According to CRI, players in the passive component industry are mainly in Japan, Taiwan, the U.S.A., mainland China and Southeast Asia. Japan occupies an absolute advantage with 52% of market share. The depreciation of the Japanese Yen will further push up the share of Japanese companies. Manufacturers from mainland China only take up 7% of market share and the products are mostly low-end.
The upstream of the passive component industry is material suppliers of resistors, capacitors, inductors, filters and oscillators; the midstream is manufacturers of these components; the downstream is suppliers of electronic products. Passive components are indispensable electronic components which are widely used in PCs, mobile phones, tablet computers, servers, audio and visual devices and automobiles.
CRI estimates that in 2016, the production value of the passive component industry was over USD 20 billion, 66% of which were capacitors, valued at USD 15 billion. The market value of passive component companies increased year by year from CNY 35 billion at the end of 2011 to CNY 160 billion at the end of 2016. The industry is heavily affected by the global economy in that the supply and demand change with the global economy.
CRI anticipates that following the trend of economic globalization, major passive component factories will move to China. Multinationals are purchasing from China. In addition, Chinese manufacturers have been advancing their technologies. These will all promote the development of the passive component market and will increase the share of Chinese players in the global passive component industry.