Market Trends of Capacitor Industry
Ceramic Capacitors to Hold the Largest Market Share
- Ceramic capacitors are one of the most commonly used in most electrical instruments, as they offer reliability and are cheaper to manufacture. These capacitors are used in multiple industries and primarily consist of ceramic or porcelain discs that exist in a non-polarized form. The ceramic material is also an excellent dielectric due to its poor conductivity and its efficient support of electrostatic fields.
- The shift towards sophisticated vehicles, such as self-driving vehicles and ADAS (Advanced Driver Assistance Systems), is driving the use of MLCCs per vehicle. Therefore, manufacturers are involved in product innovation related to higher capacitance for ceramic capacitors to cater to such a trend.
- For instance, in February 2022, Murata Manufacturing Co., Ltd. announced the launch of the NFM15HC435D0E3 MLCC, designed with 3 terminals to provide a capacitance of 4.3 F. The capacitor is designed for automotive applications to attain results on noise removal and superior decoupling that are required for high-performance processors employed in advanced driver assistance systems and autonomous driving functions. This indicates the growing demand for ceramic capacitors in the automotive industry. However, with the impact of the constant COVID-19 pandemic, the supply chain is expected to be disrupted on a small scale.
- Moreover, the demand for MLCC in electric vehicles is also increasing, as most of the EVs use close to 10,000 MLCC due to increased features like driver assistance functions and fully autonomous systems. As per the International Energy Agency (IEA), there has been a noteworthy 60% surge in global electric vehicle (EV) sales in 2022. This milestone achievement marks the first time sales have exceeded 10 million units, showing remarkable growth from the 6.6 million units sold in 2021. Further, the high adoption of EVs and the complete phase-out dates of ICE engines set by various governments will drive the growth of MLCC in the automotive sector.
- The demand for MLCCs is also going to increase considerably due to rapid digitalization and miniaturization, and the manufacturers are going to find it hard to optimize their production. Moreover, end users are focusing on incorporating smaller formats of MLCCs, such as the 0201 or 0402 sizes, to make them future-proof, as the availability of 1825, 1206, and 0805 is becoming limited, and the use of smaller formats is expected to insulate the end users from supply chain difficulties.
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Asia-Pacific Region will Dominate the Market Throughout the Forecast Period
- The Asia-Pacific region is one of the most prominent markets for capacitors. The automotive industry is increasing in China, and the country plays an increasingly important role in the global automotive market. The government views its automotive industry, including the auto parts sector, as one of the country's pillar industries. The government of China estimates that China's automobile output is expected to reach 35 million units by 2025. Consequently, the demand for capacitors is anticipated to increase further across the region.
- The popularity of EVs is growing, and China is regarded as one of the dominant adopters of electric vehicles. The country's 13th Five-Year Plan promotes the development of green transportation solutions, such as hybrid and electric cars, for advancements in the country's transportation sector.
- China's electric cars are on their way to reaching the 20% nationwide penetration goal in 2022, well ahead of the Chinese government's 2025 forecast, due to new models by dozens of competitors attracting new buyers and encouraging owners to switch to electric vehicles.
- According to the China Passenger Car Association (CPCA), sIt is anticipated that China's passenger car sales will amount to 23.5 million units in 2023. Among these, approximately 8.5 million units are projected to be NEVs, with an expected NEV penetration rate of 36%. China is the leading world's largest vehicle market. This is anticipated to boost the adoption of capacitors in the country.
- The region is also witnessing increasing investments in the market. For instance, in January 2022, Exxelia, a leading designer and manufacturer of passive components and subsystems, announced that it completed the majority acquisition of Alcon Electronics. Alcon Electronics is an Indian designer and manufacturer of catalog and custom-designed film and aluminum electrolytic capacitors, primarily serving the renewable energy, medical imaging, induction heating equipment, power generation, and railway end markets. Alcon Electronics provides a wide range of film and screw-terminal aluminum electrolytic capacitors for power electronic applications.
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