Electronic Ceramics Market

Market Overview

The global electronic ceramics market size was valued at USD 12,200 million in 2021, envisioned to reach USD 18,582 million growing at a CAGR of 5.4% during the forecast period.

Electronic ceramics, commonly referred to as electroceramics, are a subcategory of advanced ceramic materials. Electroceramics are available in a variety of forms, including dielectrics, piezoelectric, semiconducting, and superconducting ceramics. Because they possess distinctive electrical, optical, and electromagnetic properties, they are ideally suited for use in various specialized electronic applications, including consumer electronics, transportation, power engineering, medicine and healthcare, and communication. Titanate, zirconia, alumina, silica, and niobates are the components of electronic ceramics. Electronic ceramics are used to manufacture various capacitors, transducers, sensing elements, timing devices, radio-frequency identification tags (RFIDs), microelectromechanical systems (MEMS), noise suppression filters, ferroelectric RAM (FRAM), and LEDs. Every electrical device or system involves some electronic ceramic component. For example, the average smartphone contains around 700 electronic ceramic components.

The progression of the semiconductor and electronics industries drives the expansion of the global electronic ceramics market share. Due to the increased availability of low-segment devices and the declining cost of internet access, the global smartphone industry is predicted to expand rapidly over the forecast period. In addition, emerging technologies such as the Internet of Things (IoT) and 5G connection necessitate the emergence of new grades of electroceramics for infrastructure. FRAMs are in high demand during the projection period due to their nonvolatile and low-power consumption advantages over conventional memory storage devices. Electroceramics perform a significant and essential function in the electrical and semiconductor industries. The advent of electric vehicles has created a new field of application for electroceramics, which is now employed in various sensors and power electronics.

Market Dynamics

Global Electronic Ceramics Market Drivers

The Huge Demand for Electro Ceramics from End-users Plus the Advent of the Latest Technologies

Due to its excellent efficiency and operational adaptability, power electronics are utilized in almost all modern systems. Global electricity demand growth drives new power station buildings, necessitating more extensive transmission and distribution infrastructures. In addition, power electronics has several applications in electric motors, converters for wind turbines and solar farms, propulsion systems for rail, shipping, heavy equipment, semiconductor elements, and solar inverters. In addition, ceramic-based materials are utilized in controllers, computers, automation, and new technologies and equipment. The consumer electronics, automotive, telecommunications, and power industries rely heavily on capacitors, sensors, and actuators. Electroceramic components are utilized in flexible electronics, like capacitors and sensors.

As a result of their nonvolatility and low power consumption compared to conventional memory storage devices, FRAMs are anticipated to have high demand over the projection period. Microcontrollers based on FRAM are utilized for data logging and energy harvesting purposes. In addition, FRAM-based microcontrollers are employed for any application that uses microcontrollers with a different nonvolatile memory technology, such as Flash or EEPROM. In addition, the rise in smartphone sales is a significant factor driving the global electronic ceramics market growth.

The proliferation of wireless technology across various business verticals and the implementation of 5G technologies are pushing producers of wireless solutions toward tremendous downsizing and integration. Implementing multi-carrier 4G technologies utilizing more than 65 3GPP frequency bands is compelling wireless solutions producers to achieve better performance and device downsizing, particularly for these devices' RFFE (Radio Frequency Front-End). Due to the change in operating frequencies, the infrastructure necessary for 5G differs from that of 4G. As a result, novel components based on electroceramics are being conceived and developed. Advanced ceramic materials are used for 5G technology antennas, microwave circuits, sensors, noise suppression filters, and circuit board substrates. Consequently, enhancing the electronic ceramics market.

Global Electronic Ceramics Market Restraints

The High Cost of Investment Involved in the Fabrication and Integration 

Electroceramics are irreplaceable and indispensable in modern electronic systems. The usage of microelectronic components based on electroceramics permits device downsizing and power savings. However, the entire electroceramics value chain is a capital-intensive and technology-driven industry. This restricts the entrance of new competitors into the electronic ceramics market. In addition, firms that have invested in the research and development of electroceramics fabrication and forward integration now dominate the industry. Consequently, these factors jointly inhibit the expansion of the global electronic ceramics market.

Global Electronic Ceramics Market Opportunities

The Development of Ceramic Solid-State Battery Technology

The electrolyte of the solid-state battery is made of garnet. The battery has a current density of 10 milliamps per square centimeter and no dendrite development. The battery construction resembles two sponges on either end of a thin ceramic separator, all of which are constructed from inexpensive components. Such batteries have enormous market potential for electric vehicles (EVs). In addition, the battery pack requires no cooling system, decreasing its complexity. Solid-state ceramic battery technology has all the advantages of a multilayer ceramic capacitor (MLCC). The lack of liquid electrolytes in ceramic solid-state batteries eliminates the risk of leakage or combustion. One rechargeable solid-state ceramic battery can power the RTC for one to four weeks without recharging. Therefore, technological advancement is projected to increase the need for MLCCs during the forecast period.

Regional Analysis

The region-wise segmentation of the global electronic ceramics market includes North America, Europe, Asia-Pacific, and LAMEA.

The Asia Pacific and North America Will Dominate the Regional Market

The Asia Pacific will command the market with the largest share while growing at a CAGR of 6.4%. This region's distinguishing characteristics include its high population and its emerging economies. Huawei, a Chinese company, has submitted most 5G-related patent applications. China Mobile, China Telecom, and China Unicom, three state-backed operators, started 5G services in 2019 in major Chinese cities. Tesla also intends to establish a design center in China that will focus on developing new EV designs. Both developments are crucial investments in Asia, as they will help the corporation expand its global presence. It possesses the most incredible network of electric vehicle (EV) charging stations, with 1.2 million charge points growing annually. Because most of the population works from home due to the epidemic, businesses must have access to high-speed internet to operate efficiently. As more individuals opt for 5G networks, the requirement for electronic ceramic-based 5G infrastructure becomes inevitable.

North America will hold a share of USD 3,071 million, growing at a CAGR of 5.2%. The region's country, the United States, is one of the world's largest electronics and semiconductors marketplaces, accounting for most of the market's revenue. Moreover, the United States has a more significant percentage of smartphone owners than most other nations. Across a wide variety of demographic categories, most Americans are mobile phone owners. In addition to mobile phones, Americans own various other information devices, including desktop or laptop computers and various consumer goods. In the United States, the 5G network has already been implemented in certain cities and continually extends its coverage area. Consequently, the use of electronic ceramics has increased owing to such factors, thus propelling the region's market growth.

Segmental Analysis

The global electronic ceramics market is classified based on material, application, end-user, and region.

By Material Analysis

Based on material, the fragments include Alumina, Zirconia, Silica, and Others.

The alumina segment is projected to advance at a CAGR of 5.9% and hold the largest market share. Aluminum oxide is commonly referred to as alumina. Its primary applications are as electronic substrates and electronic packaging. It is among the vital raw materials utilized in the production of substrates. It is highly resistive and dielectric. The demand for alumina is spurred by its use as a substrate for electronic components. Metals and alloys are superior alternatives to electronic substrates. Currently, alumina-based substrates are utilized extensively in consumer electronics, automobiles, telecommunications, the military, and avionics. In addition, the advancements in medical electronics and the increase in demand for high-end computers are advantageous to the growth of this category.

The silica segment will rise at the highest CAGR. Silicon dioxide is composed of silicon and oxygen and is found primarily in quartz. Silica is a naturally plentiful and well-known ceramic material. As an electronic ceramic, it is utilized in capacitor production. Electroceramic components based on silica have solid thermal stability and significant potential for downsizing. In electronic circuits, capacitors have a vast array of applications. However, their failure rate is quite substantial. Compared with other ceramics, silica has a low rate of failure. Consequently, the majority of capacitors are composed of silica.

By Application Analysis

Based on application, the fragments include Capacitors, Data Storage Devices, Optoelectronic Devices, Actuators & Sensors, Power Distribution Devices, and Others.

The capacitors segment is projected to advance at a CAGR of 4.5% and hold the largest market share. There are two primary varieties of ceramic capacitors available on the market: ceramic disc capacitors and multilayered ceramic capacitors. Other forms of ceramic capacitors comprise ceramic disc capacitors and multilayered ceramic capacitors. The global electronic ceramics market is driven by the widespread deployment of disc capacitors and multilayer ceramic capacitors in the electronics sector. Power electronics, such as military, aerospace, and industrial telecommunication systems, utilize disc capacitors to provide high reliability. In addition, the need for disc capacitors for applications such as data processing has increased. Due to the rise in demand for tiny electronic devices, MLCCs have become one of the most advanced and fiercely competitive categories of the capacitor market.

The actuators & sensors segment will hold the second-largest share. A device's actuator is the component responsible for directing the device's movement by converting electrical, pneumatic, or hydraulic energy into mechanical energy. A sensor's diaphragm is composed of ceramic materials like alumina. It is used to evaluate a characteristic like a temperature or pressure and transform it into the machine- or human-readable data. Sensors and actuators are utilized in all industrial fields. Ceramic gas sensors primarily detect gases like carbon monoxide, oxygen, nitrogen oxides, and ethanol.

By End-User Analysis

Based on end-user, the fragments include Electronics, Automobiles, Medical, Aerospace & Defense, and Others.

The aerospace & defense segment is projected to advance at a CAGR of 6.4% and hold the largest market share. Electroceramics are utilized in numerous sensors and electrical systems in the aerospace industry. They include airplane and unmanned spacecraft control and navigation systems and stabilizing platforms and antennas. Due to their electrical, magnetic, and optical capabilities, electroceramics are indispensable in the aerospace & military industry. The expansion of electroceramics in the aerospace & military sector is contingent on a country's economic and political situation.

The electronics segment will hold the second-largest share. The semiconductor, power electronics, and consumer electronics industries are the primary end-users of electroceramics. The vast majority of electroceramics goods are utilized in semiconductor and electrical equipment. Owing to their compact size, low price, and dependability, capacitors are crucial in power electronic systems. Manufacturers of capacitors concentrate on reducing the size of capacitors to continue miniaturizing power electronic systems. MEMS and sensors are essential smartphone components responsible for a variety of functionalities. The smartphone market expansion mainly drives this segment's growth.

Recent Developments

• In 2022, Compagnie de Saint-Gobain SA announced the development of the first net-zero carbon plasterboard plant in North America. 
• In 2022, CoorsTek Inc. announced that in conjunction with international research partners, developers from CoorsTek Membrane Sciences have successfully leveraged ceramic membrane technology to create a scalable hydrogen generator that produces hydrogen from electricity and fuels with near-zero energy loss.