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The global crystal oscillator market generated revenue of US$ 20,331.7 million in 2022, and it is estimated to reach US$ 35,808.0 million by 2031, at a CAGR of 5.53% during the forecast period, 2023-2031.
The global crystal oscillator market is driven by the increasing demand for electronic devices that require precise and stable frequency signals. Crystal oscillators provide highly accurate frequency signals that are crucial for various applications such as telecommunications, consumer electronics, and aerospace and defense. The growth of the market is also fueled by the emergence of advanced technologies such as IoT, AI, and 5G, which require high-frequency stability and precision timing.
The market is also witnessing a rise in demand for miniaturized crystal oscillators that can be integrated into small electronic devices. This trend is driven by the increasing adoption of wearable devices, smart homes, and connected cars, which require compact and energy-efficient components.
Moreover, the increasing adoption of automation and digitalization in various industries is also driving the demand for crystal oscillators. These oscillators are widely used in industrial automation systems, medical equipment, and instrumentation, among others, to provide accurate timing and synchronization.
The Asia-Pacific region is expected to witness significant growth during the forecast period, owing to the presence of a large number of electronic manufacturers in countries such as China, Japan, and South Korea. The region is also witnessing a rise in demand for consumer electronics and automotive applications, which is further fueling the growth of the market.
Key Dynamics of Crystal Oscillator Market
Growing Demand for Consumer Electronics
The growing demand for consumer electronics is a major driver of the global crystal oscillators in consumer electronics market. The consumer electronics market includes products such as smartphones, laptops, tablets, smartwatches, and smart home devices, which are increasingly being used in our daily lives.
Crystal oscillators are a critical component in many of these electronic devices, where they are used for timing and frequency control applications. For example, crystal oscillators are used in smartphones to generate a stable clock signal that controls the timing of various functions, such as the display, touchscreen, camera, and wireless communication. In smartwatches, crystal oscillators are used to keep accurate time, and in smart home devices, they are used for timing and control applications.
Rapid Advancements in Technology
The advancements in technology are also driving the demand for crystal oscillators in consumer electronics. With the advancement of technology, crystal oscillators are becoming more precise, compact, and energy-efficient.
For example, the development of surface mount technology (SMT) has enabled crystal oscillators to be manufactured in smaller and more compact sizes, making them ideal for use in portable devices such as smartphones and laptops. Additionally, advancements in manufacturing techniques have enabled crystal oscillators to be produced at lower costs, making them more accessible to consumers.
Moreover, the development of micro-electromechanical systems (MEMS) technology has led to the emergence of MEMS-based crystal oscillators, which offer several advantages over traditional quartz-based crystal oscillators, including higher shock resistance, lower power consumption, and improved stability. The growing adoption of MEMS-based crystal oscillators in consumer electronics is expected to drive the growth of the global crystal oscillator market in the coming years.
Rapidly Intensifying Competition and Presence of Alternatives to hamper Global Crustal Oscillator Market Growth
The market is highly competitive, with numerous players offering similar products, which has led to price wars and reduced profit margins. This is further affected by the presence of several established players in the market has made it challenging for new entrants to gain a foothold. Established players have significant advantages such as economies of scale, established supply chains, and brand recognition, making it difficult for new players to compete effectively.
Furthermore, the increasing availability of low-cost alternatives such as silicon-based oscillators and temperature-compensated crystal oscillators (TCXOs) has led to a shift in consumer preferences away from traditional quartz-based crystal oscillators. This has resulted in reduced demand for quartz-based crystal oscillators, leading to a decline in sales and revenue for manufacturers. In addition, the increasing trend towards miniaturization and integration of electronic components has led to a decrease in the size of crystal oscillators, making it more challenging for manufacturers to differentiate their products from those of their competitors.
The Temperature-Compensated Crystal Oscillator (TCXO) is currently dominating the market with the highest share of US $1020.2 Million in 2022 and a CAGR of 5.87%. One of the main reasons for this dominance is the availability of a wide range of TCXOs in different frequencies, supply voltages, and packaging options. Distributors frequently stock these components, making it easier to incorporate them into various designs for RF circuits.
A temperature-compensated crystal oscillator has a temperature-sensitive reactance circuit in its oscillation loop to account for the crystal unit's frequency-temperature characteristics. There are two categories of TCXOs: Direct-Type and Indirect-Type. The Direct-Type TCXO includes a temperature compensation circuit in its oscillation loop, while the Indirect-Type has a temperature compensation circuit outside the oscillation loop, allowing for indirect control of the oscillation frequency.
During the forecast period, the AT Cuts are expected to capture the largest market share with a CAGR of 5.81%. This growth is due to the AT cut being the most commonly used cut, especially in electronic instruments and other applications where oscillators must operate between 500 kHz and 300 MHz. As technology advances, the maximum frequency is increasing, but the top frequencies frequently operate in an overtone mode due to the crystal becoming extremely thin at high frequencies.
A crystal oscillator generates an electrical signal that repeats at a precise frequency by utilizing the crystals' piezoelectric and resonant properties. When an electrical potential is applied to a crystal, electrical stress results in a brief vibration. Amplifying the resulting electrical signal and feeding it back into the crystal yields sustained resonance. This procedure produces an extremely stable and temperature-independent electrical oscillator.
By Mounting Scheme
Surface Mount is expected to hold the largest market share of the Crystal Oscillator Market during the forecast period with a CAGR of 5.77%. This is because any device that is packaged in a way that makes it possible for the leads to be soldered directly onto the pads on the surface of a circuit board is known as a Surface Mount Device (SMD).
By Industry Vertical
IT & Telecommunication is anticipated to hold the largest market share with a CAGR of 5.93% during the forecast period due to their persistent expanding need for more reduced media transmission parts with low power utilization and cost effectiveness. This demand is served by serious Research and Development exercises in the gem oscillator market. Among all the crystal oscillators, oven-controlled crystal oscillators have the highest frequency stability and are best suited for use in telecommunications.
However, si-MEMS oscillators, particularly oven-controlled crystal oscillators, have lower frequency stability than crystal oscillators. As a result, the impact of this factor is expected to gradually diminish as major players in the crystal oscillator market continuously conduct extensive R&D to produce crystals with improved frequency stability and a smaller body size.
Asia Pacific is expected to hold the largest market share of the Crystal Oscillator Market during the forecast period with a CAGR of 6.02%. The region's market expansion is primarily due to the increasing demand for various consumer electronics, such as smartphones, tablets, and wearables, which require crystal oscillators. Additionally, the adoption of various industrial solutions in the regional automotive industry and necessary government support are contributing to the market's growth in the region.
China is one of the largest and fastest-growing markets for crystal oscillators globally, owing to its strong position in consumer electronics, semiconductor, and other telecommunications device and equipment manufacturing. The country is also the largest consumer and producer of crystal oscillators globally. With the rising adoption of smart city projects and the increasing deployment of 5G networks, the demand for crystal oscillators in China is expected to grow significantly during the forecast period.
Japan is one of the significant purchasers of voltage-controlled oscillators in the Asia-Pacific region, owing to its advanced technology and the presence of major electronic equipment manufacturers in the country. The growing adoption of VCOs in the production of electronic music devices and the increased level of production of electronic devices as a result of rising market competition are among the primary drivers of this growth. Additionally, the increasing demand for crystal oscillators in the automotive industry for applications such as GPS and infotainment systems is expected to further drive the market's growth in the country.
North America and Europe are also significant regions in the crystal oscillator market, primarily driven by the increasing demand for high-performance electronics, such as aerospace and defense, telecommunications, and industrial applications. Additionally, the rising demand for autonomous vehicles and the increasing deployment of 5G networks are expected to drive the demand for crystal oscillators in these regions during the forecast period.
Top Players in Crystal Oscillator Market
By Mounting scheme
By Industrial Vertical
The Crystal Oscillator Market was valued at US$ 20,331.7 Million in 2022.
The Crystal Oscillator market has been expected to grow with a CAGR of 5.53% during the forecast year 2023-2031.
Continuous advancements in oscillator technology providing cheaper alternatives is hindering the market growth in the present as well as in the future.
Crystal oscillators are in high demand from consumer electronics driving the Crystal Oscillator Market.
The use of wireless connections like remote keyless entry is being driven by the growing demand for convenience. Quartz crystal units and crystal oscillators are examples of crystal devices with high environmental stability.
Diversifying the systematic risks posed by the political environment is essential if one want to operate in such a dynamic user company that spans multiple nations. Political forces have been the most influential in the expansion of the Crystal Oscillator Industry sector in terms of the growth of innovation, the development of human resources, and the establishment of institutes for the advancement of new technologies.
The Crystal Oscillator Market was severely impacted by COVID-19 due to the pandemic's drop in demand. Furthermore, because of the rising transportation charges and developing costs for synthetic compounds and other unrefined components, the costs of Gem Oscillators has expanded.
Silicon resonators offers advantage in manufacturing capacity and reduce cost.
Key players in the Crystal Oscillator market include competitors such as Seiko Epson Corporation, Kyocera Corporation, Rakon Ltd, Vectron international Inc, TXC Corp, SiTime Corp, Daishinku Corp, Siward Crystal Technology Co. Ltd, Nihon Dempa Kogyo (NDK) Co. Ltd., and Other Prominent Players.