Countries in the Asia Pacific region like China and India have a huge mobile subscriber base and this growth has happened in the past few years. These countries are continuously driving the development of 5G mobile technologies and this impacts directly the growth of varactor diode market, since these diodes are used in mobile devices, especially the smartphones.
The mobile subscriber base continues to grow in the major countries of the Asia Pacific region, and more and more users are coming online. The increasing range of mobile services such as social media, e-commerce and financial services is also likely to drive the global varactor diode market in a positive manner. In addition, mobile broadband has turned out to be a dominant technology that contributes to half of the total connections across the globe.
Moreover, there is an increasing demand for consumer electronics globally. The consumer electronics market includes smartphones, tablets and electronic gadgets like DVD recorders and players. Due to the increasing demand for such kind of devices, there is a positive impact on the global varactor diode market. Also, the demand for varactor diodes is expected to be driven by emerging consumer electronic technology products during the forecast period.
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| Market statistics | Details |
|---|---|
| H1,2021 (A) | 11.4% |
| H1, 2022 Projected (P) | 10.5% |
| H1, 2022 Outlook (O) | 10.0% |
| BPS Change: H1,2022 (O)-H1,2022(P) | (-) 50 ↓ |
| BPS Change : H1,2022 (O)-H1,2021(A) | (-) 140 ↓ |
According to FMI analysis, H1,2022(O)-H1,2022(P) witnessed a decline of 50 BPS points. Due to the Russian trade sanctions, the satellite market has been hit, due to drop in the flow of necessary resources from Russia and discontinuity of joint space programs.
Exports of electronic components to Russia has also been limited as well. Recently, gold which is an important element used in constructing varactor diodes has been limited due to the sanctions as well, resulting in declining of the market.
Also, H1,2022(O)-H1,2021(A) witnessed a decline of 140 BPS points, due to global disruption in semiconductor supply chains amid COVID-19 pandemic. DVD recorders, which is one of the applications of varactor diode is a shrinking market.
Mobile devices are widely used, however 5G technology, which is foreseen to be a strong driver for varactor diode is yet is to be made commercialized on a large scale. The negative impact which the semiconductor supply chain had to bear, impacted the sales of electronic components which used varactor diodes.
Presently, vendors in the defence industry are primarily focusing on product enhancement and speeding up their research and development process. The growth of varactor diodes or tuning capacitors is directly proportional to the rising use of radars, as radars contain VCOs, and these VCOs ultimately contain varactor diodes. Such kind of radars are often used in several types of military applications, which include military aircrafts, ships and seaports.
For example, in June 2016, Lockheed Martin partnered with Australia Defence Science and Technology (DST) Group. The main objective of this partnership is to develop several enhancements for the over-the-horizon radars, so that they are able to detect small, fast moving objects at night at extremely long ranges. In addition, Lockheed Martin has invested USD 100 Million in defence start-ups to speed up research and development process.
As per the projections given by Future Market Insights, the defence, aeronautics and marine segment in the application category was estimated to be valued at nearly USD 54 Million in 2017 and is likely to reach a valuation of USD 150 Million in 2027, registering a CAGR of 10.1% during the period of assessment 2017 to 2027.
The satellite communication segment in the application category was estimated to be valued at nearly USD 110 Million in 2017 and is anticipated to reach a valuation of nearly USD 260 Million in 2027, displaying a CAGR of 9.3% during the period of forecast.
The DVD recorders segment in the application category was estimated to be valued at nearly USD 60 Million in 2017 and is likely to reach a valuation of nearly USD 140 Million in 2027, registering a CAGR of 8.4% during the period of forecast.
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