MLCC Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

MLCC Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)
The Multi-layer Ceramic Capacitor (MLCC) Market size is estimated at USD 13.22 billion in 2023, and is expected to reach USD 17.72 billion by 2028, growing at a CAGR of 6.03% during the forecast period (2023-2028). Key HighlightsThe demand for Multi-Layer Ceramic Capacitor (MLCC), a core component of the electronic industry, is increasing significantly with the advancement of IT devices. The electronics industry has been the largest user of MLCCs in the past and is expected to hold a significant share in the future. The rapid digitalization and emergence of technologies like IoT, cloud, and AI will drive the growth of the market.Furthermore, the launch of 5G will act as an enabler for these emerging technologies, due to which there will be a massive surge in demand for computing electronics.Moreover, with the possibility of miniaturization, the manufacturers are trying to integrate more components and circuits within the limited space available to them. Other capacitors have not matched the unique characteristics of MLCC, due to which MLCC is going to be the prominent factor in the success of the emerging new computing technology.One of the main challenges the semiconductor industry faces is the uncertainty in regulations and associated tariffs due to the ongoing trade war between the United States and China. Both governments have imposed additional tariffs on imported goods from either country. All the major players like Kyocera, Samsung Electromechanical, and Murata have their plants in countries to be closer to their customers.The increase in demand for electronics such as laptops, smartphones, computers, printers, smart wearables, healthcare devices, webcams, and headphones due to the implementation of work-from-home policies globally fueled the demand for MLCCs in the electronics industry. In addition, the rise in internet usage accelerated the need for MLCCs in the telecommunications industry. Considering these factors, the growth of the global multi-layer ceramic capacitor (MLCC) market did not decline but slowed down during the pandemic. However, the market is expected to grow consistently in the post-COVID-19 period.Multi-Layer Ceramic Capacitor (MLCC) Market TrendsElectronics Industry to Hold the Largest Market Share Companies are developing MLC capacitors with lower equivalent series resistance (ESL) than a conventional 2-terminal multilayer ceramic capacitor to reduce the impedance in a high-frequency band with fewer components. This characteristic resulted in the increasing adoption of MLCC in high-end electronics, especially smartphones and other devices, where high density with compactness is required for mounted high-speed processors. According to GSMA, 5G networks are expected to cover one-third of the world's population by 2025. As per the organization's estimates, the number of 5G connections was expected to surpass 1 billion by the end of 2022 and 2 billion by 2025, making up over a fifth of mobile connections. The rise in the implementation of 5G is creating a huge demand for 5G-enabled devices, such as smartphones. With smartphones supporting 5G becoming more widespread and devices like wearable devices becoming increasingly multifunctional and compact, the need for smaller, higher-density electronic circuitry is increasing. Furthermore, the proliferation of IoT is another key factor contributing to market growth. For instance, Ericsson said there were around 10.29 billion short-range IoT devices globally in 2022, predicted to grow to around 25.15 billion devices by 2027. Besides, wide-area IoT devices are estimated at 2.8 billion in 2022 and are anticipated to reach 5.4 billion devices by 2027. Many IoT products being produced have volumetric efficiency issues as they are wearable or designed to be extensions of the consumer's environment. Therefore, they require ultra-small case size parts only available in the MLCC case sizes. Moreover, the increasing penetration of smartphones in emerging countries and the growing market for IoT and wearable devices are expected to offset these factors while creating an opportunity for the vendors in the market studied. Asia-Pacific to Dominate the Market In terms of end-users, China has been the world's largest automotive market for years and is becoming a powerhouse for automotive technology. The country may substantially impact the automotive industry in the future since it is open to technological progress. Furthermore, with the arrival of Industry 4.0, China is expected to see massive growth in the automation and industry sector, owing to schemes like Made in China 2025. According to the China Association of Automobile Manufacturers, in January-May 2023, production and sales of automotive cars in China amounted to 10.687 million units and 10.617 million units, increasing by 11.1% yearly. New technologies, such as autonomous driving, electric vehicles, and connected cars, are being driven very strongly in China. The demand for MLCCs is expected to grow further. According to Scotiabank, China was the largest automobile market based on sales, with around 23.24 million units in 2022. In India, increasing demand, along with the supportive government regulations to make the country an automotive manufacturing hub, is further driving the growth of the automotive sector. For instance, India's Automotive Mission Plan 2026 is a mutual initiative by the Government Of India and the Indian automotive industry to lay down the roadmap for the evolution of the industry. Considering the growth potential and to keep up with the growing demand, several automakers have invested heavily in various segments of the Indian automotive industry. According to IBEF, the Indian automotive industry is targeting to increase the export of vehicles by five times during 2016-26. In FY22, total automobiles exported from India stood at 5,617,246. The telecommunication industry in Japan has witnessed remarkable evolution in the past few decades. The Japanese government plans to invest billions of dollars in promoting the development of ultra-high-speed communication. Japanese equipment manufacturers NEC and Fujitsu and Finnish equipment manufacturer Nokia announced plans to conduct experimental trials of unique mobile communications technologies for the targeted commercial launch of 6G services by 2030.Multi-Layer Ceramic Capacitor (MLCC) Industry Overview The multi-layer ceramic capacitor market is moderately competitive and consists of some influential players. The players with significant shares in the market are concentrating on expanding their customer bases across foreign countries. They are taking strategic collaborative actions to improve their market presence and enhance their profitability. In May 2023, Samsung Electro-Mechanics advanced and heavily produced a multi-layer ceramic capacitor CL31Y226MOK6PJ that may be applied withinside the superior driving force help system (ADAS) and self-sustaining driving (AD) of an automobile with a capacitance of 22?F at 1206-inch (3.2×1.6mm) size/ X7S (-fifty-five to 125?)/ rated 16V. In April 2023, Eyang attended EIMS Shenzhen International Electronic Intelligent Manufacturing Exhibition as part of the customer acquisition strategy. The company showcased its seven important collections of products: ultra-micro 008004/01005 packaged MLCCs, high-potential collection of 0201-2.2?F/4.7?F, 0402-4.7?F/10?F, 0603-22?F/47?F, 0805-47?F/100?F, 1206-47?F/100?F, and 1210-100?F/220?F MLCCs, in addition to automotive-grade MLCC product for car energy safety.Additional Benefits: The market estimate (ME) sheet in Excel format 3 months of analyst support