Surge in digitalization and rise in usage in consumer electronic devices drive the growth of the global chip resistor market.
PORTLAND, Ore., July 6, 2021 /PRNewswire/ -- Allied Market Research published a report, titled, "Chip Resistor Market By Type (Thick Film, Thin Film, and Others) and End Use (Automotive & Transportation, Consumer Electronics, Industrial, IT & Telecommunication, and Others): Global Opportunity Analysis and Industry Forecast, 2021–2028". According to the report, the global chip resistor industry generated $999.4 million in 2020, and is estimated to generate $1.57 billion by 2028, witnessing a CAGR of 5.9% from 2021 to 2028.
Prime Determinants of Growth
Surge in digitalization and rise in usage in consumer electronic devices drive the growth of the global chip resistor market. However, expensive nature of raw materials hinders the market growth. On the other hand, technological advancements in the healthcare industry and surge in applications in automotive and transportation present new opportunities in the coming years.
Production activities of chip resistors have been restricted due to lockdown measures implemented in many countries. Many production facilities were completely or partially shut down. Moreover, there has been a ban on export activities, which in turn, created hindrances in the production with raw material shortage.
The demand from end use industries such as automotive & transportation, consumer electronics, industrial, IT & telecommunication, and others reduced significantly due to hindrance in daily operations. However, the daily operations are expected to begin with full capacity during the post-lockdown and the demand is expected to rise steadily.
The Thick Film Segment to Maintain Its Lead Position Throughout the Forecast Period
Based on type, the thick film segment contributed to the highest market share in 2020, accounting for nearly three-fifths of the global chip resistor market, and is expected to maintain its lead position throughout the forecast period. This is attributed to large number of applications in consumer electronics, automotive and industrial sectors. However, the thin film segment is projected to manifest the largest CAGR of 6.6% from 2021 to 2028, owing to its excellent performance at high frequency applications.
The Consumer Electronics Segment to Maintain Its Dominant Share Throughout the Forecast Period
Based on end use, the consumer electronics segment accounted for the largest share in 2020, holding nearly one-third of the global chip resistor market, and is projected to maintain its dominant share in terms of revenue throughout the forecast period. This is attributed to increase in number of consumer electronic devices such as smartphone, tablets, and computers. However, the automotive & transportation segment is expected to register the largest CAGR of 7.2% from 2021 to 2028, owing to high opportunities in electric vehicles for the chip resistors.
Asia-Pacific, Followed By Europe and North America, to Continue Its Leadership Status By 2028
Based on region, Asia-Pacific, followed by Europe and North America, held the highest share in 2020, contributing to more than one-third of the global chip resistor market, and is projected to continue its leadership status by 2028. Moreover, this region is estimated to witness the fastest CAGR of 6.7% during the forecast period. This is attributed to presence of large number of consumers in the region.
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