Market Trends of Chip Resistors Industry
Consumer Electronics Segment is Expected to Drive the Market's Growth
- Resistors are one of the most commonly used passive components in electronic circuits because they resist the flow of sudden voltage spikes, which are enough to cause damage to electronic equipment almost instantly. Multiple resistor types find widespread application in consumer electronics such as computers, PCs, and notebooks.
- Surface-mount chip resistors are tiny and used significantly for printed circuit boards (PCBs) incorporated in smartphones and laptops, and most silicon-printed circuits use them for operations that ensure signals are always right. Also, varistors, often described as movistors (a contraction of the words metal oxide varistor), are among the resistors available in various forms. They are significantly utilized in the surge or transient-protected mains extension to protect computers by varying the resistance with the applied voltage.
- Chip resistors are widely used in smartphones as a passive electronic component that limits the flow of direct current in a circuit. For example, smartphones can use up to 400 chip resistors, which are also used in other electronic devices such as laptops, tablets, and televisions. As smartphones become thinner and lighter, the demand for smaller and lighter chip resistors also increases. Tantalum capacitors are small, making them suitable for use in small-footprint applications like smartphones. According to Ericsson, the global number of smartphone mobile network subscriptions reached over 6.6 billion in 2022 and is expected to hit 7.8 billion by 2028. The countries with the most smartphone mobile network subscriptions are China, India, and the United States. Such a huge rise in smartphones would drive the market.
- Further, chip resistors, which are small and compact, are commonly used in computers and peripherals for various purposes, such as providing high precision and stability, protection, control, and operation of circuits. Chip resistors can be made from metal foil, metal oxide film, carbon composition, thick and thin film, or wire-wound resistors, among others. They are mainly designed to provide resistance and reduce the flow of electric current in circuits. Chip resistors are essential components in electronic circuits and are widely used in computers and other electronic peripherals.
- Players in the market are launching resistors specifically for consumer electronics. For instance, recently, Bourns Inc. announced the CFN metal foil current sense resistor series expansion. The addition of the two latest model sizes expands the series to four different footprints. The new 0402 and 0603 models complement the existing 0805 and 1206 sizes. The use of a metal foil resistive element in these chip resistors results in significantly low inductance, low noise, high reliability, and very low resistance values down to 5 milliohms, making them suitable for current sensing in consumer electronics.
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Asia-Pacific Region is Expected to Witness Significant Growth
- According to the China Association of Automobile Manufacturers, In August 2023, China sold a total of 846,000 new energy vehicles. Of these, 808,000 were passenger electric vehicles, with the remaining 39,000 designated for commercial use. Breaking down the passenger electric vehicle category further, sales figures stood at 559,000 for battery electric vehicles (BEVs) and 248,000 for plug-in hybrid electric vehicles (PHEVs).Such huge production of electric cars would create an opportunity for the studied market to grow.
- According to the China Association of Automobile Manufacturers, In August 2023, China sold a total of 846,000 new energy vehicles. Of these, 808,000 were passenger electric vehicles, with the remaining 39,000 designated for commercial use. Breaking down the passenger electric vehicle category further, sales figures stood at 559,000 for battery electric vehicles (BEVs) and 248,000 for plug-in hybrid electric vehicles (PHEVs). Such huge production of electric cars would create an opportunity for the studied market to grow.
- Moreover, chip resistors are widely used in the defense industry in various electronic applications such as radar systems, missile guidance systems, electronic warfare systems, and communications equipment. These resistors are designed to meet the challenging requirements of defense applications, such as high precision, reliability, and ruggedness. The defense industry in the region relies heavily on on-chip resistors, and many companies specialize in producing these components for the defense industry. Some examples of chip resistor manufacturers that serve the defense industry include IMS Resistors, Ohmcraft, and Spectrum Control. The upsurge in demand from the defense sector in the region is anticipated to boost the growth of the studied market.
- The trading of resistors in countries like India is witnessing an upsurge, especially with surging demand for current sense resistors. However, thin film and chip resistors currently have relatively lower demand in the Indian market. This trend indicates the lack of specialized electronic product manufacturing in the country that uses such resistors. However, most manufacturers still perceive that the future of resistor manufacturing lies in thick film and chip resistors.
- Moreover, the major manufacturer of the resistor has ceased taking orders as the raw material cost is spiking up. For instance, recently, Taiwan-based Ralec ceased taking new resistor orders. At the same time, Leatec Fine Ceramics, a maker of aluminum and ceramic substrates required for manufacturing chip resistors, is considering raising its prices in the wake of a recent 15% price hike enforced by its Chinese peer, Chaozhou Three-Circle Group.
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