Why Electronics Manufacturers are Turning to IPDs

 

The global integrated passive devices (IPDs) market is entering a transformative era as semiconductor innovation, 5G adoption, and the Internet of Things (IoT) reshape the landscape of modern electronics. Valued at US$ 1.5 billion in 2024, the industry is projected to grow at a CAGR of 7.0% from 2025 to 2035, reaching US$ 3.2 billion by the end of 2035.

As technology becomes increasingly compact and powerful, IPDs have emerged as a critical enabler of performance, efficiency, and integration across industries ranging from consumer electronics to automotive and healthcare.

 

Miniaturization Meets High-Performance Demands

The semiconductor industry is in the middle of rapid change, driven by miniaturization requirements and performance enhancement. Integrated passive devices, which combine multiple passive components like resistors, capacitors, and inductors into a single chip, are at the heart of this transformation.

According to analysts, the IPD market is poised for long-term expansion due to:

• The 5G revolution, which requires ultra-thin, high-density components for fast, reliable connectivity.
• The IoT boom, with billions of connected devices driving demand for power-efficient, compact semiconductor solutions.
• Growing reliance on consumer electronics such as smartphones, wearables, and smart home devices.

Asia-Pacific is expected to lead growth, buoyed by its strong semiconductor manufacturing base and rising electronics production. Meanwhile, North America continues to dominate in market share thanks to advanced R&D and its robust ecosystem of high-tech industries.

 

Integrated Passive Devices Market Overview

IPDs are used in RF systems, power management, and signal conditioning for high-frequency and compact electronic circuits. Their advantages include:

• Reduced parasitic effects
• Enhanced electrical performance
• Lower manufacturing and operational costs

These benefits make IPDs indispensable in consumer electronics, telecommunications, medical devices, and automotive systems, where efficiency and size constraints are paramount.

 

Key Market Drivers

1. Rising Demand for Miniaturization in Consumer Electronics

With the relentless push for slimmer, smarter, and more efficient consumer electronics, IPDs are becoming essential. System-in-Package (SiP) designs and 5G-enabled devices rely heavily on IPDs to improve signal integrity, lower power consumption, and enhance EMI shielding.

The IEEE highlights how IPDs are central to meeting miniaturization trends in smartphones, wearables, and IoT technologies. Global leaders such as TSMC and STMicroelectronics have already upgraded silicon-based IPD technologies, paving the way for broader adoption.

2. Demand for Power-Efficient, High-Density Solutions in IoT and Industrial Applications

The proliferation of IoT and industrial automation is another catalyst. By 2030, the International Telecommunication Union (ITU) estimates there will be nearly 29.4 billion connected devices, creating massive demand for small, power-efficient IPDs.

For example, STMicroelectronics’ launch of new RF IPDs in 2023 highlights how industry leaders are innovating to serve 5G and automotive applications. Similarly, global semiconductor revenues reached US$ 627.6 billion in 2024 (Semiconductor Industry Association), underlining the dependence on advanced semiconductor solutions like IPDs.

 

Substrate Analysis: Silicon Leads the Way

Among substrates—silicon, glass wafer, ceramic, and others—silicon IPDs dominate with an 84.8% market share in 2024. Silicon is preferred due to:

• Better miniaturization and high integration
• Superior electrical performance
• Compatibility with next-gen technologies like 5G, IoT, and automotive electronics

With advancements in RF communication, AI-powered electronics, and smart sensors, silicon IPDs are set to remain the backbone of miniaturized semiconductor solutions.

 

Regional Outlook

• North America (27.8% share in 2024): Leads globally due to strong semiconductor R&D, advanced telecom infrastructure, and investments in automotive electronics and defense technologies.
• Asia-Pacific: Expected to be the fastest-growing region, fueled by strong demand for consumer electronics, 5G infrastructure development, and robust manufacturing ecosystems in China, Japan, South Korea, and India.
• Europe: Growing adoption of IPDs in automotive (EVs, ADAS, and V2X systems) and healthcare technologies supports steady expansion.

 

Competitive Landscape

The IPD market is highly competitive, with global leaders and emerging start-ups driving innovation. Key players include:

• STMicroelectronics N.V.
• Murata Manufacturing Co., Ltd.
• Broadcom Inc.
• Infineon Technologies AG
• NXP Semiconductors
• Texas Instruments Incorporated
• X-FAB Silicon Foundries SE

These companies focus on strategic mergers, acquisitions, and R&D investments to enhance their product portfolios. Start-ups are also entering the field, particularly in AI and IoT-based IPD solutions, creating a dynamic and competitive market.

 

Recent Industry Developments

• Infineon (Aug 2024): Expanded its CoolGaN Drive family, enhancing efficiency and reducing costs for applications like e-bikes and power tools.
• X-FAB Silicon Foundries SE (Sept 2023): Added new IPD fabrication capabilities, strengthening its RF expertise.
• STMicroelectronics (Feb 2023): Launched nine RF IPDs for antenna impedance matching and harmonic filtering, optimized for STM32WL wireless microcontrollers.

These innovations underscore the market’s trajectory toward smaller, faster, and more power-efficient solutions.

 

Conclusion: The Future of IPDs

The integrated passive devices market is on track to more than double in size by 2035, reaching US$ 3.2 billion. As the demand for miniaturized, power-efficient, and high-performance electronics grows, IPDs will play a pivotal role across industries.

From 5G and IoT connectivity to automotive electronics and healthcare devices, IPDs are shaping the foundation of tomorrow’s digital world. With silicon substrates leading the way and Asia-Pacific emerging as the growth engine, the next decade will see IPDs cement their position as the backbone of semiconductor innovation.