Multi-Layer Ceramic Capacitors Market

Market Overview

The global multi-layer ceramic capacitors market size was valued at USD 10.6 billion in 2022. It is projected to reach USD 16.44 billion by 2031, growing with a CAGR of 5% during the forecast period (2023–2031).

Multilayer ceramic capacitors (MLCCs) consist of multiple layers of ceramic material, such as barium titanate, which is separated by interdigitating metal electrodes. It offers a broad range of features, which include lightweight, low cost, reliable performance, high voltage carrying capabilities, and large storage carrying capacity. Growing OEM efforts towards developing small-sized capacitors, increasing penetration of consumer electronics and wearable technology, and advancement of IoT are the factors fuelling the market growth. However, relatively small capacitance and low ESR hinders the market growth.

One of the biggest end consumers of MLCCs is the automotive sector. Automotive-grade MLCCs have grown in popularity recently, which is expected to drive the growth of the MLCC market. The need for multilayer ceramic capacitors is rising as more electronic components, including engines, powertrains, and infotainment systems, are being used in automobiles. Constant technological advancements in the automotive sector necessitate component miniaturization, capacitance expansion, and enhancements to safety measures. Additionally, MLCCs are necessary for self-driving cars, hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and advanced driver assistance systems (ADAS) used in automobiles. MLCC requirements for ADAS and EVs are substantially greater than gasoline and gas-powered cars. The use of MLCCs rises as vehicles switch from internal combustion engines (ICEs) to battery electric vehicles (BEVs).

Market Dynamics

What are the Factors Driving the Market Growth?

Growing Efforts Towards the Development of Small-Sized Capacitors

Material advances and process improvements are key enablers for ceramic capacitors to operate at high frequency, highly transient environments, and high temperatures. MLCCs designed today can handle high charges in small packages and enable design engineers to achieve high-performance levels. Hence, capacitor manufacturers focus on developing ceramic formulations with the capability of operating at higher frequencies to address the growing demand. For instance, ultra-broadband capacitors, GXOS series designed by AVX Corp, aim at addressing 16 kHz to 40 GHz DB blocking. Further, these capacitors with a voltage rating of 6.3 VDC at 85 °C are rated at 0.1 microfarads and designed to mount on strip lines with a width of fewer than 20 mils.

Rising Demand for Consumer Electronics

The demand for consumer electronics has increased, particularly in developing nations like India, China, and others. Increasing disposable income and the emergence of a middle class fuel the demand for consumer electronics, ultimately driving market expansion. Several capacitors are included in consumer electronics, such as televisions, mobile phones, MP3 players, and other similar items. This, in turn, is projected to generate various chances for the market leaders in the Multilayer ceramic capacitor industry.

What are the Factors Restraining the Market Growth?

Required Technologies

Despite being one of the smallest electronic components, the multilayer ceramic capacitor is a high-tech device with 500 to 600 dielectric and electrode layers. Compared to other passive chip components, they require the most advanced production and lamination technologies. The technology behind the production of precise and dependable MLCCs is the stacking of numerous layers of dielectrics in a constrained area. The reason for the multilayering is that the more layers that are piled, the more power may be stored. The stacking of these dielectric layers requires the highest levels of ability and technology.

Regional Analysis

The global multi-layer ceramic capacitors market is divided into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North America's MLCC market is largely driven by the presence of key players offering multilayer ceramic capacitors, such as Future Electronics Inc., Netsource Technology, Aerovox, and Tecate Group. Rapid digitization across all industry verticals has increased the demand for capacitors to reduce noise and surge storage capacity. The growing adoption of renewable resources has paved the way for electric vehicles, escalating the demand for multilayer ceramic capacitors. Additionally, a surge in smart electronics product penetration, such as home automation and consumer electronics, provides an impetus to market growth. High-capacity MLCCs are an ideal component for IoT devices due to their inherent dependability and long service life. By 2025, GSMA Mobile Economy predicts that the total number of IoT connections in North America alone will reach 5.1 billion. North America will continue to lead the industry in terms of MLCC demand for IoT devices. IoT devices are used to connect automotive infotainment systems, smart wearables, home IoT appliances, security cameras, and other smart devices. In brief, they enable systems to communicate and collaborate, resulting in enhanced productivity and decreased operational expenses. Utilization of Internet of Things devices has skyrocketed over the years, which is anticipated to increase demand for MLCCs even further.

Asia-Pacific is the fastest-growing region in the multi-layer ceramic capacitors market as the presence of leading market players, such as Kyocera Corporation, Samsung Electro-Mechanics, and TDK Corporation, strongly backs it. The increasing demand for consumer electronics and growing disposable income in China, India, and Indonesia fuels market growth. Apart from this, the increasing demand for renewable energy sources on account of government initiatives has surged the demand for electric vehicles, further accelerating market growth. For instance, in September 2017, the Government of India launched the Clean Energy Initiative, which promotes the use of renewable energy resources and electric vehicles to mitigate air pollution. 

The European market is anticipated to witness significant growth over the forecast period. To meet the diverse needs of customers, MLCC firms in the region focus on developing new types of ceramic capacitors, such as ultra-small capacitors, high-volume capacitors, and low-volume Equivalent Series Inductance (ESL) condensers. In addition, corporations invest much in R&D in order to develop MLCCs that can withstand the industry's intense competition. As communication terminals and semiconductor devices become more compact and advanced, it is anticipated that the need for MLCCs would increase. The expanding commercialization of 5G data centers, ADAS (advanced driver assistance systems), and EV (electric vehicle) technologies in the region will also be helped by smaller, more functional electronic components such as MLCCs.

Due to the increased demand for consumer electronics like smartphones and laptops, the Latin American, Middle East, and African area is anticipated to expand in the worldwide MLCC capacitors market. Also, this region's automotive industry is expanding, and it is anticipated to increase demand for MLCC capacitors. In order to safeguard the environment, electric vehicles are a promising sustainable alternative to gasoline-powered automobiles. Numerous governments are promoting electric vehicles and offering tax breaks and redemptions. The demand for multilayer ceramic capacitors is increasing as the market for electric vehicles expands in the Middle East and Africa.

Segmental Analysis

The global multi-layer ceramic capacitors market is segmented by type, voltage and applications.

Based on type, the market is segmented into general capacitors, array capacitors, and serial construction.

The array capacitors segment holds the highest MLCC market share on account of the increasing penetration of MLCCs in consumer electronics and automotive applications. Automobiles have specific environmental requirements for the MLCCs to work at, such as a high-temperature operating environment for ECUs (Electronic Control Units) and large electric power electronic circuits. Therefore, manufacturers are focusing on the commercialization of ceramic capacitors to meet the growing demand for automobile-specific conditions in support of more advanced features and electrification of automobiles.

Based on voltage, the global market is segmented into low voltage, mid voltage, and high voltage.

The mid-voltage segment holds the largest multi-layer ceramic capacitors market share, owing to the increasing demand for consumer electronics, such as smartphones, and the growing penetration of electric vehicles in the automotive industry. Miniaturization of devices has spurred the MLCC demand across several application areas. Additionally, advancements in the field of technology are expected to positively impact the global industry. The use of MLCCs in automotive applications is expected to be a growth opportunity.

Based on application, the market is segmented into consumer electronics, IT and telecom, automotive, power train, engine control unit, safety and security, battery management systems, and electrically driven compressors.

The electronic application in the automotive sector and the advent of hybrid and electric vehicles using MLCC drive market growth. Finding components that can withstand higher temperatures and voltages without compromising reliability, availability, and footprint is becoming more difficult due to the quick increase in vehicle electrification. Due to their high temperature and convenient surface-mount form factor, multilayer ceramic capacitors (MLCCs) have become the ideal component for EV electronics and subsystems. MLCC demand in the power train and ECU is expected to increase over the forecast period due to the advantages they provide in comparison to conventional capacitors. For instance, in October 2018, Panasonic launched conductive hybrid polymer capacitors for automotive powertrain applications. 

Impact of covid-19

COVID-19 has had a devastating effect on all industry verticals globally. The market of MLCCs has witnessed a slight decrease in growth on account of the increasingly stringent regulations from the governments, such as shut down of cross-border activities, manufacturing sector, and social distancing norms. This has resulted in the disruption of supply chain operations across the globe, further delaying the demand for capacitors. Furthermore, loss of jobs and increase in pay cuts has decelerated the demand for EV cars and capacitors.  

Recent Developments

• August 2022- KYOCERA Corporation would build a new production facility at its Kokubu Plant Campus in Kagoshima, Japan, to boost its production capacity of multilayer ceramic capacitors (MLCCs), strengthen its engineering research capabilities, and ensure enough manufacturing space as its business grows.
• April 2022- Samsung Electro-Mechanics created high-temperature Multi-Layer Ceramic Capacitors (MLCC) for powertrains. It has created 13 varieties of automotive MLCCs that are guaranteed to work in a 150°C environment, and it intends to sell them to international car suppliers.
• October 2022- Vishay Intertechnology, Inc. announced a new line of surface-mount multilayer ceramic chip capacitors (MLCC) that are suited for DC-blocking applications. The Vishay Vitramon DC Blocking Capacitors are the first in the industry to be described for common frequency bands spanning from 3 MHz to 18 GHz, making it easy for designers to choose the proper component for their application.