Growing Use of Hybrid and Electric Vehicles to Boost Demand for Tantalum Capacitors

Introduction

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.

Use of Recycled Tantalum for Tantalum Capacitor Manufacturing

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.

Impact of COVID-19

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.

Regional Insights

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.

Key Highlights

• The global tantalum capacitors market was valued at USD 5475.6 million in 2019, and it is predicted to increase at a CAGR of 6.27% by 2030.
• By type, the global tantalum capacitors market is segmented as tantalum foil electrolytic capacitors, tantalum capacitors with porous anode and liquid electrolytes, tantalum capacitors with porous anode and solid electrolyte. The tantalum foil electrolytic capacitor segment acquired the highest market share in 2021 and is expected to grow at a CAGR of 5.49% by 2030.
• Based on application, the market is divided into power supply filtering, audio amplifiers, medical devices, military applications, sample and hold circuits, electronic gadgets, telecommunications infrastructure, and others. The electronic gadgets segment acquired more than 30% of the market share in 2021. It is predicted to grow at a CAGR of 6.56% by 2030.
• North America and Asia­­-Pacific are the two main markets for tantalum capacitors. The market in these regions is predicted to grow at a CAGR of 5.8% and 6.5%, respectively, by 2030.

Competitive Players

1. Kyocera Corporation (AVX)
2. Vishay Intertechnology Inc.
3. KEMET Corporation
4. ROHM Co. Ltd.
5. Panasonic Corporation
6. Samsung Electro-Mechanics
7. Sunlord Electronics Co. Ltd.
8. Exxelia Group
9. NIC Components Corp.
10. Abraco

Recent Developments

• January 2024- KYOCERA AVX expands the 9155-800 Vertical-Mate, 2.0mm-Pitch Battery Connector Series.

• January 2024- Vishay's new range of wet tantalum capacitors with hermetic glass-to-metal sealing is now available. For avionics and aerospace applications, New Yorker's STH electrolytic capacitors offer all of the benefits of Vishay's SuperTan® extended series devices, as well as a higher reliability design for improved military H-level shock (500 g) and vibration capabilities (sine: 80 g; random: 54 g) and increased thermal shock up to 300 cycles.

Segmentation

1. By Type
   1. Tantalum Foil Electrolytic Capacitor
   2. Tantalum Capacitors with Porous Anode and Liquid Electrolyte
   3. Tantalum Capacitors with Porous Anode and Solid Electrolyte
2. By Application
   1. Power Supply Filtering
   2. Audio Amplifiers
   3. Medical Devices
   4. Military Applications
   5. Sample And Hold Circuits
   6. Electronic Gadgets
   7. Telecommunications Infrastructure
   8. Others