Chip Inductor Market - By Type, By Core Material, By Structure and Size, By Application and By Geography Analysis - Forecast 2023 - 2028

The Chip Inductor Market size is forecast to reach USD 6.5 Billion by 2028, after growing at a CAGR of 8.12% during the forecast period 2023-2028. The increasing demand for consumer electronics such as smartphones, laptops, and wearables is driving the need for smaller, more efficient components like chip inductors. Additionally, the growing adoption of Internet of Things (IoT) devices and automotive electronics is further fueling the demand for chip inductors. Moreover, advancements in technology have led to the development of high-performance chip inductors that offer better power efficiency and reliability. This has increased the use of chip inductors in various applications, including RF and wireless communication, medical devices, and industrial automation. Furthermore, the trend toward miniaturization and integration in electronic devices is driving the demand for smaller and more compact chip inductors. Manufacturers are focusing on developing chip inductors with higher inductance values and improved performance to meet the evolving requirements of the market. 

The report “Chip Inductor Market – Forecast (2023-2028)”, by IndustryARC, covers an in-depth analysis of the following segments of the chip inductor market.

By Type: Multi-layer, Wire Wound, and Thin Film

By Core Material: Ceramic, Ferrite, Alumina, Iron, and Others

By Structure and Size: Wire Wound Metal Alloy Core Type (1608-143127 mm), Wire Wound Ferrite Core Type (1005-125125 mm), Multilayer Type (1608-3225mm), Film Type (0402-1608mm), 70 70mm Ground Plane, and Others

By Application: Power Lines, RF Transceivers, Computer, Mobile Phones, Wireless LANs, and Others

By Geography:  North America, South America, Europe, and APAC 

• The North American region is anticipated to dominate the chip inductor market with a value share of approximately 41% in 2022, followed by Europe with a 37% value share in the chip inductor market.

• The increasing adoption of electronics in various sectors such as consumer electronics, automotive, and telecommunications is driving the demand for chip inductors. The trend towards smaller and more compact electronic devices is fueling the demand for miniaturized components like chip inductors.

• The development of advanced technologies such as IoT, 5G, and AI is expected to boost the demand for chip inductors due to their high performance and reliability. With the growing demand for chip inductors, there is intense competition among key market players to innovate and develop new products to gain a competitive edge.

The Wire-Wound segment dominated the chip inductor market in 2022. The market is driven by the increasing demand for power electronics and the growing trend of electric vehicles and renewable energy sources. The wire-wound market is projected to grow significantly in the coming years due to the widespread adoption of IoT devices, smart grid systems, and automation technologies.  The growing focus on renewable energy sources like wind and solar power is creating a demand for wire-wound products used in transformers and inductors for power generation and distribution. The wire-wound market is benefiting from the development of new technologies such as smart grid systems, electric vehicles, and IoT devices, which require high-quality wire-wound components. With the proliferation of 5G technology and the expansion of communication networks, the demand for wire-wound products in telecommunications equipment is projected to increase significantly.

The Ferrite segment dominated the chip inductor market in 2022. Key factors driving the growth of the Ferrite material market in the chip inductor market include the rising demand for compact and lightweight electronic devices, advancements in wireless technology, and the growing trend of automation in various industries. In 2023, the U.S. Department of Energy (DOE) unveiled funding opportunities totaling up to $150 million to promote environmentally friendly and economically viable methods for producing and refining essential minerals and materials domestically. The rise in government funds or investments is in turn anticipated to drive the market growth. Additionally, the shift towards renewable energy sources such as wind and solar power is also boosting the demand for chip inductors made from ferrite materials. Challenges such as fluctuations in raw material prices, supply chain disruptions, and intense competition among market players may hinder the growth of the Ferrite material market in the chip inductor market. However, technological advancements in material science and manufacturing processes are projected to create opportunities for market growth.

The Multilayer Type chip inductors (1608-3225mm) segment dominated the chip inductor market in 2022. The market for multilayer type chip inductors ranging from 1608mm to 3225mm is experiencing significant growth driven by an increase in demand for electronic devices across various industries. These inductors offer high performance, compact size, and improved efficiency, making them suitable for modern electronic devices. These unique characteristics are making the expansion of the market. According to India Cellular and Electronics Association (ICEA) estimates for 2024, India manufactured 2.45 billion mobile phones over the previous ten years, with the help of government policy initiatives like PLI that attracted international companies and increased domestic production. Currently, 97% of India's need for mobile phones is met locally, and 30% of the country's overall production in the 2024 fiscal year is slated for export, according to the ICEA. The rise in mobile phone production is in turn anticipated to drive the multilayer type chip inductors market.

The Mobile Phones segment dominated the chip inductor market in 2022. The mobile phone market is projected to drive significant growth in the chip inductor market. As demand for smartphones continues to rise globally, the need for advanced chip inductors in mobile devices is increasing. Key trends in the chip inductor market for mobile phones include the growing adoption of advanced technologies such as 5G, IoT, and AI in smartphones, which require smaller, more efficient, and high-performance chip inductors. As of 2022, there were over 107.12 million smartphone users in Japan, accounting for a sizeable share of the population (85%), according to a summary report of the country's mobile economy. The nation's mobile-centric culture and the pervasiveness of smartphone use in daily life are highlighted by this high adoption rate. Additionally, the shift towards wireless charging and improved battery life in mobile devices is also driving the demand for chip inductors that can support these features.

As demand for smartphones continues to rise globally, the need for advanced chip inductors in mobile devices is increasing. Chip inductors play a critical role in the functionality and performance of mobile phones by helping manage power, regulate voltage, and filter signals. Key trends in the chip inductor market for mobile phones include the growing adoption of advanced technologies such as 5G, IoT, and AI in smartphones, which require smaller, more efficient, and high-performance chip inductors. Additionally, the shift towards wireless charging and improved battery life in mobile devices is also driving the demand for chip inductors that can support these features. For instance, in 2024, the U.S. Department of Commerce's CHIPS for America R&D is in charge of managing $11 billion to strengthen American leadership in semiconductor R&D. A key component of President Biden's plan to foster American innovation for many years to come is CHIPS R&D. The market for chip inductors in mobile phones is projected to continue growing in the coming years, presenting opportunities for companies in the semiconductor industry to innovate and develop advanced solutions to meet the demands of mobile device manufacturers.

The proliferation of devices such as smartphones, tablets, laptops, smartwatches, and other IoT devices has led to a surge in the production of these gadgets. This, in turn, has created a higher demand for components like chip inductors which are essential for the functioning of these devices. For instance, in 2024, the US government declared that it would give South Korean semiconductor behemoth Samsung Electronics subsidies worth up to $6.4 billion to increase the company's capacity to produce sophisticated chips at its Texas facility. To ease future supply shortages of semiconductors, the US government already granted incentives of up to $8.5 billion for US chip major Intel and USD 6.6 billion for TSMC. Moreover, the automotive industry is also a key driver for the chip inductor market. Modern vehicles are equipped with a wide range of electronic systems that require chip inductors for power management, signal filtering, and voltage regulation. As the automotive industry continues to evolve with the development of electric and autonomous vehicles, the demand for chip inductors is projected to rise significantly.

The growing trend towards miniaturization in electronic devices is a key driver for the chip inductor market. As electronic devices become smaller and more compact, the demand for smaller and more efficient components, such as chip inductors, increases. Chip inductors are widely used in electronic devices to store and release energy in the form of magnetic fields. They are essential in regulating the flow of current and filtering out noise in electronic circuits. Additionally, the trend toward miniaturization in electronic devices is driving innovation in chip inductor technology. Manufacturers are constantly developing new materials and designs to enhance the performance of chip inductors, such as increasing inductance values, reducing power losses, and improving efficiency. These advancements enable electronic devices to become smaller, faster, and more powerful, further fueling the demand for chip inductors.

Technological advancements in chip inductor designs is the miniaturization of components. As electronic devices become smaller and more compact, there is a growing demand for smaller and lighter components, including chip inductors. Manufacturers have been able to develop chip inductors with smaller footprints and higher inductance values, allowing for more efficient use of space on circuit boards. Another important advancement is the development of new materials and manufacturing techniques. These advancements have enabled chip inductors to achieve higher levels of inductance, better performance at high frequencies, and improved reliability. For example, the use of thin-film technology and multi-layer constructions has allowed for the production of chip inductors with lower DC resistance and higher Q factors. Furthermore, advancements in design software and simulation tools have made it easier for engineers to design custom chip inductors tailored to specific applications. This customization has led to increased performance and efficiency in electronic devices, driving the demand for chip inductors in various industries such as consumer electronics, automotive, telecommunications, and healthcare.

Raw materials used in the production of chip inductors, such as copper, aluminum, and various alloys, often experience price fluctuations due to factors like supply and demand dynamics, geopolitical instability, or currency fluctuations. These price fluctuations can directly impact the manufacturing costs of chip inductors, potentially leading to changes in pricing and profit margins for manufacturers. Sudden price increases or shortages of key raw materials can lead to delays in production and delivery of chip inductors, affecting the overall market demand and competitiveness of manufacturers. The volatile nature of raw material prices introduces uncertainty in planning and forecasting for chip inductor manufacturers. It becomes challenging for companies to predict and manage their production costs effectively, leading to potential risks in inventory management, pricing strategies, and overall business sustainability.

As technology advances, there is a growing demand for smaller and more efficient electronic devices, leading to a higher demand for chip inductors. This has attracted more companies to enter the market, intensifying competition among existing players. The globalization of the electronics industry has made it easier for manufacturers from different regions to enter the chip inductor market. This has increased competition, as companies from low-cost countries can offer competitive pricing, putting pressure on established players. The constant innovation and development of new materials and technologies have led to the introduction of advanced chip inductors with improved performance and efficiency. Companies that fail to keep up with these innovations risk losing market share to competitors who can offer better products. The presence of counterfeit products in the market poses a challenge to legitimate chip inductor manufacturers. Counterfeits not only affect the revenue of genuine manufacturers but also tarnish their reputation, making it harder for them to compete effectively.

Agreements, product launches, partnerships, contracts, expansions, and production capacities are key strategies adopted by players in the chip inductor market. In 2022, the Chip Inductor Market share has been consolidated by the top ten players accounting for 68.80% of the share. Major players in the chip inductor market are TDK, Murata, Taiyo Yuden, Chilisin, Toko, Panasonic, Sumida, Sagami, Sunlord, Microgate, Zhenhuafu, Fenghua and others.

 In 2023, The new PLEA85 series of high-efficiency power inductors from TDK Corporation has been released. These inductors are designed to improve running times for battery-powered wearables and other devices. Because of the innovative low-loss magnetic material and thin-film processing methods developed by TDK, the new series has the lowest profile in the industry.

 In 2023, Samsung has declared that it will start producing linked power inductors—a type of inductor that combines two power inductors into one chip—in large quantities. The corporation wants to get more market share by adding more high-end products to its lineup.