Ceramic Capacitors Market - Forecasts from 2022 to 2027

The ceramic capacitors market was valued at US$6.649 billion in 2020 and is expected to grow at a CAGR of 7.51% over the forecast period to reach a total market size of US$11.039 billion by 2027.



In ceramic capacitors, ceramics serve as dielectrics, whereas metal cladding serves as a conductor. Because, ceramic capacitors are used across all electronic devices, their popularity has surged over the years. In addition to higher capacitance, improved filters, and decoupling capabilities, ceramic capacitors offer new design features. Increasingly, ceramic capacitors are becoming more popular because of their efficiency improvements, and are being increasingly being used in consumer electronics, automobiles, telecommunications, and the electric power sectors. It will continue to be in demand due to the rise in automobile production worldwide and expanding economies which continue to fuel the demand for electronic devices. Approximately USD 77.5 billion in revenues were generated from smartphones in 2019, according to a study conducted by the Consumer Technology Association (CTA). 

Ceramic capacitors are used in a wide range of application areas, such as consumer electronics, data processing, and telecommunications, which is driving the ceramic capacitors market growth. The market will also be driven by ceramic capacitors used in high-tech gadgets, such as smartphones and tablets.

Growth Factors:

The rise in demand for consumer electronics

The growing demand for these capacitors from the electronics sector is contributing to the growth of this market. This is on account of an increasing number of gadgets of higher specifications that are being deployed at an increasingly rapid rate. Due to the increasing demand for tablets and smartphones, along with the low costs associated with ceramic capacitors, the global market is experiencing strong growth. These capacitors are also being increasingly incorporated in LCD and LED televisions. Electronic devices such as computers, televisions, and mobile phones, among others are major sources of ceramic capacitor demand. High-end electronic device manufacturers use ceramic capacitors more frequently. Also, the price of multilayer ceramic capacitors has been steadily declining. Additionally, multilayer ceramic capacitors are increasingly being used in auto parts, such as powertrain components, vehicle frames, and infotainment gear, which will continue to contribute to their adoption. Electric vehicles are also increasingly utilizing ceramic capacitors because these can tolerate the high temperature required by control circuits.

Consumer electronics and appliances sales increased by 23.5% in the third quarter of FY21, according to the Retailers Association of India (RAI). This resulted in India's electronic hardware production increasing from US$72.38 billion in FY19 to US$89.38 billion in FY20. By FY24, India is expected to have a demand for $400 billion in electronic hardware. In line with the ‘National Policy on Electronics 2019’, 600 million handsets worth US$100 billion are expected to be exported out of a total of 100 million handsets of US$190 billion. (Source: ibeg.org). China has been the biggest manufacturer, exporter, and consumer of electronics, worldwide, according to China’s Ministry of Industry and Information Technology. The country is also the biggest producer of televisions, mobile phones, computers, and other consumer electronic devices, with the production of over 70% of these devices in 2019. China had also unveiled a three-year electronics development plan in January 2021, under which the country had been projected to enhance its supply-chain efficiency, and would aim to achieve technological advancement in areas, that includes sensors, circuits, and other electronic components.

Restraints:

Fragility

Ceramic has however some disadvantages such as possible damage and cracking which remain a major challenge in widespread adoption. In addition, ceramic capacitors have a short shelf life which is also a restraining factor. Microphonic noise can be produced by ceramic capacitors when mechanical vibration causes them to pick up vibration. Ceramic layers in capacitors may become uneven with variations in thickness during manufacturing, resulting in deteriorated capacitor performance and premature failure.

COVID-19 Impact on Ceramic Capacitors Market

Consumer electronics sales have already been substantially affected by the coronavirus pandemic. Even though most of the industry sectors witnessed a decline, several sub-sectors of consumer electronic devices witnessed an opposite trend. The new trend of remote working by enterprises across the globe as a means to carry on with their business processes resulted in the higher sales of PCs, laptops, and mobile devices. Sales of headphones and Bluetooth earphones were also positively impacted due to their requirement for webinars and online meetings. Networking devices and connectivity hardware solutions have also witnessed an increase in sales due to the requirement for remote connectivity. All these factors have positively impacted the demand for ceramic capacitors.

Segmentation

By Type

• MLCC
• Ceramic Disc Capacitor
• Feedthrough Ceramic Capacitor
• Ceramic Power Capacitor

By Industry Vertical

• Consumer Electronics
• Automotive
• Telecommunications
• Energy and Power
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Japan
• Others