Zener Diode Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The zener diode market is expected to witness growth at a CAGR of 6% over the forecast period (2022- 2027).

Key Highlights

• The growing use of electronic devices such as television, mobile devices, electric vehicles, etc., favorably boosts Zener diode market development. Zener diodes are used in voltage regulators, reference elements, surge suppressors, switching applications, and clipper circuits. The adoption of different government efforts on modern power distribution and generating infrastructure are projected to drive the market forward.
• Security, automation, solid-state lighting, transportation, and energy management in industrial equipment are also predicted to fuel the growth of the Zener diode market.
• According to the International Energy Agency (IEA), worldwide sales of electric automobiles had reached 6.6 million in 2021. Electric vehicles accounted for 9% of all vehicle sales worldwide. Zener diodes are used in the cooling fan drive of the Electric Vehicle battery management system. The increase in the use of Electric Vehicles boosts the Zener diode Market.
• COVID-19 has also impacted the global supply chain of major electronic brands. China is one of the largest producers and exporters of various electronics input supplies such as Zener diodes, capacitors, diodes, rectifiers, amplifiers, etc. Due to the continuous production standstill in China, several electronic companies in the United States and Europe have been compelled to halt production manufacturing of finished electronic items like mobile phone adaptors, resulting in a demand-supply gap in electronic products.
• COVID-19 has a temporary impact on the Zener diode market because the production and supply chain was stopped temporarily. Production, supply chains, and demand for Zener diodes are expected to progressively improve as the situation improves.

Key Market Trends

The Automotive Segment is Expected to Drive the Market Growth

• The zener diode market is being influenced by the automobile industry's rising technical improvements. All automobile electrical modules include circuitry to prevent reverse-polarity connections to avoid possible mishaps.
• With the increased adoption of electric vehicles and hybrid vehicles, automotive is one of the rising segments of the Zener diode manufacturing industry. It is expected to have a significant share. Innovations like autonomous car technology, regenerative braking, and the integration of various sensors have raised the demand for Zener diodes. Government rules requiring advanced driver assistance systems (ADAS) have supported this segment's growth further. Electronic components in the automobile sector are vital for safety and are exposed to high voltages and extreme Conditions. As a result, manufacturers have developed a new line of automotive Zener diodes.
• The electric vehicle market is very competitive, and new manufacturers are constantly pushing the boundaries of innovation. Porsche, for instance, built its Taycan with an 800V system, although many modern electric vehicles use 400V batteries. As a result, established automotive component makers are developing Zener diode offerings for the automobile market.
• The use of zener diodes has increased due to the surface-mounted Zener diodes as they are directly installed on a PCB. Furthermore, the increased demand for Zener diodes is due to its rising uses in the telecom industry resulting into an increase in the number of semiconductor production hubs and devices miniaturization.
• In addition, the number of electronic systems in cars has increased significantly over time. Thus, in applications such as battery management, safety systems, lighting, and others, the need for protection to limit interference and potential failures emerges, which may be avoided with the use of zener diodes. As a result, the use of zener diodes in this business has increased significantly.

North America Region is Expected to Register the Fastest Growth

• North America is one of the most important markets for Zener diode because of the region's automotive component and other sectors. Further, the strong presence of leading market vendors is expected to boost the market growth in North America. For instance, ON Semiconductor Corporation, Diodes Incorporated, and D3 Semiconductor LLC are some of the leading market vendors based in this region.
• The semiconductor industry and Zener diode manufacturing rely heavily on the United States for production, design, and research. The region's significance fuels demand for electronic equipment exports as well as increasing growth of end-user sectors that utilize large amounts of Zener Diode, in consumer electronics and automobiles.
• According to International Trade Association(ITA), over 82% semiconductors consist of direct US exports and sales by US-owned subsidiaries overseas and take into account US-based R&D, creation of intellectual property(IP), design, and other high-value-added work. While the region occupies a share of around 22% in the overall semiconductor market, it has over 10% share in the discrete semiconductor market, according to World Semiconductor Trade Statistics (WSTS) organization.
• According to World Semiconductor Trade Statistics, in 2021, the global semiconductor industry, including zener diodes, sales were 556 USD billion, increased 26.2% from year 2020. The Sensors and Discrete Semiconductors including zener diodes have a 28% increase, followed by Memory 30.9% and Logic 30.8%. The Analog category accounted for a 33.1% growth rate.
• Due to Covid-19 pandemic, plant closures or underutilization of production facilities may result in order reductions and, as a result, delays in sales. Zener diode manufacturing companies with significant sales exposure to Apple, Qualcomm Inc., and Broadcom Inc. might be impacted in the short run. Overall, powerful electronics and Zener diode manufacturing firms like Texas Instruments drive the Zener diode manufacturing industry in the area, with end consumers from numerous sectors such as consumer electronics and automotive parts. Demand is fueled by consumer demand throughout the region.

Competitive Landscape

The global Zener diode market is highly fragmented, with numerous Zener diode manufacturers providing the products. The companies are continuously investing in the product and technology to promote sustainable environmental growth and prevent environmental hazards. The major companies are also acquiring other companies that specifically deal with these products to boost their market share.

• January 2022 - Nexperia has announced a wide range of low-current voltage regulator diodes. The 50 µA Zener diode comes in three distinct surface-mountable (SMD) package variants, ultra-small Discretes Flat No-leads (DFN) packaging, and AEC-Q101 approved components giving consumers the more options and flexibility. These diodes are ideal for low-bias and portable battery-powered devices and specified at a low test current (50 μA) and used in mobile, wearable, automotive, and industrial applications.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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