The global market for serial infrared (IrDA) ports is a legacy category in steep decline, with a current estimated total addressable market (TAM) of est. $45 million. The market is projected to contract at a compound annual growth rate (CAGR) of est. -9.5% over the next three years as superior technologies like Bluetooth and Wi-Fi dominate. The single greatest threat to supply continuity is technology obsolescence, with key component manufacturers issuing end-of-life (EOL) notices at an accelerating rate. Procurement strategy must pivot from cost optimization to aggressive risk mitigation and managed transition.
The market for serial infrared ports is small and contracting, driven almost exclusively by maintenance, repair, and operations (MRO) demand for a shrinking installed base of legacy equipment. The global TAM is forecast to decline from est. $45M in 2024 to est. $28M by 2028. The three largest geographic markets are North America, the European Union (led by Germany), and Japan, reflecting their large, aging industrial and medical equipment inventories.
| Year | Global TAM (est. USD) | CAGR (YoY) |
|---|---|---|
| 2024 | $45 Million | -9.1% |
| 2026 | $37 Million | -9.5% |
| 2028 | $28 Million | -10.2% |
The landscape is fragmented and dominated by component-level manufacturers and distributors, not system-level product companies. Barriers to entry are low from a technology perspective but extremely high from a market-viability standpoint, as there is no incentive for new entrants.
⮕ Tier 1 Leaders * Vishay Intertechnology: A leading manufacturer of the core optoelectronic components (IR emitters, photodiodes, transceivers) required for IrDA ports. Differentiator: Broad portfolio and high-reliability components for industrial/automotive grades. * ROHM Semiconductor: Produces IrDA communication ICs and modules. Differentiator: Strong position in integrated solutions for specific industrial applications. * Lite-On Technology: A major Taiwanese electronics firm that produces optoelectronic components. Differentiator: Scale and cost-competitiveness in high-volume (now legacy) component manufacturing.
⮕ Emerging/Niche Players * Everlight Electronics: Specializes in LEDs and other optoelectronics, offering discrete components for IrDA. * B+B SmartWorx: Provides industrial connectivity solutions, including legacy serial and IrDA adapters for specific MRO use cases. * Master Distributors (e.g., Digi-Key, Mouser, Arrow): Increasingly act as the primary source, aggregating demand and managing inventory for these low-volume, long-tail components.
The pricing for serial infrared ports is characteristic of low-volume, legacy components. The typical price build-up consists of the IrDA transceiver integrated circuit (IC), the infrared LED emitter, the photodiode receiver, a small printed circuit board (PCB), and a plastic housing/lens. Unlike high-volume commodities, economies of scale are non-existent; pricing is dictated by small batch manufacturing runs, driving up per-unit costs. Price quotes are often subject to high minimum order quantities (MOQs).
The most significant cost volatility stems from the underlying components, which are subject to broader market forces. Price stability is low due to infrequent production runs and the need to reactivate old manufacturing processes.
Most Volatile Cost Elements: 1. Transceiver IC: Subject to general semiconductor fab capacity shortages and obsolescence. Price premiums for sourcing EOL parts can exceed +200-300%. 2. Petroleum-Based Resins (Housing): Fluctuate with global oil prices. Have seen volatility of +/- 20% over the last 24 months. [Source - ICIS, May 2024] 3. Copper (PCB): Subject to global commodity market speculation and supply/demand dynamics. LME copper prices have fluctuated by ~25% in the past 24 months.
Innovation in this category has ceased; trends relate to managing its decline. * EOL Acceleration (Q4 2023): Major semiconductor firms, including NXP and STMicroelectronics, have issued final EOL notices for peripheral ICs and microcontrollers commonly used in IrDA port designs, creating critical supply risks for any remaining manufacturers. * Shift to Distributor-Managed Inventory (2023-2024): OEMs are increasingly unwilling to hold inventory for such low-turnover items. They are shifting risk to master distributors (e.g., Arrow, Avnet), who aggregate global demand to justify holding stock. * Rise of "Maker" Solutions (2023): For ultra-niche applications or hobbyists, open-source hardware designs using discrete, general-purpose components have emerged as a replacement for integrated, commercial-grade IrDA modules that are no longer available.
| Supplier | Region | Est. Market Share | Stock Exchange:Ticker | Notable Capability |
|---|---|---|---|---|
| Vishay Intertechnology | USA / Global | est. 25% | NYSE:VSH | High-reliability optoelectronic components |
| ROHM Semiconductor | Japan | est. 20% | TYO:6963 | Integrated IrDA protocol ICs & modules |
| Lite-On Technology | Taiwan | est. 15% | TPE:2301 | Cost-effective, discrete opto components |
| Everlight Electronics | Taiwan | est. 10% | TPE:2393 | Broad portfolio of IR LEDs and sensors |
| Digi-Key Electronics | USA (Global) | N/A (Distributor) | Privately Held | Global distribution of low-volume components |
| Mouser Electronics | USA (Global) | N/A (Distributor) | A Berkshire Hathaway Co. | Newest Product Introduction (NPI) distribution |
| B+B SmartWorx | USA | est. <5% | Part of Advantech | Niche industrial legacy port adapters |
Demand for serial infrared ports in North Carolina is low and exclusively for MRO. It is concentrated in the state's established industrial manufacturing, medical device, and life sciences sectors (e.g., in the Research Triangle Park). Use cases include servicing older laboratory analysis equipment, diagnostic tools for CNC machinery, and data loggers in RF-restricted cleanrooms. There is zero local manufacturing capacity for this commodity. All sourcing is conducted through national or global electronic component distributors. The state's favorable tax and labor environment has no material impact on the procurement of this globally sourced, legacy commodity.
| Risk Category | Grade | Justification |
|---|---|---|
| Supply Risk | High | Accelerating EOL notices for key ICs; supplier consolidation and market exit. |
| Price Volatility | Medium | Low-volume production runs and EOL component premiums can cause sharp price spikes. |
| ESG Scrutiny | Low | Negligible volume and spend; not a focus area for environmental or social governance. |
| Geopolitical Risk | Medium | Component manufacturing is concentrated in Taiwan and Japan, exposing it to regional instability. |
| Technology Obsolescence | High | The technology is functionally obsolete. The risk is the complete unavailability of supply. |
Execute Strategic End-of-Life Buys. For business units with qualified equipment dependent on IrDA, conduct a formal demand forecast for the remaining asset lifecycle (est. 5-7 years). Based on this data, execute a binding Last-Time Buy (LTB) or establish a strategic inventory buffer with a master distributor to ensure supply continuity. This mitigates the high risk of component unavailability.
Mandate Technology Transition. Issue a corporate directive to all engineering and R&D teams to actively design-out IrDA ports from any system refreshes or new products. Mandate the qualification of low-cost, readily available alternatives like Bluetooth Low Energy (BLE) or NFC modules. This eliminates future risk and aligns product roadmaps with modern, supportable technology standards.