Vehicle-to-vehicle (V2) communications, autonomous vehicle technologies, advanced driver-assistance systems (ADAS), and other safety and sensing systems such as lane departure detectors and cameras push the demand for additional electronic components. It accelerates the automobile industry's transition to electric and hybrid cars. In addition to memory devices, semiconductors, CPUs, and sensors, passive components such as capacitors are required in electric vehicles to provide high stability and error-free designs.
Tantalum capacitors are also employed in mobility services, infotainment, supercomputing, and networking in the automobile business. Manufacturers create enhanced tantalum capacitors for harsh and high-reliability conditions aimed at high-temperature automotive and industrial applications to meet the growing demand from the electric vehicle industry.
Furthermore, the introduction of government programs to encourage the use of electric vehicles and tax breaks and incentives to minimize carbon footprints are encouraging the use of electric vehicles. It enables end-users to purchase electric cars, boosting demand for electrical components and increasing demand for tantalum capacitors in the automotive sector. Electric car sales increased by 39 % in 2020, with China and Europe leading. Even though COVID-19-related travel and lockdown limitations impacted the global automobile sector in the first half of 2020, sales of electric vehicles increased significantly.
Governments worldwide are pushing metal recycling by developing policies and enacting legislation to protect rare metals. These actions are conducted to achieve the global sustainability targets established by governments. For example, the Ministry of Mines of India developed the National Non-Ferrous Metal Recycling Framework in 2020 to enable the smooth recycling of nonferrous metals.
Nonferrous metals are divided into sub-sectors such as base metals, precious metals, and minor metals such as tantalum. The demand for nonferrous metals in India has expanded dramatically, owing to the Government of India's 'Make in India' and 'Smart City' programs. To address the growing demand for these metals, the government has created a framework supporting the metal recycling industry, allowing market participants to expand their activities.
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Tantalum and other minor metals were projected to do well in 2019. However, the pandemic reduced supply, and mining activities were not carried out at total capacity. Furthermore, a worry was expressed under the EU's new conflict minerals policy, i.e., tantalum with class 7 radioactivity harms tantalum concentrate exports from Africa. Tantalum prices surged considerably during 2020–2021 due to rising freight rates and minor hints of demand recovery in the superalloys industry.
The business also saw increasing demand for tantalum capacitors as the consumer electronics market expanded, but tight supply due to transportation restrictions proved extremely difficult for the tantalum industry. Aside from COVID-19, concerns about the environmental effects of mining and the need to embrace sustainability have also changed the tantalum supply-demand equation, negatively affecting the tantalum capacitors market.
Tantalum is primarily used to produce tantalum capacitors for mobile phones, personal computers, medical equipment, and automotive electronics. Tantalum worth an estimated USD 270 million was utilized in the United States in 2019. Recycled tantalum accounts for roughly 30% of total consumption in the nation, and the bulk of this tantalum is recovered from scrap produced during the production of tantalum-containing electronic components. The United States is a developed country with many automobile and smartphone users, contributing to the increased demand for tantalum capacitors in both applications.
Furthermore, Canada provides tremendous growth potential for tantalum capacitor market participants. The market is driven primarily by increased demand from the automobile industry, Canada's largest industrial sector, accounting for 10% of manufacturing GDP and 23% of manufacturing trade.
In medical devices and the electronics industry, end-user demand for tantalum capacitors is increasing. China held the most significant market share, owing to the widespread usage of tantalum capacitors in consumer electronics and military applications. China advocates the localization of high-end military items and reduces reliance on military equipment and systems imported from other countries. Similarly, India is taking steps to lessen its dependence on imported electronic components, automotive electronics, and military equipment, driving up demand for tantalum capacitors.
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* Known and Unknown Adjacencies Influencing the Growth of Market
* Explorable Revenue Sources
* Customer Behaviour Analysis
* Target Partners
* Customized Geographical Data Based on Customers as well as Competitors
* Analysis of Market Size and CAGR between the Forecast Periods