Electric Component

The global electrical components market, including semiconductors, PCBs, ICs, sensors, connectors, and IoT-enabled devices, valued at $393.63 billion in 2024, is rapidly growing due to rising demand for consumer electronics, wearables, smart home devices and 5G-enabled technology. Electrical components market growth is primarily driven by rising demand for next-generation devices, including smartphones, tablets, wearables, smart home devices and home automation systems, which depend heavily on semiconductors, printed circuit boards (PCBs), passive components, microcontrollers, sensors, and display drivers. The Asia-Pacific region has emerged as the leading growth engine, led by China, India, and South Korea, with electronic goods exports increasing by 23.6% in 2024, far outpacing the global electronics trade growth of 7-8%. Meanwhile, North America and Europe remain key players in the design and export of integrated circuits (ICs), chipsets, and advanced electronic modules, while Asia-Pacific countries expand imports of specialized components to strengthen domestic electronics manufacturing infrastructure. Electrical components market trade is shaped by tariffs, cross-border logistics and regulatory compliance, exemplified by India’s $47 billion component imports from China and over 10,000 IC consignments from Hong Kong in a single year.

The electrical components industry investment in the sector is significant, with OEMs and electronic component suppliers allocating multi-billion-dollar CAPEX to semiconductor fabrication plants, flexible display modules, 5G-enabled chipsets, and AI-powered components. Operating expenditures (OPEX) primarily cover raw materials (~50%) and skilled labor (25-35%), while pricing models remain fragmented due to U.S.-China tariffs ranging from 10-40%. Asia-Pacific manufacturers benefit from 8-12% cost advantages thanks to electronics supply-chain clustering. Major suppliers like Murata, Infineon, Vishay, NXP, and TE Connectivity, along with Samsung and Foxconn, consolidate market positions through vertical integration and economies of scale.

Electrical components industry’s future is driven by miniaturization, AI-enabled sensors, GaN power transistors, flexible electronics, eco-friendly components, and IoT-enabled devices. The semiconductor segment accounts for 58.1% of the market share in 2024, with passive components, connectors, and electronic modules projected to grow at 8-9% CAGR through 2032. With venture funding exceeding $20 billion and regulatory support from RoHS and REACH, the electrical components market is strategically positioned as a critical pillar of the global consumer electronics supply chain, supporting resilient growth, advanced electronics innovation, and technological adoption worldwide.

Electric Component Dominating Region

Asia-Pacific

Global Manufacturing Leader

China

Dominant MNCs in Electric Components

Texas Instruments

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Relays

The global Relays market, valued at USD 21.4 billion in 2024, is being redefined by growing demand from both industrial and consumer applications and is projected to expand at a CAGR of 8.7% by 2032. Rapid adoption of electrical relays, industrial relays, control relays, power relays, high-performance relays, switching relays, electromechanical relays, solid-state relays, and automotive relays is fueling growth across manufacturing, automotive, energy, telecommunications, and consumer electronics sectors. Asia-Pacific has emerged as the fastest-growing hub for miniature relays, PCB relays, relay modules, and industrial control relays, driven by large-scale electronics manufacturing in China, India, Japan, and Southeast Asia. Meanwhile, North America and Europe continue to dominate in relay technology, relay innovation, relay protection devices, and programmable relays, backed by strong R&D and patent portfolios.Evolving energy efficiency mandates, smart grid expansion, and industrial automation are accelerating demand for reliable relays, durable relays, relay switches, advanced relays, power management relays, low-voltage relays, high-voltage relays, AC relays, DC relays, timer relays, signal relays, and protective relays. Relays industry governments are incentivizing adoption of relay automation, relay systems, relay boards, and relay panels to support sustainable infrastructure, while rising integration of relay circuits, relay components, and relay control units in IoT devices and renewable energy systems is reshaping supply chains.Relays market trends such as compact relay design, relay modules for electronics, industrial switching relays, electronic switching relays, smart relays, and relay monitoring systems are shaping the next wave of relay solutions and relay devices for modern applications. Increasing investment in relay electronics systems, relay protection devices, relay control units, and relay accessories highlights the shift toward relay for energy management and digital infrastructure. With applications spanning relay automation, relay electronics systems, and relay applications in automotive, telecom, renewable energy, and industrial machinery, relays are no longer just switching devices but critical relay solutions enabling reliable connectivity, energy efficiency, and advanced automation across global industries.

Rotary Connectors

The global Rotary Connectors market is witnessing steady expansion, driven by rising demand for reliable rotary connectors, durable rotary connectors, and advanced electronics connectivity solutions in industrial automation, robotics, aerospace, and defense applications. Valued at approximately USD 720 million in 2024, the market is projected to grow at a CAGR of 7.4% through 2032, fueled by increasing adoption of high-performance connectors, multi-pin rotary connectors, and rotary power and signal connectors across mission-critical sectors. Asia-Pacific continues to lead growth, with China, Japan, and South Korea emerging as major hubs for rotary connector manufacturing and integration into industrial machinery and electronics panels, accounting for over 42% of global shipments in FY24. North America and Europe remain strong markets, particularly in aerospace, robotics, and automation, where precision rotary connectors and high-voltage rotary connectors are in demand for ensuring uninterrupted power and data transfer in dynamic systems.Rotary Connectors market adoption is shaped by the growing need for compact rotary connectors and miniature rotary connectors, which support the miniaturization of electronic connectors and advanced rotary connector technology in medical devices, communication systems, and consumer electronics. Operational costs in the industry are driven by rotary connector components, including contact materials, insulators, and plating processes, which account for nearly 60% of production costs, while logistics and supply chain fluctuations add another 12–15%. Compliance with RoHS and safety standards is influencing rotary connector design, rotary connector assembly, and sustainable rotary connector innovations such as eco-friendly materials and extended durability cycles. Rotary Connectors industry competition is highly fragmented, led by established rotary connector manufacturers such as Moog, Schleifring, and Stemmann-Technik, which dominate with custom rotary connectors, rotary connector systems, and rotary connector modules tailored for industrial electronics connectors and automation solutions. Meanwhile, regional rotary connector suppliers in China and India are disrupting with cost-effective rotary connector solutions for robotics, electronics panels, and automation machinery, accelerating adoption in cost-sensitive industries. Investment activity is robust, with over USD 850 million in 2024 venture and corporate funding directed toward rotary connector technology, AI-enhanced connector performance monitoring, and rotary connector integration in smart factories and Industry 4.0 applications. The industrial rotary connectors and rotary connector for automation segments currently account for 48% of revenues, while demand for rotary connector for robotics is projected to grow at 8–9% CAGR through 2032, positioning rotary connectors as a critical enabler of electronics connection devices, high-speed rotary connectors, and the broader digital-physical integration ecosystem.

Industry definition

The Electronic Components sub-industry, a vital segment of the broader Electronics industry, underpins the performance and innovation of all modern electronic devices and systems. This market covers a wide range of essential components including semiconductors, resistors, capacitors, inductors, diodes, transistors, sensors, and printed circuit boards (PCBs) that form the building blocks of consumer electronics, automotive electronics, industrial automation, telecommunications, and medical devices. With the rapid adoption of IoT, 5G networks, AI-driven devices, and electric vehicles (EVs), demand for miniaturized, energy-efficient, and high-performance electronic components is surging worldwide. Manufacturers are focusing on advanced materials, nanoelectronics, and system-on-chip (SoC) integration to enable faster processing, reduced power consumption, and cost efficiency. Positioned at the core of digital transformation, the Electronic Components sub-industry plays a critical role in powering next-generation consumer devices, enterprise solutions, renewable energy systems, and smart infrastructure, making it one of the most dynamic growth engines of the global Electronics market.

Electronics