chip resistor market has a market value of USD 1.04 billion in 2023, and the expected market size by 2028 is valued at USD 1.46 billion with a CAGR of 6.18 % during 2023-2028.
A chip resistor is surface mounted passive electronic component which limits the flow of the electric current either in the form of direct current (DC) or alternating current (AC). It is designed very compactly to resist the current flow in any electronic device. The chip resistors have wide usage in the circuit boards because of their feature to protect the circuit control. The high-performance feature and long power backup in electronic devices such as smartphones, tablets, TVs, PCs, and others can be achieved by the chip resistors present in it.
The surge in demand for chip resistors in the electronics and Automotive Industry acts as a market driver.
The increased utilization of electronic and automotive products across the world is driving the chip resistor market. Many advanced innovations are being made in high-definition equipment and eco-friendly products in electronics by the rise in demand for these products in the electronic industry escalating the growth of the chip resistor market. The surge in digitization, mostly observed in many industries like telecommunication, robotics, and software, is fuelling market growth. The need and the rapid technological advancements in the medical industry and portable medical equipment’s rapid utilization are propelling the demand for chip resistors and their market development. The demand for resistors is increasing with the extremely rising demand for automatic external defibrillators (AEDs) such as cardiac monitoring circuits. This would surge the requirement of the chip resistors that could withstand the high voltage by providing voltage linearity, and temperature stability would fuel the chip resistors' requirement.
The chip resistor market has restraints that could hamper the market growth and demand across the globe. The prime restraint of the market is the high manufacturing cost associated with the chip resistors. The raw materials used in chip resistor manufacturing are more expensive, resulting in an overall increase in the cost of the final product. This effect on the final product cost results in a low adoption rate and causes a decrease in product usage in various applications in different sectors across the world. This results in reduced demand for the market, and consumers start finding low-cost alternatives.
The chip resistor market has significant options for increasing its product demand and market expansion with available opportunities. The increasing chip resistor application in various sectors like automotive & transportation, the health industry, and the technological advancements in certain industries are offering the lucrative opportunity for the chip resistor market growth in the near future. Some prominent factors, such as the increasing growth of data center facilities because of increasing digitalization and online & mobile computing as the requirement for cloud storage, provide a great opportunity for the market to increase its market size in terms of sales and revenue. The demand for the ICs that have the property to oppose the electricity flow within a certain range that reduces the chance of the device explosion. The future for small and portable equipment has good demand that additionally makes the chip resistor market increase in sales with the properties small and lightweight, which can be easily fixed.
COVID-19 Impact on the Chip Resistor Market
One of the biggest threats faced by the chip resistor market across the globe is the COVID-19 pandemic. The widespread virus infestation resulted in the downfall of the global economy. The pandemic has created a hardship for consumers, businesses, and market stakeholders. The introduction of the new normal, like social distancing, increased safety norms, and working from home, had created challenges and caused delayed innovations, initiatives, and missing growth opportunities. The hampering of the supply chain with the implementation of the lockdown and travel restrictions decreased the market size. Temporary shutdown of the operations in the manufacturing industries, and some industries permanently closed due to the financial challenges faced during the pandemic period. This challenge had a great negative impact on the market.
Key developments in the market
In 2021, a high-precision thin film chip resistor of size 0402 has developed by the Panasonic Corporation. The main feature of this chip resistor is in the resistor field; it has the most robust electro-static discharge protection, which helps in increasing accuracy and has lower electro-static discharge risk.
Sanyo Electric Co. Ltd, a dominant market player in China, is highly concentrating on the expansion process of the chip resistors in several applications such as smartphones, digital TV devices, and some other consumer electronics.
A new chip resistor that can be used in various electronic devices has been developed by the International R&D corporation Texas Instruments (TI).
By Type
Thick Film
Thin Film
The thick-film resistor is expected to grow at a faster CAGR in the chip resistor market during the forecast period. This type has low cost and wide application in the diverse consumer electronic devices. The automobile industry has a rise in the application of electronics, and technological advancements in semiconductors are expected to drive the market. The requirement of the advanced manufacturing process, small size, highly resistant material, and telecommunication, the instrumental industry has high adoption would act as a market growth promoter.
By End-User
Consumer Electronics
Industrial
Automotive & Transportation
Telecommunication
Aerospace & Defense
Others
The automotive and transportation segment holds a high market share in the chip resistor market due to the increasing adoption of electrical vehicles (EVs) during the forecast period. Consumer electronics also increases its market share with the increasing requirement for electronic devices such as smart TVs, phones, and others. Popularity has been increasing for the 4K Ultra HD displays and gaming devices that require high-quality electronic components to drive the market. The rise in the demand for the 5G network will drive the chip resistor market in the telecommunication sector.
North America
Europe
Asia Pacific
Latin America
Middle East & Africa
The chip resistor market is expected to have high a huge growing market demand in the Asia-Pacific region during the forecast period. This region accounts for the high production of electronic devices, with its available resources mainly in China. The emerging economic nations have the development and expansion of the consumer electronics manufacturing sector will drive the market growth of the region. Additionally, the adoption of EVs and hybrid vehicles are dominating factors for market growth. The government is taking many initiatives for the development of the chip manufacturing industries. For example, INR 76000 crores of money have been allotted to the plan initiated to encourage chip manufacturing in India. North America, with the rise in the demand for low-power resistors and sensors in the increasing energy conservation recognition, is contributing to the high market growth in the region.
ROHM CO., LTD.
YAGEO Group
TE Connectivity Corporation
CTS Corporation,
Panasonic Industry Co., Ltd. (Panasonic Corporation)
Samsung Electro-Mechanics (Samsung Group)
Murata Manufacturing Co. Ltd
Sanyo Electric Co. Ltd
Vishay Intertechnology, Inc
Bourns Inc. (US)
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