Power converter is an important part of power electronic system. The power converter market will grow from $54 billion in 2021 to $76 billion in 2027, with a compound annual growth rate (CAGR) of 5.9% from 2021 to 2027. Both active and passive electronic components play an important role in power converters. Active components such as transistors and diodes power the circuit. Passive components such as resistors, inductors, capacitors and transformers store charge and limit current flow, filter, suppress surges, measure, time and tune.
The overall passive component market for power converters will grow from about $7.4 billion in 2021 to $11.5 billion in 2027, with a cagR of 8% from 2021 to 2027, accounting for about 15% of the power converters market by 2027, according to Yole statistics. Among passive components, capacitors will be valued at $4.9 billion by 2027, with a cagR of 8.3% from 2021 to 2027. On the other hand, the inductor market will reach $4.4 billion by 2027, with a cagR of 8.0% from 2021 to 2027. Demand for resistors will grow from $1.2 billion in 2021 to $1.9 billion in 2027.
In the past, demand for passive components was primarily driven by industrial applications. Today, however, EV/HEV applications are increasingly driving technological trends in passive components. In fact, due to the improvement of vehicle safety standards and harsh environment, the requirements of high frequency operation, high efficiency, robustness, reliability, small size and weight of automotive passive components are often stricter than those of industrial products. Therefore, highly reliable passive components are required. This offers passive component manufacturers the opportunity to improve their market position by offering solutions that adapt to changing customer needs. In addition, the high and further rapidly growing demand for EV/HEV applications enables rapid recovery of the development costs of innovative solutions.
Passive component suppliers are numerous and the growing market attracts new players. Leading passive component companies include Nippon Chemi-Con, Murata, Kyocera /AVX and TDK, all based in Japan; In addition to the United States; Samsung and South Korea's Samsung Electric are also big players in the market. When it comes to capacitors, Nippon Chemi-Con, Nichicon, Rubycon and Panasonic are the top electrolytic capacitor manufacturers, while Panasonic, TDK, Nichicon and Vishay are the top film capacitor manufacturers. Similarly, TDK, Samsung Electric, Yago and Murata are top inductor manufacturers. Finally, Rogers and Maerson are the leading manufacturers of laminated busbars.
Yole observed a clear trend towards diversification of passive component companies' business and regional portfolios. Many passive component vendors that involve one component are also supplying other passive components. Many passive component companies have operations and manufacturing capabilities in multiple countries. Manufacturing costs in countries such as China, India or Latin America are lower than in Europe or Japan. Due to growing demand, Yole expects acquisitions of passive component companies to continue in the coming years, aimed at adding new product lines, improving profitability, acquiring more customers or eliminating competition.