Automotive MLCC Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

Automotive MLCC Market Analysis

The Automotive MLCC Market size is estimated at 2.94 billion USD in 2024, and is expected to reach 15.36 billion USD by 2029, growing at a CAGR of 39.23% during the forecast period (2024-2029).

The automotive MLCC industry is experiencing a transformative shift driven by the increasing sophistication of vehicle electronics and automation technologies. Modern vehicles require an unprecedented number of electronic components, with typical engine-driven vehicles utilizing approximately 3,000 MLCCs, while advanced vehicles with automated features require between 8,000 to 10,000 MLCCs per vehicle. This surge in electronic content per vehicle reflects the industry's evolution toward more complex and sophisticated automotive systems, particularly in areas such as advanced driver assistance systems (ADAS), infotainment, and power management systems. The integration of these technologies has fundamentally altered the automotive supply chain, compelling MLCC manufacturers to enhance their production capabilities and technological innovations.

The industry is witnessing substantial investments in research and development, particularly in the context of electric vehicle infrastructure and autonomous driving capabilities. A notable example is Volkswagen's commitment to invest USD 193 billion in electric vehicle development and software, highlighting the industry's trajectory toward electrification and digital transformation. This investment trend is reshaping the MLCC market, as manufacturers focus on developing components that can withstand higher voltages, temperatures, and reliability requirements. The collaboration between automotive manufacturers and MLCC suppliers has become increasingly strategic, as evidenced by recent partnerships such as Tesla's MLCC supply agreements for drive inverters.

Infrastructure development is playing a crucial role in shaping the MLCC market landscape, particularly in the context of charging networks for electric vehicles. Japan's ambitious plan to establish 150,000 charging stations by 2030, including 30,000 fast-charging stations, exemplifies the scale of infrastructure development underway globally. This expansion of charging infrastructure is driving demand for high-performance MLCCs capable of handling the specific requirements of charging systems, including high-voltage operations and thermal management. The trend is particularly significant in the development of DC fast-charging stations, which require sophisticated power management components.

The industry is experiencing a significant shift in manufacturing and quality standards, with a particular focus on automotive-grade MLCCs. The United Kingdom's robust automotive manufacturing sector, producing over 775,014 cars and 101,600 commercial vehicles in 2022, demonstrates the scale of potential demand for high-quality MLCCs. Manufacturers are increasingly adopting advanced production techniques and quality control measures to meet the stringent requirements of automotive applications. This includes compliance with automotive standards such as AEC-Q200, implementation of sophisticated testing procedures, and development of MLCCs with enhanced reliability features such as soft termination technology and improved thermal stability characteristics.

Global Automotive MLCC Market Trends

Infrastructure improvement for hydrogen stations continues to increase sales

• Fuel cell electric vehicles (FCEVs) use hydrogen energy stored as fuel, which is then converted into electricity by the fuel cell and has a propulsion mechanism similar to that of an electric vehicle. Compared to vehicles powered by conventional internal combustion engines, FCEVs do not emit any harmful exhaust emissions.
• Fuel cell electric vehicle shipments accounted for 0.043 million units in 2022, and these are expected to reach 0.071 million units in 2029. As renewable energies like wind and solar contribute increasingly to the hydrogen manufacturing process, there will be a huge increase in the demand for energy-efficient FCEVs.
• As the demand for low-emission vehicles rises, stricter carbon emission standards are being implemented, and more emphasis is being placed on the adoption of FCEVs due to benefits like quick refueling. To encourage the development of FCEVs, several government and commercial organizations are collaborating and investing in advancing fuel cell technology and the development of hydrogen refueling infrastructure. According to the IEA, at the end of 2021, there were about 730 hydrogen refueling stations (HRSs) globally providing fuel for about 51,600 FCEVs. This represents an increase of almost 50% in the global stock of FCEVs and a 35% increase in the number of HRSs from 2020. These factors contribute to the high growth of FCEVs in the future.

Stringent government regulations are increasing the penetration of electric vehicles

• MLCCs have emerged as a perfect component for EV electronics and subsystems, offering high-temperature resistance and an easy surface-mount form factor. Approximately 8,000-10,000 MLCCs are used in an electric vehicle. MLCCs in electric vehicles are commonly used in battery management systems (BMS), onboard chargers (OBC), and DC/DC converters. In addition to meeting the general specifications required for these EV subsystems and having the ability to function reliably in harsh environments inside an EV, component manufacturers should also be IATF 16949-certified and compliant with AEC-Q200.
• Electric vehicle shipments accounted for 16.4 million units in 2022, and it is expected to rise to 25.52 million units in 2029. Several countries have implemented strict environmental regulations to reduce greenhouse gas emissions and combat climate change. As a result, automakers are under increasing pressure to produce more electric vehicles and reduce their reliance on fossil fuels. Consumers are becoming more environmentally conscious and are looking for more sustainable alternatives to traditional gasoline-powered vehicles.
• The COVID-19 pandemic and Russia’s war in Ukraine disrupted global supply chains, and the automotive industry has been heavily impacted. However, in the longer term, the EV market is witnessing sales growth in some regions of the world as government and corporate efforts to support the deployment of publicly available charging infrastructure are providing a solid basis for further increase in EV sales. Publicly accessible chargers worldwide approached 1.8 million, with nearly 500,000 chargers installed in 2021, of which a third were fast chargers, which accounted for more than the total number of public chargers installed in 2017.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Vehicle Type

Heavy Commercial Vehicle Segment in Automotive MLCC Market

The Heavy Commercial Vehicle (HCV) segment dominates the automotive MLCC market, commanding approximately 62% market share in 2024. This significant market position is driven by the increasing integration of electronic systems in modern HCVs, particularly in areas such as powertrain control, safety systems, and advanced driver assistance features. The segment's prominence is further reinforced by stringent vehicle emission regulations and the booming logistics, retail, and e-commerce industries that fuel demand for new and advanced heavy commercial vehicles worldwide. The integration of sophisticated electronic components, including automotive capacitors like MLCCs, in HCV applications spans from engine management and exhaust emission control to braking systems and communication networks, making them indispensable for ensuring optimal vehicle performance and reliability.

HCV Segment Growth in Automotive MLCC Market

The Heavy Commercial Vehicle segment is projected to maintain its market leadership while also emerging as the fastest-growing segment, with an expected CAGR of approximately 45% during 2024-2029. This remarkable growth trajectory is attributed to several factors, including the rapid electrification of commercial fleets, increasing adoption of autonomous driving technologies, and the rising demand for advanced safety features in HCVs. The segment's growth is further propelled by the global push toward sustainable transportation solutions and the integration of connected vehicle technologies. As HCV manufacturers continue to innovate and incorporate more electronic systems for improved efficiency, safety, and connectivity, the demand for MLCCs in this segment is expected to surge significantly over the forecast period.

Remaining Segments in Vehicle Type

The passenger vehicle, light commercial vehicle, and two-wheeler segments collectively represent significant opportunities in the automotive MLCC market. The passenger vehicle segment maintains its position as the second-largest segment, driven by increasing consumer demand for advanced infotainment systems and safety features. Light commercial vehicles are experiencing steady growth due to the expansion of last-mile delivery services and urban logistics operations. The two-wheeler segment, while smaller in market share, is witnessing transformation through electrification and the integration of smart features, particularly in emerging markets where two-wheelers serve as primary modes of transportation.

Segment Analysis: Fuel Type

Non-Electric Vehicle Segment in Automotive MLCC Market

The non-electric vehicle segment maintains its dominance in the global automotive MLCC market, commanding approximately 65% market share in 2024. This substantial market position is attributed to the segment's extensive application base across traditional internal combustion engine vehicles, which continue to represent a significant portion of global vehicle production. The segment's strength is particularly evident in emerging markets where infrastructure for electric vehicles is still developing. Non-electric vehicles require sophisticated electronic systems for engine management, safety features, and infotainment systems, driving the demand for automotive capacitors like MLCCs. The integration of advanced driver assistance systems (ADAS) and enhanced connectivity features in conventional vehicles has further amplified the need for high-quality MLCCs, reinforcing the segment's market leadership.

Electric Vehicle Segment in Automotive MLCC Market

The electric vehicle segment is experiencing remarkable growth in the automotive MLCC market, with a projected CAGR of approximately 49% from 2024 to 2029. This exceptional growth trajectory is driven by increasing global initiatives toward vehicle electrification and stringent emission regulations. The segment's expansion is further supported by technological advancements in battery management systems, power electronics, and charging infrastructure, all of which require sophisticated MLCC applications. The rising consumer acceptance of electric vehicles, coupled with government incentives and subsidies worldwide, is accelerating the adoption of EVs. This transition necessitates advanced electronic components, particularly MLCCs, which play crucial roles in power distribution, voltage regulation, and noise suppression within electric vehicles.

Segment Analysis: Propulsion Type

ICEV Segment in Automotive MLCC Market

The Internal Combustion Engine Vehicle (ICEV) segment maintains its dominant position in the automotive MLCC market, commanding approximately 85% market share in 2024. This substantial market presence is attributed to the segment's established manufacturing infrastructure and ongoing technological advancements in engine efficiency and performance. ICE vehicles continue to integrate sophisticated electronic systems, including advanced engine management, emissions control, and various safety features, driving the demand for MLCCs. The segment's strength is further reinforced by the continuous development of hybrid technologies and the integration of start-stop systems, which require reliable and high-performance MLCCs for efficient power management and control applications. Additionally, stringent emission regulations have spurred innovations in ICE technology, leading to increased electronic content per vehicle and consequently higher MLCC usage.

BEV Segment in Automotive MLCC Market

The Battery Electric Vehicle (BEV) segment is experiencing remarkable growth, projected to expand at approximately 40% CAGR from 2024 to 2029. This exceptional growth trajectory is driven by increasing global emphasis on sustainable transportation solutions and supportive government policies promoting electric vehicle adoption. The segment's growth is further accelerated by continuous advancements in battery technology, expanding charging infrastructure, and decreasing battery costs. BEVs require significantly more MLCCs compared to traditional vehicles, particularly in critical applications such as battery management systems, power distribution units, and charging systems. The segment's expansion is also supported by major automotive manufacturers' commitments to electrification strategies and increasing consumer acceptance of electric vehicles as a viable alternative to conventional transportation.

Remaining Segments in Propulsion Type

The automotive MLCC market encompasses several other significant propulsion segments, including Hybrid Electric Vehicles (HEV), Plug-in Hybrid Electric Vehicles (PHEV), and Fuel Cell Electric Vehicles (FCEV). These segments represent varying approaches to vehicle electrification and alternative power sources, each with unique MLCC requirements. HEVs and PHEVs serve as transitional technologies, combining conventional internal combustion engines with electric powertrains, while FCEVs represent an emerging technology utilizing hydrogen fuel cells. Each of these segments contributes to the market's diversity and drives innovation in MLCC technology, particularly in areas such as power management, energy efficiency, and electronic control systems. The continued development of these alternative propulsion technologies ensures a dynamic and evolving market landscape for automotive MLCCs.

Segment Analysis: Component Type

Infotainment Segment in Automotive MLCC Market

The infotainment segment has emerged as the dominant force in the automotive MLCC market, commanding approximately 30% market share in 2024. This significant market position is driven by the increasing integration of sophisticated software and advanced infotainment features in modern vehicles. As car manufacturers strive to enhance user experiences through touchscreens, audio systems, GPS navigation, and connectivity features, the demand for high-quality MLCCs continues to surge. The segment's growth is further propelled by collaborations with tech giants like Google and Apple, who are introducing advanced in-vehicle software systems such as Android Automotive and CarPlay. These partnerships necessitate robust electronic components like MLCCs to ensure seamless integration of smartphone functionalities into vehicles. The push for standardization and integration in the infotainment space, exemplified by the widespread adoption of Android Automotive across various car models, has created opportunities for MLCC manufacturers to optimize their product offerings and streamline production processes.

ADAS Segment in Automotive MLCC Market

The Advanced Driver Assistance Systems (ADAS) segment is experiencing remarkable growth in the automotive MLCC market, with projections indicating an impressive growth rate of approximately 42% during the forecast period 2024-2029. This exceptional growth trajectory is driven by the increasing adoption of safety-critical features and autonomous driving capabilities in modern vehicles. MLCCs play a crucial role in ADAS module power management, signal processing, and sensor synchronization, making them indispensable components in various applications ranging from collision avoidance systems to adaptive cruise control. The fusion of multiple sensor technologies, including cameras, lidar, radar, and ultrasonic sensors, requires sophisticated and compact MLCCs to enable seamless integration. As automotive manufacturers continue to enhance their ADAS offerings and progress toward higher levels of autonomous driving, the demand for MLCCs in this segment is expected to accelerate significantly, supported by ongoing technological advancements and evolving safety regulations.

Remaining Segments in Component Type

The automotive MLCC market encompasses several other vital component segments, including powertrain, safety systems, and other miscellaneous applications. The powertrain segment maintains its significance by supporting efficient power distribution and management in both traditional and electric vehicles. Safety systems represent another crucial application area, where MLCCs enable reliable operation of critical components such as airbag control modules, anti-lock braking systems, and electronic stability control. The "others" category encompasses various applications including body electronics, lighting systems, and comfort features, contributing to the overall functionality and performance of modern vehicles. Each of these segments plays a unique role in advancing automotive electronics, with manufacturers continuously developing specialized MLCCs to meet the specific requirements of these diverse applications.

Segment Analysis: Case Size

0 603 Segment in Automotive MLCC Market

The 0 603 case size segment has established itself as the dominant force in the automotive MLCC market, commanding approximately 32% market share in 2024. This substantial market position is attributed to the segment's widespread adoption in advanced driver assistance systems (ADAS) and various automotive electronic applications. The compact form factor of 0 603 MLCCs makes them particularly suitable for space-constrained automotive modules, while their reliability and performance characteristics enable seamless integration into sophisticated automotive applications. These MLCCs are extensively utilized in various electronic systems and component applications, particularly in low-voltage applications such as sensors, control circuits, and communication modules, as well as in medium-voltage applications including powertrain control units, motor drives, DC-DC converters, and lighting systems.

1 812 Segment in Automotive MLCC Market

The 1 812 case size segment is experiencing remarkable growth momentum in the automotive MLCC market, with projections indicating an impressive growth rate of approximately 44% during the forecast period 2024-2029. This accelerated growth is driven by the increasing complexity of automotive electronic systems and the rising demand for high-reliability components in modern vehicles. The segment's growth is further fueled by its applications in critical automotive systems, including power distribution, filtering, and decoupling in electronic modules. The robust expansion is also supported by the automotive industry's continued focus on electrification and advanced automated driving features, where 1 812 MLCCs play a crucial role in ensuring stable power supply, noise reduction, and optimal performance of various electronic components.

Remaining Segments in Case Size

The automotive MLCC market encompasses several other important case sizes, including 0 805, 1 206, and 1 210, each serving specific applications within the automotive electronics ecosystem. The 0 805 case size is particularly valued in electric vehicle applications, offering an optimal balance between size and performance for power management systems. The 1 206 case size provides versatility across various automotive applications, while the 1 210 case size caters to high-power applications requiring robust performance characteristics. These segments collectively contribute to the diverse requirements of modern automotive electronics, from basic control systems to advanced safety features and powertrain applications, ensuring manufacturers can select the most appropriate MLCC specifications for their specific needs.

Segment Analysis: Voltage

Less than 50V Segment in Automotive MLCC Market

The less than 50V segment has established itself as the dominant force in the automotive MLCC market, commanding approximately 48% market share in 2024. This segment's prominence is driven by its extensive application across various automotive electronic systems, particularly in advanced driver assistance systems (ADAS), infotainment modules, and interior electronics. The increasing integration of sophisticated electronic features in modern vehicles has further cemented the position of less than 50V MLCCs, as they are essential for functions like sensor interfaces, digital control units, and communication modules. These capacitors excel in providing stable power distribution, effective noise suppression, and reliable voltage regulation for low-voltage automotive applications, making them indispensable in the evolving landscape of vehicle electronics.

More than 200V Segment in Automotive MLCC Market

The more than 200V segment is experiencing remarkable growth trajectory, projected to expand at approximately 38% CAGR from 2024 to 2029. This accelerated growth is primarily attributed to the increasing adoption of electric vehicles (EVs) and the evolution of high-voltage automotive systems. The segment's growth is further propelled by the rising demand for MLCCs in power conversion modules, charging infrastructure, and high-voltage safety systems. As automotive manufacturers continue to push the boundaries of electric vehicle technology and develop more sophisticated power management systems, the demand for high-voltage MLCCs is expected to surge. The segment's robust growth is also supported by advancements in MLCC technology, enabling better performance and reliability in high-voltage applications.

Remaining Segments in Voltage

The 50V to 200V segment serves as a crucial bridge between low and high-voltage applications in the automotive industry. This intermediate voltage range is particularly vital for hybrid vehicles, power management systems, and various powertrain applications. The segment plays a significant role in supporting the transition from traditional internal combustion engines to electrified powertrains, offering solutions for both conventional automotive electronics and emerging electric vehicle applications. These MLCCs are essential components in DC-DC converters, motor drives, and various control systems, contributing to the overall efficiency and performance of modern vehicles.

Segment Analysis: Capacitance

Less than 10 µF Segment in Automotive MLCC Market

The less than 10 μF segment maintains its dominant position in the automotive MLCC market, commanding approximately 48% of the market share in 2024. This segment's prominence is driven by its extensive application across various automotive electronic systems, particularly in infotainment setups and interior lighting components. These MLCCs are crucial for efficient filtering, noise suppression, and voltage stabilization in lower voltage functions, making them indispensable in modern vehicle electronics. The segment's leadership is further strengthened by the increasing integration of advanced driver assistance systems (ADAS) and sophisticated safety features in vehicles, which require reliable and high-performance capacitors in this range. Additionally, the growing trend toward vehicle electrification and the rising adoption of connected car technologies have significantly boosted the demand for less than 10 μF MLCCs, as they are essential components in various control modules and sensor interfaces.

More than 1000 µF Segment in Automotive MLCC Market

The more than 1000 μF segment is experiencing remarkable growth, projected to expand at approximately 38% CAGR from 2024 to 2029. This impressive growth trajectory is primarily attributed to the increasing adoption of electric and hybrid vehicles, where high-capacity MLCCs play a crucial role in power management and energy storage systems. The segment's growth is further fueled by the advancement of automotive powertrains and the integration of sophisticated electronic systems that require robust power handling capabilities. These high-capacity MLCCs are becoming increasingly important in applications such as DC-DC converters, battery management systems, and power distribution modules, where they help ensure stable and efficient power delivery. The segment's expansion is also supported by ongoing technological innovations in MLCC manufacturing, enabling the production of more efficient and reliable high-capacity components suitable for demanding automotive applications.

Remaining Segments in Capacitance

The 10 μF to 1000 μF segment serves as a crucial bridge between low and high capacitance applications in the automotive MLCC market. This intermediate range is particularly vital in power supply circuits, motor control systems, and various automotive control units. These MLCCs offer a balanced combination of size and performance, making them suitable for a wide range of automotive applications where moderate capacitance values are required. The segment plays a significant role in supporting both traditional automotive electronics and emerging technologies, particularly in hybrid vehicles where diverse capacitance requirements need to be met. Their versatility and reliability in managing intermediate power requirements make them essential components in the evolving automotive electronics landscape.

Segment Analysis: Dielectric Type

Class 2 Segment in Automotive MLCC Market

Class 2 MLCCs have emerged as the dominant force in the automotive MLCC market, commanding approximately 52% market share in 2024. These capacitors are extensively utilized across various automotive applications due to their superior performance characteristics and reliability. The surge in motor vehicle production, particularly featuring advanced technologies like ADAS, is significantly boosting the demand for Class 2 dielectric types like X5R, X7R, and Y5V. These components are crucial for ensuring stable and efficient operation in automotive electronic systems, from power management to safety features. The segment's growth is further propelled by the increasing integration of electronic components in modern vehicles, especially in electric and hybrid vehicles where reliable capacitor performance is essential. Class 2 MLCCs are particularly valued for their ability to maintain stable capacitance values across varying operating conditions, making them ideal for automotive applications where environmental factors can significantly impact component performance. The segment is expected to maintain its strong growth trajectory, with projections indicating an impressive growth rate of approximately 39% from 2024 to 2029, driven by the continuous evolution of automotive electronics and the increasing adoption of electric vehicles globally.

Class 1 Segment in Automotive MLCC Market

Class 1 MLCCs represent a crucial segment in the automotive MLCC market, characterized by their high precision and stability across varying temperatures. These capacitors are extensively deployed in automotive applications where precise timing and frequency control are paramount, such as in RF circuits and high-frequency applications. The segment's significance is particularly evident in advanced driver assistance systems (ADAS) and automotive radar applications, where stable capacitance values are essential for accurate signal processing and reliable system performance. Class 1 MLCCs are valued for their low dielectric absorption and excellent high-frequency characteristics, making them indispensable in modern automotive electronics. Their role in ensuring stable operation of critical safety systems and communication modules has become increasingly important as vehicles become more connected and automated. The demand for Class 1 MLCCs is being driven by the automotive industry's push toward more sophisticated electronic systems and the growing integration of advanced communication technologies in vehicles.

Automotive MLCC Market Geography Segment Analysis

Automotive MLCC Market in Asia-Pacific

Asia-Pacific stands as the dominant force in the global automotive MLCC market, commanding approximately 57% of the market share in 2024. The region's supremacy is anchored by key manufacturing powerhouses like Japan, China, and South Korea, which have established themselves as crucial hubs for automotive electronics production. The presence of major MLCC manufacturers and their extensive production facilities has created a robust supply chain ecosystem. The region's leadership is further strengthened by its advanced technological capabilities in electric vehicle production and autonomous driving systems. The growing emphasis on vehicle electrification, particularly in countries like China and Japan, continues to drive substantial demand for MLCCs. Additionally, the region's strong focus on research and development in automotive electronics, coupled with increasing investments in manufacturing capabilities, reinforces its position as the global leader in automotive MLCC production and consumption.

Automotive MLCC Market in Europe

Europe has emerged as a critical market for automotive MLCCs, demonstrating remarkable growth with an approximate 22% growth rate from 2019 to 2024. The region's market dynamics are shaped by its stringent environmental regulations and aggressive push toward vehicle electrification. European automotive manufacturers are increasingly incorporating advanced automotive electronic components in their vehicles, driving the demand for high-performance MLCCs. The region's commitment to reducing carbon emissions has accelerated the adoption of electric and hybrid vehicles, creating substantial opportunities for MLCC manufacturers. The presence of premium automotive manufacturers and their focus on luxury and high-performance vehicles has led to increased integration of sophisticated electronic systems. Furthermore, Europe's leadership in automotive safety standards and autonomous driving technology development continues to fuel the demand for reliable and high-quality MLCCs.

Automotive MLCC Market in North America

North America's automotive MLCC market is poised for substantial growth, with a projected growth rate of approximately 41% from 2024 to 2029. The region's market is characterized by its strong focus on technological innovation and the advanced automotive electronics industry. The increasing adoption of electric vehicles and the integration of sophisticated ADAS features are driving the demand for MLCCs across various automotive applications. The region's automotive industry is undergoing a significant transformation with the push toward vehicle electrification and autonomous driving capabilities. The presence of major automotive manufacturers and their commitment to developing next-generation vehicles has created a strong demand for high-performance electronic components. Additionally, the region's emphasis on vehicle safety and connectivity features continues to drive the integration of advanced electronic systems, further boosting the demand for MLCCs.

Automotive MLCC Market in Rest of the World

The Rest of the World region, encompassing markets in the Middle East, Africa, and Latin America, represents an emerging opportunity in the automotive MLCC landscape. These markets are experiencing a gradual shift toward advanced automotive technologies, driven by increasing consumer demand for modern vehicle features. The region's automotive sector is witnessing a transformation with the growing adoption of electric vehicles and connected car technologies. The Middle Eastern market, in particular, shows promising potential due to its focus on luxury vehicles and advanced automotive features. The increasing investments in automotive manufacturing capabilities and the growing emphasis on vehicle electrification are creating new opportunities for MLCC manufacturers. Furthermore, the region's improving economic conditions and rising consumer awareness about vehicle safety and comfort features are expected to drive the demand for automotive MLCCs in the coming years.

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