The Multilayer Ceramic Capacitor (MLCC) Market is witnessing significant growth driven by several key factors.This optimistic forecast is supported by the market's projected rise from $13.82 billion in 2024 to $41.10 billion by 2031, driven by a robust CAGR of 16.80%.
High voltage range multilayer ceramic capacitors are expected to remain the top revenue-generating category, with robust expansion anticipated.
Key Growth Drivers:
1. Electric Vehicles (EVs): The rising popularity of electric vehicles is a major driver for MLCC sales. MLCCs are integral in the design and functionality of EVs, particularly in advanced systems like Advanced Driver Assistance Systems (ADAS) and self-driving technology. The number of MLCCs used per vehicle is increasing, with modern electric vehicles incorporating thousands of these capacitors.
2. Digitalization and 5G Technology: The growing penetration of digitalization and the advent of 5G technology are spurring market expansion. MLCCs are critical components in various telecommunication devices and RF designs, which are essential for 5G infrastructure.
3. Consumer Electronics: Increasing demand for consumer electronics, including smart wearables, is fueling MLCC sales. The development of advanced MLCCs with improved capacitance is expanding their application in this sector.
4. Factory Automation and Robotics: The adoption of factory automation and robotics is creating growth prospects for MLCC manufacturers. These capacitors are essential in stabilizing voltage and providing high capacitance in compact dimensions, making them suitable for automated systems.
5. Internet of Things (IoT), Cloud, and AI: The emergence of IoT, cloud computing, and artificial intelligence is supporting market expansion. MLCCs are crucial in the functionality of devices connected through these technologies.
6. High Resistance to Abnormal Voltage: MLCCs are favored for their ability to provide high resistance to abnormal voltage, which is essential in various electronic applications.
Multilayer ceramic capacitors are made by alternating layers of metallic electrodes and dielectric ceramics, making them reliable for stabilizing voltage in circuits. Their compact size and high capacitance make them the most widely produced and used capacitors in electronic equipment.
Market Trends:
- Automotive Industry: The automotive sector, particularly the electric and hybrid vehicles market, is a significant consumer of MLCCs. The shift towards advanced vehicles and increased electrification in the automotive industry is boosting the demand for these capacitors.
- Telecommunication Industry: The telecommunication sector is another major area of application for MLCCs. Rapid advancements in 5G technology and increased use of telecommunication devices are driving market growth.
Regional Insights:
- North America: North America is expected to create lucrative growth opportunities for MLCC manufacturers. The region is home to several electric vehicle manufacturers, and the increasing production of electric vehicles is driving the demand for MLCCs.
- United States: The United States is poised to retain its dominance in the global market. The heavy presence of telecommunication device manufacturers and electric vehicle producers is driving the market forward.
- United Kingdom: The UK market is set to grow, driven by rising applications of MLCCs in telecommunication, healthcare, and automotive sectors. Increased research and development in MLCCs are also contributing to market growth.
- Japan: Japan is emerging as a lucrative market for MLCC manufacturers due to the growing popularity of electric vehicles and the presence of leading MLCC manufacturers. Companies in Japan are continuously developing advanced MLCC products to meet market demands.
Category-wise Insights:
- Voltage Range: High voltage range multilayer ceramic capacitors will remain in high demand, driven by their adoption in automotive and telecommunication sectors. General-purpose MLCCs typically have a rated voltage range of 2kV to 100kV, with higher ranges being used in automotive applications.
- End-use Industry: The automotive industry is the leading end-use sector for MLCCs. The rapid penetration of electric vehicles and the high adoption of MLCCs in these vehicles are driving growth. MLCCs are essential components in automated systems such as ADAS and are increasingly used in autonomous vehicles.
Competitive Analysis:
Key manufacturers in the MLCC market include Kyocera Corporation, Murata Manufacturing Co. Ltd, TDK Corporation, Taiyo Yuden Co. Ltd, Vishay Intertechnology, Yageo Corporation, Walsin Technology Corporation, Cornell Dubilier Electronics Inc., Samsung Electro-mechanics, KEMET, AFM Microelectronics Inc., and Darfon Electronics Corp.
Companies are focusing on developing new MLCCs with enhanced capacitance. Partnerships, acquisitions, and collaborations are common strategies adopted by MLCC manufacturers to expand their market presence.
Recent Developments:
- Murata Manufacturing Corporation Limited: Murata has started building a new MLCC factory in Wuxi, China, with a significant investment. This factory aims to meet the growing demand for MLCCs and is expected to be operational soon.
- Torey Industries Incorporation: Torey Industries has announced an increase in the production capacity of Lumirror biaxially oriented polyester release films, which are used in MLCC manufacturing.
- Murata's New Line-up: Murata has introduced a new line-up of MLCCs specifically designed for automotive applications, showcasing their commitment to innovation and market adaptation.
Market Segmentation:
By Type:
- General Capacitor
- Array
- Serial Construction
- Mega Cap
- Others
By Rated Voltage Range:
- Low range
- Mid-range
- High range
By Dielectric Type:
By End-use Industry:
- Industrial
- Electronics
- Automotive
- Telecommunications
- Others
By Region:
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa