Market Trends of europe mlcc Industry
Stringent government regulations increase the penetration of electric LCVs
- Light commercial vehicles (LCVs) production exhibited a mixed performance between 2019 and 2022. Starting at 2.52 million units in 2019, it experienced a slight decline in 2020 to 2.11 million units. However, there was a rebound in 2021 with a production volume of 2.18 million units, followed by stability at 2.14 million units in 2022, indicating a CAGR of around 4.6% over the four years, reflecting the challenging and volatile nature of the market.
- In the years leading up to 2019, the industry witnessed the highest CAGR in LCV production. However, subsequent years were marked by disruptions and uncertainties, including the COVID-19 pandemic, which significantly impacted the overall automotive industry. Supply chain disruptions and reduced consumer demand contributed to the decline in production. Nonetheless, the industry demonstrated resilience by maintaining a certain level of production.
- The approval of new CO2 emissions reduction targets for passenger cars and light commercial vehicles by the European Parliament as part of the "Fit for 55" package will have a substantial impact on the automotive industry, including the market for MLCCs. As the industry moves towards zero CO2 emissions and increased adoption of electric vehicles, the demand for MLCCs is expected to rise.
- The installation of OBFCMs, as mandated by the European Commission, will further drive the demand for MLCCs. These components enable accurate measurement, data processing, and communication within vehicle systems, supporting monitoring of CO2 emissions and energy consumption. Adapting the ZLEV incentive mechanism to reflect sales trends will incentivize the production and purchase of zero-emission vehicles, increasing demand for MLCCs.
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The increased adoption of OBFCM devices in Europe also increased the production of passenger vehicles
- In Europe, the production of passenger vehicles witnessed a decline. Starting at a production volume of 18.70 million units in 2019, it decreased to 13.72 million units in 2022, with a CAGR of approximately -8.7% over the four years, mirroring the difficult market conditions and disruptions encountered by the European automotive sector.
- This decline in production can be attributed to various factors, including the temporary closure of manufacturing facilities, reduced consumer purchasing power, and overall market uncertainty caused by the pandemic. However, it is important to note that the European automotive sector has shown resilience and adaptability in the face of adversity.
- With the implementation of the light-duty vehicle CO2 regulation in 2019, there was a renewed focus on reducing emissions and addressing climate change. This regulation emphasizes the need for accurate monitoring of on-road fuel and electric energy consumption, leading to the installation of onboard fuel and energy consumption monitoring devices (OBFCMs) in new vehicles. This regulatory framework creates opportunities for businesses operating in the European MLCC market. MLCCs are essential electronic components used in various applications, including automotive electronics. As vehicles become more sophisticated with the integration of OBFCMs and other monitoring devices, the demand for MLCCs is expected to increase. These components play a crucial role in enabling accurate measurement, data processing, and communication within the vehicle's systems.
- As the industry works toward the integration of advanced technologies, such as OBFCMs, it will play a crucial role in achieving real-world CO2 reductions and ensuring vehicles perform as expected in real-world driving conditions.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The price of copper is likely to be hit by a surplus of supply
- Russia-Ukraine War plunges silver prices
- Europe's increasing temperatures and humidity levels led to a surge in the growth of air conditioner sales
- The increasing demand for innovative technologies such as augmented reality and virtual reality is leading to an increase in gaming console sales in Europe
- Frozen food consumption is on the rise, and there is a growing interest in smart home appliances across Europe, which are driving the need for refrigerators
- Higher prices and decreased storage unit service life are contributing to the drop in sales
- New EU regulations in Europe are expected to impede the market's development
- Electric heavy commercial vehicles are expected to have a positive impact
- Supportive government policies and significant public spending are driving BEV production
- The emergence of smart factories is expected to surge the demand
- Nickel prices are decreasing due to increased production and weak demand
- Zinc prices are rebounding post-pandemic
- Inflation, interest rate hikes, and the impending recession in Europe have contributed to the decline in desktop PC sales
- The COVID-19 pandemic caused a surge in laptop sales
- 5G is expected to increase the demand for smartphones
- The high growth of the commercial industry is expected to propel the market
- Increasing demand for eco-friendly public transportation
- Increasing adoption of ADAS due to regulations in Europe boosted motor production
- Advancements in battery technology are expected to propel PHEVs
- There is an increase in the demand for service robots due to labor shortages
