South Korea Electronic Components Market (2025-2031) | Value, Companies, Size, Forecast, Trends, Growth, Share, Industry, Outlook, Revenue & Analysis

South Korea Electronic Components Market Highlights

Report Name	South Korea Electronic Components market
Forecast period	2025-2031
Forecast size	USD 90 Billion By 2031
CAGR	6.9%
Growing Sector	Electronics

Topics Covered in the South Korea Electronic Components Market Report

The South Korea Electronic Components market report thoroughly covers the market by type and by application. The report provides an unbiased and detailed analysis of the on-going market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.

South Korea Electronic Components Market Size & Analysis

In 2025, the South Korea Electronic Components market is valued at approximately $ 50 billion, with a projected compound annual growth rate (CAGR) of 6.9% over the next five years. Additionally, by 2031, the market is expected to reach around $ 90 billion. The electronics sector holds significant position in the overall market.

South Korea Electronic Components Market Synopsis

The South Korea electronic components market is one of the largest and most advanced in the world, driven by the country's strong industrial base in technology, electronics, and automotive manufacturing. As a global leader in semiconductor production, South Korea is home to major players such as Samsung Electronics and SK hynix, which dominate the market for memory chips, displays, and other key electronic components. The market benefits from South Korea’s robust R&D capabilities, a well-established supply chain, and significant investments in next-generation technologies, including 5G, AI, and IoT. The country's emphasis on developing innovative electronics for automotive applications, renewable energy, and consumer electronics further supports the demand for advanced components. With a strong export orientation, South Korea is a key supplier to global markets, positioning itself as a central hub for electronic component manufacturing and innovation in Asia.

According to 6Wresearch, South Korea Electronic Components market size is projected to grow at a CAGR of 6.9% during 2025-2031. The growth of South Korea's electronic components market is primarily driven by the country’s leadership in semiconductor production, with global giants like Samsung Electronics and SK hynix at the forefront of memory chip manufacturing. The increasing demand for 5G infrastructure, AI, and IoT technologies has significantly boosted the market for advanced semiconductors, sensors, and connectivity solutions. Additionally, the rapid growth of electric vehicles (EVs) and autonomous driving technologies is creating a strong demand for automotive electronics, including power electronics, sensors, and battery management systems. South Korea’s emphasis on R&D, innovation, and a robust manufacturing ecosystem, including advanced fabs for semiconductor production, also contributes to market growth.

However, the South Korea Electronic Components industry faces challenges such as the intense global competition, particularly from China and Taiwan in semiconductor manufacturing, as well as supply chain disruptions, especially in the wake of geopolitical tensions and global chip shortages. The high cost of R&D and innovation also presents a barrier to smaller companies, and fluctuating raw material prices can impact profit margins. Moreover, the need to comply with international regulations and environmental sustainability pressures is pushing companies to invest heavily in sustainable technologies, which may increase operational costs in the short term.

South Korea Electronic Components Market Trends

• Rising Demand for 5G and IoT Components - Increased adoption of 5G networks and IoT devices is driving demand for advanced semiconductors, sensors, and connectivity components.
• Growth of Electric Vehicles (EVs) - The automotive sector’s shift to electric vehicles is fueling the need for electronic components like battery management systems, power electronics, and sensors.
• Autonomous Driving Technologies - Advances in autonomous vehicles are boosting the demand for cameras, radar, and LiDAR sensors, as well as advanced driver-assistance systems (ADAS).
• Miniaturization and Flexibility - The trend toward smaller, more efficient, and flexible electronic components, particularly in consumer electronics and wearables, is increasing.
• AI Integration - Artificial intelligence and machine learning are driving demand for high-performance computing components, especially for data centers and edge devices.

Investment Opportunities in the South Korea Electronic Components Market

• Semiconductor Manufacturing and R&D - Investing in semiconductor fabrication facilities (fabs) and R&D for next-generation technologies like 5G, AI chips, and memory components presents significant growth opportunities.
• Electric Vehicle (EV) and Battery Technologies - Opportunities in developing and manufacturing EV-related electronic components, such as battery management systems, power electronics, and charging infrastructure.
• Autonomous Vehicle Technologies - Investment in components for autonomous driving systems, including sensors, cameras, radars, and LiDAR technologies, as the demand for self-driving cars rises.
• 5G Infrastructure Development - Funding the production of components crucial for 5G networks, such as communication chips, antennas, and connectivity modules.

Key Players in the South Korea Electronic Components Market

Key companies in South Korea’s electronic components market include Samsung Electronics, a global leader in semiconductor production, particularly in memory chips, display panels, and smartphones. SK hynix is another major player, renowned for its DRAM and NAND flash memory products. LG Electronics, with its expertise in display technology and home appliances, also plays a significant role in the market. Other notable companies include Hanon Systems, specializing in automotive climate control systems and electric vehicle components, and Amkor Technology, a leading provider of semiconductor packaging and testing services. Additionally, some of these players hold majority of the South Korea Electronic Components market share.

Moreover, Samsung Electro-Mechanics and LG Innotek contribute significantly to the production of components such as sensors, circuit boards, and advanced modules used in various industries, including automotive, consumer electronics, and telecommunications. These companies are critical drivers of innovation and manufacturing in the electronic components sector, shaping South Korea's position as a global hub for advanced technology.

Government Regulations in the South Korea Electronic Components Market

In South Korea, the electronic components market is subject to a variety of government regulations aimed at ensuring product safety, environmental sustainability, and fair competition. The Ministry of Trade, Industry and Energy (MOTIE) plays a central role in regulating the electronics industry, particularly in terms of promoting technological advancements, ensuring national security standards for electronic goods, and overseeing exports. South Korea’s regulations also align with global standards, such as the Restriction of Hazardous Substances (RoHS) directive, which limits the use of certain harmful materials in electronic components.

Additionally, the country enforces strict environmental laws through the National Institute of Environmental Research (NIER), which requires electronics manufacturers to reduce emissions and manage waste products, including electronic waste (e-waste). Further, these initiatives have further boosted the South Korea Electronic Components market revenues. Furthermore, the government also supports research and development in the sector through various incentives, such as tax breaks for investments in innovation and clean technologies, while ensuring compliance with international trade regulations to maintain its position in the global electronics market.

Future Insights of the South Korea Electronic Components Market

The future of South Korea's electronic components market looks promising, driven by ongoing advancements in semiconductors, 5G infrastructure, autonomous vehicles, and IoT technologies. As global demand for smart devices, electric vehicles (EVs), and renewable energy solutions continues to rise, South Korea is poised to solidify its leadership in the production of advanced memory chips, sensors, and power electronics. The country’s heavy investment in AI, 5G, and quantum computing technologies will likely lead to the development of next-generation semiconductor solutions, further boosting market growth. Additionally, South Korea's strong push towards sustainability and green technology will drive innovation in energy-efficient components and environmentally friendly manufacturing practices. Challenges such as supply chain disruptions and geopolitical risks may continue to influence market dynamics, but the country’s resilient infrastructure and commitment to innovation will position it for continued success in the rapidly evolving global electronics landscape.

Electro Mechanic Category to Dominate the Market - By Type

According to Ravi Bhandari, Research Head, 6Wresearch, the electro-mechanic type growth in South Korea’s electronic components market is largely driven by advancements in automotive electronics, industrial automation, and power management systems. As industries increasingly adopt automation and robotics, there is a growing demand for electro-mechanical components such as motors, actuators, sensors, and connectors used in smart factories, production lines, and precision machinery. Additionally, the shift toward electric vehicles (EVs) is fueling the demand for electro-mechanical components like battery management systems, power converters, and electric motors. South Korea's strong industrial base, particularly in manufacturing and automotive sectors, combined with its push for smart grid technologies and renewable energy systems, provides significant opportunities for continued growth in electro-mechanical components, as these systems are integral to optimizing energy usage and improving operational efficiencies across various industries.

Automotive to Dominate the Market – By Application

The growth of automotive applications in South Korea's electronic components market is driven by the rapid evolution of electric vehicles (EVs), autonomous driving technologies, and connected car systems. As demand for EVs rises globally, South Korean companies are increasing production of critical automotive components, such as battery management systems, power electronics, electric motors, and sensors used in vehicle safety and energy management. The country’s emphasis on smart mobility and autonomous driving is also accelerating the adoption of LiDAR sensors, radar systems, and cameras for advanced driver-assistance systems (ADAS). Additionally, the shift toward connected vehicles is driving the integration of IoT components and 5G connectivity to enhance vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication. With automakers investing heavily in smart factory technologies and sustainable automotive solutions, the automotive electronics sector is positioned for robust growth, further solidifying South Korea's role as a global leader in automotive innovation.

Key Attractiveness of the Report

• 10 Years Market Numbers.
• Historical Data Starting from 2021 to 2024.
• Base Year - 2024.
• Forecast Data until 2031.
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects

Key Highlights of the Report:

• South Korea Electronic Components Market Overview
• South Korea Electronic Components Market Outlook
• Market Size of South Korea Electronic Components Market, 2024
• Forecast of South Korea Electronic Components Market, 2031
• Historical Data and Forecast of South Korea Electronic Components Revenues & Volume for the Period 2021-2031
• South Korea Electronic Components Market Trend Evolution
• South Korea Electronic Components Market Drivers and Challenges
• South Korea Electronic Components Market - Price Trends
• South Korea Electronic Components Market - Porter's Five Forces
• South Korea Electronic Components Industry Life Cycle
• Historical Data and Forecast of South Korea Electronic Components Market Revenues & Volume, By Types for the Period 2021-2031
• Historical Data and Forecast of South Korea Electronic Components Market Revenues & Volume, By Passive for the Period 2021-2031
• Historical Data and Forecast of South Korea Electronic Components Market Revenues & Volume, By Active for the Period 2021-2031
• Historical Data and Forecast of South Korea Electronic Components Market Revenues & Volume, By Electro Mechanic for the Period 2021-2031
• Historical Data and Forecast of South Korea Electronic Components Market Revenues & Volume, By Applications for the Period 2021-2031
• Historical Data and Forecast of South Korea Electronic Components Market Revenues & Volume, By Automotive for the Period 2021-2031
• Historical Data and Forecast of South Korea Electronic Components Market Revenues & Volume, By Communications for the Period 2021-2031
• Historical Data and Forecast of South Korea Electronic Components Market Revenues & Volume, By Industrial for the Period 2021-2031
• Historical Data and Forecast of South Korea Electronic Components Market Revenues & Volume, By Computing Applications for the Period 2021-2031
• Historical Data and Forecast of South Korea Electronic Components Market Revenues & Volume, By Others for the Period 2021-2031
• South Korea Electronic Components Import Export Trade Statistics
• Market Opportunity Assessment, By Types
• Market Opportunity Assessment, By Applications
• South Korea Electronic Components Market - Top Companies Market Share
• South Korea Electronic Components Market - Competitive Benchmarking, By Technical and Operational Parameters
• South Korea Electronic Components Market - Company Profiles
• South Korea Electronic Components Market - Key Strategic Recommendations

Markets Covered

The South Korea Electronic Components market report provides a detailed analysis of the following market segments -

By Type

• Passive
• Active
• Electro Mechanic

By Application

• Automotive
• Communications
• Industrial
• Computing Applications
• Others