to reduce the complexity and cost of deploying scalable data center architectures required for next-generation computing workflows.
• In July 2024, KYOCERA AVX launched a new series of automotive multi-layer ceramic capacitors engineered to support electric vehicle and advanced driver assistance system applications. The company released 20 new surface-mount components that delivered high capacitance values in compact, lightweight packages, meeting the rigorous quality and reliability standards of the automotive industry. These capacitors were designed to address the increasing need for miniature components in circuits related to autonomous driving, where the voltage ratings of employed integrated circuits are decreasing. The series provided a wide voltage range and precise engineering to ensure optimal performance in evolving automotive designs.
• In February 2024, Murata Manufacturing Co., Ltd. expanded its portfolio of monolithic ceramic chip capacitors by introducing the world's smallest high-Q capacitor with a voltage rating of 100 V. Designed specifically for high-frequency module applications in cellular communication infrastructure, this new series addressed the technical requirements for high-speed 5G communication. The component enabled electronic engineers to overcome packaging limitations without compromising performance, offering a solution for impedance matching and DC cutting in base station RF modules. The development reflected the company's response to the growing market demand for miniaturized, high-performance passive components in wireless communication circuits.

Key Market Players

• Murata Manufacturing Co., Ltd.
• TDK Corporation
• Yageo Corporation
• Vishay Intertechnology, Inc.
• KYOCERA AVX Components Corporation
• TE Connectivity Ltd.
• Panasonic Corporation
• Samsung Electronics Co., Ltd.
• Littelfuse, Inc.
• Rohm Co. Ltd

By Type	By Application	By Region
Passive Interconnecting	Consumer Electronics Automotive Healthcare IT & Telecom Industrial Aerospace & defense	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Passive & Interconnecting Electronic Components Market, By Type:

• Passive
• Interconnecting

• Passive & Interconnecting Electronic Components Market, By Application:

• Consumer Electronics
• Automotive
• Healthcare
• IT & Telecom
• Industrial
• Aerospace & defense

• Passive & Interconnecting Electronic 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