ADAS and Electric Vehicles Boost Demand for Passive Components
As reported by Digitimes Asia, passive component manufacturers based in Taiwan are eyeing the automotive sector to boost their revenue in the latter half of the year. This strategic move comes in response to the sluggish demand for consumer electronics.
According to industry sources, passive component suppliers such as Yageo, Walsin Technology, and Taiyo Yuden are seeing strong demand from automakers for their products, which are used in a variety of automotive applications, including advanced driver assistance systems (ADAS), infotainment systems, and electric vehicles.
The automotive industry is expected to be a major driver of growth for the passive component market in the coming years. According to a report by Market Research Future, the global passive component market is expected to grow from $113.5 billion in 2021 to $174.8 billion by 2027, at a CAGR of 8.7%.
The growth of the automotive industry is being driven by a number of factors, including the increasing adoption of ADAS systems and the growing popularity of electric vehicles. ADAS systems rely heavily on passive components, such as capacitors, resistors, and inductors, to function properly. Electric vehicles also require a large number of passive components, as they use these components to control their power systems and electric motors.
Passive component makers are also looking to other high-margin applications to drive growth, such as industrial and medical applications. Industrial applications for passive components include factory automation, process control, and renewable energy. Medical applications for passive components include implantable devices, diagnostic equipment, and therapeutic devices.