Passive Electronic Components Sourcing Intelligence Is Expected To Expand At A CAGR Of 5.4% Till 2030

The passive electronic components category is anticipated to grow at a CAGR of 5.4% from 2024 to 2030.

Passive Electronic Components Procurement Intelligence

The passive electronic components category is anticipated to grow at a CAGR of 5.4% from 2024 to 2030. 

The increasing adoption of IoT devices, expanding automotive electronics, and the proliferation of consumer electronics drive demand for passive electronic components such as resistors, capacitors, and inductors. Global demand for resistors is anticipated to grow over the forecast period due to a rise in medical equipment, automotive, and consumer electronics production. Demand for capacitors is also expected to increase, driven by a surge in renewable energy production.

Order your copy of the Passive Electronic Components category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis 

Passive Electronic Components Procurement Intelligence Report Scope

The Passive Electronic Components category is expected to have pricing growth outlook of 5% - 9% increase (Annually), with below pricing models. 

  • Volume based pricing
  • competition-based pricing

Supplier Selection Scope of Report

  • Cost and pricing
  • Past engagements
  • Productivity
  • Geographical presence

Supplier selection criteria of Report

  • Type and quality of the component
  • voltage capacitance
  • power rating
  • size of the component
  • delivery options available
  • customization options
  • bulk quantities offered
  • geographical presence
  • years in services
  • regulatory compliance
  • operational and functional capabilities
  • others

Passive Electronic Components Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

  • Market Intelligence along with emerging technology and regulatory landscape
  • Market estimates and forecasts from 2022 to 2030
  • Growth opportunities, trends, and driver analysis
  • Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments
  • Porter’s 5 forces
  • Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis
  • Engagement and operating models, KPI, and SLA elements
  • LCC/BCC analysis and negotiation strategies
  • Peer benchmarking and product analysis
  • Market report in PDF, Excel, and PPT and online dashboard versions 

Passive Electronic Components Procurement Cost and Supplier Intelligence

Raw materials (nickel, copper, aluminum, zinc, palladium), labor, machinery, facility, packaging and shipping, are some of the key costs incurred in manufacturing. Other costs include office supplies, IT costs, repairs maintenance, and utilities. Passive electronic components require a significant amount of raw materials. The mass production of surface mount electronic components typically relies on engineered powder and pastes. Engineered powder and pastes constitute the primary variable cost in capacitor and resistor production.

The primary variable cost in production of the category is raw materials. These variable expenses, including raw materials and labor, make up 40% to 50% of the total cost structure. Fixed costs range from 15% to 20%. Any fluctuation in prices and availability of raw materials can have a negative impact on the profit margins of the manufacturers. For instance, the prices of aluminum in January 2024 were around USD 2,192.8 per metric ton, which was 0.47% increase as compared to December 2023 which was USD 2,182.4 per metric ton. Such increase in raw material price can result in rising prices of components where aluminum is utilized.

Under sourcing intelligence, end-use companies, or clients of components such as smartphones, laptops, and other electronic device manufacturers fully outsource their component manufacturing as a form of engagement model. Electronic device manufacturers focus on assembling and developing the final product and they outsource components manufacturing. For instance, in addition to Nvidia, Dell, IBM, Toshiba, YAGEO Corporation manufactures components for various other companies. Many electronics manufacturing companies such as Foxconn, Compal, and Pegatron outsource their services to YAGEO corporation. By outsourcing passive component manufacturing, device manufacturers can streamline their supply chains and potentially reduce production costs.

List of Key Suppliers

  • Murata Manufacturing Co., Ltd.
  • YAGEO Corporation
  • Johanson Technology
  • Samsung Electro-Mechanics Co., Ltd.
  • TE Connectivity Ltd.
  • Vishay Intertechnology, Inc.
  • TDK Corporation
  • Taiyo Yuden Co. Ltd.
  • Nichicon Corporation
  • Rubycon Corporation.

Add-on Services provided by Grand View Research Pipeline:

Should Cost Analysis

  • Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process

Rate Benchmarking

  • Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier

Salary Benchmarking

  • Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.

Supplier Newsletter

  • A typical newsletter study by capturing latest information for specific suppliers related to: MAs, technological innovations, expansion, litigations, bankruptcy etc.

Browse through Grand View Research’s collection of procurement intelligence studies:

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to):

  • Market Intelligence involving – market size and forecast, growth factors, and driving trends
  • Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
  • Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
  • Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Steve Rey

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