Multilayer Ceramic Capacitor (MLCC) Market

Multilayer Ceramic Capacitor Market Outlook (2022 to 2032)

The Global Multilayer Ceramic Capacitor (MLCC) Market reached US$ 13.5 billion in 2022. By the end of 2032, total market valuation is set to exceed US$ 45.0 billion. Global multilayer ceramic capacitor sales are likely to surge at 12.8% CAGR between 2022 and 2032.

High voltage range multilayer ceramic capacitors will remain the top revenue-generating category. The target segment is likely to expand at a CAGR of over 12.7% between 2022 and 2032.

• Rising popularity of electric vehicles will boost multilayer ceramic capacitor sales
• Growing penetration of digitalization and 5G technology to spur market expansion
• Increasing demand for consumer electronics to fuel MLCC sales
• Development of advanced MLCCs with improved capacitance will expand the market
• Adoption of factory automation and robotics to create growth prospects for MLCC manufacturers
• Emergence of Internet of Things (IoT), cloud, and AI to support market expansion.
• Ability of MLCCs to provide high resistance to abnormal voltage to fuel demand

Multilayer ceramic capacitors are capacitors made by alternating layers of metallic electrodes and dielectric ceramics. They are the most widely produced and used capacitors in electronic equipment.

Multilayer ceramic capacitors are reliable and can help stabilize voltage in a circuit. They have the tendency to provide high capacitance in small dimensions.

Rising usage of multilayer ceramic capacitors in automotive industry will boost the market. Multilayer ceramic capacitors are being employed in electric and hybrid vehicles.

Amid rapid shift towards advanced vehicles, such as Advanced Driver Assistance Systems (ADAS) and self-driving vehicles, number of MLCCS used per vehicle is increasing.

According to the Henry Royce Institute, over 10000 multilayer ceramic capacitors are incorporated into a modern electric vehicle. Most of these capacitors are used in engine management system and computer electronics. With electrification making waves in automotive industry, demand for MLCCs will rise at a robust pace through 2032.

Increasing pollution levels and high fuel prices are prompting people to switch over to electric and hybrid vehicles. Hence, over the next few years, demand for electric and battery-powered vehicles will rise. This in turn will create lucrative opportunities for multilayer ceramic capacitor manufacturers.

Growing application of MLCCs in telecommunication industry will spur market development. Multilayer ceramic capacitors find application in several telecom devices and RF designs. Rising usage of MLCCs in consumer electronics such as smart wearables will boost the market.

2017 to 2021 Multilayer Ceramic Capacitor Sales Outlook Compared to Demand Forecast from 2022 to 2032

As per Persistence Market Research (PMR), the multilayer ceramic capacitor sales grew at 16.4% CAGR from 2017 to 2021. At the end of 2021, the market size reached US$ 11.6 billion. Over the next ten years (2022 to 2032), multilayer ceramic capacitor demand will swell up at 12.8% CAGR. This will create an absolute $ opportunity of US$ 31.5 billion.

Multilayer ceramic capacitor (MLCC) is a capacitor in which there are multiple layers of ceramic inner electrodes concreted in a sandwich structure. These capacitors are used in automobile sector due to growing trend of electrification. Electric vehicles have lots of MLCCs embedded in their electronics compartment of the digital system.

Recent advancements in electric vehicles will create high demand for MLCCs. These vehicles need inclusion of MLCCs for increasing capacitance and maintaining safety features.

Advanced Driving Assistance System features need a large number of MLCCs in the system to function. For instance, in battery electric vehicles, number of multilayer ceramic capacitors needed is five times the number of multilayer ceramic capacitors needed in non-electric vehicles.

The battery electric vehicles have around 10,000 MLCCs present in them. Hence, rapid transition towards electric vehicles will trigger multilayer ceramic capacitor sales.

Rising usage in telecommunication industry due to the rapid advancements in 5G technology will bode well for the market. Multilayer ceramic capacitors find application in many telecommunication devices.

Which Region Will Offer Lucrative Opportunities for Multilayer Ceramic Capacitor Manufacturers?

North America is likely to create lucrative growth opportunities for MLCC manufacturers. Total MLCC sales across North America totaled US$ 5.43 billion in 2022. By the end of 2032, North America market is set to reach US$ 18.09 billion in 2032.

North America is home to several electric vehicle manufacturers and they require multilayer ceramic capacitors in larger numbers. For instance, Tesla Model-3 contains over 9000 multilayer ceramic capacitors.

As battery electric vehicle production is likely to increase from 1050000 vehicles in 2020 to around 2612000 vehicles by 2025, demand for multilayer ceramic capacitors will rise dramatically.

Country-wise Insights:

Will the USA Retain its Dominance Over the Global Multilayer Ceramic Capacitor Market?

The United States is likely to retain its dominance in the global market during the next ten years. The United States multilayer ceramic capacitor market size to reach US$ 14.1 billion in 2032.

Sales of multilayer ceramic capacitor across the USA increased at 14.8% CAGR from 2017 to 2021. Over the next ten years, the United States market will progress at 11.6% CAGR. This market will generate an absolute $ opportunity of US$ 9.4 billion.

Heavy presence of telecommunication device manufacturers such as CISCO, ABB Installation Products, Motorola, and L3 technologies is driving the USA market. Similarly, presence of electrical vehicle manufacturers such as Tesla, Rivian, and Li Auto will elevate MLCC demand. This is because multilayer ceramic capacitors are needed in the designing of electrical vehicles and telecommunication devices.

How Will Growth Unfold in the United Kingdom Multilayer Ceramic Capacitor Market?

The United Kingdom multilayer ceramic capacitor market is set to reach US$ 2.1 billion by 2032. Overall multilayer ceramic capacitor sales in the country will increase at 11.9% CAGR. By the end of 2032, the United Kingdom market will create an absolute $ growth of US$ 1.4 billion.

Rising applications of MLCCs in different areas such as telecommunication, healthcare, and automobiles is driving the market forward. Besides this, increasing research and development in MLCCs will bode well for market.

Several companies and institutes are working on developing novel solutions with enhanced features. For instance, to improve energy storage density and operating voltage of MLCCS, Functional Materials and Devices Group of the University of Sheffield developed novel Lead Oxide free high-energy density capacitors. For this purpose, the group used equipment and expertise of the Henry Royce Institute.

What Makes Japan a Lucrative Market for Multilayer Ceramic Capacitor Manufacturers?

Multilayer ceramic capacitor demand across Japan is set to rise at 12.2% CAGR through 2032. By the end of 2032, Japan multilayer ceramic capacitor market size will reach a valuation of US$ 3.3 billion.

Japan market is likely to create an absolute $ opportunity of US$ 2.2 billion between 2022 and 2032. Multilayer ceramic capacitor sales in the country grew at 15.6% CAGR from 2017 to 2021.

Growing popularity of electric vehicles is a key factor driving Japan’s MLCC market. Additionally, presence of leading multilayer ceramic capacitor manufacturers is boosting Japan market.

Japan is home to several leading MLCC manufacturers. These manufacturers offer a wide variety of MLCC products. One such MLCC giant is Murata Manufacturing Limited. The company has a line-up of varied purpose multilayer ceramic capacitors.

For instance, it offers GRM series capacitors. These are general purpose capacitors that work in the 2.5Vdc to 3150Vdc with a capacitance of 0.10pF to 330 uF. The GR3 series has high effective capacitance of the order of 10000 pF to 1.0 uF.

Category-wise Insights:

Which Voltage Range Multilayer Ceramic Capacitors Will Remain High in Demand?

High voltage range multilayer ceramic capacitors will remain high in demand through 2032. High range MLCCs segment grew at 16.3% CAGR from 2017 to 2021. Over the next ten years, the target segment will expand at 12.7% CAGR.

Rising adoption of high voltage MLCCs across automotive and telecommunication sectors is driving growth of the target segment.

A general-purpose multilayer ceramic capacitor has rated voltage range of 2kV to 100kV. The rated voltage is the maximum voltage to which the capacitors can be exposed and can sustain the potential difference.

Higher ranges of orders of 100kV of the multilayer ceramic capacitors are likely to witness high demand as they are used in applications such as automobiles and telecommunication.

What is the Leading End-use Industry for Multilayer Ceramic Capacitors?

Demand for multilayer ceramic capacitors will remain high in automotive industry. This is due to rapid penetration of electric vehicles coupled with high adoption of MLCCS in these electric vehicles.

Automotive segment expanded at a CAGR of 16.2% from 2017 to 2021. While for the projection period (2022 to 2032), it is set to progress at 12.6% CAGR.

Usage of multilayer ceramic capacitors in battery and hybrid electric vehicles is important for the digital compartment of the cars. These capacitors have become crucial components in automated systems such as ADAS. Growing popularity of autonomous vehicles worldwide will bolster MLCC sales through 2032.

Competitive Landscape:

Key manufacturers of multilayer ceramic capacitors 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.

Development of new MLCCs with enhanced capacitance remains a key strategy of companies. Besides this, partnerships, acquisitions, & collaborations are being adopted by multilayer ceramic capacitor companies.

Recent Developments:

• In November 2022, Murata Manufacturing Corporation Limited- a leading electronics manufacturer based in Kyoto, Japan started building a multilayer ceramic capacitors factory in Wuxi, China with a budget of US$ 300 million. The factory is being set up to meet the growing demand for multilayer ceramic capacitors. The factory is likely to complete by April 2024.
• In July 2022, Torey Industries Incorporation announced that it will increase the capacity of producing Lumirror biaxially oriented polyester release films. These films are used in the manufacturing of multilayer ceramic capacitors.
• In March 2022, Murata Manufacturing Corporation Limited introduced a new line-up of MLCCs. These multilayer ceramic capacitors are ideal for automotive applications.

Scope of the Report:

Global Multilayer Ceramic Capacitors 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:

• X7R
• X5R
• C0G
• Y5V
• Others

By End-use Industry:

• Industrial
• Electronics
• Automotive
• Telecommunications
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

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