Passives demand: Slow, but steady

By James Carbone -- Purchasing, 12/10/1998

U.S. demand for resistors, capacitors, and other passives electronic components will grow 5% per year through the year 2002, according to a new report by The Freedonia Group.

The overall U.S. passives market will grow from $13.5 billion in 1997 to $17.3 billion, reflecting a slowdown in growth in industrial electronics, motor vehicles, and PCs. The growth rate for the period from 1997-2002 is one percentage point less than the growth rate of 1992-1997.

There will be stronger demand for passives in such applications as intelligent transportation systems, wireless telephony, fiber-optic data transmission, and multimedia. Demand will grow for fiber-optic connectors, multilayer ceramic capacitors RF, and higher-frequency inductors, ferrite microwave components, and surface-mount resistors and resistor networks. Buyers should also expect more integrated passives components which combine several passives in a single package.

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