1. Market size
In 2026, the global network magnetic components market continued its steady growth trend, with the performance of the segmented markets as follows:
- AI data center (accounting for 35%)
The large-scale deployment of AI computing power clusters directly drives the production of high-end products such as 10-gigabit network transformers, making it the largest downstream demand source.
- High-speed upgrade
With the widespread adoption of 2.5G, 5G, and even 10-gigabit (10GBASE-T) Ethernet, the requirements for insertion loss, return loss, and common mode rejection ratio have significantly increased.
- PoE++ power supply (IEEE 802.3bt)
When the power is increased to over 60W, the magnetic components must simultaneously handle high current, meet the triple challenges of thermal stability, and ensure isolation reliability.
- Diversified downstream support
5G communication base stations account for 25%, while the industrial Internet and new energy vehicles account for 15% and 12% respectively, forming a stable foundation.
III. Technological Trends: From Discrete to Integrated, From Manual to Automated
- Integration: Compact integrated magnetic modules simplify board-level layout and accelerate assembly, becoming a mainstream direction.
- Surface-Mounted Device (SMD type): Traditional manual winding of toroidal cores is being rapidly replaced by surface-mounted network transformers, with the production process being compressed from over 20 steps to less than 8 steps, and the yield rate increasing from 96.5% to over 98%.
IV. Supply chain restructuring: Tariffs force regionalized layout
The US tariff policy, which took effect in 2025, has increased the landed cost of some imported parts, driving the regional restructuring of supply chains and the widespread adoption of dual procurement strategies.
Domestic manufacturers have basically achieved substitution in conventional models of gigabit and below, but in high-speed models of 10-gigabit and above, as well as high-power PoE models, there are still limited enterprises capable of stable mass production. The substitution of domestic products for high-end ones still has a long way to go.