| Study Period | 2020 - 2030 |
| Market Size (2025) | USD 4.10 Billion |
| Market Size (2030) | USD 5.53 Billion |
| CAGR (2025 - 2030) | 6.19 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Passive Electronic Components Market Analysis
The Passive Electronic Components Market In Aerospace & Defense Industry is expected to grow from USD 4.10 billion in 2025 to USD 5.53 billion by 2030, at a CAGR of 6.19% during the forecast period (2025-2030).
Passive components, such as resistors, capacitors, and inductors, boast superior reliability compared to active components. Their robustness stems from their independence from external power sources and intricate switching mechanisms. These components operate consistently across various temperatures and environmental conditions, ensuring longevity. Such durability makes them the go-to choice for demanding sectors like defense, where performance in challenging conditions is crucial. For instance, in aerospace, passive components play a pivotal role in ensuring the reliability of safety-critical functions, including signal processing and control electronics.
- As industries increasingly prioritize durability and high-density integration, the demand for high-performance passive electronics surges. In the defense sector, for example, passive components must endure extreme temperatures, radiation, and other harsh conditions. Military-grade resistors and capacitors are engineered for heightened shock resistance and extended lifespans. Furthermore, as defense systems become more compact and powerful, there's a pressing need for miniaturized, highly reliable passive components. Their significance is underscored by their foundational role in countless applications across various sectors, especially in aerospace and defense, where reliability and precision are non-negotiable.
- Countries worldwide are ramping up military spending, fueling market growth. Geopolitical tensions, notably the Russia-Ukraine conflict, have prompted heightened defense investments in Europe, North America, and beyond. The demand for modern avionics, radar, and communication equipment surges as nations bolster their military capabilities in response to shifting geopolitical landscapes. These advanced systems rely on passive electronic components—such as capacitors, resistors, and inductors—known for their reliability in challenging operating conditions.
- Advanced electronic systems are crucial in aerospace and defense. They handle everything from field communications and targeting controls to asset tracking, health monitoring, and threat detection. These systems ensure operational efficiency and mission success in challenging environments. These systems often rely on multiple high-fidelity antennas to guarantee maximum signal strength and reliability. This necessitates their seamless integration within devices or vehicles. Such integration faces challenges, including minimizing interference, optimizing performance, and maintaining compact designs, all to meet the stringent demands of aerospace and defense applications.
- The mass production of surface-mount passive components heavily relies on engineered powders and pastes, which represent the largest variable cost in manufacturing capacitors and resistors. These powders and pastes are meticulously engineered to meet the specific requirements of passive components, ensuring optimal performance and reliability in various applications.
- The market’s growth is intrinsically linked to the overall economic performance, particularly within key regions. For instance, NATO is considering a significant hike in its defense spending benchmark, eyeing a jump from the current 2% to 3% of GDP by 2030. While nations across Asia, the Middle East, North Africa, and Europe have ramped up their budgets, the U.S. push for NATO members to commit to a baseline of 5% of GDP remains out of reach for many. This growth indicates a favorable environment for military agencies and potential investments in the industry, thereby enhancing the growth opportunities for the component makers.
Passive Electronic Components Market Trends
Defense Application Segment is Expected to Witness Significant Growth
- Military & Defense electronics encompass advanced electronic devices and systems crafted with advanced technology to bolster national defense. These sophisticated systems enhance detection, protection, and offensive capabilities, ensuring mission success while reducing potential casualties. They are designed to operate in extreme conditions, including high temperatures, vibrations, and electromagnetic interference, ensuring reliability and durability in critical scenarios.
- Defense electronic devices heavily rely on passive components such as capacitors, resistors, and inductors. For example, capacitors play a crucial role in EMI/RF suppression filters, which are vital for military power supplies and converters. These components are essential for maintaining signal integrity and ensuring the seamless operation of electronic systems in demanding environments. Beyond this, these passive components are integral to military communication, navigation systems, radar systems, and a range of contemporary electronic equipment, supporting both strategic and tactical operations.
- The global geopolitical landscape has experienced considerable instability in recent years. The ongoing conflict between Russia and Ukraine has significantly increased defense spending across the continent. Additionally, a rise in illegal immigration has led European nations to expand their defense budgets and adopt advanced technologies. These changes have created substantial opportunities in the defense market as governments and private sector players increasingly invest in innovative solutions to address evolving threats and challenges.
- Furthermore, under the Multiannual Financial Framework (MFF) for 2021-2027, the European Union has earmarked EUR 16.4 billion (in current prices) (USD 17.07 billion) for security and defense activities. These funds bolster research and development, enhance military mobility, expand industrial production capacity, and encourage collective procurement efforts. This allocation reflects the EU's strategic focus on fostering innovation, improving logistical efficiency, and promoting a unified approach to defense across its member states.
- In 2024, the United States allocated an estimated USD 967.7 billion to its defense, leading all NATO members by a significant margin, as reported by NATO. Poland, sharing a border with Ukraine, topped the NATO list with a defense expenditure of 4.12% of its GDP last year. Estonia followed at 3.43%, closely trailed by the U.S. at 3.38%. NATO's estimates for 2024 pegged the alliance's total defense spending at a hefty USD 1.474 trillion, with the U.S. contributing around USD 968 billion and European nations alongside Canada adding another USD 507 billion. This collective outlay averages about 2.71% of NATO's combined GDP.
Understand The Key Trends Shaping This Market
Download PDF
Asia Pacific to Register Major Growth
- The Asia Pacific region is witnessing a surge in defense modernization initiatives, particularly in countries like China, India, South Korea, and Japan. These nations are investing heavily in advanced military electronics to enhance their defense capabilities. This trend is driven by the need for enhanced situational awareness, improved communication systems, and the deployment of unmanned aerial vehicles (UAVs) and other advanced technologies. For instance, China has been focusing on developing its own semiconductor and electronics manufacturing capabilities to reduce dependency on foreign suppliers, thereby boosting the demand for high-reliability passive components.
- Further, in December 2024, the Japanese Ministry of Defense announced plans to develop a stand-off electronic warfare (SOJ) variant of the Kawasaki C-2 transport aircraft to replace the aging EC-1. The project includes acquiring four aircraft to strengthen the Japan Self-Defense Forces' (JSDF) long-range jamming capabilities, ensuring effective disruption of enemy systems while maintaining operational safety.
- Moreover, the modernization efforts are being supported by an assertive approach to military capabilities by the countries in the region. For instance, in December 2024, India strengthened its military capabilities by securing defense procurements worth INR 4.22 lakh crore. These advancements included enhanced surveillance along the LAC, the acquisition of advanced drones, and the employment of Indigenous hardware. Strategic naval operations ensured the protection of critical maritime cargo. Additionally, successful missile tests and increased defense production highlighted significant growth amid rising geopolitical tensions.
- In November 2024, the Defence Research and Development Organisation (DRDO) successfully conducted the first flight trial of India's long-range hypersonic missile, capable of delivering multiple payloads over distances exceeding 1,500 kilometers. Designed for deployment across all three branches of the Indian Air Forces (IAF), the missile demonstrated precise terminal maneuvers and accurate impact. This achievement enhances India's strategic capabilities while intensifying the arms race in South Asia, presenting a direct challenge to China and Pakistan.
- The growing development of innovative defense systems is further creating the need for these passive electronic components. In October 2024, Hanwha Aerospace and its defense subsidiaries introduced their advanced Multi-Layer Defense Solution during the Korea Army International Defense Industry Exhibition 2024 (KADEX) held at the Gyeryongdae ROK military compound, South Chungcheong Province. The company showcased its collective expertise with a focus on the debut of Hanwha Systems' Multi-Function Radar (MFR) and long-range missile interception systems, developed in collaboration with Hanwha Aerospace. Such innovations are further increasing the demand for advanced passive electronic components.
Get Analysis on Important Geographic Markets
Download PDF
Passive Electronic Components Industry Overview
In the aerospace and defense market for passive electronic components, firms' concentration ratios and competitive strategies are pivotal. Buyers, prioritizing innovation and reliability, seek sustainable advantages. Companies that focus on research and development (R&D) to roll out advanced products are better positioned to meet these demands and secure a competitive edge.
Market dominance is evident as established players, backed by strong brand recognition and customer loyalty, pose challenges for newcomers. While these entrants face significant investment hurdles, they can find success by targeting underserved segments or harnessing disruptive technologies. With a surge in aerospace and defense production investments and governments' initiatives to strengthen the regional ecosystem, newcomers and smaller firms are presented with significant opportunities.
The concentration ratio of firms is pivotal. Established firms, often synonymous with superior performance, benefit from robust distribution channels, strong business relationships, and cutting-edge platforms. Their ability to achieve economies of scale reduces costs and allows for competitive pricing, creating barriers for potential entrants.
As market penetration deepens and investments swell, competition is poised to intensify. This surge in rivalry might blur product differentiation, ultimately favoring buyers with a broader selection, enhanced features, and more competitive pricing.
In conclusion, the market's competitive intensity remains pronounced. With innovation leading the way and established players at the forefront, the competitive landscape continues to evolve.
Passive Electronic Components Market Leaders
-
KEMET Corporation (Yageo Company)
-
Panasonic Corporation
-
TDK Corporation
-
Vishay Intertechnology Inc.
-
KYOCERA AVX Components Corporation
- *Disclaimer: Major Players sorted in no particular order
Need More Details on Market Players and Competiters?
Download PDF
Passive Electronic Components Market News
- November 2024: Vishay Intertechnology, Inc., has announced its definitive agreement to acquire Birkelbach Kondensatortechnik GmbH and select related assets (Birkelbach) for an estimated EUR 17 million (USD 18.5 million). Located in Erndtebrueck, Germany, Birkelbach specializes in producing metalized technical films for capacitor dielectrics. Through this acquisition, Vishay aims to secure a steady supply of Birkelbach's mmetalizedfilm materials, catering to the surging demand for high-voltage, high-power film capacitors.
- October 2024: TDK Corporation has unveiled the xEVCap, a modular and standardized DC link capacitor tailored for powertrain inverters. 'These inverters are used in passenger cars, commercial vehicles, off-highway vehicles, and even machine tools. Traditionally, capacitor designs are bespoke, leading to lengthy development times and often only feasible for large production runs. Moreover, any shifts in customer requirements mid-project can extend the development timeline, potentially stalling the entire project.
Passive Electronic Components Industry Segmentation
The market is defined by the revenue generated from the sale of passive electronic components in the aerospace and defense industry globally.
The passive electronic components market in the aerospace and defense industry is segmented by type (capacitors, inductors, resistors), application (aerospace, defense), and geography (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | Capacitors |
| Inductors | |
| Resistors | |
| By Application | Aerospace |
| Defense | |
| By Geography *** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Need A Different Region or Segment?
Customize Now
Passive Electronic Components Market In Aerospace & Defense Industry Market Research Faqs
How big is the Passive Electronic Components Market In Aerospace & Defense Industry?
The Passive Electronic Components Market In Aerospace & Defense Industry size is expected to reach USD 4.10 billion in 2025 and grow at a CAGR of 6.19% to reach USD 5.53 billion by 2030.
What is the current Passive Electronic Components Market In Aerospace & Defense Industry size?
In 2025, the Passive Electronic Components Market In Aerospace & Defense Industry size is expected to reach USD 4.10 billion.
Who are the key players in Passive Electronic Components Market In Aerospace & Defense Industry?
KEMET Corporation (Yageo Company), Panasonic Corporation, TDK Corporation, Vishay Intertechnology Inc. and KYOCERA AVX Components Corporation are the major companies operating in the Passive Electronic Components Market In Aerospace & Defense Industry.
Which is the fastest growing region in Passive Electronic Components Market In Aerospace & Defense Industry?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Passive Electronic Components Market In Aerospace & Defense Industry?
In 2025, the North America accounts for the largest market share in Passive Electronic Components Market In Aerospace & Defense Industry.
What years does this Passive Electronic Components Market In Aerospace & Defense Industry cover, and what was the market size in 2024?
In 2024, the Passive Electronic Components Market In Aerospace & Defense Industry size was estimated at USD 3.85 billion. The report covers the Passive Electronic Components Market In Aerospace & Defense Industry historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Passive Electronic Components Market In Aerospace & Defense Industry size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Our Best Selling Reports
Passive Electronic Components Market In Aerospace & Defense Industry Industry Report
Statistics for the 2025 Passive Electronic Components In Aerospace & Defense Industry market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Passive Electronic Components In Aerospace & Defense Industry analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
