Varactor Diodes – Critical in Wireless Technology
The exponential growth in the electronics industry has created significant opportunities for a host of component manufacturers. Varactor diode manufacturers have also seen demand increasing steadily in the recent past; however, reliance on quantity alone may not suffice in the long run. As devices becoming smarter and high-tech, varactor diode manufacturers are staring at a future where legacy components may become obsolete. To sustain and succeed, development of new products, through rigorous research and development, will be the key. Transparency Market Research (TMR) in its latest study, analyzes these global varactor diode market comprehensively, offering readers rare insights and analysis on how demand will evolve in the future.
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Increasing Applicability of Varactor Diodes
The proliferation of smart devices has necessitated the need for smarter components used in the manufacturing of these devices. Component manufacturers are being hard-pressed to develop and enhance the working of varactor diodes, as they play a significant role in providing the desired capacitance changes. Device manufacturers are looking for diodes that are reliable, incur lesser cost, and generate low noise—varactor diodes more or less satisfy these requirements. Driven by their growing applicability, the varactor diode market is likely to cross US$ 800 million by the end of 2027.
The adoption of varactor diodes has substantially increased in the aerospace and defense industry too. Varactor diode manufacturers are aware of the growing opportunities, and it is highly likely that demand from aerospace and defense will translate into a larger revenue share than it does currently.
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Reverse Bias Mode Continues to Impede Pervasive Adoption
Varactor diodes mainly work on the reverse bias mode. As such, their application is limited in a few industries. On the other hand, ordinary diodes work on the forward bias mode, allowing them to have a wide range of industrial applications. Owing to this fact, varactor diode manufacturers have limited scope in which to experiment, which also limits their scope of innovation. This, in turn, is obstructing the growth of the global varactor diode market.
Adoption of 5G Technology to Influence the Smarter Adoption of Varactor Diodes
The semiconductor industry is keenly observing the broader developments in wireless and 5G technology. The massive investments in these technologies has already created significant opportunities for semiconductor industry in general, and varactor diode manufacturers in particular. In a bid to capitalize on these opportunities, strategic partnerships, mergers, and acquisitions are in the offing.
Recently, Movandi and NXP Semiconductors N.V. entered into a strategic partnership to collectively work on millimeter wave solutions for 5G networks. With this initiative, they will collectively deliver high-performance 5G solutions and wireless communication infrastructure for applications such as smart homes, self-driving cars, and mobile cloud-based services.
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Skyworks Solutions, Inc., another prominent player in the global varactor diode market, entered into a collaboration with MediaTalk Incorporated to deliver a standard-based 5G solution.
China and India at the Forefront of Demand
Growing demand for smartphones in China and India continue to drive demand for varactor diodes. Based on recent studies, the number of mobile phone users in Asia Pacific is projected to cross 2.8 billion by the end of 2019. Increasing Internet penetration and disposable income have meant that demand for smartphones is not going to subside anytime soon—a critical factor that can ensure sustained demand for varactor diodes in the region.
Duality in the Varactor Diode Market Structure
In the global varactor diode market, the competition seems moderately consolidated, as leading players in this market hold more than 50% share. However, in the coming years, the market may experience a fragmented nature due to the emergence of prominent and new players.
Key players in the market are focusing on organic and inorganic strategies that create a dynamic competitive landscape in the global varactor diode market. Innovation and geographic expansion are also some of the key focus points of players in the market. For example, Skyworks Solution Inc. acquired Avnera Corporation to expand its leadership in wireless connectivity solutions. With this acquisition, Skyworks intends to capitalize on the rapid proliferation of audio functionality and its convergence with advanced connectivity solutions.
Another example is of Infineon Technologies AG, which recently expanded its development site in Liz, Austria. With this expansion, the company will offer room for around 400 employees. Further, it will strengthen its research and development efforts in the area of high-frequency components. The company’s R&D mainly focuses on 77GHzradar chips for driver assistance systems.
Analyst Take On Varactor Diode Market Growth
Analysts of this report opine that, the global varactor diode market will experience significant growth in the coming years. The rising focus on 5G technology has opened numerous opportunities in the varactor diode market. Owing to these developments, the varactor diode market promises to stand at a higher revenue base of more than US$ 800 million by the end of 2027. Additionally, Asia Pacific and North America are likely to remain the key markets for varactor diode manufacturers, due to the high population base and development of advanced technologies, respectively. The emergence of new entrants in the market is further contributing to the diversifying growth of the varactor diode market.
Global Varactor Diode Market: Overview
A varactor diode is a semiconductor device that operates in a reverse-bias mode. A diode whose internal capacitance varies according to variations in the reverse voltage is known as a varactor diode. In a voltage-dependent device, the output of the diode depends upon the input voltage. A Varactor diode is also called a varicap diode, voltage-variable capacitance, or tuning diode. Varactor diodes are largely used in applications wherein variable capacitance is required. The global varactor diode market is anticipated to expand at a CAGR of more than 6.5% between 2019 and 2027, and reach value of more than US$ 800 Mn by the year 2027.
Varactor diodes are largely used in the filters and tuning circuits of various electronic devices such as mobile phones, TV sets, FM radios, and satellite communication equipment. These diodes are also extensively utilized in wireless system infrastructure. They play a key role in the operation of 5G technology. Varactor didoes enhance the linearity function for the high-speed applications of 5G technology. With the implementation of 5G technology and the growing use of varactor diodes in tuning circuits, the varactor diode market is estimated to expand at a significant pace during the forecast period.
The demand for varactor didoes for use in consumer electronics products such as mobile phones, TV sets, FM radios, and satellite communication equipment; and in their circuits, such as voltage-controlled oscillators, RF filters, and automatic frequency controls; is rising. This factor is expected to provide lucrative opportunities to the global varactor diode market during the forecast period. Since semiconductors form an integral part of electronic and computing products, the boom in the consumer electronics industry and the high consumption rate of mobile phones and TV sets are also driving the global varactor diode market.
Varactor diodes offer several advantages over other types of diodes. A varactor diode operates in the reverse-bias mode. In this mode, a varactor diode operates at up to 20 volts. Some diodes can operate at up to 60 volts too. Some of the key characteristics of varactor diodes are reliability (varactor diodes are more reliable than other p–n junction diodes), low noise (varactor diodes generate less noise than other diodes), low power consumption, portability (varactor diodes are small in size and easy to carry), and low price.
The global varactor diode market has been segmented based on product, end-use industry, and region. In terms of product, the varactor diode market has been classified into mobile phones, TV sets, FM radios, satellite communication, and others. The mobile phone segment dominated the market in 2018, due to the increasing consumption of mobile phones with varactor didoes being used in their circuits.
In terms of end-use industry, the global varactor diode market has been divided into consumer electronics, automotive, aerospace & defense, and others. The consumer electronics segment is expected to dominate the market during the forecast period, due to the increasing adoption of consumer electronic devices such as mobile phones, TV sets, and FM radios.
In terms of region, the global varactor diode market has been segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa. Asia Pacific accounted for a major share of the global market in the year 2018. The varactor diode market in the region is driven by the strong presence of key players and high rate of adoption of consumer electronic devices in the region.
Attracted by the anticipated growth of the global varactor diode market and underlying latent demand, several players are expanding their businesses through strategic mergers and acquisitions, as well as partnerships. Some of the prominent players operating in the global varactor diode market are NXP Semiconductor, Skyworks Solution Inc., Infineon Technologies AG, Microsemi Corporation, MACOM Technology Solutions Holdings, Inc., Toshiba Corporation, On Semiconductor, ST Microelectronics, ASI Semiconductor Inc., and Murata Manufacturing Co., Ltd.
Transparency Market Research published a new report on the global varactor diode market. The varactor diode market report provides a comprehensive analysis of the growth of the varactor diode market, along with the crucial factors influencing the growth of this market over the projected period of 2019 and 2027. The report gives key insights into the growth of the varactor diode market, which will assist market participants in making smarter decisions based on systematic analysis.
With key focus on the drivers, trends, opportunities, and threats (DROTs), researchers have mostly covered key pointers affecting the growth of the global varactor diode market. Moreover, to provide a clear perspective on varactor diodes, data accumulation and analysis has been carried out across the globe. Information from specific regions is presented in detail with respect to value (US$ million) and volume (‘000 units).
Thorough research on the service providers and suppliers has contributed to framing a clear outline on the supply side of the varactor diode market. Additionally, macroeconomic and microeconomic analysis is also presented, thus making the varactor diode market report more authentic and reliable. This holistic approach toward understanding the growth of the varactor diode will allow readers to be clear about the developments and strategic implications taking place in this market.
Varactor Diode Market: Segmentation
The segments mentioned in the varactor diode market report gives a concise overview of the key pointers influencing the growth of the varactor diode market. Recent developments and trends that are supporting the growth of the varactor diode market based on these categorizes are elaborately mentioned in the report. On similar grounds, other information crucial for market and segment understanding has also been elucidated in the varactor diode market report.
Key Questions Answered
- What are key development strategies used by players operating in the global varactor diode market?
- What are the regional strategies used by industry participants to market their presence in a particular region?
- How will revenue generation impact the decision-making of players?
- What are the new trends affecting the growth of the varactor diode market?
- Based on product type, which product holds the maximum share in the varactor diode market in relation to the ongoing trends?
- How has the aerospace and defense industry opened new avenues for the growth of the varactor diode market?
Varactor Diode Market: Research Methodology
To get complete information on varactor diodes, researchers of this report have opted for a bottom-up and top-down approach. The bottom-up approach gives access to the numbers for each product, and the top-down approach helps in counter-validating those numbers with end-use market numbers. The figures mentioned in the report are equally justified along with examples as per need. It also helps in creating clear knowledge about the market, and as to what rate it is expected to grow in the next six to seven years.
Firstly, primary research was conducted to form a strong foundation and understanding of the growth of the varactor diode market. For this, analysts conducted discussions and one-on-one interviews with researchers, CEOs, brand managers of companies, regional operators of companies, and others. For the secondary research, data was accumulated from annual reports of the players, government and company websites, industry association data (semiconductor industry association, global semiconductor alliance, and others), equity research reports, and marketing collaterals. Studies through white papers and blogs were also included.
Key players are given equal importance to develop a clear understanding of the ongoing competition in the varactor diode market. Prominent players operating in the varactor diode market include:
- NXP Semiconductor
- Skyworks Solution Inc.
- Infineon Technologies AG
- Microsemi Corporation
- MACOM Technology Solutions Holdings, Inc.
- Toshiba Corporation
- On Semiconductor
- ST Microelectronics
- ASI Semiconductor Inc
- Murata Manufacturing Co., Ltd