Active Components Category Intelligence
Report Coverage
- Market Analysis
- Regional Market Analysis
- Market Drivers and Constraints
- Cost and Pricing Analysis
Production Size
Market Size Semi-conductors:
$421.3 billion (2020E)
CAGR
5-6 percent from 2019 to 2023.
US and Canada
$83.6 billion
Active Components Market Trends
Category Intelligence on Active Components covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
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Industry Outlook & Drivers
Active Components Global Market Outlook:
Market Overview Semi-conductors: $421.3 billion (2020E), expected to grow at a CAGR of 5-6 percent from 2019 to 2023.
Porter's Analysis on AC
Supplier Power
- Component providers have medium to low power based on the industry they cater to
- For fragmented market in the consumer and devices segment, component suppliers have lower power
- For consolidated, industrial/automotive segments, component suppliers have medium power
Competition:
- The market is surrounded by a large number of suppliers but still, it is dominated by a small number of key players. This results in gaining supplier power
Barriers to New Entrants
- The foremost barrier for a new entrant is resources and capital cost required to start a plant. It is in addition to labor, transportation, and warehousing
Brand Differentiation:
- Though there is potential for new entrants to compete head-to-head with key players, brand differentiation strengthens the new entrant only to a limited extent, especially for semi-conductors
Switching Cost:
- Customers find it challenging to switch from one supplier to a new entrant by changing the entire design
Intensity of Rivalry
Product Differentiation and Contractual Terms:
- Intense competition in the industry, with few differentiated service offerings are the main factors for high industry rivalry
- Flexible contractual terms are being used to attract customers
- The pressure remains with all the tier-2 players in the industry
- Exit barriers for big players are also high due to high cost of entry into the market
Threat of Substitutes
Switching Cost:
- For semi-conductors, high switching cost is involved that makes it difficult for substitutes to draw customers away from key players
- For passives and interconnects, the switching cost is low, as there could be very similar passive component or interconnect that can substitute the existing product
Performance to Price Ratio:
- The switching cost differs for different electronic components, the low performance to price ratio of substitutes exerts a weak force in the industry environment
Buyer Power
Total Spend:
- With the ever-increasing buyer spend on electronic components, the buyer’s ability to bargain and obtain value-added services is high
Contracts:
- For semi-conductors, supplier alliances are formed on a long-term basis, so buyer power is generally high during long-term
- There is a mild backward integration risk due to large entry barriers. For passives and interconnects, they generally focus on procurement from distributors rather than suppliers for commoditized products
