Chan Ye Xin Xi Wang·2026-01-16 01:07Core Viewpoint - The passive components industry is crucial for electronic devices, providing essential functions such as signal regulation and energy storage without external power. The industry is supported by various national policies aimed at promoting innovation and domestic production, with significant growth expected in both global and Chinese markets by 2024 [1][4][7]. Industry Overview - Passive components, also known as passive devices, operate without external power and rely on physical properties to perform functions like current/voltage regulation and energy storage. They are essential for ensuring signal transmission and circuit stability, forming the backbone of the electronic industry [2][3]. Policy Support - China has implemented several key policies to support the passive components industry, including reforms in management systems, strategies to expand domestic demand, and guidelines for energy electronics development. These policies aim to enhance local companies' capabilities in high-end material research and precision manufacturing [4][5]. Industry Chain - The upstream of the passive components industry consists of raw material and equipment suppliers, with critical materials largely imported. The midstream includes manufacturing of capacitors, inductors, and resistors, with domestic companies like Fenghua Advanced Technology and SanHuan Group leading in mid-to-low-end markets. The downstream market is driven by consumer electronics, automotive electronics, and emerging fields like AI and 5G [5][6]. Market Dynamics - The global passive components market is expected to reach $39.1 billion by 2024, with a growth rate of 7.7%. The Asia-Pacific region dominates, accounting for over 70% of the market share. China, as the largest demand market, is projected to grow to 142.3 billion yuan in 2024, with a compound annual growth rate of 15.2% from 2020 to 2024 [7][8]. Competitive Landscape - The competitive landscape of the passive components industry in China is characterized by international giants dominating high-end markets, while domestic companies are making strides in mid-to-low-end segments. Key players like Fenghua Advanced Technology and SanHuan Group are focusing on high-end product certifications and technological advancements [9][10]. Development Trends - The future of the passive components industry in China will focus on three main areas: technological upgrades, deepening domestic substitution, and ecological collaboration. Products will evolve towards higher capacitance, miniaturization, and reliability, with a strong emphasis on self-sufficiency in materials and core technologies [11][12].