MLCC Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis Up to 2029

MLCC Market Analysis

The MLCC Market size is estimated at 23.03 billion USD in 2024, and is expected to reach 61.16 billion USD by 2029, growing at a CAGR of 21.57% during the forecast period (2024-2029).

The MLCC industry is experiencing a significant transformation driven by technological advancements and changing consumer preferences across multiple sectors. The automotive sector exemplifies this evolution, with modern vehicles requiring vastly different MLCC configurations based on their powertrain type. While conventional vehicles typically utilize approximately 3,000 MLCCs, electric vehicles require between 8,000 to 10,000 MLCCs per vehicle, highlighting the increasing component density in modern automotive applications. This substantial difference in MLCC usage underscores the critical role these components play in enabling the transition to electric mobility and advanced vehicle technologies.

The manufacturing landscape for MLCCs continues to evolve with significant investments in production capabilities and technological innovation. In 2023, Kyocera AVX demonstrated this trend by acquiring a 37-acre smart factory in Minami Isahaya Industrial Park, Japan, with an investment of USD 466 million to address the rising demand for ceramic components in 5G base stations, ADAS, and EV technologies. Similarly, TAIYO YUDEN completed the construction of a new material building for manufacturing barium titanate, a crucial raw material for multilayer ceramic capacitors, at their Yawatabara Plant in Japan, highlighting the industry's focus on securing and optimizing supply chains.

The telecommunications sector is witnessing unprecedented growth in MLCC applications, particularly in the deployment of 5G infrastructure. India's remarkable achievement of deploying 2.70 lakh 5G sites in just 9 months during 2023 demonstrates the rapid pace of 5G network expansion and the corresponding demand for MLCCs in telecommunications equipment. The integration of MLCCs in 5G base stations is particularly noteworthy, as each station requires approximately 20,000 MLCCs, four times the number used in 4G LTE stations, indicating a substantial increase in component density and technological sophistication.

The power and utilities sector is emerging as a significant driver of MLCC demand, particularly in smart grid applications and renewable energy systems. In the United Kingdom, the integration of renewable energy sources reached a milestone in 2022, contributing 40% to electricity generation, marking a 5% increase from the previous year. This transition to renewable energy infrastructure has created new applications for multilayer ceramic capacitors in power management systems and smart meters, with Great Britain alone installing approximately 31.3 million smart and advanced meters in residential homes and small businesses by the end of 2022, representing 55% of all meters operating in smart mode.

Global MLCC Market Trends

The ongoing trend of miniaturization is propelling the demand

• The lead time data for 01005 MLCCs highlights a stable and consistent demand for these components over the analyzed period. The lead time variations within a relatively narrow range of 15-18 weeks suggest a consistent availability and delivery of 01005 MLCCs. This stability in lead times indicates that suppliers have effectively managed the demand, ensuring a smooth supply chain for manufacturers relying on these components.
• The usage of 01005 MLCCs spans diverse applications, particularly in compact electronic devices such as smartphones, wearables, and IoT devices. Their small form factor and high capacitance make them ideal for space-constrained designs. The demand for these MLCCs is driven by the ongoing trend of miniaturization and the need for higher component density. The usage of 01005 MLCCs extends to a wide range of applications in various industries. In the consumer electronics sector, these MLCCs are vital components in the production of smartphones, wearables, and IoT devices, enabling manufacturers to achieve sleek and compact designs without compromising performance. The automotive industry heavily relies on 01005 MLCCs for advanced driver assistance systems (ADAS), infotainment systems, and engine control units (ECUs), contributing to the overall functionality and connectivity of vehicles. Overall, the widespread usage of 01005 MLCCs across multiple industries underscores their significance in powering and enabling various electronic devices and systems.
• The stability in lead times for 01005 MLCCs helps suppliers meet the demands and ensure a continuous flow of production for electronic devices that rely on these components. This, in turn, prevents potential delays in manufacturing and delivery timelines.

Stringent government regulations increase the penetration of electric vehicles

• Electric vehicles are either partially or fully powered by electric power. 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 EVs are commonly used in battery management systems, onboard chargers, and DC/DC converters. In addition to meeting the general specifications required for these EV subsystems, plus 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 shipment amounted to 15.39 million units in 2022 and is expected to increase to 23.76 million units in 2029, registering a CAGR of 9.93% during the forecast period 2023- 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 the Russia-Ukraine War disrupted global supply chains and heavily impacted the automotive industry. However, in the longer term, the 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 provide a solid basis for the 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.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Dielectric Type

Class 1 Segment in MLCC Market

Class 1 dielectric type has emerged as the dominant and fastest-growing segment in the global MLCC market, commanding approximately 63% MLCC market share in 2024. Class 1 MLCC capacitors, which include variants like C0G, X8G, and U2J, are widely recognized for their ultra-stable performance across different operating conditions. These MLCCs are specifically engineered to maintain capacitance tolerances of ±30ppm/°C across a wide temperature range from -55°C to +125°C, making them ideal for high-precision applications. The segment's growth is primarily driven by increasing demand from critical sectors such as automotive electronics, particularly in electric vehicles and advanced driver assistance systems (ADAS), as well as the expanding 5G infrastructure where high-performance and high-reliability components are essential. The commercialization of 5G technology has significantly boosted the demand for base station equipment, with each 5G base station requiring approximately 20,000 MLCCs four times that of 4G LTE stations.

Class 2 Segment in MLCC Market

Class 2 MLCCs serve as cost-efficient alternatives compared to Class 1 MLCCs, making them the preferred choice for mass-produced electronics. These components include variants like X7R, X5R, and Y5V, offering higher capacitance over a fixed volume but with relatively lower stability and accuracy compared to Class 1 MLCCs. The segment caters to a wide range of applications in consumer electronics, automotive systems, and industrial equipment where moderate temperature stability and high capacitance values are required. While Class 2 MLCCs may not match the precision of Class 1 variants, they provide an optimal balance between performance and cost-effectiveness, making them particularly suitable for applications where absolute stability is not critical but high capacitance density is desired.

Segment Analysis: Case Size

0 201 Segment in MLCC Market

The 0 201 case size segment dominates the global MLCC market, commanding approximately 71% MLCC market share in 2024, while also exhibiting the highest growth trajectory with a projected growth rate of around 22% during 2024-2029. This segment's prominence is primarily driven by the ongoing trend of miniaturization in electronic devices, particularly in smartphones, wearables, and other portable electronics. The 0 201 MLCCs are specifically designed for space-constrained electronic designs, offering high capacitance values while maintaining a compact form factor. The increasing adoption of 5G technology and the growing demand for more sophisticated mobile devices have further accelerated the demand for these miniature components. Additionally, the development of advanced manufacturing techniques has enabled producers to achieve higher capacitance values in these small form factors, making them increasingly attractive for various applications in consumer electronics, automotive electronics, and telecommunications equipment.

Remaining Segments in Case Size

The other case size segments in the MLCC market include 0 402, 0 603, 1 005, 1 210, and various other specifications, each serving distinct applications across different industries. The 0 402 case size represents the second-largest segment, particularly favored in automotive and industrial applications where slightly larger form factors are acceptable or preferred for reliability reasons. The 0 603 case size finds extensive usage in power supply circuits and industrial equipment, offering a balance between size and performance. The 1 005 and 1 210 case sizes are predominantly utilized in high-voltage and high-power applications, particularly in automotive powertrains, charging systems, and industrial equipment. These larger case sizes are essential in applications requiring higher voltage ratings and better thermal performance, complementing the smaller form factors in creating a comprehensive MLCC ecosystem that caters to diverse industry requirements.

Segment Analysis: Voltage

Low-Range Voltage Segment in MLCC Market

The low-range voltage (less than 500V) segment dominates the global MLCC market, commanding approximately 60% of the market share in 2024. This significant market position is primarily driven by the extensive adoption of low-voltage MLCCs in consumer electronics, particularly smartphones and portable devices. These MLCCs operate efficiently at voltages below 500V, with tolerance ranges from ±5% to ±20%, making them ideal for incorporation into various electronic devices. The segment's growth is further bolstered by the increasing miniaturization trends in electronics, where manufacturers focus on developing compact yet high-performance devices. The development of 5G-enabled, high-performance, and multi-functional smartphones particularly relies on these low-voltage MLCCs, as they enable optimal size optimization while maintaining superior functionality.

High-Range Voltage Segment in MLCC Market

The high-range voltage (more than 1000V) segment is projected to experience the fastest growth rate of approximately 21% during 2024-2029. This remarkable growth trajectory is primarily attributed to the increasing demand from automotive and industrial applications that require high-voltage capabilities. The segment's expansion is particularly driven by the rising adoption of electric vehicles and the growing implementation of advanced driver assistance systems (ADAS), which require high-voltage MLCCs for efficient power management and safety features. Additionally, the telecommunications industry's ongoing expansion of 5G infrastructure has created substantial demand for high-voltage MLCCs, as these components demonstrate excellent temperature resistance and reliability in base station equipment.

Remaining Segments in Voltage Segmentation

The mid-range voltage (500V to 1000V) segment serves as a crucial bridge between low and high-voltage applications in the MLCC market. This segment primarily caters to industrial equipment, power supplies, and specific automotive applications where moderate voltage requirements are essential. Mid-range voltage MLCCs are particularly valuable in power and utilities applications, especially in smart meters and LED lighting solutions, where they provide optimal performance for voltage regulation and power management. The segment's significance is further enhanced by its role in supporting various industrial automation systems and renewable energy applications, where reliable voltage handling capabilities between 500V and 1000V are essential for efficient operation.

Segment Analysis: Capacitance

Low-Range Capacitance Segment in MLCC Market

The low-range capacitance segment (less than 100μF) dominates the global MLCC market, commanding approximately 61% market share in 2024. This segment's prominence is primarily driven by its extensive application in consumer electronics, particularly in smartphones, tablets, and wearable devices, where MLCCs with low-range capacitance values are crucial for efficient power management and signal processing. The segment's growth is further accelerated by the ongoing trend of device miniaturization and the increasing integration of electronic components in modern devices. Premium smartphone models are increasingly incorporating low-range capacitance MLCCs, especially in 5G-enabled devices that require more versatile and efficient power management solutions. The segment is experiencing robust growth and is projected to grow at nearly 22% through 2024-2029, driven by the expanding adoption of 5G technology, the proliferation of IoT devices, and the continuous evolution of consumer electronics requiring compact, high-performance components.

Remaining Segments in Capacitance Segmentation

The mid-range capacitance (100μF to 1000μF) and high-range capacitance (more than 1000μF) segments complete the MLCC market landscape, each serving distinct application areas. The mid-range capacitance segment is particularly vital in automotive applications, especially in electric vehicles where these MLCCs are essential for power conversion and battery management systems. These MLCCs are also crucial in industrial automation and power supply units where stable power delivery is paramount. The high-range capacitance segment, while smaller in market share, plays a critical role in specialized applications such as industrial equipment, renewable energy systems, and high-power electronics where substantial energy storage capabilities are required. Both segments are experiencing growth driven by the increasing electrification of vehicles, the expansion of renewable energy infrastructure, and the growing adoption of industrial automation solutions.

Segment Analysis: MLCC Mounting Type

Surface Mount Segment in MLCC Market

Surface mount MLCCs dominate the global MLCC market, commanding approximately 44% market share in 2024. This significant market position can be attributed to their widespread adoption across various industries, particularly in consumer electronics, automotive systems, and telecommunications equipment. Surface mount technology offers several advantages including compact size, high capacitance density, and compatibility with automated assembly processes. These MLCCs are particularly valued for their ability to enable miniaturization while maintaining high performance, making them ideal for modern electronic devices where space optimization is crucial. The segment's strong performance is further bolstered by the increasing demand for smaller, more efficient electronic components in applications ranging from smartphones and wearables to automotive electronics and industrial equipment. Additionally, the cost-effectiveness and reliability of surface mount MLCCs have made them the preferred choice for mass production of electronic devices.

Radial Lead Segment in MLCC Market

The radial lead MLCC segment is experiencing remarkable growth, projected to expand at approximately 27% CAGR from 2024 to 2029. This impressive growth trajectory is primarily driven by the segment's unique advantages in high-power applications and environments requiring superior mechanical stability. Radial lead MLCCs are particularly valued in automotive applications, especially for components requiring voltages up to 3000V while maintaining high vibration robustness. The growth is further accelerated by the increasing adoption of electric vehicles and the expansion of charging infrastructure, where these components play a crucial role in power management systems. The segment's growth is also supported by its widespread use in industrial equipment, power supplies, and applications requiring higher power handling capabilities. The lead structure of these MLCCs provides effective stress reduction, making them ideal for automotive and industrial applications where reliability under harsh conditions is paramount.

Remaining Segments in MLCC Mounting Type

The metal cap segment represents another important mounting type in the MLCC market, offering unique advantages for specific applications. Metal cap MLCCs are particularly valued in industrial applications where enhanced EMI suppression and mechanical durability are required. These components are designed to provide superior protection against environmental factors and mechanical stress, making them ideal for use in harsh industrial environments. The segment plays a crucial role in applications such as power supplies, industrial automation equipment, and high-reliability systems. Metal cap MLCCs are also gaining traction in advanced industrial technologies where data processing and system integration demands are increasing, particularly in Industry 4.0 applications and smart manufacturing systems.

Segment Analysis: End User

Consumer Electronics Segment in MLCC Market

The consumer electronics segment dominates the global MLCC market, accounting for approximately 46% market share in 2024. This significant market position is driven by the extensive use of MLCCs in various consumer electronic devices including smartphones, smartwatches, tablets, laptops, TVs, gaming consoles, air conditioners, printers, refrigerators, and other household appliances. The number of MLCCs required varies by device type high-end smartphones utilize between 800-1000 MLCCs, while low or mid-range devices require 300-600 units per device. Similarly, smartwatches incorporate around 200 MLCCs, while televisions use between 600-800 MLCCs per unit. The segment's strong performance is supported by continuous technological advancements in consumer electronics and growing demand for compact, high-performance devices that require efficient power management and signal processing capabilities.

Automotive Segment in MLCC Market

The automotive segment is projected to witness the fastest growth in the MLCC market during 2024-2029, driven by the rapid evolution of electric vehicles and advanced automotive technologies. The increasing integration of electronic components in modern vehicles, particularly in electric and hybrid models, is fueling this growth. A typical engine-driven vehicle without automated driving features uses approximately 3,000 MLCCs, while electric vehicles require 8,000-10,000 MLCCs per vehicle. This number is expected to increase to an average of 16,000 MLCCs per battery electric vehicle by 2025. The growth is further supported by the rising adoption of advanced driver-assistance systems (ADAS), infotainment systems, and various safety features in vehicles, all of which require high-performance MLCCs for reliable operation.

Remaining Segments in End User Segmentation

The MLCC market encompasses several other significant segments including aerospace and defense, industrial, medical devices, power and utilities, and telecommunications. The aerospace and defense sector demands high-reliability MLCCs for critical applications in aircraft systems and military equipment. The industrial segment utilizes MLCCs in automation equipment and manufacturing processes, while the medical devices sector requires specialized MLCCs for various medical equipment and devices. The power and utilities segment employs MLCCs in smart grid technologies and power management systems, and the telecommunications sector uses these components in network infrastructure and communication equipment. Each of these segments contributes uniquely to the market's growth, driven by their specific technological requirements and industry developments.

MLCC Market Geography Segment Analysis

MLCC Market in Asia-Pacific

Asia-Pacific maintains its dominant position in the global MLCC market, commanding approximately 50% of the market share in 2024. The region's prominence is anchored by its well-established and highly developed manufacturing infrastructure for passive electronic components, particularly in countries like Japan, China, South Korea, and Taiwan. These nations possess advanced manufacturing capabilities and expertise, enabling efficient and cost-effective production of MLCCs in large volumes. China's role is particularly significant, driven by its strong presence of local MLCC manufacturers and rapid growth in the consumer electronics industry. The region's automotive sector, especially in countries like India, presents substantial opportunities for MLCC manufacturers, with the increasing adoption of electric vehicles and advanced driver assistance systems. Furthermore, the robust semiconductor and electronics manufacturing ecosystem in countries like South Korea and Taiwan continues to drive innovation and development in MLCC technology, while Japan's expertise in high-quality electronic components manufacturing reinforces the region's leadership position.

MLCC Market in Europe

Europe has demonstrated remarkable growth in the MLCC market, achieving approximately 18% growth annually from 2019 to 2024, driven primarily by its strong industrial foundation and technological advancement. The region's market dynamics are significantly influenced by its powerful automotive sector, particularly in Germany, where the push toward electric vehicle adoption and charging infrastructure development continues to drive demand. The region's commitment to renewable energy integration and smart grid development has created new opportunities for MLCC applications in power management and energy storage systems. European manufacturers are increasingly focusing on high-performance MLCCs for specialized applications in aerospace, defense, and industrial automation. The market is further strengthened by stringent quality standards and environmental regulations, which have led to the development of more reliable and sustainable MLCC solutions. The region's emphasis on Industry 4.0 initiatives and industrial automation has also created sustained demand for MLCCs in manufacturing equipment and control systems.

MLCC Market in North America

North America's MLCC market is poised for robust expansion, with a projected growth rate of approximately 22% annually from 2024 to 2029. The region's market is characterized by its strong focus on technological innovation and high-performance applications, particularly in sectors like aerospace, defense, and advanced electronics. The increasing adoption of electric vehicles and the expansion of charging infrastructure across the United States and Canada are creating substantial opportunities for MLCC manufacturers. The region's robust consumer electronics market, featuring an extensive array of products from smartphones to gaming consoles and wearable devices, continues to drive demand for MLCCs. The market is further strengthened by significant investments in 5G infrastructure and data center development, which require high-reliability MLCCs for various applications. Additionally, the growing emphasis on domestic electronic component manufacturing and supply chain security is expected to boost local MLCC production capabilities.

MLCC Market in Rest of the World

The Rest of the World region, encompassing Latin America, the Middle East, and Africa, represents an emerging market for MLCCs with distinct growth opportunities. The increasing adoption of automation and robotics in manufacturing facilities across these regions is driving demand for MLCCs, particularly in countries with developing industrial sectors. The Middle East's focus on smart city initiatives and technological advancement, especially in the UAE and Saudi Arabia, is creating new opportunities for MLCC applications in infrastructure development and renewable energy projects. The growing implementation of industrial automation solutions in Brazil and other Latin American countries is fostering increased demand for MLCCs in manufacturing and process control applications. Additionally, the expansion of telecommunications infrastructure and the gradual adoption of 5G technology across these regions are creating new avenues for MLCC utilization. The market is further supported by increasing investments in defense modernization programs and the growing adoption of electric vehicles in select markets.

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