Market Trends of Aluminum Electrolytic Capacitor Industry
Growth of the Automotive Segment is Positively Impacting the Market
- Rising passenger car sales have significantly boosted the demand for aluminum electrolytic capacitors due to their high heat resistance, ripple current handling, and capacitance. These capacitors are especially suited for brushless DC motor control units, including electric power steering (EPS), engine cooling fans, and fuel injection control units. In 2023, major international passenger car markets experienced a notable increase in new registrations. This surge is mainly due to improved vehicle availability over the previous year, which has positively impacted car sales. According to the OICA, global automobile sales reached 92 million units in 2023.
- As per the German Association of the Automotive Industry, the European car market, encompassing the EU, EFTA, and the United Kingdom, recorded 12.8 million new vehicle registrations in 2023, a 14% rise from the prior year. Recently, key European markets like France, Spain, the United Kingdom, and Italy showcased growth, while Germany saw a dip in new registrations.
- Similar trends have been observed across other regions, such as Asia-Pacific, where countries like India, Japan, China, and South Korea are among the major automotive markets. Electrification is a prominent trend in the region, with Chinese forms such as BYD emerging as the leading EV manufacturer, surpassing Tesla. Hence, such trends create a favorable ecosystem for the market's growth.
- Focusing on applications, the automotive segment stands out. Aluminum electrolytic capacitors are crucial in convenience systems such as air conditioning and automatic window motors. They are also integral to safety systems like power steering and airbags. Additionally, these capacitors are vital in engine control units (ECUs) for functions ranging from battery management to fuel pumps. These applications underscore the growing prominence of aluminum electrolytic capacitors in the automotive sector.
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North America is Expected to Hold a Significant Share in the Market
- North America has a diverse industrial landscape encompassing automation, robotics, machinery, energy, and manufacturing sectors. Aluminum electrolytic capacitors are pivotal in industrial applications, powering motor drives, power electronics, inverters, and control systems. The demand for these capacitors increases as industrial automation, renewable energy installations, and infrastructure development flourish in the United States.
- As reported by the IFR, manufacturing firms in the United States are increasingly leaning toward automation. In 2023, installations of industrial robots surged by 12%, totaling 44,303 units. The automotive sector is the primary adopter, trailed by the electrical and electronics domain. Notably, automotive sales saw a 1% increase, with 14,678 robots installed in 2023. This follows a remarkable 47% jump in 2022, culminating in 14,472 units. In 2023, car and component manufacturers accounted for 33% of all industrial robot installations across the United States.
- Aluminum electrolytic capacitors have a broad application in the industrial sector, such as motors, and the sector's established footprint in North America favors the market's growth. Furthermore, these capacitors, valued for their high capacitance and cost-effectiveness, are essential for energy storage, filtering, and decoupling in power supply circuits, thereby driving their adoption.
- Moreover, the United States has a robust aerospace and defense sector. Aluminum electrolytic capacitors are integral to applications spanning avionics, satellite systems, communication networks, and defense electronics. The ongoing upgrades in military capabilities, defense modernization efforts, and ambitious space exploration projects further fuel this demand.
- Additionally, the United States is one of the automotive giants. The rising embrace of electric and hybrid vehicles, coupled with advanced driver assistance systems (ADAS), is propelling the demand for aluminum electrolytic capacitors. This surge is further amplified by the growing network of EV charging stations and outlets.
- Data from the US Department of Energy highlights the nation's commitment to electric vehicles, with over 138,100 charging points as of May 2023. California alone contributes significantly, with nearly 44,600 public and private charging outlets. These developments underscore the promising trajectory of aluminum electrolytic capacitors in the North American market.
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