Market Trends of telecommunication mlcc Industry
The rising adoption of 5G networks is propelling the MLCC demand
- The emergence of 5G technology has brought significant advancements to the telecommunications industry, revolutionizing wireless connectivity with faster speeds. In this context, 5G/mmWave base stations have become crucial components for deploying 5G networks, particularly in urban areas with high data demand. These base stations use mmWave frequencies to transmit and receive wireless signals, enabling the benefits of 5G technology. The integration of MLCCs within 5G/mmWave base stations plays a pivotal role in supporting functionality and presents implications for the telecom MLCC market.
- 5G/mmWave base stations are designed to deliver ultra-fast and reliable wireless connectivity by leveraging the unique characteristics of mmWave frequencies, ranging from 24 GHz to 100 GHz. The deployment of 5G/mmWave base stations is crucial for achieving the full potential of emerging applications such as autonomous vehicles and IoT.
- Upon historical analysis, a clear growth pattern and projections emerge for 5G/mmWave base stations within the telecom MLCC market. The volume of these base stations started from negligible figures in the early years and experienced gradual growth over time. In 2018, the volume reached 0.09 million units, increasing to 0.12 million units in 2019. Despite the challenges posed by the global COVID-19 pandemic, the deployment of 5G/mmWave base stations remained resilient, with a further increase to 0.13 million units in 2020 and 0.22 million units in 2022. The projected figures indicate a continued expansion, with the volume expected to reach 0.5 million units by 2026. This upward trend reflects the growing demand for 5G networks to leverage mmWave frequencies for enhanced wireless performance, particularly in densely populated urban areas.
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Navigating growth in the telecommunications MLCC market
- The telecommunication market is witnessing a remarkable surge in 5G fixed wireless access (FWA) connections. It is projected to expand exponentially at a CAGR of 68% from 2020 to 2026. This growth translates to a substantial increase in volume, with 2 million 5G FWA connections in 2020, which is expected to reach 65 million by 2026. This presents a significant opportunity for MLCC manufacturers, as FWA devices heavily rely on MLCCs for efficient performance. FWA devices, including customer premises equipment (CPE), base stations, and network equipment, are driving the demand for MLCCs. As the adoption of 5G FWA continues to grow, the need for these capacitors will be amplified. To meet the specific requirements and performance expectations of 5G FWA devices, ongoing innovation and alignment of production and supply capabilities are paramount for MLCC manufacturers.
- It is crucial to recognize the continued significance of 4G and other technologies in the telecommunication market. MLCCs play a vital role in these devices, such as smartphones, routers, and IoT devices, facilitating power management, signal filtering, and noise suppression. As the number of 4G and other technology connections increases, so does the demand for MLCCs in these devices. Nevertheless, the rapid growth of 5G FWA connections presents a compelling market opportunity for MLCC manufacturers. However, it is essential to recognize the continued demand for 4G and other technologies. By addressing the unique needs of both segments through innovation and partnerships, MLCC manufacturers can drive growth and capture the full potential of the telecommunications MLCC market.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Transition to 5G technology is gradually diminishing 4G infrastructure
- Shifting focus toward newer technologies like 5G is expected to decrease the demand
- Technological advancements in set-top boxes are expected to boost the demand
- There is rising demand for high-speed data with low latency
- Increasing demand for higher network capacity is increasing the demand for small 5G base stations
