Power and Utilities MLCC Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

Power and Utilities MLCC Market Analysis

The Power and Utilities MLCC Market size is estimated at 0.68 billion USD in 2024, and is expected to reach 1.84 billion USD by 2029, growing at a CAGR of 21.87% during the forecast period (2024-2029).

The power and utilities sector is undergoing a profound transformation driven by the global push toward sustainable energy solutions and grid modernization. This shift is particularly evident in China, where power consumption reached 8,637 TWh in 2022, marking a 3.6% year-over-year increase, with the industrial sector consuming 5,700 TWh and the tertiary sector reaching 1,486 TWh. The surge in energy demand, coupled with the imperative to reduce carbon emissions, has accelerated the adoption of advanced electronic components in power generation and distribution systems. This transformation is reshaping the infrastructure requirements across the utility landscape, driving the need for more sophisticated and efficient electronic components, including MLCC and energy storage capacitors.

Smart grid initiatives and advanced metering infrastructure deployments are revolutionizing utility operations and consumer engagement. In the United States, the installation of over 100 million advanced smart electric meters, with residential installations accounting for 88% of the total, demonstrates the scale of this transformation. These deployments are enabling more efficient power distribution, real-time monitoring, and improved demand response capabilities. The integration of these advanced metering systems is creating new opportunities for MLCC applications in smart grid components, particularly in areas requiring high-performance electronic components for accurate measurement and communication.

Regional renewable energy initiatives are gaining momentum, with notable achievements and commitments shaping the market landscape. The United Kingdom reached a significant milestone in May 2023 by generating its trillionth kilowatt hour of electricity from renewable sources, demonstrating the viability of large-scale renewable energy integration. This achievement is complemented by Saudi Arabia's ambitious commitment to generate 50% of its electricity from renewable sources by 2030, signaling a broader shift toward sustainable energy solutions across diverse geographic regions. These initiatives are driving substantial investments in power infrastructure and creating new applications for electronic components, such as energy storage capacitors, in renewable energy systems.

The increasing electrification of transportation is catalyzing significant changes in power utility infrastructure and grid management systems. With electric vehicle market share in the United States reaching over 6% of new car sales in the first half of 2022, utilities are rapidly adapting their infrastructure to support this growing demand. This transition is necessitating substantial upgrades to power distribution systems and creating new requirements for electronic components in charging infrastructure and grid management systems. The integration of vehicle-to-grid technologies and smart charging solutions is further driving the need for advanced electronic components, including MLCC, capable of managing complex power flows and ensuring system reliability.

Global Power and Utilities MLCC Market Trends

Stringent emission standards are expected to increase demand

• Inverter shipments increased from 62296.3 million units in 2021 to 93412.9 million units in 2022. MLCCs use a temperature-compensating ceramic with minimal capacitance variation, making them ideal for use as components in snubber circuits used in inverters that handle large voltages during switching and where compactness and heat tolerance are required.
• With growing stringent emission standards globally, automakers are gradually shifting their production from conventional engine vehicles to hybrid and electric vehicles. Inverters of various varieties, including traction inverters and soft-switching inverters, are used in electric vehicles for a variety of applications. Governments in various countries are spending heavily on electric mobility projects and encouraging customers to adopt electric vehicles, which will provide an opportunity for electric vehicle power inverter manufacturers. The rise in the demand for electric vehicles is also expected to increase the sales of the components used in electric vehicles, such as power inverters. Power generation from solar PV increased by a record 179 TWh in 2021, marking 22% growth in 2020. Solar PV accounted for 3.6% of global electricity generation, and it remains the third largest renewable electricity technology behind hydropower and wind. With the rising concerns over pollution worldwide due to industrialization, governments are introducing policies to drive solar PV deployment. For instance, in August 2022, the federal government of the United States introduced the Inflation Reduction Act, a law significantly expanding support for renewable energy in the next 10 years through tax credits and other measures.

Increasing utilization of smart lighting in various applications

• LED shipments increased from 1.3 million units in 2021 to 2.65 million units in 2022. MLCCs are used in LEDs to suppress electromagnetic interference (EMI) and provide DC supply smoothing and acoustic noise reduction. MLCCs used in LEDs typically need to meet specific electrical and environmental requirements, such as high capacitance values, low equivalent series resistance (ESR), high voltage ratings, and appropriate temperature stability.
• LED lighting can be used in various applications, including commercial and residential, automotive, decorative, and outdoor lighting. The rising population leading to rising residential and commercial construction is one of the major factors that has increased the demand for various basic amenities, especially power. The COVID-19 pandemic harmed the global economy. The demand for LED lighting was lowered due to construction site suspensions and lockdowns. However, the second half of 2021 witnessed a surge in construction due to the launch of new and upgraded projects, contributing to the industry's steady recovery for LED lighting.
• In 2021, electricity consumption by lighting in the residential and services sectors grew by around 5%, which drove the increase in emissions. Although several countries began to phase out incandescent bulbs more than 10 years ago, many are now beginning to phase out fluorescent lighting to make LEDs the leading lighting technology while saving significant CO2 emissions.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Case Size

1210 Segment in Power and Utilities MLCC Market

The 1210 case size segment dominates the power and utilities MLCC market, commanding approximately 27% market share in 2024. This segment's prominence is driven by its crucial role in enabling uninterrupted functionality and effective management of power interruptions in smart meters. The 1210 MLCCs serve as vital energy storage devices, ensuring operational continuity and protecting critical data during temporary power outages while enabling precise energy consumption monitoring. Their compact size makes them particularly well-suited for integration into space-constrained designs of modern smart meters and power management systems. The segment's strong position is further reinforced by the increasing deployment of smart grid technologies and the growing emphasis on grid modernization initiatives across various regions.

1812 Segment in Power and Utilities MLCC Market

The 1812 case size segment is experiencing remarkable growth, projected to expand at approximately 20% annually from 2024 to 2029. This accelerated growth is primarily attributed to the segment's increasing adoption in renewable energy applications, particularly in solar and wind power installations. The 1812 MLCCs are gaining traction due to their superior performance in high-voltage applications and ability to withstand harsh environmental conditions. Their robust design and reliability make them ideal for use in power conversion equipment and grid infrastructure. The segment's growth is further supported by the global push toward clean energy adoption and the increasing investments in renewable energy infrastructure, particularly in regions like Asia-Pacific where significant renewable energy projects are being implemented.

Remaining Segments in Case Size

The other case sizes, including 2220, 3640, 4540, and various other specifications, collectively serve diverse applications within the power and utilities sector. The 2220 case size is particularly valued in European markets for its role in clean energy transitions, while the 3640 size finds extensive applications in North American power distribution systems. The 4540 case size is gaining prominence in Asia's evolving energy landscape, especially in smart grid applications. The remaining specialized case sizes cater to specific requirements in various power management and utility applications, each contributing to the market's overall technological advancement and efficiency improvements in power distribution systems.

Segment Analysis: Voltage

More than 1100V Segment in Power and Utilities MLCC Market

The More than 1100V segment has established itself as the dominant force in the power and utilities MLCC market, commanding approximately 43% market share in 2024. This segment's prominence is primarily driven by the increasing adoption of high voltage MLCC applications in renewable energy infrastructure, particularly in solar photovoltaic panels and wind power systems. The segment's growth is further bolstered by government initiatives toward reducing carbon footprints and rising investments in renewable energy infrastructure worldwide. The integration of these high voltage MLCCs in smart grid technologies and power distribution systems has become crucial for ensuring system reliability and efficiency. Additionally, the segment's market position is strengthened by its essential role in supporting the modernization of power infrastructure and the growing demand for high-voltage applications in industrial power systems.

Less than 600V Segment in Power and Utilities MLCC Market

The Less than 600V segment is emerging as the fastest-growing category in the power and utilities MLCC market, with a projected growth rate of approximately 23% during 2024-2029. This remarkable growth trajectory is primarily attributed to the increasing integration of LED lighting solutions and smart meter applications across the power and utilities sector. The segment is experiencing substantial momentum due to the global transition toward energy-efficient lighting technologies and the implementation of smart grid infrastructure. The expansion is further supported by various government regulations mandating energy-efficient solutions and the growing adoption of smart meters in residential and commercial sectors. Additionally, the segment's growth is driven by its critical role in supporting low-voltage applications in renewable energy systems, particularly in solar inverters and energy storage capacitors.

Remaining Segments in Voltage Segmentation

The 600V to 1100V segment serves as a crucial intermediate voltage range in the power and utilities MLCC market, bridging the gap between low and high voltage applications. This segment plays a vital role in various power conversion and distribution systems, particularly in floating photovoltaic systems and grid infrastructure applications. The segment's significance is emphasized by its applications in power supplies, industrial automation systems, and energy management solutions. Furthermore, this voltage range is particularly important in applications requiring moderate power handling capabilities while maintaining system reliability and efficiency, making it an essential component in the broader power and utilities infrastructure landscape.

Segment Analysis: Capacitance

Less than 10 μF Segment in Power and Utilities MLCC Market

The less than 10 1⁄4F segment has established itself as the dominant force in the power and utilities MLCC market, commanding approximately 48% of the total market share in 2024. This segment's prominence is driven by its crucial role in supporting the digital transformation of power and utility infrastructure. These capacitors are instrumental in facilitating enhanced connectivity and automation across power distribution networks, particularly in smart grid applications. The evolution of the energy value chain from a linear model to a circular one has further amplified the importance of less than 10 1⁄4F MLCCs, as they play a vital role in managing bi-directional energy flows and supporting greater variability from renewable sources. The integration of 5G technology in power grids has also boosted demand for these capacitors, as they contribute to the seamless functioning of 5G-enabled devices and systems, facilitating near real-time data flow and reliable transmission of power grid data.

More than 100 μF Segment in Power and Utilities MLCC Market

The more than 100 1⁄4F segment is positioned as the fastest-growing category in the power and utilities MLCC market, projected to expand at approximately 23% CAGR from 2024 to 2029. This remarkable growth trajectory is primarily attributed to the segment's critical role in supporting the integration of renewable energy sources and advanced power management systems. The increasing adoption of solar photovoltaic systems and the growing emphasis on grid modernization initiatives are driving the demand for these high-capacity MLCCs. These components are essential in ensuring efficient power transfer, minimizing energy losses, and contributing to achieving ambitious renewable energy targets. The segment's growth is further bolstered by the rising implementation of smart grid technologies and the need for robust energy storage capacitors, where more than 100 1⁄4F MLCCs serve as crucial components in power conversion and energy management systems.

Remaining Segments in Capacitance

The 10 1⁄4F to 100 1⁄4F segment serves as a vital bridge between low and high capacitance applications in the power and utilities sector. This intermediate capacitance range is particularly important in supporting advanced metering infrastructure (AMI) and smart meter deployments. These capacitors play a crucial role in ensuring stable power supply to metering circuits, filtering out noise, and contributing to accurate energy measurements and data collection. The segment's significance is further enhanced by its applications in power distribution systems, where these capacitors help maintain voltage stability and power quality. Their role in supporting the transition to smart grid infrastructure and enabling efficient energy management systems makes them an integral part of the modern power and utilities landscape.

Segment Analysis: Dielectric Type

Class 1 Segment in Power and Utilities MLCC Market

Class 1 MLCCs have established themselves as the dominant force in the power and utilities MLCC market, commanding approximately 84% market share in 2024. This segment's prominence is driven by its vital role in ensuring the efficient operation of battery storage systems within the power and utilities industry. The increasing adoption of renewable energy sources, particularly wind and solar power, has necessitated grid-scale storage solutions where Class 1 MLCCs are integral components. These capacitors are especially crucial in AC/DC power adapters, serving as essential components underpinning the seamless operation of power and utility infrastructure. Their significance extends to the stability and performance of grid-scale storage facilities, where they contribute to the overall efficiency and reliability of power distribution systems. The Investment and Infrastructure Act (IIJA)'s substantial investment of USD 7 billion into domestic battery and component manufacturing has further strengthened the position of Class 1 MLCCs in the market.

Class 2 Segment in Power and Utilities MLCC Market

The Class 2 segment is experiencing remarkable growth, projected to expand at approximately 26% annually from 2024 to 2029. This impressive growth trajectory is primarily driven by the accelerating adoption of electric vehicles (EVs) and the corresponding expansion of charging infrastructure. The segment's growth is further bolstered by federal and state government initiatives, such as the Biden administration's target of achieving a 50% EV market share by 2030 and California's requirement for 100% zero-emission vehicles by 2035. The deployment of 500,000 fast-charging stations across the United States, supported by the Investment and Infrastructure Act (IIJA), is creating substantial demand for Class 2 MLCCs, which are essential components in the electrical systems and control circuits of these charging stations. The segment's growth is also supported by the increasing focus on integrating vehicles with the grid, spreading out demand over time, and upgrading distribution system equipment, where Class 2 MLCCs play a crucial role in ensuring reliable and efficient grid-to-vehicle connections.

Power and Utilities MLCC Market Geography Segment Analysis

Power and Utilities MLCC Market in Asia-Pacific

The Asia-Pacific region maintains its dominance in the power and utilities MLCC market, commanding approximately 45% of the global market share in 2024. The region's leadership is driven by thriving economies such as China, India, South Korea, Singapore, and Japan, all experiencing robust growth in power consumption and utility demand. Critical factors like population expansion, urbanization, and industrial advancements further drive the region's need for augmented power generation capacities and enhanced utility infrastructure. The Indian government's proactive efforts to promote the widespread adoption of smart meters as part of energy infrastructure modernization have resulted in a notable surge in demand for MLCCs. China's comprehensive grid modernization initiative enhances power transmission and distribution networks, incorporating advanced technologies, smart grids, and energy management systems. This strategic approach optimizes grid performance and facilitates the seamless integration of renewable energy sources. The region's commitment to clean energy transition and infrastructure development continues to create substantial opportunities for MLCC manufacturers and suppliers.

Power and Utilities MLCC Market in Europe

Europe has demonstrated remarkable progress in the power and utilities MLCC market, achieving approximately 15% growth annually from 2019 to 2024. The region is actively investing in grid modernization to accommodate the growing penetration of renewable energy sources. Smart grid technologies, including advanced metering systems, demand response mechanisms, and energy storage solutions, are being deployed to enhance grid flexibility, improve energy efficiency, and enable better integration of renewable energy into the power system. The adoption of smart metering systems varies significantly across European countries, with nations like Denmark, Sweden, Estonia, Spain, Finland, and Norway achieving near-complete deployment in households. The integration of renewable energy sources into the electrical grid relies heavily on advanced smart grid technologies, which drive the demand for MLCCs. These components are vital in enabling efficient communication, monitoring, and control of renewable energy sources within the grid, ensuring reliable data transmission for the success of smart grid applications in the renewable energy industry.

Power and Utilities MLCC Market in North America

The North American power and utilities MLCC market is projected to grow at approximately 23% annually from 2024 to 2029. The implementation of various government regulations mandating the installation of smart meters and increased investments in smart grid technology are the major factors fueling the market's growth. The region's commitment to renewable energy adoption and grid modernization initiatives creates substantial opportunities for MLCC manufacturers. Cities across the region are increasingly investing in energy-efficient street lighting systems to replace or enhance their outdated systems, while reliable and bright public lighting reduces accidents and crime and allows for economic activities after sunset. Modern energy-efficient street-lighting technology can significantly lower energy consumption and operation and maintenance costs. The increasing adoption of smart cities and green building concepts continues to drive innovative smart meter applications, creating sustained demand for MLCCs in various power and utility applications.

Power and Utilities MLCC Market in Rest of the World

The Rest of the World region is emerging as a dynamic player in the power and utilities MLCC market, with significant developments particularly in Middle Eastern countries. Saudi Arabia's commitment to renewable energy sources and sustainable development is reshaping the regional market landscape. The transformation toward cleaner energy sources requires advanced automation systems and energy-efficient technologies, in which MLCCs play an integral role. Their importance in ensuring stable power supply, managing electrical fluctuations, and supporting the digitization of automation systems aligns perfectly with the region's sustainability goals. The focus on renewable energy expansion is expected to trigger substantial investments in infrastructure and manufacturing, creating robust demand for MLCCs of varying capacitances, especially those designed for high-capacity applications. As the region continues to invest in advanced technologies and automation systems, the demand for MLCCs remains strong, making it an exciting prospect for industry stakeholders.

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