Multi-Layer Ceramic Capacitor Market Assessment, By Dielectric Type [Class 1, Class 2, Class 3, Others], By Voltage Range [High Voltage, Medium Voltage, Low Voltage], By End-user [Telecommunication, Automotive, Aviation, Military and Defense, Consumer Ele

Multi-Layer Ceramic Capacitor Market Assessment, By Dielectric Type [Class 1, Class 2, Class 3, Others], By Voltage Range [High Voltage, Medium Voltage, Low Voltage], By End-user [Telecommunication, Automotive, Aviation, Military and Defense, Consumer Electronics, Others], By Region, Opportunities and Forecast, 2017-2031F

Global multi-layer ceramic capacitor market size was valued at USD 14.1 billion in 2023, the market is forecasted to reach a value of USD 21.31 billion by 2031, displaying a CAGR of 5.3% from 2024 to 2031. The multi-layer ceramic capacitor (MLCC) is a dynamic and essential component of the electronics industry. MLCCs are widely used in electronic devices for energy storage and signal filtering due to their compact size, high capacitance, and reliability. The market has experienced substantial growth driven by the increasing demand for electronic devices such as smartphones, tablets, automotive electronics, and IoT devices.

One of the key factors fueling the market is the escalating adoption of MLCCs in the automotive sector, where they are crucial for various applications, including safety systems, infotainment, and engine control units. The proliferation of electric vehicles and the integration of advanced electronics in traditional vehicles further contribute to the MLCC market expansion. The MLCC market has experienced positive trends in recent years due to the introduction of advanced designs that incorporate improved filtering, decoupling, higher capacitance, and enhanced bypassing capabilities. These innovative designs play a crucial role in achieving thinner layers and enhanced charge capacity. Additionally, MLCCs find extensive application in DC-DC and AC-AC converters to suppress Electromagnetic Interference (EMI).

Furthermore, the integration of MLCCs into smart LCD and LED televisions has become widespread. The rising popularity of these televisions is anticipated to contribute significantly to the accelerated growth of the market. The inclusion of MLCCs in these devices reflects their importance in supporting the sophisticated functionalities and performance requirements of modern television technology. Innovation in MLCC technology, such as the development of high-capacitance and miniaturized components, remains a focal point for manufacturers. As the electronics industry continues to evolve, the MLCC market is expected to grow, driven by advancements in 5G technology, Internet of Things (IoT), and the ongoing digital transformation across various industries.

For instance, GSMA, a global smartphone association, anticipates that by 2025, 5G networks will encompass approximately one-third of the global population. The organization estimates that by the conclusion of 2025, the number of 5G connections to reach 2 billion, constituting more than a fifth of all mobile connections. The surge in 5G adoption generates substantial demand for devices equipped with 5G capabilities, particularly smartphones.

Electric Vehicle Proliferation Contribute Significant Market Growth

The proliferation of electric vehicles (EVs) is a significant catalyst for the demand surge in multi-layer ceramic capacitors (MLCCs) within automotive applications. As the automotive industry undergoes a transformative shift towards electrification, the integration of electronic components in both electric and hybrid vehicles has become pervasive. MLCCs play a pivotal role in this paradigm, supporting various critical functions. MLCCs are integral to ensuring safety features, such as the proper functioning of airbag systems and electronic stability control. Moreover, these capacitors are essential for effective power management within EVs, contributing to the optimization of energy usage and storage in batteries. The overall electronic architecture of electric and hybrid vehicles heavily relies on MLCCs to provide reliable performance and manage the complex network of electronic systems.

The heightened demand for MLCCs in the automotive sector, driven by the rise of electric vehicles, underscores their crucial role in shaping the technological landscape of modern vehicles. As the automotive industry continues its electric evolution, the significance of MLCCs in enhancing safety, power efficiency, and overall electronic integration is poised to grow even further.

For instance, in May 2023, Samsung Electro-Mechanics proudly achieved a milestone by introducing the industry's highest capacitance at high voltage in MLCC for electric vehicles. This accomplishment is part of the company's strategic initiative to broaden its range of high-end automotive electronic components. The newly launched MLCCs have been meticulously developed with a specific emphasis on their suitability for electric vehicle (EV) applications. They come with impressive voltage ratings of 250V and 100V, ensuring robust performance in the demanding environment of EVs. Additionally, these capacitors are designed to operate effectively within a temperature range of 125°C, further enhancing their suitability for the unique challenges posed by electric vehicle systems.

5G Technology Influencing Multi-Layer Ceramic Capacitor Market Growth

The widespread adoption of 5G technology stands as a paramount driver for the multi-layer ceramic capacitor (MLCC) market. The global shift toward 5G networks, characterized by higher frequencies and substantially increased data transfer rates, necessitates the integration of advanced components such as MLCCs to meet the demands of this cutting-edge telecommunications standard. 5G networks operate at higher frequencies than their predecessors, enabling faster and more efficient data transmission. The rapid oscillations and intricate signal processing inherent in these higher frequencies demand capacitors with exceptional performance characteristics. MLCCs, known for their compact size, high capacitance, and efficiency, are essential in enabling the seamless processing and filtering of signals within 5G infrastructure.

As the telecommunications industry embraces the transformative capabilities of 5G, the demand for MLCCs is propelled by their crucial role in supporting the complex and rapid data processing requirements of this advanced network technology. The integration of MLCCs in 5G infrastructure underscores their significance as foundational components facilitating the global evolution toward faster, more responsive, and interconnected telecommunications systems.

For instance, in November 2021, Samsung Electro-Mechanics revealed the successful development of a high-capacitance, high-voltage Multi-Layer Ceramic Capacitor (MLCC) specifically designed for 5G communication base stations. This innovative MLCC, categorized as size 3225 (with dimensions of 3.2mm in width and 2.5mm in height), boasts a remarkable capacitance of 10uF (microfarad) and a high-rated voltage of 100V (volt).

Asia-Pacific Dominates the Multi-Layer Ceramic Capacitor Market

Asia-Pacific is dominant in the multi-layer ceramic capacitor (MLCC) market, underscoring its pivotal role in the global electronics industry. Several factors contribute to this regional dominance. Asia-Pacific is home to major manufacturing hubs, including China, Japan, and South Korea, where a substantial portion of the world's electronic devices are produced. These countries serve as significant consumers and electronic goods producers, fostering a robust demand for MLCCs.

Recognizing the immense growth potential and to meet the surging demand, several automakers have made substantial investments across diverse segments of the Indian automotive industry. In alignment with this, IBEF reports that the Indian automotive industry is striving to quintuple vehicle exports between 2016 and 2026. As of the fiscal year 2022, the total number of automobiles exported from India reached a noteworthy figure of 5,617,246 units. It underscores the industry's commitment to meeting global demands and establishing India as a significant player in the international automotive market. Translating this into the context of the multi-layer ceramic capacitor (MLCC) market, the increased production and export of vehicles in India is contributing to the growing demand for electronic components, including MLCCs, in the automotive manufacturing landscape.

Lack of Production of MLCCs Poses Obstacle to Expand of the Market Worldwide

Multi-layer ceramic capacitors (MLCCs), recognized for their efficiency and durability, are facilitating swift innovation across diverse industries and applications. Nevertheless, a global shortage currently impedes their supply, particularly in conventional, non-specialized geometries. The heightened demand for MLCCs, driven by substantial advancements in IoT, consumer electronics, and electric vehicles (EV), has constrained progress in these sectors, with lead times extending to several months or even a year due to the capacitor's scarcity.

Typically, high-value manufacturers exit due to heightened competition and profit struggles, allowing lower-value mass producers to take over with reduced overhead. However, the multi-layer ceramic capacitor (MLCC) market doesn't conform to this pattern. In May, the average capacity utilization rate for Japanese suppliers was 78%, while the rates for Chinese, Taiwanese, and South Korean suppliers were approximately 60-63%.

Impact of COVID-19

The COVID-19 pandemic has significantly impacted the multi-layer ceramic capacitor (MLCC) market. Supply chain disruptions due to lockdowns and restrictions affected production, leading to shortages and extended lead times. The increased demand for electronic devices, particularly in remote work and healthcare sectors, strained the already constrained supply. Manufacturing challenges, such as workforce shortages and operational limitations, further contributed to production delays. The pandemic-induced economic downturn influenced consumer spending and investment decisions, impacting overall market dynamics and pricing strategies. Despite heightened demand in specific sectors, the MLCC market faced uncertainties, price volatility, and a need for strategic adaptation in 2020.

Key Players Landscape and Outlook

The multi-layer ceramic capacitor market is expanding due to the increasing emphasis placed by companies worldwide on establishing advanced technological infrastructure and increasing production base. Furthermore, the market expansion is exponentially facilitated by automotive industry, 5G technology along with significant investments made by companies to enhance research and development resources, engage in collaboration projects, bolster marketing efforts, and expand distribution networks. These factors collectively contribute to the rapid expansion of the market.

In May 2023, Murata Manufacturing Co. Ltd unveiled its latest multi-layer ceramic capacitor (MLCC) designed to meet the rising demand for components featuring increased capacitance levels, compact form factors, and enhanced temperature performance. With capacitance values reaching 10µF (with a ±20% tolerance), the GRM series of MLCCs is available in a 0201inch/0603M package size. Notably, these MLCCs currently stand as the smallest on the market to provide such high capacitance levels, offering a remarkable 65% reduction in size compared to the typically specified 0402-inch/1005M products.