Ceramic Capacitors Market Size (2024 - 2029)

Ceramic Capacitors Market Analysis

The Ceramic Capacitors Market size is estimated at USD 25.38 billion in 2024, and is expected to reach USD 33.51 billion by 2029, growing at a CAGR of 5.70% during the forecast period (2024-2029).

Ceramic capacitors are one of the most commonly used in most electrical instruments, as they offer reliability and are cheaper to manufacture. These capacitors are used in multiple industries and primarily consist of ceramic or porcelain discs that exist in a non-polarized form. The ceramic material is also an excellent dielectric due to its poor conductivity and its efficient support of electrostatic fields.

• Ceramic capacitors are mostly available in three types. However, other styles are also available: leaded disc ceramic capacitors for through-hole mounting, resin-coated surface mount multilayer ceramic capacitors (MLCC), and special type microwave bare lead-less disc ceramic capacitors, which are primarily intended to sit in a slot on the PCBs.
• Among the applications, MLCCs are essential components of many electronic devices and are widely used in such devices as wearable devices and smartphones (approximately 900 to 1100 multilayer ceramic capacitors are installed in a smartphone).
• Also, there has been a shift in preference in electronics from consumer electronics to computing. The emergence of AI, IoT, cloud, and digitalization has led manufacturers to concentrate on this segment. These new technologies have a high profit margin compared to consumer goods, and the units needed are also fewer, making it viable for manufacturers to manage their production lines.
• The widespread adoption of 5G smartphones and their increasing functionality are stoking demand for further miniaturization and higher electronic circuitry density. For instance, a number of companies, including Qualcomm and MediaTek, are releasing chipsets that support 5G, and numerous smartphone manufacturers are using them. Previously, 5G support was confined to only flagship mobiles; now, mid-level smartphones also support 5G to introduce cheaper chipsets in the market. Such initiatives are increasing the need for ceramic capacitors.
• On the flip side, the production of ceramic capacitors presents several challenges. One major challenge is manufacturing high-capacitance multilayer ceramic capacitors (MLCCs), which involves stacking many single-layer capacitors into a single package. The manufacture of these capacitors is fraught with problems, including mechanical susceptibility, cracking during surface-mount soldering to a circuit board, and difficulty achieving high uniformity of capacitance across the layers. Another challenge is capacitance's temperature and frequency dependence, which can cause issues in high-performance applications.
• The COVID-19 pandemic impacted the ceramic capacitor market. The pandemic caused disruptions in the supply chain and manufacturing processes, leading to fluctuations in the demand and supply of ceramic capacitors. 
• However, the market was anticipated to recover as the situation normalized with the ongoing vaccination drives and relaxed regulations. Meanwhile, ceramic capacitor components were expected to witness a growing demand from other industries due to an increasing demand for consumer electronics and mobile devices, such as laptops and computers, due to the work-from-home scenario across the world. Also, significant demand was witnessed from the increasing trend of online gaming during the pandemic, which subsequently increased the demand for gaming and home theater electronics.

Ceramic Capacitors Industry Segmentation

Ceramic capacitors are made of ceramic material as dielectric. These capacitors comprise two or more layers of ceramic and a layer of metal acting as electrodes. The composition of the ceramic material determines its electrical behavior and, therefore, its applications. Layers of ceramic and a layer of metal act as electrodes. The composition of the ceramic material determines its electrical behavior and, therefore, its applications. Ceramics are inorganic, crystalline oxide, non-metallic nitride, or carbide compounds like silicon and carbon.

The ceramic capacitors market is segmented by type (MLCC, ceramic disc capacitor, feedthrough ceramic capacitor, ceramic power capacitor), end-user (consumer electronics, automotive, telecommunication, industrial, energy & power, and other end-users), and geography (North America, Europe, Asia-pacific, Latin America, and, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.