North America MLCC Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

North America MLCC Market Trends

The development of the e-commerce industry is expected to propel light commercial vehicles

• The pandemic resulted in lockdowns and other restrictions that caused supply chain issues in the light commercial vehicle industry that had never been seen before. The pandemic caused unprecedented levels and types of mobility and travel limitations worldwide. The end-user industries that transport goods, such as infrastructure, transportation, and logistics, have completely shut down, posing new challenges for the manufacturing and freight industries. The light commercial vehicle (LCV) market is driven by the growth of North America's e-commerce sector and logistics. As the number of people with internet access and access to smartphones increases, so does the number of online retail outlets. As a result, the demand for light commercial vehicles is expected to increase, facilitating the timely delivery of products to customers.
• Canada established GHG emission caps for new light-duty vehicles by Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations. The expansion of the logistics and e-commerce sectors is expected to increase the demand for LCVs. Due to rising urbanization, the market for light commercial vehicles (LCVs) is expanding with the development of new retail and e-commerce platforms that require effective logistics. The rising popularity of BEVs, the introduction of new EV models, and the development of charging infrastructure are the primary factors driving the market's growth.

The growing awareness of driver assistance systems is creating demand

• The passenger car market in North America experienced tremendous growth, with a production of 2.97 million units in 2019. The United States is the third-largest producer of electric vehicles in the world. The shift to EVs has continued at its current rate, owing to government initiatives to promote EV growth.
• The COVID-19 pandemic hindered the growth of the market, as there was a disruption in the production of vehicles due to the collapse of supply chains across the world. However, the market is expected to witness significant growth during the forecast period due to increasing awareness about the positive environmental impacts of electric vehicles and various initiatives by governments of different countries.
• Several OEMs became interested in increasing their production capacity to meet the growing demand for electric vehicles. The government policy banning ICE engines helped boost the sales of electric vehicles. The increase in the price of gasoline and diesel due to various global reasons has made it easy for EV companies to boost their sales. Electric car sales in the United States, the third largest market, increased by 55% in 2022, reaching a sales share of 8%.
• In May 2019, the federal government launched the Incentives for Zero-Emission Vehicles (iZEV) Program. The incentive-based initiative aims to help Canadians and Canadian businesses purchase or lease zero-emission vehicles. In 2022, the Canadian federal government announced a sales mandate for zero-emission vehicles. With the aim that at least 20% of new passenger vehicles sold in Canada must be zero-emission vehicles by 2026. That will increase to 60% by 2030 and jump to 100% by 2035.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Dielectric Type

Class 1 Segment in North America MLCC Market

Class 1 MLCCs have emerged as the dominant force in the North American MLCC market, commanding approximately 56% market share in 2024. This segment, which includes key dielectric materials like C0G, X8G, and U2J, has demonstrated exceptional performance characteristics and stability across diverse operating conditions. The segment's prominence is largely attributed to its superior performance in critical applications, particularly in the automotive and defense sectors. Class 1 MLCCs are increasingly being adopted in advanced applications due to their remarkable stability, with C0G capacitors specifically standing out for their exceptional performance, boasting capacitance tolerances of ±30ppm/°C across a wide temperature range from -55°C to +125°C. The segment is experiencing robust growth at nearly 23% annually through 2029, driven by increasing demand from various end-user industries, including consumer electronics, industrial applications, mobile devices, and medical equipment. The growth is particularly notable in the automotive sector, where these components are crucial for powertrain applications and safety systems, especially in the rapidly expanding electric vehicle market.

Class 2 Segment in North America MLCC Market

The Class 2 segment, encompassing X7R, X5R, and Y5V dielectric types, holds a significant position in the North American MLCC market with around 44% market share. This segment has established itself as a crucial component in various industrial applications, particularly in power supply and filtering applications. The versatility of Class 2 MLCCs makes them ideal for applications requiring high capacitance in compact form factors, especially in modern electronic devices. These components are particularly valued in the automotive sector, where they play a vital role in various systems, including engine control units, infotainment systems, and advanced driver assistance systems. The segment's growth is being fueled by the increasing adoption of electronic components in industrial automation and the ongoing trend toward miniaturization in consumer electronics.

Segment Analysis: Case Size

0 201 Segment in North America MLCC Market

The 0 201 case size segment maintains its dominant position in the North American MLCC market, commanding approximately 32% market share in 2024. This significant market presence is primarily driven by the increasing demand for miniaturization in consumer electronics, particularly in smartphones, wearables, and IoT devices. The segment's leadership is further strengthened by the growing adoption of 5G technology, which requires compact and high-performance MLCCs for efficient operation. Major manufacturers are focusing on developing advanced 0 201 MLCCs with enhanced capabilities to meet the evolving requirements of modern electronic devices, particularly in applications requiring high-density component placement and superior performance in limited spaces.

0 603 Segment in North America MLCC Market

The 0 603 case size segment is experiencing remarkable growth in the North American MLCC market, with a projected CAGR of approximately 26% from 2024 to 2029. This exceptional growth trajectory is primarily fueled by the expanding electric vehicle (EV) and battery manufacturing sectors. The segment's growth is particularly notable in automotive applications, where 0 603 MLCCs are crucial components in various systems, including battery management, power conversion, and charging infrastructure. Major automakers' investments in EV and battery manufacturing facilities across North America, coupled with government initiatives supporting electric mobility, are creating substantial opportunities for this segment's expansion.

Remaining Segments in Case Size

The other case size segments, including 0 402, 1 005, 1 210, and others, each serve specific applications in the North American MLCC market. The 0 402 segment maintains a strong presence in automotive and industrial applications, particularly in engine control units and safety systems. The 1 005 and 1 210 segments are predominantly utilized in high-power applications and specialized industrial equipment where larger case sizes are preferred for better performance and reliability. These segments collectively contribute to the market's diversity, offering solutions for various applications ranging from consumer electronics to high-reliability industrial and automotive systems.

Segment Analysis: Voltage

500V to 1000V Segment in North America MLCC Market

The 500V to 1000V segment has emerged as the dominant force in the North American MLCC market, commanding approximately 45% of the market share in 2024. This segment's prominence is primarily driven by its widespread application in switching power supplies for audiovisual and business equipment, as well as lighting ballasts. The segment has particularly benefited from the robust growth in electric vehicle sales in the United States, which saw a 55% increase in 2022. The automotive parts industry's diverse voltage requirements, ranging from on-board chargers using Class 1 MLCCs rated up to 630V and Class 2 MLCCs rated up to 1.2kV, to DC-DC converters utilizing Class 2 MLCCs with voltage ratings up to 1.2kV, have significantly contributed to this segment's market leadership. Additionally, the positive-temperature-coefficient (PTC) heater controllers, which typically employ Class 2 MLCCs with voltage ratings between 630V-1kV, have further solidified this segment's market position.

More than 1000V Segment in North America MLCC Market

The More than 1000V segment is projected to experience the highest growth rate in the North American MLCC market, with an anticipated CAGR of approximately 22% from 2024 to 2029. This remarkable growth trajectory is primarily driven by the ongoing phasing out of legacy networks in favor of modern cellular networks like 4G and 5G. Major carriers across North America are actively transitioning their infrastructure to support advanced technologies, creating substantial demand for high-voltage MLCCs. The segment's growth is further amplified by the surge in mobile data usage and the expansion of Over-the-Top (OTT) businesses in the region, necessitating robust data center infrastructure. The adoption of smart meters in North America, with approximately 107 million smart meters installed in the United States and over 82% adoption in Canada, presents another significant growth opportunity for high-voltage MLCCs, particularly as government incentives and support for smart grids continue to drive the energy transition initiatives.

Remaining Segments in Voltage

The Less than 500V segment plays a crucial role in the North American MLCC market, particularly in applications requiring lower voltage capabilities. This segment is essential for various end-users, including consumer electronics, medical devices, telecommunication equipment, and specific automotive applications. The segment's significance is underscored by its extensive use in the United States' aerospace and defense sector, one of the largest in terms of infrastructure and manufacturing activities. The market's growth is further supported by the presence of leading industry incumbents in the United States, whose manufacturing and R&D capabilities continue to drive innovation and advancement in low-voltage MLCC applications.

Segment Analysis: Capacitance

Less than 100µF Segment in North America MLCC Market

The less than 100μF segment continues to dominate the North American MLCC market, holding approximately 60% market share in 2024. This segment's prominence is primarily driven by its extensive application in consumer electronics, particularly in smartphones and wearables, where compact size and high capacitance density are crucial requirements. The segment's growth is further supported by the rapid advancement in 5G technology and the increasing adoption of IoT devices across North America. Manufacturers are focusing on developing innovative products in this segment to meet the evolving demands of miniaturization and higher performance in electronic devices. The segment's strong performance is also attributed to its widespread use in automotive electronics, particularly in advanced driver assistance systems (ADAS) and infotainment systems, where reliable and compact capacitors are essential components.

100µF to 1000µF Segment in North America MLCC Market

The 100μF to 1000μF segment is experiencing remarkable growth in the North American MLCC market, with a projected growth rate of approximately 22% from 2024 to 2029. This impressive growth trajectory is driven by the increasing demand from medical device manufacturers, particularly in implantable devices and diagnostic equipment. The segment is witnessing substantial innovation in product development, with manufacturers focusing on enhancing the reliability and performance of these capacitors for critical applications. The automotive sector, especially the electric vehicle segment, is another major growth driver as these capacitors are essential components in power management systems and drivetrain applications. The segment's growth is further supported by the expanding industrial automation sector in North America, where these capacitors play a crucial role in power supply and control systems.

Remaining Segments in Capacitance

The more than 1000μF segment, while smaller in market share, plays a vital role in specific high-power applications within the North American MLCC market. This segment is particularly important in industrial power supplies, renewable energy systems, and high-end automotive applications where high capacitance values are essential for efficient power management and energy storage. The segment's significance is growing with the increasing adoption of electric vehicles and renewable energy systems, where high-capacity MLCCs are crucial components. These capacitors are also finding increased applications in advanced telecommunications infrastructure, particularly in 5G base stations and data centers, where high-performance power management systems are essential.

Segment Analysis: MLCC Mounting Type

Radial Lead Segment in North America MLCC Market

The radial lead segment has emerged as the dominant force in the North American MLCC market, commanding approximately 36% market share in 2024. This significant market position is attributed to the segment's widespread adoption in automotive applications requiring high voltages up to 3,000V and temperature ranges reaching 150°C. Radial lead MLCCs, particularly those with X8R and C0G (NPO) dielectrics, are extensively utilized in various automotive systems, including engine control units (ECU), lighting modules, infotainment systems, and sensors. The segment's growth is further bolstered by the increasing trend among North American OEMs to establish new production facilities in Mexico, driven by favorable factors such as competitive wages, government incentives, and beneficial trade agreements under USMCA. The automotive industry's steady expansion and growing demand for automotive displays have created a robust foundation for radial lead MLCCs, making them indispensable components in modern vehicle manufacturing.

Metal Cap Segment in North America MLCC Market

The metal cap segment is demonstrating remarkable growth potential, with projections indicating a robust growth rate of approximately 23% during the forecast period 2024-2029. This impressive growth trajectory is primarily driven by the segment's unique advantages in temperature-compensating applications and minimal capacitance variation, making these MLCCs ideal for use as components in snubber circuits. The United States' position as a major market for industrial robots has significantly influenced this growth, with the increasing number of digitization initiatives providing substantial opportunities for the industrial robots market. The metal cap MLCCs' superior thermal shock and vibration resistance characteristics make them particularly well-suited for automotive applications, especially in the rapidly expanding electric vehicle sector. The ongoing automation trends across various industries, coupled with the rising demand for reliable electronic components in high-temperature applications, continue to fuel the segment's expansion in the North American market.

Remaining Segments in MLCC Mounting Type

The surface mount segment represents a crucial component of the MLCC mounting type market, offering distinct advantages in mass production circuit design. Surface mount capacitors are particularly valued for their smaller footprint and superior performance in high-frequency applications compared to conventional capacitors. These characteristics make them especially suitable for modern electronic devices and telecommunications equipment. The segment's growth is closely tied to the expanding consumer electronics sector, particularly in television manufacturing and other high-end electronic applications. The increasing adoption of surface mount device technology in various industries, coupled with its cost-effectiveness and efficiency in automated assembly processes, continues to drive its significance in the North American MLCC market.

Segment Analysis: End User

Consumer Electronics Segment in North America MLCC Market

The consumer electronics segment maintains its dominant position in the North American MLCC market, commanding approximately 37% market share in 2024. This leadership is primarily driven by the increasing adoption of advanced electronic devices, particularly smartphones, laptops, gaming consoles, and wearable technology. The segment's growth is further bolstered by the rapid advancement in 5G technology and the increasing consumer demand for connected devices. The rising trend of miniaturization in consumer electronics has led to greater integration of MLCCs per device, with high-end smartphones now requiring between 600 and 1,000 MLCCs per unit. The segment's strength is also attributed to the growing demand for smart home devices and the increasing penetration of IoT devices in North American households. Additionally, the surge in demand for advanced gaming consoles and high-performance computing devices has significantly contributed to the segment's market dominance.

Automotive Segment in North America MLCC Market

The automotive segment is emerging as the fastest-growing segment in the North American MLCC market, projected to grow at approximately 39% CAGR from 2024 to 2029. This exceptional growth is primarily driven by the rapid electrification of vehicles and the increasing integration of advanced driver assistance systems (ADAS) in modern vehicles. The segment's growth is further accelerated by the rising demand for electric vehicles, with each EV requiring significantly more MLCCs compared to traditional vehicles. The increasing adoption of autonomous driving technologies and sophisticated infotainment systems is creating substantial demand for MLCCs in the automotive sector. The trend towards vehicle electrification, coupled with stringent safety regulations and the push for enhanced vehicle connectivity, is driving manufacturers to incorporate more electronic components, particularly MLCCs, in their vehicle designs. The segment's growth is also supported by government initiatives promoting electric vehicle adoption and the automotive industry's ongoing transition towards more sophisticated electronic systems.

Remaining Segments in End User

The other significant segments in the North American MLCC market include telecommunications, industrial, medical devices, power and utilities, and aerospace and defense sectors. The telecommunications segment is particularly notable due to the ongoing 5G network expansion and infrastructure development. The industrial sector's demand is driven by the increasing automation and adoption of Industry 4.0 technologies. The medical devices segment is growing due to the increasing sophistication of healthcare equipment and the rising demand for portable medical devices. The power and utilities segment is benefiting from the smart grid implementations and renewable energy integration, while the aerospace and defense sector's demand is driven by the modernization of military equipment and the growing commercial aerospace sector. Each of these segments contributes uniquely to the market's overall growth, driven by their specific technological requirements and innovation needs.

North America MLCC Market Geography Segment Analysis

North America MLCC Market in United States

The United States dominates the North American MLCC market, commanding approximately 62% of the total market share in 2024. The country's leadership position is primarily driven by its robust automotive and consumer electronics sectors, particularly in the development and adoption of electric vehicles and advanced driver assistance systems (ADAS). The presence of major technology companies and automotive manufacturers has created a strong ecosystem for MLCC demand. The United States' commitment to technological advancement is evident in its aggressive pursuit of 5G component network deployment and the increasing adoption of IoT devices across various industries. The country's aerospace and defense sector, being one of the largest globally, continues to drive significant demand for high-reliability MLCCs. Furthermore, the growing focus on renewable energy and smart grid infrastructure has created additional demand channels for electronic components in power management and energy storage applications. The United States also benefits from a strong research and development infrastructure, fostering innovation in MLCC applications across emerging technologies like artificial intelligence and edge computing devices.

North America MLCC Market in Other Countries

The rest of North America, primarily comprising Canada and Mexico, plays a vital role in the regional MLCC market dynamics. Canada's strong presence in aerospace manufacturing and its growing electric vehicle industry creates substantial demand for MLCCs. The country's focus on renewable energy infrastructure and smart city initiatives has also emerged as a significant driver for electronic component adoption. Mexico's expanding automotive manufacturing sector, particularly with the increasing number of automotive OEMs establishing production facilities in the country, contributes significantly to regional MLCC demand. Both countries benefit from their proximity to the United States and various trade agreements, facilitating seamless supply chain integration. The region's commitment to digital transformation and Industry 4.0 initiatives continues to drive MLCC demand across various industrial applications. Additionally, the growing focus on medical device manufacturing and healthcare technology in these countries creates new opportunities for passive component applications. The increasing adoption of 5G technology and the subsequent need for infrastructure development further supports the market growth in these regions.

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