The automotive market has emerged as a significant driver for the growth of passive components and LEDs. With the increasing adoption of electric vehicles (EVs) and advanced driver assistance systems (ADAS), the demand for these components has surged.
Passive component manufacturers, such as Murata, Yageo, and Walsin Technology, are optimistic about future growth opportunities, driven by the proliferation of consumer electronics and the automotive industry. Multi-layer ceramic capacitors (MLCCs) have been particularly in high demand, fueled by the growth of smartphones and laptops.
While the automotive industry has been a key factor in the recovery of LED demand, it has also played a crucial role in driving sales growth for passive components. The expanding need for high-temperature tolerance, better thermal management, high reliability, and small form factors in automotive applications has increased the demand for these components.
The development of smaller and more efficient passives has further fueled market growth. Their use in ADAS has made the need for high-reliability passive components even more significant. With over 90% of vehicles on sale in the United States having at least some advanced system, the demand for passive components in the automotive sector will only continue to grow.
Similarly, the automotive LED market is expected to expand as more advanced systems are implemented. LEDs are used in various applications, from warning system lights to customized ambient interior lighting. While there may have been some slowdown in EV demand, the long-term outlook remains positive as charging infrastructure improves and EVs evolve.