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The global precision resistor market size was valued at USD 4.16 billion in 2021. The market is projected to grow from USD 4.35 billion in 2022 to USD 6.40 billion by 2029, exhibiting a CAGR of 5.7% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with precision resistor experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a growth of 3.8% in 2020 as compared to 2019.
Precision resistors have temperature coefficient, high standards of resistance accuracy, long-term stability, and load life with similar resistor technology and mounting method. The lasting steadiness of these resistors is a very important feature.
Precision resistors are often associated with precision. In these resistors, "accuracy" refers to the precision of the resistance value. Accuracy is affected by a number of factors collectively referred to as stress. These include self-heating generated by resistors and ambient temperature changes.
Additionally, even after power up, pressure or voltage from circuit boards, moisture from the external environment, even corrosive gases, as well as pulse, welding, static electricity, overload are different stresses that change the resistance value of the resistor and also affect the resistance accuracy.
These resistors are classified in three types, precision wire wound resistors, precision metal film resistors, and precision metal foil resistors.
Surge in Product Demand Post Pandemic to Boost the Market
The novel coronavirus impacted the sales of semiconductor material and also supply chains. The net sales of manufacturers suddenly dropped in 2020.
The decline in the growth of major industries such as automobile and industrial electronic equipment impeded the growth of the market owing to COVID-19 pandemic. Also, the product demand in sectors such as automotive and industrial sectors was also reduced.
However, post pandemic, the rising demand for consumer electronics products among people aided the semiconductor industry to grow. The product has recorded an increase in demand across healthcare, electronics, and automotive sectors as manufacturers are focusing on restructuring their operational business models and trying to create a more disruption proof model to cope up with such emergency situations in the future.
Therefore, the product demand is projected to increase among automotive and electronics sectors for the enhancement of overall efficiency, which will further contribute to the precision resistor market growth.
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Increasing Demand for Cutting-edge Technology to Impel Market Growth
Governments are creating many policies such as free trade deals to attract foreign direct investment. Such deals are expected to surge the demand for consumer electronics, smart devices, and smart home appliances. This electronics component needs to be more accurate, power limiting, temperature resistant, and safer, which will boost the market in the coming years.
Another major trend is the growth of EV sales in India, which is estimated to grow at a CAGR of 90% and will achieve USD 150 billion by 2030. Majorly, EVs use Intelligent Power Module (IPM), battery control, HEV/EV unit inverter, battery control, safety modules, and the latest infotainment systems that require thin metal film resistors due to temperature control and compactness.
Lastly, majority of countries, such as Japan, the U.S., India, and Australia, want to minimize their reliance on Taiwan for chips. Hence, they are working on the development of in-house fabrication for manufacturing ultra-precision solutions that are required for precision equipment machines such as CNC, industrial robots, military equipment accuracy, and performance advancement in the aeronautical industry.
Hence, the aforementioned trends are continuing to increase the global market share.
Rising Demand for Consumer Electronics and Changing Government Regularities to Accelerate the Market Growth
Global 5G demand needs better network infrastructure and devices while developing countries are still trying to roll out 5G in their countries. For instance, the current 5G revolution is anticipated to boost India’s annual production of mobile phones and network equipment by USD 100 billion from the current USD 75 billion, which will account for 40% of growth.
Rising digitalization and the use of consumer electronics and data services boosted the demand for semiconductor chipset globally. Simultaneously, the market is rising as the majority of semiconductors are having resistors for their basic operation of power and resistance control.
The primary factor increasing the demand for resistors is the rising demand for consumer electronics such as smartphones, laptops, and portable gaming consoles. This helps India to achieve the USD 300 billion electronics market powerhouse goal. Hence, investments to increase the consumer electronics production and technical improvements are some of the main factors driving market expansion.
Lack of R&D Facilities and Supply Chain Disruptions to Hinder the Market
The Restriction of Hazardous Substances (RoHS) Directive EU has extended exemption on lead-containing glass components, restraining them from working with current designs and materials.
Disruption in demand, supply of film resistors, and lack of profit margins due to continuous reduction in prices of raw materials are a few factors that are likely to hamper the market growth.
Another major restraint comprises heavy investments in Research & Development (R&D) for creating a stable and concise design for end-use electronics.
Upgrading the current R&D and manufacturing facilities for lead-free, sustainable, and new design parameters will increase costs for manufacturers.
Taiwan accounts for about 60% of the contract chip manufacturing and the war situation between China-Taiwan would tighten the supply chain. This would create a hike in raw material prices of electronic components and would delay India’s demand, which was valued at USD 10 billion.
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Precision Metal Film Resistors to Hold Major Share due to High Stability
Based on type, the market is classified into precision wire wound resistors, precision metal film resistors, and precision metal foil resistors.
Precision metal film resistors segment is expected to hold a major share in the market. These resistors are passive electronic components that provide electrical resistance and limit the flow of current. This type of resistor is made by applying a thin layer of insulating ceramic or plastic powder to a conductive metal substrate. Further, it is used in medical electronic equipment, communication equipment, automotive electronics, test and measuring equipment, industrial products, and others.
Moreover, the precision wire wound resistors segment is expected to have progressive growth during the forecast period. It is attributed to high accuracy with stability & wide resistance range. The wire has high resistivity and is wound around an insulating core. The resistor serves as a current limiter as well as a passive electrical component.
Furthermore, the precision metal foil resistors segment is anticipated to have considerable growth over the estimated period. The foil is mainly composed of an alloy of nichrome with additives. Mounted on a ceramic support with high thermal conductivity. The desired resistance value is achieved by a resistor pattern photoetched into the foil.
Semiconductors to Register Significant Growth due to Increase in Consumer Electronics Products
Based on application, the market is divided into test & measurement equipment, industrial automation, medical equipment, semiconductors, telecommunications, and others.
The semiconductors segment is projected to exhibit substantial growth during the forecast period. The growth is attributed to the surge in demand for electronic devices such as smart phones and the proliferation of applications such as the Internet of Things and cloud computing. The rapid growth of new technology products such as AI and its incorporation into 5G networks, automotive and industrial electronics are expected to be some of the major drivers of the market.
Moreover, the telecommunications segment is expected to witness a major growth in future. Precision resistors are used in telecommunications equipment to match the impedance of transmission lines. It is used to terminate transmission lines to prevent reflections. The termination resistance should be equal to the characteristic impedance of the transmission line multiplied by the square root of the dielectric constant of the medium between the conductor and earth.
The industrial automation segment is witnessing considerable growth, owing to rising demand and high performance instrumentation in modern industrial automation applications. AC drive panels, microprocessor frequency controllers, variable frequency drives, and inverters are all devices that use resistors for braking, speed control functions, and motor starting.
Furthermore, the test & measurement equipment and medical equipment segments are predicted to have sluggish growth in the coming years. This is due to higher accuracy levels as compared to other types of resistors.
Asia Pacific Precision Resistor Market Size, 2021 (USD billion)
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The report scope covers five major regions. These include North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.
Asia Pacific currently holds the largest share of the market and is expected to expand at the quickest rate throughout the forecast period due to the presence of developed and developing companies operating primarily in China, India, and South Korea. Furthermore, the regional market is being propelled by the adoption of high-end technology-based devices coupled with cheap electronic prices.
China grasps the largest share in the market and is projected to witness the highest CAGR in the coming years due to the rising presence of local manufacturers such as Tzaiyuan Enterprise Co., Ltd, and Yageo Corporation. These key players are inclined toward delivering a wide range of products at reduced rates in bulk quantity, aiding the growth of the market in China over the forecast period.
Following Asia Pacific, North America is likely to develop at a consistent rate due to the existence of significant manufacturers in these regions. Furthermore, companies in these areas are making specific efforts toward technical advances, focus on aftermarket services, and increased spending in research and development operations, all of which are impelling market growth.
The Europe market for precision resistor is expected to grow at a moderate pace during the forecast period. The region has a well-established electronics and automotive industry, which is anticipated to drive the demand for fixed & specifically precision resistors over the next few years. In addition, the region is home to some of the leading manufacturers such as TE Connectivity and TDK Corporation.
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The Middle East & Africa & Latin America regions are poised to grow at a modest rate due to the adoption of modern welding technologies, the government's concentration on infrastructure development, and the expansion of large manufacturers' production facilities across the regions to serve the unattended market.
Players are Developing Resistor Products with Emerging Technologies to Secure Competitive Edge
The key precision resistor players have a global presence across various regions, including Europe, Asia Pacific, North America, and the Middle East & Africa. The market players are developing resistor products with emerging technologies such as advanced manufacturing processes, film resistor technology, ultra-high precision solutions, and others.
An Infographic Representation of Precision Resistor Market
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The research report provides a detailed precision resistor market analysis of the type and application of the product. It provides information about leading companies and their business overview. Besides, it offers insights into the competitive landscape, SWOT analysis, and current market trends and highlights key drivers and restraints. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the market growth in recent years.
Value (USD Billion)
By Type, Application, and Region
Fortune Business Insights says that the market was valued at USD 4.16 billion in 2021.
By 2029, the market is expected to be valued at USD 6.40 billion.
The global market is estimated to exhibit a noteworthy CAGR of 5.7% during the forecast period (2022-2029).
Asia Pacific is expected to hold a major market share. The region stood at USD 1.78 billion in 2021.
By type, the precision metal film resistors segment is expected to be the leading segment in the market during the forecast period.
Rising demand for consumer electronics and changing government regularities are the key drivers poised to accelerate the market growth.
Murata Manufacturing Co., Ltd., TDK Corporation, Samsung Electro-Mechanics, YAGEO Group., KYOCERA AVX Components Corporation, Vishay Intertechnology, Inc., TE Connectivity, OMRON Corporation, and Vishay Precision Group, Inc. are the leading companies in the market.
Semiconductor application is expected to drive the market.
The major players constitute approximately 60%-62% of the market, which is majorly owed to their brand image and presence in multiple regions.
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