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Active and passive components to see strong 5G-driven demand

As the international rollout of 5G picks up pace, active and passive component demand is increasing at a rate of knots.

The buildout of 5G infrastructure requires significant investment in active and passive components for a wide range of different devices.

Examples include active antennas with integrated RF radio designs, small cell power base stations, C-RAN architecture and semiconductors.

One of the challenges faced with the 5G rollout this year has been COVID-19, which had immediate effects on global supply in demand. Some of the side effects included increased costs, a slowdown in logistics, and a squeeze on demand.

While these challenges were significant in early 2020 and are likely to remain for some time, the macroeconomics are unlikely to persist in their worst form.

Right now, the manufacturing sector in most countries is bouncing back fast and many manufacturers are having their best ever quarter.

A good example is Taiwan Semiconductor, who are the largest semiconductor foundry in the world. Then you have smaller but vital players like MaxLinear, who make wireless, PON, DSL, and terrestrial products for high-speed internet.

How 5G is driving demand for active and passive components

You can think of 5G as a tide that is going to raise all ships, and active and passive components manufacturers are the ships that will benefit from it most because they will make the components that build out the 5G infrastructure.

It’s easy to see why this is the case with a short list of active and passive components. Let’s start with examples of passive components first:

  • Resistors
  • Inductors
  • Capacitors
  • Transformers

Now let’s list a few active components:

  • Generators
  • Transistors
  • Diodes
  • Inductors / coils

Now let’s look at a few of the components that will build out 5G:

  • Semiconductors
  • Antennas
  • Radio towers
  • RF receivers
  • Fibreoptic cable

Looking at these lists, it’s easy to see why 5G is driving such strong demand for active and passive components.

Can the components sector keep pace?

There are so many different manufacturers of electronic components that it is unlikely that the rollout of 5G will trouble the manufacturing sector.

However, local supply problems may exist for some enterprises. For example, a supplier of radio frequency devices in China may have to temporary shut production at a factory due to a fire or a health hazard. This would affect supply.

The best way for those involved in the rollout of 5G to safeguard their supply of active and passive components is to use an electronic component distributor. Electronic component distributor specialise in the procurement and delivery of electronic components and parts, so they can ensure you always have what you need.

A faster, more connected future awaits

5G will revolutionise our use of the internet in more ways than one, but the buildout is going to take time. Demand for active and passive components is at an all-time high, and competition is increasing for the best components. Having a component distributor on your side is a good way to ensure you can meet the challenge.

Click Here to use our fast component search and enquire with us today!

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What the future holds for passive and interconnecting electronic components

While the world economy is in freefall with the COVID-19 pandemic, with mass unemployment and trade plummeting, the global passive and interconnecting electronic components market is expected to continue growing thanks to demand from the developing world and the rise of 5G infrastructure.

Grand View Research has released forecasts for the passive and interconnecting electronic components market, predicting a compound annual growth rate of 5.3% from 2020 to 2027 with a slowdown from 2020 to 2021 due to COVID-19.

The future is by no means certain and we do not know exactly how badly the world economy will be impacted by the coronavirus outbreak. We do however have models that tell us demand will increase for electronics over time. This spells good news for components manufacturers and the wider electronics industry.

Changes in market demand

As the world economy is adversely impacted by the coronavirus outbreak, demand for electronic components in many verticals will slow. This can be traced back to the reality that in times of uncertainty, consumers are warier of spending money. Less demand for products means a slowdown in production and demand.

However, regardless of the world economy, some regions do have a stimulus. The United Kingdom, Japan, China, South Korea, and the US are rolling out 5G network infrastructure and this will stimulate the electronics market. Smartphones, tablets, drones, and other devices that rely on networking will be key beneficiaries.

So, it isn’t by any means doom and gloom for the global passive and interconnecting electronic components market. Growth is predicted from 2020 to 2027 and the COVID-19 outbreak will only slow down this growth temporarily.

How component sourcing has changed

In response to a fall in demand for products, passive and interconnecting electronic component production has slowed. In addition, a lot of stock hasn’t been used and is sitting in storage until such a time it is needed.

Prior to COVID-19, it was easy to think of component production as being in a state of perpetual motion for it was always present. Demand has fallen but that doesn’t mean it has ceased. Passive and interconnecting electronic components are still being sourced, albeit in smaller batches and more carefully than ever.

Another behavior we have witnessed is component hoarding. OEMs are unsure of their partner’s manufacturing capabilities in the face of COVID-19. So, they are hoarding components to ensure they can scale up demand when the time is right. This is considered normal behavior without a global pandemic, but we are seeing more extreme examples as a means to protect manufacturing output. Ultimately, this means there are fewer components to go around, which drives up the cost of certain components.

How we can help you with sourcing

The future may be uncertain but good preparation will help you through it. As your electronic component distribution partner, we can source components for you with access to all major manufacturers. We can source legacy, obsolete, state-of-the-art, and short production run components at prices that suit your margin. Visit our website or click here to use access to our component search and enquire with us. We are here to help you with your electronic component needs.