|Study Period:||2019- 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
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The global multi-layer ceramic capacitor market (henceforth referred to as the market studied) was valued at USD 10.28 billion in 2020, and it is projected to be worth USD 15.08 billion by 2026, registering a CAGR of 5.42% during the period 2021-2026 (hereafter, referred to as the forecast period). The outbreak of COVID-19 affected the global MLCC supply chain. With still weeks to months away from containment of the virus, manufacturers are rethinking their strategies and looking outside China to find alternative supply chain sources. Customers have been expecting the supply of multiplayer ceramic capacitors (MLCCs) to be ample in the first half of the year, but supply has tightened and lead times stretched due to the onset of COVID-19. With MLCC manufacturers shutting down factories to restrict containment, the first half of 2020 has been a challenge. However, as demand builds with automotive and aerospace manufacturing re-opening across the third and fourth quarters, the component manufacturers and distributors would struggle to keep pace.
- The MLCC (Multilayer ceramic capacitors) possess unique characteristics like flexibility in size or shape, low cost, ability to withstand high voltages, and are considered to most reliable.
- However, the most crucial characteristic that resulted in their widespread adoption was their ability to pack multiple components into a single package. Each MLCC has hundreds of layers, and each layer acts as a separate component. This eliminated the use of additional components in the circuitry.
- MLCC was at the center of all the technological innovations that happened in the last decade, and they can be considered to be one of the enablers of innovations in consumer electronics, telecommunications, and energy storage.
- The impact of MLCC has been such that the new technologies, like IoT, 5G, and EVs are highly dependent on the availability of MLCCs. This has driven the manufacturer to align the product line and production capacities, to serve the requirements of the technologies.
- The market comprises a limited number of market players having limited production capacity, due to which there is a considerable gap between demand and supply of MLCCs. The market reported a shortage of supply in 2017, and this shortage is expected to continue until 2021.
- Demand for MLCCs has increased due to the increasing number of electronic devices installed in cars, resulting in supply shortages across industries, including automakers and smartphone makers.
- The customers of general MLCCs are among the most affected by this shortage. Companies like Murata and Kyocera discontinued their products and dedicated most of their production capacity toward automotive MLCC manufacturing.
- The shortage has adversely affected the smaller clients, which usually constitute about 40-50% of the total sales.
- The smaller customers found it difficult to procure MLCCs, due to which they had to experience problems with their production lines or had to discontinue their product lines completely.
Scope of the Report
MLCC(Multilayer Ceramic Capacitor) is an SMD(Surface Mounted Device) type capacitor that is used in wide ranges of capacitance. MLCC is paid more attention than other capacitors due to the better frequency characteristics, higher reliability, higher withstanding voltage, and so on. It is made of many layers of ceramic and inner electrodes like a sandwich. Priorly Pd was used for inner electrodes, but since the price of Pd skyrocketed, Pd was replaced by the BME(Base Metal Electrode), which reduced the total cost of MLCC.
The reports cover the emerging trends in MLCC segmented by type, rated voltage, and dielectric type used by different industries across different regions studied.
|Rated Voltage Range|
|Other Dielectric Types|
|Other End-user Verticals|
|Middle East and Africa|
Key Market Trends
Automotive Segment to Hold the Largest Market Share
- Automotive is one of the major segments in the MLCC market. Most of the vendors in the market studied are increasing their investment in the automotive sector. The rising adoption of electric vehicles (EV) and autonomous vehicle technology, government regulations for mandatory (Advanced Driver Assistant System) ADAS systems, and rising adoption of smart technologies for automotive manufacturing are some of the major factors driving the demand for MLCC in the automotive industry.
- Electronic components for use in automotive are critical for safety. To withstand the extreme environmental conditions in which they operate, passive components, such as MLCCs, need to be highly resistant to vibrations and shocks and possess high heat and humidity resistance levels. In a normal scenario, the electric and electronic equipment in a car consists of as many as twenty to thirty thousand single components, including some 3,000 or more MLCCs.
- The increasing technological advancements in the automotive sector are impacting the MLCC market. Traditional IC engine cars require a small number of electronic components.
- In the automotive sector, the introduction of MEMS associated with ADAS, the emergence of connected vehicles, and the technological advancements of infotainment and IoT equipment is leading to an increase in electronic control unit contents in automobiles fueling the demand for high-capacitance MLCCs.
- As vehicles shift from an internal combustion engine (ICE) to a battery electric vehicle (BEV), the number of MLCCs used increases, often more than five times. For instance, TESLA's Model 3 contains over 9,000 MLCCs and its Model S & X each have over 10,000 MLCCs. An increasing need for these components by car manufacturers is encouraging niche suppliers. Half of the sales of the American capacitor manufacturer, Kemet, comprises its line of ceramic capacitors.
- Furthermore, 29 global automakers have already invested at least USD 300 billion in electric vehicles. By 2023, 1 in 10 sold cars is expected to be an EV, and 8 out of 10 are expected to include ADAS.
- While the number of BEVs sold worldwide is yet small, the improvements in technology, expansion in charging infrastructure, and the number of models of BEVs being offered may continue growing at a much faster rate than the overall automotive market. This growth may drive the MLCC usage, even if the total vehicle sales remain flat.
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Asia Pacific to Witness the Fastest Market Growth
- Asia Pacific is the fastest-growing multi-layer ceramic capacitor market due to the rapid growth in the application of MLCC based electronic component and renewable energy products across the automotive sector across the region.
- China is one of the leading manufacturers of multi-layer ceramic capacitors, with a strong presence of local companies. Moreover, Chinese MLCC manufacturers have been rapidly increasing for the past few years while focusing on the supply of consumer electronic products.
- Furthermore, with the arrival of Industry 4.0, China is expected to see massive growth in the automation and industry sector, owing to schemes like "Made in China 2025". Considering the annual sales of electric vehicles, by 2020, the country is expected to account for 59% of the global sales of electric vehicles before easing slightly to 55% by 2025.
- The rise of mini-EVs in China, with smaller battery packs designed for short-range driving (around 100-150 km), has helped boost the popularity of EVs in the country. Prices for the mini-EVs start at around CNY 40,000 or USD 6,250, making them affordable in the country.
- According to the International Energy Agency, in the [email protected] Scenario, electric vehicles are expected to account for 70% of all vehicle sales in 2030 and 42%, excluding two/three-wheelers in China. The country maintains its world lead with a 57% share in the EV market by 2030, followed by Europe (26%) and Japan (21%).
- According to BusinessKorea, the ongoing trade war between China and the United States is affecting the Korean multi-layer ceramic capacitor (MLCC) manufacturers, such as Samsung Electro-Mechanics, which depends on China for 40% of its sales.
- Walsin Technology Corporation, a leading supplier of a wide range of MLCC capacitors, resistors, inductors, etc., produces X7R dielectric multi-layer ceramic chip capacitors (MLCC) that provide high electrical precision, stability, and reliability. These MLCC capacitors consist of a conducting material and electrodes. The high density and high-efficiency ceramic condensers are used to manufacture chip-type miniaturized MLCC capacitors.
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The multi-layer ceramic capacitor market is competitive and consists of a few major players. However, with the advancement in the miniaturization of electrical components, new players are increasing their market presence, thereby expanding their business footprint across the emerging economies.
- January 2021- KYOCERA CORPORATION announced that it had completed its 100% acquisition of California-based SLD Laser (Soraa Laser Diode, Inc.) based on the agreement announced on Nov. 12, 2020. SLD Laser is now a wholly-owned subsidiary of Kyocera operating under the name KYOCERA SLD Laser, Inc.
- January 2021- KEMET, part of the Yageo Group, announced the launch of three hybrid aluminum polymer capacitor series: A780, PHA225, and PHH225. These AEC-Q200 qualified capacitors offer a combination of highly conductive polymer technology and liquid electrolytic material in a hybrid design, resulting in an outstanding electrical performance for automotive and industrial applications.
- January 2021- KEMET, part of the Yageo Group, announced its new R52 series of compact polypropylene film X2 EMI (electromagnetic interference) suppression capacitors. The R52 series is a first-to-market film solution that offers high capacitance, extended stability in harsh environments, more board space, and lower costs for engineers. This series fulfills the growing need for automotive, industrial, consumer, and energy applications requiring a smaller, high-capacitance X2 class solution.
- November 2020- APITech announced surface mount ceramic chip capacitors for high voltage applications to their portfolio. The high voltage chip capacitors were constructed to filter out electromagnetic interference (EMI) and smooth output voltages and are built for applications up to 2500VDC. They are small, leadless, and can easily be placed on a PCB.
- August 2020- KEMET develops and designs a new Tantalum Stack Polymer (TSP) O 7360-43 and the 82uF/75V rated voltage extension in Polymer Hermetically Sealed. The TSP series is designed to provide the highest capacitance/voltage (CV) ratings in surface mount device (SMD) capacitors with its innovative stacking construction.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitutes
4.3 Industry Value Chain Analysis
4.3.1 Bargaining Power of Suppliers
4.4 Assessment of of the Impact of COVID-19 on the Market
4.4.1 Threat of Substitute Products
5. MARKET DYNAMICS
5.1 Introduction to Market Dynamics
5.2 Market Drivers
5.2.1 Growing applications in the Electronics Industry
5.2.2 Increased Unit Adoption in the Automotive sector
5.3 Market Challenges
5.3.1 Changing Regulations and Tariff
6. MARKET SEGMENTATION
6.1.1 General Capacitor
6.1.3 Serial Construction
6.1.4 Mega Cap
6.1.5 Other Types
6.2 Rated Voltage Range
6.2.1 Low Range
6.2.2 Mid Range
6.2.3 High Range
6.3 Dielectric Type
6.3.5 Other Dielectric Types
6.4 End-user Vertical
6.4.5 Other End-user Verticals
6.5.1 North America
22.214.171.124 United States
126.96.36.199 United Kingdom
6.5.3 Asia Pacific
6.5.4 Latin America
6.5.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Vendor Market Share
7.2 Company Profiles
7.2.1 Murata Manufacturing Co. Ltd
7.2.2 Taiyo Yuden Co. Ltd
7.2.3 Kyocera Corporation
7.2.4 Yageo Corporation
7.2.5 Walsin Technology Corporation
7.2.6 Samsung Electro-Mechanics Co. Ltd
7.2.7 Eyang Holdings Group Co. Ltd
7.2.8 TDK Corporation
7.2.9 Vishay Intertechnology Inc.
7.2.10 KEMET Corporation
7.2.11 API Technologies
7.2.12 Knowles Capacitors
7.2.13 Würth Elektronik Group
8. INVESTMENT ANALYSIS
9. FUTURE MARKET OPPORTUNITIES
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Frequently Asked Questions
What is the study period of this market?
The Multi-Layer Ceramic Capacitor (MLCC) Market market is studied from 2019 - 2026.
What is the growth rate of Multi-Layer Ceramic Capacitor (MLCC) Market?
The Multi-Layer Ceramic Capacitor (MLCC) Market is growing at a CAGR of 5.42% over the next 5 years.
Which region has highest growth rate in Multi-Layer Ceramic Capacitor (MLCC) Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Multi-Layer Ceramic Capacitor (MLCC) Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Multi-Layer Ceramic Capacitor (MLCC) Market?
Murata Manufacturing Co. Ltd., Samsung Electro-Mechanics Co. Ltd., Taiyo Yuden Co. Ltd., TDK Corporation, Yageo Corporation are the major companies operating in Multi-Layer Ceramic Capacitor (MLCC) Market.