Industry: Semiconductor Electronics
Published Date: November-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 194
Report ID: PMRREP23278
The global tantalum capacitors market is predicted to reach a value of US$ 2.4 Bn by 2024. It is anticipated to witness a CAGR of 4.6% during the forecast period to reach a size of US$ 3.6 Bn by 2031. Demand for tantalum capacitors is estimated to skyrocket in the next ten years amid their use in electronic devices primarily for energy storage and power supply filtering.
Tantalum capacitors are set to be highly valued for their reliability, compact size, and stability. In August 2023, South Carolina-based AVX Corporation launched a new series of high-performance capacitors tailored for use in Electric Vehicles (EVs). These capacitors offer enhanced temperature tolerance and improved stability under high voltages.
Novel capacitors find wide applications in industrial equipment, military systems, automotive electronics, and consumer electronics. The rising trend of miniaturization in electronics has increased the demand for tantalum capacitors. They are hence highly sought after for use in compact and high-performance electronic systems, including tablets, smartphones and wearables. Their high volumetric efficiency along with the ability to provide superior capacitance in a small footprint is another key factor in bolstering sales.
Key Highlights of the Industry
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Market Attributes |
Key Insights |
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Tantalum Capacitors Market Size (2024E) |
US$ 2.4 Bn |
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Projected Market Value (2031F) |
US$ 3.6 Bn |
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Global Market Growth Rate (CAGR 2024 to 2031) |
4.6% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
3.7% |
Increased consumer spending on electronics coupled with a strong industry producing consumer electronics are the primary factors driving expansion in the tantalum capacitors market in the U.K. Ambitious government targets for emission reduction along with the evolving trends toward energy-efficient technologies is also set to fuel industry growth. U.K. market is estimated to capture a 5.8% CAGR through 2031.
Implementation of federal tax breaks to encourage the use of renewable energy sources and programs to promote electric transportation is likely to aid growth in the industry. The demand for tantalum capacitors is further anticipated to be augmented by the ongoing residential and commercial construction projects having a daily reliance on technology. Backed by the above-mentioned factors, the U.K. is projected to witness a CAGR of 8.6% from 2024 to 2031.
Rising demand for tantalum capacitors in end-use industries like aerospace, medical equipment, and electronics is the primary factor pushing growth in China. High-end military industry in China is estimated to emerge as a prominent consumer of tantalum.
Due to cost management and strategic security issues, the country has deliberately reduced its reliance on imported goods and is fiercely promoting localization of premium military products. This is giving a supportive environment for growth of the domestic military tantalum capacitor sector. Owing to the aforementioned factors, the country is estimated to generate a share of 52% in 2024.
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Category |
CAGR through 2031 |
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Application - Consumer Electronics |
7.2% |
The consumer electronics industry is estimated to demand innovative tantalum capacitors in the near future due to the growing popularity of digital cameras, computers, and smartphones. Their quick replacement cycles further surge the demand for capacitors.
Introduction of new technologies, such as 4K and OLED televisions, with their superior functionality and electronic content poses a need for higher capacitance, bandwidth, and energy density. It further encourages consumer acceptance of the product.
Due to their compact size and long-lasting stability, tantalum capacitors are also frequently employed for power supply filtering on computer motherboards and mobile phones, most frequently in surface mount form. Several industrial sectors continue to use tantalum capacitors with polymer cathode systems. This technology was first used in consumer electronics, where it was quickly adopted for utilization in desktop and laptop computer applications.
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Category |
Market Share in 2024 |
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Type - Polymer Tantalum Capacitors |
35% |
There have been increasing investments in the development of novel techniques and materials to introduce an entirely new generation of passive devices. This includes financial commitments to technological innovations and manufacturing equipment.
Polymer tantalum capacitors are renowned for their outstanding stability and dependability over a broad temperature and frequency range. They also have great volumetric efficiency that breaks records. When failure is not an option or high-performance technologies are being used, polymer tantalum is often the capacitor of choice.
The tantalum oxide film medium in the polymer tantalum capacitor is corrosion resistant in addition to being able to retain good performance for an extended period of time. These characteristics are predicted to accelerate demand for polymer tantalum capacitors.
The market for tantalum capacitors has witnessed significant growth in recent years owing to the increasing need for compact and high-performance electronic components. These capacitors are highly preferred because of their ability to provide large capacitance in small packaging. It is essential for contemporary electronic systems. Their superior durability and resilience have made them widely used in automotive electronics, particularly with the expansion of EVs and ADAS.
The aerospace and military industries are also contributing to the rapid expansion of the market owing to their requirement for capacitors that can reliably operate in challenging conditions. Developments in packaging technologies are helping manufacturers to improve the performance and efficiency of tantalum capacitors. This enables them to withstand high voltages and be used in demanding applications.
Innovative technologies, however, are being increasingly adopted by end-use industries, such as automotive and aerospace. It is further necessitating components with increased cost-effectiveness, durability, and efficiency.
Despite its reputation for stability and dependability, tantalum capacitors are not always the ideal option for cutting-edge applications. As other capacitors can match these standards at lower costs, the use of tantalum capacitors will likely decline as computing has shifted to Solid-State Drives (SSDs).
The tantalum capacitors market growth remained steady at a CAGR of 3.7% during the historical period. Sales of tantalum capacitors increased in this period owing to the rise of consumer electronics, specifically smartphones, tablets, and wearables as they need small yet powerful capacitors.
The market, along with average growth, also faced several challenges, including price volatility. Manufacturers responded to this by bringing in innovations in their recycling technologies and adapting sustainable sourcing practices. The industry also witnessed a rising need for capacitors that can operate in challenging environments, further boosting innovations across the globe.
Rising Use in Medical Devices to Propel Expansion
There is an increasing focus on healthcare innovations across the globe. This is further driving the need for dependable electronic components in medical devices. Tantalum capacitors provide excellent performance in challenging environments and are hence progressively used in devices like hearing aids, pacemakers, and diagnostic equipment.
Technological Innovations in Power Systems to Augment Growth
Tantalum capacitors are increasingly being used in power systems, such as renewable energy technologies due to their long lifespan and high reliability. Acceleration in the global shift toward renewable energy is estimated to create a burgeoning demand for capacitors that are capable of handling high voltages while providing a long-term performance.
Rising Geopolitical Issues to Decline Demand for Advanced Tantalum Capacitors
Tantalum is often classified as a conflict mineral because a significant portion of the material comes from regions facing ongoing geopolitical issues. The ethical concerns around sourcing tantalum from such conflict zones have resulted in an increase in pressure on manufacturers to source the material responsibly. This, in turn, has raised costs and complexity in supply chains, particularly as regulatory requirements and certification processes around conflict-free sourcing have become stringent.
Emergence of Alternatives to Hamper Demand due to Sustainability Concerns
Manufacturers of capacitors are being influenced to look for recyclable and environmentally friendly materials. This is due to the global emphasis on sustainable production and circular economy practices.
Aluminum and ceramic are easier to recycle than tantalum, which is difficult because of its characteristics and availability issues. The demand for tantalum capacitors is declining as a result of the increasing adoption of more ecologically friendly components across companies as their strategies match global sustainability aspirations.
Technological Innovations in Capacitor Design and Efficiency to Create Avenues
Tantalum capacitors can now meet the evolving demand for cutting-edge electronics owing to rapid developments in materials, capacitor design, and packaging. Novel applications in high-frequency circuits, smart devices, and power supply are being made possible through innovations in downsizing, reduced equivalent series resistance (ESA), and high temperature tolerance. These capacitors can be crucial in providing the required power management solutions as the consumer electronics market pushes the limits of performance and downsizing.
Rising Demand for Internet of Things Devices to Open Growth Prospects
The requirement for small and dependable capacitors is highly driven by the proliferation of Internet of Things (IoT) devices, including industrial sensors, smart cities, and connected appliances. Tantalum capacitors are particularly suited for high reliability and low-voltage applications in IoT devices. With an increasing number of connected devices, tantalum capacitors have a high change to play a crucial role in offering reliable power solutions for these energy-efficient systems.
Manufacturers in the industry are predicted to gain a competitive edge due to the rising emphasis on expansion and revenue generation. Innovations in technology and the proliferation of electronic devices across several sectors are estimated to surge the demand for tantalum capacitors. Companies in the market are well-positioned to capitalize on this increasing demand by strategically aligning their business strategies with the changing industry trends.
Recent Industry Developments
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Profiled in the Report |
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Report Coverage |
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Customization and Pricing |
Available upon request |
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By Mounting:
By Application:
By Region
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The market is set to reach a value of US$ 3.5 Bn by 2031.
They are extensively used in electronic devices that require stable capacitance and low leakage current.
Tantalum is primarily used in the production of electronic components.
The market is anticipated to register a CAGR of 6.4% through the assessment period.
China is estimated to emerge dominant through 2024 with a value share of 52%.
