Market Trends of Tantalum Capacitors Industry
Consumer Electronics Segment is Expected to Drive the Market's Growth
- Tantalum capacitors are essential components in many electronic devices, including consumer electronics such as smartphones, laptops, and tablets. These capacitors offer high capacitance per volume, allowing for smaller, more efficient devices. However, tantalum capacitors are considerably more reliable than comparable aluminum electrolytic capacitors and must be carefully handled as they are inherently polarized.
- Tantalum capacitors are commonly used in various consumer electronic devices, including smartphones. These capacitors are often used as the capacitor connected to the power line of the Power Amplifier (PA) for GSM on smartphones. Tantalum capacitors are small in size, making them suitable for use in small-footprint applications like smartphones. According to Ericsson, the global number of smartphone subscriptions reached over 6.6 billion in 2022 and is expected to hit 7.8 billion by 2028. The countries with the most smartphone mobile network subscriptions are China, India, and the United States. Such a huge rise in smartphones would drive the market.
- Tantalum capacitors are also used in laptops and other electronic devices. For example, researchers demonstrated that about 1 gram of tantalum is used per unit in laptops, specifically in motherboard power supply filters. This is because tantalum capacitors offer higher capacitance values than MLCC capacitors and display no microphonic effect, making them an attractive option for devices with flat or compact designs.
- According to the National Bureau of Statistics of China, China produced around 32.66 million units completed computers in April 2022. Further, according to the Ministry of Electronics and Information Technology, the value of computer hardware output in India was INR 220 billion (USD 2.64 billion), in the fiscal year 2021. The value of computer accessories produced in the country has been steadily increasing. Such huge spending on computer production would create an opportunity for the tantalum capacitors manufacturers to expand their product portfolio.
- Furthermore, a television uses capacitors for multiple purposes. They are used as couplers between circuits, timing components, and electronic filters. Most televisions have a power supply converting the 110-volt alternating current from a household outlet to a low-voltage direct current. Power supply circuits utilize large tantalum capacitors as a form of electronic muffler that removes electrical noise. As tantalum capacitors hold electric charge, they act as dampers, which significantly slows down sudden movements of current, including noise.
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North America is Expected to Hold a Major Market Share
- The North American region is one of the largest consumers of capacitors in the world. The automotive and electronics sectors are anticipated to be significant consumers of capacitors in countries such as the United States. The U.S. is one of the largest automotive markets in the world and is home to more than 13 major automakers.
- Recently, the two largest automotive industry trade associations in the United States, Global Automakers and the Alliance of Automobile Manufacturers, merged to form a new alliance known as the Alliance for Automotive Innovation, which is expected to help introduce innovations in the automotive industry. With changing dynamics in the sector, automotive manufacturers are moving towards electric vehicles to meet the needs of next-generation consumers. California dominates the United States market in terms of sales of EVs. Its Zero Emission Vehicle (ZEV) program is driving demand for EVs by requiring automakers in the state to sell a certain percentage of electric cars.
- According to the US Energy Information Administration (EIA), hybrid, plug-in hybrid, and battery EVs collectively represented 16% of US light-duty vehicle sales in the second quarter of 2023. Additionally, According to Statistics Canada, ZEVs make up approximately 10% of the new vehicles registered in Canada. The market share of ZEVs reached a new high of 10.5% in Q2 2023, showing a significant increase from 9.2%. Furthermore, the total volume of light industry vehicles (with a gross vehicle weight of 8500 lbs or less) in Canada saw a notable growth of 34.3%. Such a rise in EV sales would create lucrative opportunities for the studied market.
- Tantalum capacitors are commonly used in defense electronics due to their high reliability and performance in harsh environments. Tantalum capacitors can withstand high temperatures and vibrations, making them ideal for use in military and aerospace applications. The Defense Federal Acquisition Regulation Supplement (DFARS) requires that tantalum capacitors used in defense systems not contain materials sourced from certain countries to ensure supply chain security.
- The rise in the defense budget would drive demand for the studied market. According to the US Congressional Budget Office, defense spending in the United States is expected to rise annually until 2033. Defense spending in the United States is expected to reach USD 746 billion in 2023. Defense spending is expected to rise to USD 1.1 trillion by 2033, according to the prediction. Such huge spending in defense would allow the players to develop new products to cater to a wide range of customer needs.
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