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

China MLCC Market Analysis

The China MLCC Market size is estimated at 3.41 billion USD in 2024, and is expected to reach 9.27 billion USD by 2029, growing at a CAGR of 22.12% during the forecast period (2024-2029).

China's robust digital infrastructure development continues to shape the MLCC market landscape, with significant investments in next-generation technologies. The country has established an impressive network of 2.31 million 5G component base stations by the end of 2022, demonstrating its commitment to digital transformation. This extensive 5G infrastructure deployment has catalyzed the demand for miniaturized electronic components, particularly in the telecommunications and consumer electronics sectors. The integration of advanced technologies in various industries has necessitated the development of more sophisticated and compact ceramic capacitors, driving innovation in component design and manufacturing processes.

The power and utilities sector is undergoing substantial modernization, creating new opportunities for MLCC applications. Power consumption in China reached 8,637 TWh in 2022, marking a 3.6% increase from the previous year, while the State Grid Corporation of China has allocated an unprecedented budget exceeding CNY 500 billion for power infrastructure development. This transformation encompasses smart grid implementations, renewable energy integration, and advanced power management systems. The growing emphasis on energy efficiency and grid reliability has led to increased adoption of smart meters and power management devices, which heavily rely on electronic capacitors for stable operation and performance.

China's defense sector modernization is driving technological advancement across the electronic components industry. The announcement of a substantial defense budget of CNY 1.55 trillion (USD 224.79 billion) in 2023 signals continued investment in advanced military electronics and communication systems. This strategic focus has accelerated the development of high-performance MLCCs capable of withstanding extreme conditions and meeting stringent military specifications. The emphasis on indigenous technological capabilities has fostered innovation in MLCC manufacturing, particularly in developing components for radar systems, communication equipment, and electronic warfare systems.

The consumer electronics sector continues to drive miniaturization trends, with China's smartphone user base reaching approximately 1.04 billion in 2022. This massive consumer market has spurred the development of increasingly compact and efficient ceramic capacitors, particularly in the ultra-small case size segments. Manufacturers are focusing on developing MLCCs with higher capacitance values in smaller form factors to meet the demanding requirements of modern electronic devices. The trend towards miniaturization has led to significant advancements in passive electronic components technology, including improvements in material science, manufacturing processes, and quality control methods.

China MLCC Market Trends

The development of the e-commerce industry is expected to propel the demand for light commercial vehicles

• Pickups, a small light-vehicle segment in the Chinese market, are poised for robust growth as more governments relax rules over their use. The total production of light commercial vehicles in 2019 was 2 million units, and the sales volume of light trucks in the country reached 1.9 million units, achieving continuous growth.
• The sales of light trucks have grown steadily in the past two years. Due to the country canceling the product category of low-speed trucks and the rapid development of domestic e-commerce express logistics and cold chain transportation, the market demand for light trucks continued to increase, with a Y-o-Y growth of 7.44% in 2020. Chinese light truck manufacturers designed their related products accordingly to cope with the complex usage environment.
• In 2022, China led in terms of overall electric LCV sales, with over 130 million units sold and nearly 15% of LCVs sold being electric. Subsidies for battery electric and fuel cell trucks and vocational vehicles (including LCVs) have decreased in recent years, but zero-emission commercial truck sales have been growing since 2020, even as subsidies per vehicle have declined, indicating the increasing commercial competitiveness of electric trucks. With the continuous development of the country's express delivery and logistics industry, the overall light truck sales demand is expected to maintain a growth trend in the medium and long term.

Rapid urbanization and advanced vehicle technology are expected to increase the demand for passenger vehicles

• China has one of the fastest-growing auto industries and accounts for a major presence of original equipment manufacturers (OEMs) globally. Passenger cars were a key segment of the Chinese automotive industry, producing 21.38 million units in 2019. Factors such as increasing disposable income, rapid urbanization, demand for new cars from lower-tier cities, and low vehicle costs are driving the growth of passenger vehicles in China.
• More electric cars were sold in China in 2021 (3.3 million) than in the world in 2020 (3.0 million). China’s fleet of electric cars remained the world’s largest at 7.8 million in 2021, which was more than double the stock of 2019 before the COVID-19 pandemic. Over 2.7 million BEVs were sold in China in 2021, accounting for 82% of new electric car sales.
• Electric cars accounted for 16% of domestic car sales in 2021, up from 5% in 2020, and reached a monthly share of 20% in December 2021, reflecting a much quicker recovery of the EV market relative to conventional cars. This impressive growth came alongside government efforts to accelerate decarbonization in the new 14th Five-Year Plan (FYP) (2021-2025), continuing the trend of progressively strengthening policy support for EV markets in the past few FYP periods. The current FYP includes medium-term objectives in transport, such as reaching an annual average of 20% market share for electric car sales in 2025.
• Stringent emission norms, fluctuating fuel prices, and the growing demand from customers for eco-friendly transportation caused the production of passenger vehicles to witness a Y-o-Y growth of 11.15% in 2022, and this growth is expected to continue in the future.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Dielectric Type

Class 1 Segment in China MLCC Market

The Class 1 segment dominates the Chinese MLCC market, commanding approximately 59% market share in 2024. This segment, which includes dielectric materials like C0G, X8G, and U2J, is experiencing robust growth with an expected CAGR of around 24% from 2024 to 2029. The segment's prominence can be attributed to the exceptional stability and reliability of Class 1 MLCCs, particularly in applications where precision and consistency are paramount. These capacitors exhibit minimal capacitance shifts with voltage and demonstrate predictable, linear changes in capacitance with ambient temperature. Class 1 MLCCs are particularly valued in the automotive sector, where their reliability and precise capacitance make them ideal for high-voltage applications. The C0G ceramics, a key component of Class 1 MLCCs, demonstrate exceptional stability with ±30ppm/°C capacitance tolerance over a wide temperature range (-55°C to +125°C), making them perfectly suited for demanding automotive electronics applications, including engine compartments.

Class 2 Segment in China MLCC Market

The Class 2 segment, encompassing capacitors like X7R and X5R, holds approximately 41% of the market share in 2024. These capacitors are distinguished by their broader dielectric constant range of 1,000-4,000, enabling them to store significant amounts of charge. The versatility of Class 2 MLCCs makes them indispensable in various applications, including bypassing (decoupling), coupling, and filtering. In the automotive industry, the rising adoption of ADAS and autonomous driving technologies has led to increased utilization of X7R MLCCs, which are instrumental in filtering noise and ensuring a stable power supply for radar and sensor components. The segment's growth is further supported by the expanding ecosystem of connected medical devices and healthcare technologies, where Class 2 MLCCs play a vital role in ensuring reliable operation and performance.

Segment Analysis: Case Size

0 201 Segment in China MLCC Market

The 0 201 case size segment maintains its dominant position in China's MLCC market, commanding approximately 35% market share in 2024. This segment's prominence can be attributed to its extensive application in small electronic devices and systems, including wearables, medical devices, and IoT devices. The 0 201 MLCCs excel in densely populated PCB layouts, enabling efficient integration without compromising performance or functionality. China's position as the dominant market for 5G technology, with an estimated 1 billion connections by 2025 and 1.6 billion connections by 2030, has significantly boosted the demand for 0 201 MLCCs, particularly in 5G-enabled smartphones. These compact capacitors are instrumental in achieving desired functionality while maintaining a compact form factor, making them essential components in modern electronic devices.

0 402 Segment in China MLCC Market

The 0 402 case size segment demonstrates remarkable growth potential, with an anticipated CAGR of approximately 23% during 2024-2029. This growth trajectory is driven by the segment's versatility and increasing adoption across various applications. With dimensions of 40 mm in length and 20 mm in width, these compact MLCCs are becoming increasingly vital in consumer electronic devices such as smartphones, tablets, laptops, digital cameras, and gaming consoles. The rapid growth of China's automotive industry, particularly in electric vehicles and advanced driver assistance systems, has further accelerated the demand for 0 402 MLCCs. These components find extensive application in automotive electronic circuits, control units, sensors, lighting systems, and infotainment systems, where their reliability and efficient power delivery capabilities are crucial for optimal performance.

Remaining Segments in Case Size

The other case size segments, including 0 603, 1 005, and 1 210, each serve distinct market needs and applications. The 0 603 case size offers advantages in terms of ease of identification and hand soldering, making it particularly suitable for manual assembly processes. The 1 005 case size segment plays a crucial role in renewable energy applications, especially in solar photovoltaic sector components. The 1 210 case size, with its larger dimensions, caters to applications requiring higher capacitance and voltage ratings. These segments collectively contribute to the market's diversity, offering manufacturers and designers a comprehensive range of options to meet various technical requirements and application-specific needs across different industries.

Segment Analysis: Voltage

500V to 1000V Segment in China MLCC Market

The 500V to 1000V segment dominates the Chinese MLCC market, commanding approximately 45% market share in 2024. These MLCCs have gained significant traction due to their remarkable versatility and reliability across diverse applications. Without external coating, these components are extensively utilized as snubbers or filters in various applications, including switching power supplies for audiovisual and business equipment like modems, computers, and fax machines, as well as lighting ballasts. Their exceptional performance at high frequencies, ranging from several tens to several hundreds of kilohertz, provides designers with versatile options for ensuring precise and efficient functionality across a wide range of electronics. The segment's growth is further bolstered by China's expanding power electronics sector, where these MLCCs find extensive applications in lighting, motor control, and power supplies.

More than 1000V Segment in China MLCC Market

The More than 1000V segment is projected to experience the fastest growth in the Chinese MLCC market, with an anticipated CAGR of approximately 22% from 2024 to 2029. This remarkable growth trajectory is primarily driven by the telecommunications sector's expansion, particularly in 5G infrastructure development. These high-voltage MLCCs demonstrate exceptional temperature resistance, making them ideal for applications in 5G base stations where circuit substrates and components generate significant heat. The increasing demand for mobile virtual conferencing systems and the continuous development of telecommunications infrastructure in China further accelerates the adoption of these high-voltage MLCCs. Their reliability and precise capacitance make them essential components in critical applications where stable performance under challenging conditions is paramount.

Remaining Segments in Voltage

The Less than 500V segment represents another significant portion of the Chinese MLCC market, primarily catering to medical devices and consumer electronics applications. These lower voltage MLCCs are particularly valued for their compact size and reliability in portable devices and medical equipment. The segment's growth is driven by the increasing adoption of wearable technology, IoT devices, and advanced medical equipment. These MLCCs excel in applications requiring precise voltage regulation and efficient power management, making them essential components in modern electronic devices. Their ability to operate effectively in miniaturized circuits while maintaining stable performance continues to drive their adoption across various industries.

Segment Analysis: Capacitance

100µF to 1000µF Segment in China MLCC Market

The 100μF to 1000μF segment dominates the Chinese MLCC market, commanding approximately 45% of the market share in 2024. This segment's prominence is largely driven by the evolving needs of smartphone manufacturers and the growing prevalence of 5G technology in China. Leading MLCC manufacturers like Murata, Samsung, and Kyocera are actively driving the miniaturization trend by introducing mid-range capacitance in smaller MLCC sizes, such as the 0 201M size. These compact MLCCs occupy only half the mounting area and one-fifth of the total volume compared to larger 0 402M size MLCCs traditionally used in smartphones. The rapid advancement of 5G communication technology has particularly fueled the production of 5G base stations, leading to the development of mid-range MLCCs with 10uF capacity. The demand for mid-range capacitance MLCCs with a ±20% tolerance is thriving in the Chinese market, driven by their compatibility with various applications such as portable devices, wearables, domestic appliances, servers, and IoT hardware.

More than 1000µF Segment in China MLCC Market

The more than 1000μF segment is experiencing the fastest growth trajectory in the Chinese MLCC market, with a projected growth rate of approximately 22% from 2024 to 2029. This remarkable growth is primarily attributed to the increasing electrostatic capacity requirements in high-end smartphones and the rapid adoption of automation within the country. The segment's expansion is further supported by China's aging population and rising labor costs, which are driving the demand for automation technologies. Chinese companies are responding to this growing demand by developing MLCCs in larger case sizes, ranging from 0 402 to 1 210, with impressive capacitance ratings of up to 471⁄4F and withstanding voltages of 100V. These specialized MLCCs are specifically designed to cater to the evolving needs of the automation and industrial sectors, where enhanced workload capacity and power efficiency are paramount.

Remaining Segments in Capacitance

The less than 100μF segment plays a crucial role in the Chinese MLCC market, particularly in applications requiring precise voltage and current control. This segment is especially vital in medical devices and consumer electronics, where compact size and reliable performance are essential. The segment's significance is underscored by its widespread use in various electronic devices, from smartphones to industrial automation equipment. The versatility of less than 100μF MLCCs makes them indispensable in applications requiring high-frequency separation and filtration, contributing to the maintenance of efficient and clean power supply in electronic devices.

Segment Analysis: MLCC Mounting Type

Radial Lead Segment in China MLCC Market

The Radial Lead segment has emerged as the dominant force in China's MLCC market, commanding approximately 36% market share in 2024. These MLCCs are extensively utilized in through-hole assembly processes, which involve mounting components on one side of the circuit board and soldering their leads on the other side. The segment's prominence can be attributed to its widespread application in various sectors, particularly in power supplies, audio equipment, and industries that demand higher power handling or prioritize robustness against vibrations. In the automotive sector, where larger capacitance values are essential while maintaining resilience against vibrations and mechanical stress, radial lead MLCCs offer an advantageous solution in scenarios where space constraints are not a significant consideration. The segment's strong performance is further bolstered by China's robust automobile production, which reached significant milestones in recent years, particularly in the electric vehicle segment where these components play a crucial role in noise suppression for brushed motors.

Surface Mount Segment in China MLCC Market

The Surface Mount segment is projected to demonstrate remarkable growth in the China MLCC market, with an expected growth rate of approximately 22% during the forecast period 2024-2029. This growth trajectory is primarily driven by the increasing adoption of surface mount technology in modern electronic devices and the growing demand for miniaturized components. Surface mount MLCCs are gaining significant traction due to their compact size, efficient mounting capabilities, and superior performance characteristics. The segment's growth is further fueled by China's position as a major manufacturer and consumer of household appliances, where surface mount MLCCs play a crucial role in power supply stabilization, signal processing, and electromagnetic interference filtering. The expansion of mega data centers in various regions of China, coupled with favorable government policies regarding land value and electricity rates, is expected to create substantial opportunities for surface mount MLCCs, particularly in applications requiring efficient power management and voltage regulation.

Remaining Segments in MLCC Mounting Type

The Metal Cap segment represents another significant mounting type in the Chinese MLCC market, offering unique advantages for specific applications. Metal cap MLCCs, also known as mega-cap MLCCs, feature metal caps or lids attached to one or both ends of the capacitor body, typically made of nickel, tin, or silver. These components are particularly valued in power supply topologies and the telecom infrastructure sector, where their capacitance stability, mechanical durability, and enhanced voltage handling capabilities make them indispensable. The segment's significance is especially notable in applications requiring EMI suppression, stable capacitance, and high voltage handling, contributing to the overall diversity and robustness of the MLCC market in China.

Segment Analysis: End User

Consumer Electronics Segment in China MLCC Market

The consumer electronics segment maintains its dominant position in China's MLCC market, commanding approximately 20% of the market share in 2024. This leadership is primarily driven by China's prominent position in global consumer electronics manufacturing, with several companies developing MLCCs that reduce impedance in high-frequency bands while requiring fewer components. These capacitors have seen significant adoption in high-end electronic devices like smartphones, meeting the demand for high density and compactness with high-speed processors. The segment's strength is further reinforced by China's substantial smartphone user base, which reached approximately 1.04 billion users, with projections indicating growth to around 1.18 billion by 2026. As smartphones continue to evolve with enhanced features, the demand for installed MLCCs increases, particularly as devices become smaller, slimmer, and more feature-rich. The critical factor in developing high-performance, multifunctional, and user-friendly 5G-enabled smartphones while maintaining optimal size lies in the miniaturization of MLCCs, driving sustained growth in this segment.

Power and Utilities Segment in China MLCC Market

The power and utilities segment is experiencing remarkable growth momentum, projected to expand at a CAGR of approximately 36% during 2024-2029. This exceptional growth is driven by China's comprehensive grid modernization initiatives, which focus on enhancing power transmission and distribution networks through advanced technologies, smart grids, and energy management systems. The segment's growth is particularly fueled by the increasing adoption of MLCCs in smart meters, where they play a crucial role in ensuring continuous functionality and effective power interruption management. These components serve as essential energy storage devices, enabling smart meters to maintain operational continuity and preserve crucial data during temporary power outages. The State Grid Corporation of China's unprecedented budget allocation of over CNY 500 billion, primarily focusing on ultra-high-voltage projects, distribution network upgrades, and grid infrastructure digitalization, further supports this growth trajectory. Additionally, the rising demand for LED lighting solutions in commercial and industrial sectors, where MLCCs serve as crucial components for voltage regulation and power quality enhancement, contributes significantly to the segment's expansion.

Remaining Segments in End User Segmentation

The other segments in China's MLCC market, including automotive, aerospace and defense, industrial, medical devices, and telecommunications, each contribute significantly to the market's diverse landscape. The automotive sector is experiencing substantial growth driven by the increasing integration of electronic systems and the rising adoption of electric vehicles. The aerospace and defense segment benefits from China's growing investment in military modernization and advanced electronic warfare systems. The industrial sector's demand is fueled by the rapid adoption of automation technologies and Industry 4.0 initiatives. The medical devices segment is expanding due to technological advancements in healthcare equipment and increasing demand for sophisticated medical devices. The telecommunications sector continues to evolve with the ongoing deployment of 5G infrastructure and network modernization efforts, creating sustained demand for MLCCs across these various applications.

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