Focus on solutions, not just components, for the future of passive components – Yole Group
) focus more on active devices but are increasing attention on passives. Chinese OEMs, known for vertical integration, have started producing their own passive components.
Collaborative solutions:
Potential for greater OEM-supplier collaboration to establish standards.
Development of single EMI solutions tailored to specific segments and regions.
Manufacturing
The capacitor manufacturing is dominated by large-scale production of “off-the-shelf” components. Leading manufacturers include Nippon Chemi-Con, Nichicon, Faratronic, TDK, Yageo, Rubycon, and Samsung (primarily based in Asia).
Regarding inductors, they are more customized, with leading manufacturers distributed globally.
Passive components play a crucial role in the advancement of power converter technology. The recent report by the Yole Group, titled “Passive Components for Power Converters 2025,” sheds light on various key aspects shaping the future of the industry.
One of the driving forces for the power converter market is the push towards sustainability. Factors such as decarbonization, electrification across various sectors, the growing presence of renewable energy sources, and the rise in electricity demand are propelling advancements in power converters. Additionally, the strategic selection of passive components can lead to substantial cost savings, reduce the overall size and weight of converters, and lower cooling requirements. There is still considerable untapped potential for further integrating passive components into innovative solutions.
Looking ahead, the power converter market is poised for significant growth, with an expected value of $190 billion by 2030. The forecasted Compound Annual Growth Rate (CAGR) between 2024 and 2030 is projected to exceed 7%. Within this market, passive components represent approximately 15% of the total value, with capacitors being the largest segment. Customized solutions for electric vehicles are driving growth in the capacitor sector, with a projected CAGR of over 6.3% during the forecast period. Following closely behind are inductors, expected to experience a nearly 7% CAGR. The Yole Group’s report also delves into other key components such as resistors and laminated bus bars.
In terms of the supply chain, Tier 1 suppliers and Original Equipment Manufacturers (OEMs) have traditionally focused more on active devices but are now increasingly paying attention to passive components. Chinese OEMs, known for their vertical integration strategies, have entered the market by manufacturing their own passive components. There is a growing opportunity for enhanced collaboration between OEMs and suppliers to establish industry standards and develop single Electromagnetic Interference (EMI) solutions tailored for specific market segments and regions.
When it comes to manufacturing, capacitors are predominantly produced on a large scale as “off-the-shelf” components by leading manufacturers such as Nippon Chemi-Con, Nichicon, Faratronic, TDK, Yageo, Rubycon, and Samsung, primarily based in Asia. On the other hand, inductors are more customized in nature, with key manufacturers operating globally to meet diverse market demands.
For more in-depth insights into the technological and market challenges within the passive components sector, visit www.yolegroup.com. The future of power converters lies in the seamless integration of high-quality passive components, driving innovation and efficiency across industries.
