Market Trends of High Voltage Film Capacitor Industry
Automotive Segment is Expected to Witness a Significant Growth Rate
- High-voltage film capacitors play a crucial role in the automotive industry, particularly in electric vehicles, hybrid electric vehicles, and advanced internal combustion engine vehicles. These capacitors are integral in power electronics systems that manage vehicles' flow and conversion of electrical energy.
- In EVs and HEVs, battery management systems use high-voltage film capacitors to stabilize voltage and manage the battery's charging and discharging cycles. This ensures the battery pack's optimal performance and longevity.
- Further, the increasing initiatives for adopting ABS and ADAS are further boosting the segment's growth. As vehicles become more advanced with ADAS features, the power requirements increase. High-voltage film capacitors help manage these power needs, providing stable and reliable power to sensors and processors that enable ADAS functionalities.
- The Indian government has been actively promoting the adoption of ADAS through various regulations and policies. Initiatives to mandate certain ADAS features in new cars are anticipated, mirroring global trends. This regulatory push is likely to accelerate the widespread adoption of these technologies.
- Further, Automotive Industry Standard 145 requires every vehicle sold in India to have airbags, SBR, ABS, and SWS. The recently introduced AIS 197: BNCAP (Bharat New Car Assessment Program), with its stricter crash testing norms, is expected to catalyze the uptake of passive and active safety, laying the groundwork for ADAS becoming a mandatory requirement.
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Asia-Pacific is Expected to Witness Significant Market Growth
- Industrial expansion, renewable energy projects, transportation electrification, consumer electronics growth, smart grid development, technological advancements, supportive government policies, and increasing energy demand propel the growth of high-voltage film capacitors in Asia-Pacific.
- China has been one of the world's largest automotive markets for the past years and is becoming a powerhouse for automotive technology. The country may considerably impact the automotive industry in the coming years as it is open to technological progress. Moreover, with the arrival of Industry 4.0, China is expected to see massive growth in the automation and industry sector, owing to schemes like "Made in China 2025."
- Further, in January of this year, China's BYD outpaced Tesla in becoming the world's largest producer of pure-electric vehicles. The surge is fuelled by rising EV demand in China, where 40% of vehicles sold are electric. This shift toward electric vehicles and the development of electric public transportation systems in Asia-Pacific are driving the demand for high-voltage film capacitors.
- The consumer electronics and telecommunication industries in India are also witnessing significant growth. These industries are expected to create a favorable market scenario for the development of the country's high-voltage film capacitor market. According to ICEA, India can achieve a value of USD 100 billion in the manufacturing of laptops and tablets by 2025. Furthermore, according to IBEF, the Indian appliances and consumer electronics industry is expected to more than double to reach USD 21.18 billion.
- Further, the Indian telecom tower industry has grown significantly by 65% over the past seven years. FDI in the telecommunication sector during 2022-2023 was USD 694 million compared to USD 668 million during 2021-2022.
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