North America General Electronic Component Market Outlook, 2030

The North American general electronic component market encompasses a wide array of components, including semiconductors, capacitors, resistors, diodes, transistors, and connectors, all of which are foundational to industries such as telecommunications, automotive, consumer electronics, aerospace, and healthcare. The region, particularly the United States, remains a global leader in electronic component innovation due to its strong R&D infrastructure, well-established manufacturing base, and growing demand for smart and connected devices. Innovation in the market is increasingly oriented around miniaturization, energy efficiency, and integration of AI and IoT capabilities.

For example, the rise of electric vehicles (EVs) and autonomous driving has led to a surge in demand for advanced power electronics, sensors, and microcontrollers. Manufacturers are focusing on developing components that can handle higher power densities, perform reliably under extreme conditions, and offer enhanced connectivity. In 2023, STMicroelectronics introduced power-efficient microcontrollers, reducing energy consumption by 50% for IoT applications. Over 90% of smart home devices launched in 2024 now feature low-power AI chips, enhancing real-time processing efficiency by 65%.

Modern designs are increasingly influenced by factors such as space-saving configurations, material innovation like gallium nitride (GaN) and silicon carbide (SiC) for semiconductors, and the integration of wireless communication technologies. Additionally, there is a growing focus on environmental concerns, with companies investing in components that support lower carbon footprints and comply with green manufacturing standards.

Moreover, the United States-Mexico-Canada Agreement (USMCA) has streamlined cross-border trade of electronic goods, bolstering regional cooperation and market fluidity. Security concerns, especially with the growing integration of digital technologies, have prompted regulations around cybersecurity standards for electronic hardware, particularly in sectors like defense and healthcare.

According to the research report "North America General Electronic Component Market Outlook, 2030," the North America General Electronic Component market is anticipated to grow at more than 6.07% CAGR from 2025 to 2030. The increasing demand for smart and miniaturized electronic devices is revolutionizing the tech industry. These compact gadgets, often equipped with powerful processing capabilities and wireless connectivity, are driving innovations in fields such as IoT, wearables, and consumer electronics. As consumers seek more portable and efficient solutions, manufacturers are focusing on creating smaller yet smarter devices to meet the evolving needs of the modern world.

For instance, Texas Instruments continues to lead in analog and embedded processing technologies, while Intel is advancing semiconductor capabilities for next-generation computing and AI. Additionally, TE Connectivity and Molex are leaders in connectivity solutions, supporting the growing demand for high-reliability connectors in harsh environments like automotive and aerospace applications. These companies are leveraging AI, machine learning, and advanced materials to enhance the performance, durability, and efficiency of their components. Initiatives such as the U.S.

CHIPS and Science Act have pumped billions into semiconductor and component manufacturing, reducing dependency on foreign supply chains and encouraging the reshoring of production facilities. In 2023 Vishay Intertechnology, Inc. launched its new manufacturing facility in Mexico to mass-manufacture power inductors, small electronic components for computers, handheld devices, automotive electronics, and other applications.

Moreover, the integration of renewable energy solutions and smart grid infrastructure is creating new avenues for component application, especially in power electronics and sensors. The proliferation of IoT (internet of things) devices is reshaping our interconnected world. With their ability to collect, transmit, and analyze data in real-time, IoT devices are revolutionizing industries such as healthcare, transportation, agriculture, and manufacturing.

Market Drivers

• Growth in Consumer Electronics and IoT Devices: The increasing adoption of smart devices such as smartphones, wearables, and home automation systems is a major driver for the electronic component market in North America. Consumers are demanding smaller, faster, and more energy-efficient devices, which directly drives the need for advanced semiconductors, microcontrollers, and passive components. The proliferation of the Internet of Things (IoT) further expands this demand, as more devices - from home assistants to industrial sensors - require embedded electronic components to function. As these products become more integrated into everyday life, the market continues to grow rapidly.
• Expansion of Electric Vehicles (EVs) and Renewable Energy: The push toward clean energy and electric mobility is significantly boosting the demand for electronic components in North America. Electric vehicles, for instance, use a wide range of components including power semiconductors, sensors, and advanced battery management systems. Similarly, renewable energy installations like solar and wind require complex electronic systems for energy conversion, storage, and grid integration. Government incentives and environmental regulations in the U.S. and Canada further accelerate these sectors, contributing to the rising consumption of electronic components.

Market Challenges

• Supply Chain Disruptions and Component Shortages: Despite strong demand, the North American electronic component market faces persistent challenges due to global supply chain disruptions. Shortages of critical components such as semiconductors have led to production delays across industries, from automotive to consumer electronics. These issues have been compounded by geopolitical tensions, logistics bottlenecks, and dependencies on overseas manufacturing. Companies in North America are now exploring strategies like nearshoring and vertical integration to mitigate these risks, but the recovery remains slow and uneven.
• High Competition and Price Volatility: The market is highly competitive, with numerous players ranging from global giants to regional manufacturers. This competition can lead to price pressures, reducing profit margins, especially for smaller firms. Moreover, raw material costs (e.g., for silicon, copper, and rare earth elements) are volatile and can fluctuate based on global demand, trade restrictions, and environmental policies. Such unpredictability makes it challenging for manufacturers to maintain consistent pricing and profitability, especially in long-term contracts.

Market Trends

• Miniaturization and Integration of Components: There is a growing trend toward the miniaturization of electronic components to meet the demand for smaller and more powerful electronic devices. Technologies like System-on-Chip (SoC), Multi-Chip Modules (MCM), and 3D packaging are gaining traction, allowing more functionality to be packed into smaller spaces. This trend is particularly influential in sectors like medical devices, aerospace, and mobile computing, where space and weight constraints are critical.
• Shift Toward Smart and Connected Infrastructure: The rise of smart cities, autonomous vehicles, and Industry 4.0 is driving the demand for more sophisticated electronic components. Sensors, wireless communication modules, and real-time data processing units are becoming standard in everything from traffic systems to industrial robotics. North America, with its robust R&D environment and investments in digital transformation, is at the forefront of this trend, encouraging manufacturers to innovate and produce high-performance, intelligent components.

The moderate growth of electromechanical components in North America’s general electronic component industry is primarily driven by the increasing integration of automation and smart technologies across manufacturing, automotive, and consumer electronics sectors.

Electromechanical components - such as relays, switches, connectors, and actuators - play a critical role in enabling machines and electronic systems to interact with physical processes, which is fundamental for automation and smart device functionality. In manufacturing, the push towards Industry 4.0 has accelerated demand for electromechanical parts as factories increasingly implement robotics, automated assembly lines, and smart sensors to improve efficiency, reduce labor costs, and enhance precision. Similarly, the automotive industry is undergoing a major transformation with the growth of electric vehicles (EVs) and advanced driver-assistance systems (ADAS).

These technologies rely heavily on electromechanical components to manage complex electrical and mechanical interactions within vehicles, such as battery management systems, powertrain controls, and safety features. Moreover, the consumer electronics sector is also contributing to growth as smart home devices, wearable technology, and IoT (Internet of Things) gadgets become more widespread. These products require reliable electromechanical parts to ensure durability and functionality in compact, integrated designs.

The North American region benefits from strong technological innovation hubs, well-established manufacturing infrastructure, and significant investment in R&D, which supports steady advancements in electromechanical component technology. Additionally, the push for energy efficiency and sustainability in electronics encourages the development of more sophisticated and reliable electromechanical solutions, fostering gradual market expansion.

The healthcare end-user segment is rapidly growing in North America’s general electronic component industry due to the increasing demand for advanced medical devices and digital health technologies driven by an aging population and the rising focus on healthcare innovation.

The healthcare sector in North America is experiencing rapid growth in the consumption of general electronic components largely because of the expanding use of sophisticated medical devices and digital health technologies. As the population ages, there is an increasing prevalence of chronic diseases and a greater need for continuous patient monitoring, diagnostics, and treatment solutions. This demographic shift has driven healthcare providers and manufacturers to invest heavily in innovative medical equipment, such as wearable health monitors, imaging systems, diagnostic tools, and telemedicine devices, all of which depend heavily on high-quality electronic components.

The integration of advanced electronics into healthcare systems is essential for improving patient outcomes by enabling real-time data collection, precise diagnostics, and minimally invasive treatments. Moreover, the COVID-19 pandemic has accelerated the adoption of remote healthcare services and digital health platforms, further increasing the demand for electronic components that power telehealth devices, portable medical equipment, and hospital automation systems. North America, being home to some of the world’s leading medical technology companies and research institutions, benefits from continuous innovation and rapid commercialization of cutting-edge healthcare electronics.

These innovations often require complex, miniaturized, and highly reliable components such as sensors, microcontrollers, connectors, and power management devices. Additionally, stringent regulatory standards in the healthcare industry necessitate the use of high-quality, durable electronic components, which drives demand for advanced manufacturing processes and specialized components that can ensure device safety and reliability.

The OEM (Original Equipment Manufacturer) sales channel leads in North America’s general electronic component industry because OEMs directly integrate electronic components into their products, ensuring a consistent and high-volume demand driven by large-scale manufacturing across key sectors like automotive.

The dominance of the OEM sales channel in North America’s general electronic component industry is primarily due to the direct relationship OEMs maintain with component manufacturers and their role in producing finished goods that require large quantities of electronic parts. OEMs are manufacturers who design and assemble end products such as automobiles, industrial machinery, consumer electronics, and medical devices, all of which depend heavily on a steady supply of reliable electronic components. This close integration allows OEMs to specify precise technical requirements, ensuring that components meet rigorous quality, performance, and regulatory standards.

As a result, OEMs often enter into long-term supply agreements with component manufacturers, fostering steady, high-volume sales that drive significant market share within the region. North America’s strong industrial base, which includes leading automotive manufacturers, aerospace firms, and advanced electronics producers, further reinforces the OEM channel’s leadership position. For instance, the automotive industry’s shift towards electric vehicles (EVs) and smart, connected cars has led to increased demand for specialized electronic components such as sensors, microcontrollers, and power management devices, which OEMs directly source from suppliers.

Additionally, industrial automation and smart manufacturing trends also contribute to growing electronic component usage in equipment produced by OEMs. OEMs benefit from their ability to influence supply chain management, negotiate pricing, and ensure component compatibility with their product designs, making this channel more efficient and predictable compared to distributors or aftermarket channels. Furthermore, the rise in consumer electronics and healthcare devices manufactured by OEMs in North America drives consistent demand for advanced electronic components, solidifying their market leadership.

The USA leads the North American General Electronic Component industry due to its advanced technological innovation, strong R&D ecosystem, well-established supply chains, and significant investment in high-value manufacturing and semiconductor capabilities.

The United States maintains its leadership position in the North American General Electronic Component (GEC) industry primarily because of its unparalleled strength in technological innovation and research and development (R&D). The country is home to some of the world’s most advanced technology companies and research institutions, which continuously drive the creation of cutting-edge electronic components essential for diverse sectors such as aerospace, defense, automotive, telecommunications, and consumer electronics.

This innovation ecosystem enables U.S.-based companies to produce highly sophisticated and specialized components that often serve as critical inputs for complex electronic systems, ensuring their competitive edge in global markets. Furthermore, the U.S. benefits from a deeply integrated and well-established supply chain network that supports efficient production and distribution of electronic components across North America. This includes strong partnerships between component manufacturers, semiconductor fabricators, equipment suppliers, and end-user industries.

The country’s infrastructure - comprising modern logistics, transportation networks, and advanced manufacturing facilities - facilitates quick turnaround times and reliable delivery schedules, which are crucial for meeting the fast-paced demands of technology-driven markets. The U.S. government, along with private industry, has increasingly prioritized the revitalization and expansion of domestic semiconductor manufacturing through initiatives like the CHIPS Act, which supports research, development, and production capabilities. This focus not only secures the supply of critical components within the country but also fosters innovation and resilience against global supply chain disruptions.

Considered in this report

• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• General Electronic Component Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type

• Active Components
• Passive Components
• Electromechanical Components

By End-use Industry

• Electronics Manufacturing
• Consumer Electronics
• Telecommunications
• Automotive
• Industrial Machinery
• Healthcare
• Aerospace & Defense
• Others

By Sales channel

• OEMs
• Aftermarket

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.