Multi-Layer Ceramic Capacitors Market

Market Overview

The global multi-layer ceramic capacitors market size was valued at USD 10.1 billion in 2021 and is projected to reach USD 15.67 billion by 2030 at a CAGR of 5% from 2022 to 2030.

Multi-layer 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 the development of 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.

Market Dynamics

Growing Efforts Towards the Development of Small-Sized Capacitors

Material advances and process improvements are key enablers for the ceramic capacitors to operate at high frequency, highly transient environments, and high temperatures. MLCCs designed today can handle high charge 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, aims 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.

Segmental Analysis

Increasing Penetration of MLCC in Consumer Electronics and Automotive Applications Drive the Array Capacitors

The array capacitors segment holds the highest market share on account of the increasing penetration of MLCCs in consumer electronics and automotive applications. Automobiles have specific environment 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.

Mid-voltage Segment Holds the Largest Market Share during the Forecast Period

The mid-voltage segment holds the largest 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.

Advent of Hybrid and Electric Vehicles Using MLCC Accelerate the Automotive Segment Growth

The electronic application in the automotive sector and the advent of hybrid and electric vehicles using MLCC drive the market growth. 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 power train 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.  

Regional Analysis

Rapid Digitization in North America to Drive the Demand for Multi-Layer Ceramic Capacitors

North America’s MLCC market is largely driven by the presence of key players offering multi-layer 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 multi-layer ceramic capacitors. Additionally, a surge in smart electronics product penetration, such as home automation and consumer electronics, provides an impetus to the market growth.

Government Efforts in India and China to Bolster Asia-Pacific’s Market Growth

Asia-Pacific is the fastest-growing region in the multi-layer ceramic capacitors market as it is strongly backed by the presence of leading market players, such as Kyocera Corporation, Samsung Electro-Mechanics, and TDK Corporation. 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 the government initiatives has surged the demand for electric vehicles, further accelerating the 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.  

Multi-Layer Ceramic Capacitors Market Segmentation

By Type

• General Capacitors
• Array Capacitors
• Serial Construction

By Voltage

• Low Voltage
• Mid Voltage
• High Voltage

By Application

• Consumer Electronics

  • Personal Computers
  • Hard Disks
  • Mobile Phones
  • Cameras

• IT and Telecom

• Automotive

  • Power Train
  • Engine Control Unit
  • Safety and Security
  • Battery Management System
  • Electric Driven Compressors

By Region

North America

• The U.S.
• Canada
• Mexico

Europe

• The U.K.
• Italy
• France
• Spain
• Germany
• The Rest of Europe

The Middle East and Africa (MEA)

• Saudi Arabia
• Egypt
• South Africa
• The Rest of MEA

Asia-Pacific

• India
• China
• Japan
• Australia
• South Korea
• The Rest of Asia-Pacific

South America

• Columbia
• Brazil
• Chile
• Peru
• Argentina
• The Rest of South America