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The Automotive MLCCs Market size is forecast to increase by USD 1.85 billion, at a CAGR of 10.5% between 2023 and 2028. The market is experiencing significant growth due to the increasing adoption of electric vehicles (EVs) globally, leading to a rise in demand for high-reliability electronics and energy storage solutions. Companies are introducing new MLCC products, such as compact capacitors with advanced features like cloud integration and high voltages, to cater to the evolving needs of the automotive industry. The trend towards automation and connectivity in vehicles is driving the need for MLCCs in electronic control units (ECUs) and circuitry, particularly those used in telecommunications and high-voltage applications. The competition from alternative technologies, such as supercapacitors and batteries, is a challenge for MLCC market growth. However, the use of materials like palladium and nickel in MLCCs ensures high performance and reliability, making them a preferred choice for automotive applications.
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The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The class 2 MLCCs segment is estimated to witness significant growth during the forecast period. Class 2 MLCCs play a vital role in the automotive industry due to their high capacitance density and compact size. These capacitors, which utilize dielectric materials like X7R and Y5V, provide significantly higher capacitance values than Class 1 capacitors while maintaining a relatively small footprint. This makes them indispensable for applications where space is at a premium and high capacitance is required. In the realm of automotive electronics, Class 2 MLCCs are extensively employed in various systems, including power management circuits, filtering applications, and Advanced Driver Assistance Systems (ADAS). For instance, Yageo's X5R series of Class II MLCCs is specifically designed for general-purpose applications, capable of functioning optimally at temperatures up to 85 degrees Celsius. Moreover, the increasing adoption of Fuel Cell Electric Vehicles (FCEVs) and renewable energies in the automotive sector necessitates the use of efficient and reliable energy management systems.
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The class 2 MLCCs segment was valued at USD 1.10 billion in 2018. Class 2 MLCCs contribute significantly to these systems by ensuring stable voltage levels in battery management systems and onboard chargers. Furthermore, they help minimize greenhouse gas emissions by optimizing the performance of on-board electrical circuits, including high voltage MLCCs and onboard inverters. The charging infrastructure for electric and hybrid vehicles is expanding rapidly, with an increasing number of publicly accessible chargers and fast chargers becoming available. Class 2 MLCCs are essential components in these charging systems, ensuring efficient power conversion and stable voltage levels during the charging process. As the automotive industry continues to transition towards more sustainable energy sources and reduce carbon emissions, the demand for Class 2 MLCCs is expected to grow.
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APAC is estimated to contribute 55% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Asia-Pacific (APAC) region is leading the global automotive Multi-Layer Ceramic Capacitors (MLCCs) market due to the rise in electric vehicle (FCEVs and BEVs) sales and manufacturing capabilities. In May 2024, India reported a noteworthy 20.88% increase in EV sales, reaching 1.39 million units. The Indian government has set ambitious targets to boost EV sales, aiming for 30% of private cars, 70% of commercial vehicles, 40% of buses, and 80% of two-wheelers and three-wheelers to be electric by 2030. This equates to a goal of having 80 million EVs on Indian roads by the end of the decade. The Make in India initiative is also instrumental in supporting this objective by encouraging complete domestic EV production. Renewable energies are becoming increasingly important in the automotive sector, and MLCCs play a crucial role in battery management systems, onboard chargers, and on-board electrical circuits, including high voltage MLCCs and onboard inverters. Greenhouse gas emissions from traditional vehicles are a significant concern, and the shift towards electric vehicles and renewable energies is essential in reducing these emissions. Charging infrastructure, including publicly accessible chargers and fast chargers, is also a critical factor in the growth of the EV market.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Bourns Inc. - The company offers automotive MLCC products such as Headlight Range Sensor, ABS Wheel Speed Sensor, Motor Position Sensor for EPAS, Steering Angle Sensor, and Fuel Level Sensor.
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Market structure |
Fragmented |
YoY growth 2023-2024 |
9.1 |
Multi-Layer Ceramic Capacitors (MLCCs) are essential electronic components in the automotive industry, used extensively in power distribution, noise suppression, signal conditioning, and voltage regulation applications. The compact designs and energy-efficient properties of MLCCs make them indispensable in the development of advanced on-board electrical circuits in vehicles. In the context of automotive applications, MLCCs play a crucial role in electric vehicles (EVs) and hybrid electric vehicles (HEVs). They are used in high-voltage systems such as on-board inverters, AC-DC converters, BMS circuits, and onboard chargers of battery electric vehicles (BEVs) and battery management systems (BMS). The use of MLCCs with metallic electrodes and dielectric ceramic materials enables the production of high-performance, high-voltage MLCCs, suitable for the demanding requirements of EV and HEV circuitry. MLCCs are also employed in various consumer electronics, telecommunications, 5G, IoT, and electronic control units (ECUs) due to their excellent energy storage capabilities and ability to handle high voltages. The future of MLCCs in the automotive industry looks promising, with continuous advancements in technology and increasing demand for energy-efficient and compact solutions for onboard electrical systems. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing adoption of EVs globally is notably driving market growth. The market is experiencing significant growth due to the increasing adoption of electric vehicles (EVs). According to industry forecasts, EV sales are projected to reach approximately 17 million units in 2024, accounting for over 20% of all cars sold worldwide. This trend signifies that EVs are transitioning from niche products to mass-market vehicles in various countries. In the first quarter of 2024, electric car sales grew by approximately 25% compared to the same period in 2023, reflecting the year-on-year growth observed in 2022. By 2035, it is anticipated that half of all global car sales will be electric, driven by current energy, climate, and industrial policies, as outlined in the International Energy Agency's (IEA) Stated Policies Scenario.
MLCCs play a crucial role in automotive applications, including power distribution, noise suppression, signal conditioning, and voltage regulation. Compact and energy-efficient designs are essential for electric vehicles, making MLCCs an ideal choice for these applications. Smart mobility solutions, such as hydrogen stations, also rely on MLCCs for efficient energy storage and distribution. Thus, such factors are driving the growth of the market during the forecast period.
The introduction of new MLCC products by companies is the key trend in the market. The market is experiencing a notable trend with companies launching innovative products to cater to the rising demand for compact and efficient electronic components in automotive applications. On September 19, 2024, Murata Manufacturing Co., Ltd., headed by President Norio Nakajima, introduced the world's smallest MLCC, measuring 0.16 mm x 0.08 mm (006003-inch size). This new MLCC offers a 75% reduction in volume compared to the previous smallest MLCC (0.25 mm x 0.125 mm, 008004-inch size).
This ultra-compact MLCC addresses the increasing need for high-density component mounting solutions in advanced automotive systems, including power distribution, noise suppression, signal conditioning, and voltage regulation. The automotive sector's shift towards energy-efficient designs, electric vehicles (EVs), smart mobility solutions, and hydrogen stations further fuels the demand for compact MLCCs. Thus, such trends will shape the growth of the market during the forecast period.
Rising competition from alternative technologies is the major challenge that affects the growth of the market. The market experiences intense competition from alternative capacitor technologies, such as polymer capacitors, tantalum capacitors, aluminum electrolytic capacitors, and film capacitors. Among these, polymer capacitors are gaining prominence, particularly in automotive applications where high reliability and superior performance are essential. Polymer capacitors offer lower Equivalent Series Resistance (ESR) and improved stability, resulting in desirable characteristics like miniaturization, energy efficiency, and quicker transient response. Polymer capacitors effectively tackle the challenges posed by traditional MLCCs by providing extended life and enhanced reliability, making them a preferred choice for various sectors, including aerospace, medical, and commercial applications. With the continuous evolution of electronic devices, the demand for capacitors capable of supporting high-speed operations and maintaining minimal voltage fluctuations is escalating.
In the automotive sector, MLCCs play a crucial role in power distribution, noise suppression, signal conditioning, and voltage regulation. As the automotive industry shifts towards smart mobility solutions, including Electric Vehicles (EVs) and Hydrogen stations, the need for compact and energy-efficient designs becomes increasingly important. Polymer capacitors, with their superior performance and reliability, are poised to meet these demands and contribute significantly to the automotive electronics landscape. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Multi-layer Ceramic Capacitors (MLCCs) are essential electronic components in the automotive industry, finding extensive applications in power distribution, noise suppression, signal conditioning, voltage regulation, and other subsystems. MLCCs are widely used in automotive applications, including electric vehicles (EVs) and hybrid electric vehicles (HEVs), renewable energies, hydrogen stations, and smart mobility solutions. These compact and energy-efficient designs offer high reliability electronics, making them suitable for use in battery management systems (BMS), onboard chargers, and onboard inverters. MLCCs are also used in AC-DC converters, DC converters, and BMS circuits in battery electric vehicles (BEV), hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV), and self-driving cars.
MLCCs are available in various types, such as high voltage MLCCs, metallic electrodes, dielectric ceramic, and polymer capacitors. They are also used in control circuits, engine control modules (ECM), and electronic control units (ECUs) in infotainment systems, engines, powertrains, and charging infrastructure. MLCCs are essential in automotive electronics due to their high temperature resistance, surface-mount capabilities, and leakage proof design. With the increasing adoption of EVs and the integration of artificial intelligence (AI), 5G, IoT, and autonomous vehicles, the demand for MLCCs in the automotive industry is expected to grow significantly. However, the ongoing chip shortages may pose a challenge to the market's growth.
Market Scope |
|
Report Coverage |
Details |
Page number |
214 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.5% |
Market Growth 2024-2028 |
USD 1.85 billion |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 55% |
Key countries |
China, US, Japan, Germany, South Korea, France, India, Canada, Italy, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Bourns Inc., Fenghua HK Electronics Ltd, HEICO Corp., Holy Stone Enterprise Co. Ltd., Johanson Dielectrics Inc., Knowles Corp., KOA Speer Electronics Inc., KYOCERA AVX Components Corp., MARUWA CO. LTD., Murata Manufacturing Co. Ltd., NIC COMPONENTS CORP., Nippon Chemi-Con Corp., Panasonic Holdings Corp., Samsung Electro-Mechanics, Shenzhen Eyang Technology Development Co. Ltd., TAIYO YUDEN Co. Ltd., TDK Corp., Vishay Intertechnology Inc., Walsin Technologies Corp., and Yageo Corp. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, AI impact on market trends, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Type
9 Market Segmentation by Application
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
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