Tantalum Capacitors Market Size, Share & Trends Analysis Report By Type (Tantalum Foil Electrolytic Capacitor, Tantalum Capacitors with Porous Anode and Liquid Electrolyte, Tantalum Capacitors with Porous Anode and Solid Electrolyte), By Application (Power Supply Filtering, Audio Amplifiers, Medical Devices, Military Applications, Sample And Hold Circuits, Electronic Gadgets, Telecommunications Infrastructure, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global tantalum capacitors market size was valued at USD 3.20 million in 2023. It is estimated to reach USD 4.7 million by 2032, growing at a CAGR of 4.36% during the forecast period (2023–2031).

Tantalum capacitors are electrolytic capacitors with tantalum metal as one of their electrodes. These capacitors have a high capacitance in a tiny volume, making them ideal for various electrical applications. Volumetric efficiency, long-term durability, greater resilience to severe temperatures, reduced noise generation, and self-healing capabilities are behind the market share of tantalum capacitors. In addition, the material is widely used in aircraft and land-based gas turbines, and demand from this sector will likely climb rapidly shortly as the aviation and aerospace sectors expand.

However, it is vital to remember that the bulk of the world's tantalum ores are situated on the African continent, and a ban on mining in the continent will result in a demand-supply gap, raising the price of capacitors and hence increasing the entire cost of the product. The market opportunity stems from the fact that mining technologies have improved over time, ensuring consistent supply.

Market Dynamics

global tantalum capacitors market drivers

electronic industry growth

The electronics industry's continued growth mainly drives demand for tantalum capacitors. As electronic devices become more common and technologically advanced, the demand for efficient and dependable capacitors, such as those constructed of Tantalum, grows. China is the world's largest electronics exporter, accounting for 27.4% of the worldwide market in 2021. China's excellent technology infrastructure, competent labor, and massive manufacturing facilities have helped it become a key participant in the electronics industry. The global expansion of smartphones and tablets contributes significantly to the need for tantalum capacitors. International smartphone shipments are predicted to increase by 4%, from 1.13 billion in 2023 to 1.17 billion in 2024. Canalys anticipates a 4% yearly growth in worldwide smartphone shipments by 2024. Furthermore, Statista predicts that by 2023, 6.93 billion individuals, or 85.74% of the global population, will own smartphones. This represents a considerable increase over 2016, when just 3.668 billion individuals, or 49.40% of the world population, had smartphones. 

Similarly, global sales of laptops and tablets have been strong, particularly with the growing trend of remote work and online learning. These devices use tantalum capacitors for various functions, including power control, memory support, and audio processing. Furthermore, quick innovation and new introductions distinguish the consumer electronics business. Emerging technologies such as 5G connectivity, augmented reality (AR), and artificial intelligence (AI) are driving the demand for advanced electrical components, such as tantalum capacitors, to serve these functions. As electronic devices become more common and refined, the tantalum capacitors market trend is expected to expand further, fueling market expansion and technical innovation.

global tantalum capacitors market restraints

fluctuating tantalum prices

Historically, tantalum prices have fluctuated due to a variety of variables. Geopolitical events, global supply and demand fluctuations, and mining and refining process disruptions can cause price volatility. In 2021, the average monthly price of tantalum ore remained stable at approximately USD 158 per kilogram of Ta2O5 composition. However, in 2023, the average tantalum import price remained at USD 412K per ton in August, down -8.7% from the previous month. Furthermore, the USGS reported that the average monthly price of tantalum ore in 2022 was USD 150 per kilogram of Ta2O5 composition. This was a 5% decrease from 2021, when the average price was approximately USD 158 per kilogram. These changes can impact production costs for tantalum capacitors, altering manufacturers' overall cost structures and influencing product prices.

Furthermore, Tantalum is frequently sourced from regions with geopolitical instability, such as the Democratic Republic of the Congo. Political uncertainties and wars in these locations might disrupt the supply chain and cause price swings. Changes in global demand for electronic devices and other applications that employ tantalum capacitors and variations in global tantalum supply can impact costs.

global tantalum capacitors market opportunity

global trend towards automotive electrification

The automobile sector is transforming electric vehicles. EVs rely significantly on complex electronics for battery management, power conversion, and motor control tasks. Tantalum capacitors are essential in assuring electronic systems' efficiency and reliability. According to the IEA, worldwide electric vehicle (EV) sales are predicted to reach 14 million in 2023, up 35% from 2022. EVs would account for 18% of overall automobile sales this year. Electric vehicles (EVs) will account for over 60% of worldwide vehicle sales by 2030.

In addition, the Economic Times projects that EV sales will increase from 2.5 million in 2020 to 31.1 million by 2030, accounting for around 32% of total new car sales. This surge in electric vehicle manufacturing directly correlates with the rising demand for tantalum capacitors utilized in EV applications. Tantalum capacitors are in high demand in automotive electrification, including hybrid and conventional automobiles that use modern electronics to improve fuel efficiency and reduce pollution. The growing complexity of automotive electronics, such as power management systems, infotainment systems, and advanced driver assistance systems (ADAS), creates an opportunity for tantalum capacitors to deliver dependable, high-performance solutions.

Regional Analysis

Asia-pacific dominates the global market

The global tantalum capacitors market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific is the most significant global tantalum capacitors market shareholder and is estimated to grow at a CAGR of 6.5% over the forecast period. Asia-Pacific had the largest market share in 2023, with a robust growth rate expected throughout the forecast period. Asia-Pacific is a renowned industrial hub, drawing many global businesses to invest in these countries. India and China are regional leaders, with governments supporting domestic manufacturing through programs such as 'Make in India' and 'Make in China,' respectively. The tantalum market in China is highly competitive. China is a significant tantalum producer, but its output has dropped recently. In 2021, China was the world's second-largest tantalum exporter, worth USD 230 million. China's Tantalum concentrates import volume increased by 62.81% yearly in December 2023. China's wrought tantalum export volume increased 17.83% yearly in December 2023. China has fiercely lobbied for the localization of high-end military products, ensuring superiority and a favorable environment policy for the domestic military tantalum capacitor industry. China has carefully reduced its reliance on imported goods for cost reasons and strategic security. This was done to ensure strategic security while also keeping expenditures under control.

Additionally, according to the National Bureau of Statistics of China, China produced around 32.66 million completed computers in April 2022. Furthermore, the Ministry of Electronics and Information Technology reported that computer hardware output in India was worth INR 220 billion (USD 2.64 billion) in fiscal year 2021. The value of computer accessories produced in the country is continually increasing. Massive computer fabrication spending would allow tantalum capacitor makers to broaden their product offerings.

North America is anticipated to exhibit a CAGR of 5.8% over the forecast period. The United States led the North American tantalum capacitor business because of its large automobile companies, well-developed IT and telecommunications infrastructure, and excessive military spending. The United States presents new potential for tantalum capacitor makers because these sectors are the principal end customers of tantalum capacitors. In 2023, US vehicle sales were predicted to reach 15.5 million units, up 11.6% from 2022. ABI Research expects worldwide vehicle sales to increase by 5.1% in 2023 and 3.6% in 2024. The United States has low-grade tantalum resources; companies make tantalum capacitors and other tantalum products from imported and domestic tantalum garbage. According to the US Energy Information Administration (EIA), hybrid, plug-in hybrid, and battery EVs accounted for 16% of total light-duty vehicle sales in the second quarter of 2023.

Furthermore, according to Statistics Canada, ZEVs account for almost 10% of all new vehicles registered in Canada. ZEVs' market share reached a record high of 10.5% in Q2 2023, up significantly from 9.2%. Furthermore, Canada's total volume of light industry vehicles (with a gross vehicle weight of 8500 lbs or less) increased substantially by 34.3%. An increase in EV sales would present attractive potential for the researched market.

The European tantalum capacitors market in the United Kingdom is expected to grow significantly due to rising individual expenditure on electronic appliances and robust consumer electronics manufacturing. Furthermore, forward-thinking government attempts to reduce emissions and a general trend toward adopting energy-saving equipment will help expand the European market. Britons prefer automation for daily tasks due to their hectic lifestyles. According to the UK government, the UK electronics industry has over 12,000 enterprises and is expanding at a rapid pace. This indicator points to a revenue increase for consumer electronics producers shortly. Thereby driving the tantalum capacitor market growth in the region.

Segmental Analysis

The global tantalum capacitors market is segmented based on type, application, and region.

The market is further segmented by type into Tantalum Foil Electrolytic Capacitors, Tantalum Capacitors with Porous Anode and Liquid Electrolyte, and Tantalum Capacitors with Porous Anode and Solid Electrolyte.

Tantalum Foil Electrolytic Capacitor is a significant contributor to the market.

Tantalum Foil Electrolytic Capacitor

Tantalum foil electrolytic capacitors are an old and popular form of tantalum capacitor. They comprise a tantalum metal foil as an anode and a dielectric oxide layer. The foil is tightly coiled, resulting in a compact structure. Tantalum foil capacitors provide high capacitance values in a tiny, lightweight container, making them ideal for applications where space efficiency is critical. These capacitors are used in various electronic products, including telecommunications equipment, audio systems, and power supply, where their electrical stability and durability are highly valued.

Tantalum Capacitors with Porous Anode and Liquid Electrolyte

Tantalum capacitors with a porous anode and liquid electrolyte are designed to improve capacitor performance. In this design, the tantalum anode features a porous structure, which increases surface area and capacitance. The liquid electrolyte increases the capacitor's efficiency and capacitance per unit volume. These capacitors are commonly used in applications requiring large capacitance values, such as power supply circuits and filtering applications. While they perform better, they may be more sensitive to temperature changes and are less prevalent than solid tantalum capacitors.

The market can be bifurcated by application into Power Supply Filtering, Audio Amplifiers, Medical Devices, Military Applications, Sample and Hold Circuits, Electronic Gadgets, and Telecommunications Infrastructure.

Electronic Gadgets influenced the market growth.

Electronic Gadgets

Tantalum capacitors are extensively used in various electronic devices, including smartphones, tablets, and wearables. Tantalum capacitors are widely used in smartphones due to their compact design and effective performance. These capacitors are critical to the device's power management, filtering, and signal coupling functions. They help to stabilize voltage levels, delivering a steady and stable power supply to the smartphone's components. Tantalum capacitors are also used in audio circuits, which improves sound reproduction and overall smartphone functionality. According to International Data Corporation (IDC), Apple will be the world's leading smartphone seller in 2023, with 234.6 million units sold versus 226.6 million for Samsung. Apple's growth was fueled by people purchasing higher-end devices for their features and durability. 

Power Supply Filtering

Tantalum capacitors are essential for filtering and regulating voltage fluctuations in power supply circuits. They provide a stable and clean power output, decreasing noise and interference in electronic equipment. Power supply filtering capacitors are typically found in various products, including consumer electronics and industrial machinery.

Impact of covid-19

After a lengthy period of market stagnation, demand for tantalum capacitors began to rise in 2018, owing to their overlap with MLCC (multilayer ceramic capacitor), which was in short supply. Due to supply difficulties, firms began to cover all bases as the global capacity for MLCC became tight. Prior to the COVID-19 outbreak, there was a considerable market demand for ultra-small, case-size tantalum chip capacitors. As the demand for industrial automation, electric cars, and other uses grew, many manufacturers increased tantalum capacitor output to meet expected demand during 2019–2020. 

COVID-19 has stymied the growth of several metal markets globally. The majority of the components were sourced from Asian vendors, mainly in China. However, since China was the virus's epicenter, shortages arose, severely hurting global manufacturers before the virus spread to the rest of the globe. Tantalum production and distribution were hampered by global constraints and a halt in mining activity. As a result, manufacturers were subjected to ongoing inflationary pressure on demand and sales.

Market Recovery Timeline from the Impact of COVID-19 and its Challenges

The COVID-19 pandemic sent the industries into a tailspin. However, due to supply chain issues and material shortages, electronics took the brunt of the damage. As a result, several industries globally have ceased operations. According to industry sources, the price of passive components, particularly tantalum capacitors, has risen dramatically since the second quarter of 2020, as demand and production costs have risen. The price increase results from rising expenses for ceramic substrates, shipping, copper pricing, and manpower.

Tantalum supply changes are expected to significantly impact the market dynamics and prices of the tantalum capacitor during the next decade. Original equipment manufacturers (OEMs) in the consumer electronics and automotive industries are anticipated to postpone their orders for tantalum capacitors due to a manufacturing standstill. The rising demand for tantalum capacitors in electric cars and the rapid adoption of EVs is expected to create profitable prospects over the next decade.

Furthermore, increasing applications of tantalum capacitors in consumer electronics such as smart wearables, computers, smartphones, and so on are anticipated to drive the tantalum capacitor market growth during the forecast period.

Some of the issues that market participants may encounter in the future years are as follows:

• Unfavorable commercial and financial conditions, as seen by reduced sales, prices, and product demand.
• Expenses have risen due to distribution and transportation constraints, notably rising freight charges.
• Capacity to satisfy consumer demand may be limited due to limitations in manufacturing, support operations, staff, and other constraints for diverse end-user sectors, suppliers, and vendors.

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.