MLCC Dielectric Materials Market- Industry Analysis, Market Size, Share, Trends, Growth And Forecast 2024-2030

MLCC Dielectric Materials Market Overview

The MLCC Dielectric Materials Market size is forecasted to reach US$37.2billion by 2030, after growing at an estimated CAGR of 13.6% during 2024-2030. The multilayer ceramic capacitor is a surface mount capacitor that comprises a number of individual layers, stacked together in parallel with the overall contact being made through the component terminal faces. These capacitors are made up of materials such as ferroelectric barium titanate, polyethylene terephthalate film and others. The usage of MLCC Dielectric Materials in various end-use industries is projected to drive the MLCC Dielectric Materials industry growth. 

These capacitors are utilized in medical devices in the medical and healthcare industry. The Multilayer Ceramic Capacitor (MLCC) Materials Market is witnessing a surge in demand driven by the miniaturization trend in electronic devices. As consumer electronics and automotive applications continue to shrink in size, there's an increasing need for smaller yet high-capacity MLCCs. A prominent trend in the MLCC materials market is the relentless pursuit of advanced dielectric materials. Companies are investing in research and development to discover or enhance materials with superior dielectric properties. These materials aim to provide MLCCs with improved energy storage, lower losses, and enhanced reliability. Additionally, in the electrical and electronics industry, MLCC Dielectric Materials are utilized for making electronic devices such as smartphones, personal computers and other applications, which is further anticipated to boost the growth of the MLCC Dielectric Materials market size over the projected timeframe.

The global economic downturn caused by the COVID-19 pandemic resulted in a huge drop in demand for automobiles, electrical and electronic consumer goods and others all across the world, which had a significant impact on the growth of the MLCC Dielectric Materials market.

Market Snapshot :-

MLCC Dielectric Materials Market Report Coverage

The “MLCC Dielectric Materials Market Report – Forecast (2024 - 2030)” by IndustryARC, covers an in-depth analysis of the following segments in the MLCC Dielectric Materials industry.
By Type: General Capacitor, Array, Serial Construction and Mega Cap.
By Dielectric Type: Class I (C0G, X8G, U2J) and Class II (X7R, X5R, Y5V, X7S).
By Rated Voltage Range: Low Range, Mid-Range and High-Range and Others.
By End-use Industry: Electrical & Electronics, Medical & Healthcare, Automotive (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicle), Industrial, Telecommunication and Others.
By Geography: North America (the USA, Canada and Mexico), Europe (the UK, Germany, France, Italy, the Netherlands, Spain, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and the Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America) and the Rest of the World (the Middle East and Africa).

Key Takeaways

• The Asia Pacific region dominates the MLCC Dielectric Materials Market owing to the rising growth and increasing investments in the textile & apparel industry. For instance, according to the Chinese government, increased the spending of R&D and science and technology sector from 2.1% in 2021 to 2.5% in 2022 which reflected the importance of science and technology in the country’s future development.
• Rapidly rising demand for MLCC Dielectric Materials in the electrical & electronics industry for electrical & electronics equipment and instruments such as smartphones, portable personal computers and other applications has driven the growth of the MLCC Dielectric Materials market.
• The increasing demand for MLCC Dielectric Materials in the medical & healthcare sector, due to their usage in implantable, portable and wearable medical devices, has been a critical factor driving the growth of the MLCC Dielectric Materials market in the upcoming years.
• However, the challenges associated with the miniaturization of MLCC Dielectric Materials can hinder the growth of the MLCC Dielectric Materials market.

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MLCC Dielectric Materials Market Segment Analysis – by Dielectric Type

The class I segment held the largest MLCC Dielectric Materials Market share in 2023 and is expected to grow at an estimated CAGR of 13.2% during 2024-2030. Class I dielectric type MLCC Dielectric Materials are widely used in high-rated voltage, owing to their property to withstand voltage of 1000 V & above. For instance, TDK provides high-rated voltage MLCC Dielectric Materials. Class I’s C0G characteristics include the handling of the voltage of 1000 V. Moreover, class I MLCC Dielectric Materials are very stable dielectric materials as compared to other dielectric types. It has a predictable and linear capacitance change with reference to ambient temperature, no aging impact and a minor capacitance shift with respect to voltage. Thus, the exhibited characteristics of the class I type of dielectric materials make it a preferred choice over the other dielectric types, which is driving its segmental growth.

MLCC Dielectric Materials Market Segment Analysis – by End-use Industry

The automotive industry held a significant MLCC Dielectric Materials Market share in 2023 and is estimated to grow at an estimated CAGR of 13.7% during the forecast period 2024-2030. MLCC Dielectric Materials such as ferroelectric barium titanate, polyethylene terephthalate film and others are the components that are utilized in automotive power, comfort, safety and entertainment systems. The rising number of car models becoming equipped with sophisticated arrangements is increasing the number of MLCC Dielectric Materials used in these vehicles. Also, these are being used in electric vehicles’ electronics and subsystems due to their high-temperature ratings, easy surface mount form factor and tiny size. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), in the USA, the production of motor vehicles increased from 9,157,205 units in 2021 to 10,060,339 units in the year 2022. Moreover, in Austria, motor vehicle production increased from 136,700 units in 2021 to 107,500 units in the year 2022. With the increasing production of automobiles, it is estimated that the requirement for MLCC Dielectric Materials in the automotive industry would rise in the upcoming years. This would increase the market growth in the automotive sector.

MLCC Dielectric Materials Market Segment Analysis – by Geography

The Asia-Pacific region dominated the MLCC Dielectric Materials Market share by 45% in the year 2023, owing to the increasing investments in the medical and healthcare industry and rising automotive production in the region. China, South Korea and India are estimated to witness growth in the demand for MLCC Dielectric Materials due to the demand from the automotive industry. According to the China Association of Automobile Manufacturers, in January-May 2023, production and sales of automotive cars in China amounted to 10.687 million units and 10.617 million units, increasing by 11.1% yearly. New technologies, such as autonomous driving, electric vehicles, and connected cars, are being driven very strongly in China. The demand for MLCCs is expected to grow further. Also, according to the SIAM, The Indian automobile industry produced a total of 2,59,31,867 vehicles including Passenger Vehicles, Commercial Vehicles, Three Wheelers, Two Wheelers, and Quadricycles in April 2022 to March 2023, as against 2,30,40,066 units in April 2021 to March 2022. Moreover, automobile production in South Korea amounted to 3,757,049 units in December 2022, according to recent insights from the South Korean Ministry of Trade, Industry and Energy. Such increasing automotive production in the APAC countries is anticipated to increase the demand for MLCC Dielectric Materials in the forecasted period and is proving to be a market booster for the MLCC Dielectric Materials market size in this region. 

MLCC Dielectric Materials Market Drivers

Growing Medical & Healthcare Industry:

The rise in the aging population and advancements in the medical and healthcare industry would increase the usage of MLCC Dielectric Materials in implantable medical devices such as stomach stimulators, artificial cochlea, drop foot appliances and others. They would also have applications in portable and wearable medical devices such as sleep apnea syndrome devices, electrocardiograms, blood gas analyzers and others. According to International Trade Administration, in Mexico, the total local production of medical devices and equipment increased from US$16.33 billion in 2022 to US$17.31 billion in 2023. Additionally, according to International Trade Administration, in China, the medical device market is expected to expand by a 2024-2030 CAGR of 6.2%, which should see it rise to US$38.4 billion by 2025. Thus, with the growing demand for devices and other applications in the medical and healthcare industry, the MLCC Dielectric Materials market would further rise over the forecast period.

Increasing Electrical & Electronics Industry:

The electrical and electronics industry uses MLCC Dielectric Materials such as ferroelectric barium titanate, polyethylene terephthalate film and others in electrical & electronics equipment and instruments including smartphones, portable personal computers and others. This is because such materials are reliable and cheaper to manufacture. According to the Indian Brand Equity Foundation (IBEF), the Indian electronics manufacturing industry is projected to reach US$520 billion by 2025. Moreover, in 2022, the Government of Canada announced the Semiconductor Challenge Callout to build on Canada’s domestic strengths associated with the development and supply of semiconductors, with a fund of US$150 million through the Strategic Innovation Fund to make targeted investments. Thus, the growing electrical and electronics industry would require more MLCC Dielectric Materials for making electrical instruments and electronic equipment, which would drive the MLCC Dielectric Materials industry’s growth during the forecast period. 

MLCC Dielectric Materials Market Challenge:

Miniaturization of MLCC Dielectric Materials:

The manufacturers of MLCC Dielectric Materials are developing new ways to fulfill the trend of smaller and lighter electronic goods and components. There is a need for higher performance as devices get smaller. Therefore, capacitors are engineered to have fewer losses and offer even greater efficiency. In this view, ultra-thin multilayer ceramic capacitors are widely used in even the smallest security devices. Additionally, the downsizing of these capacitor materials is difficult in building high-performance, user-friendly and versatile electronic devices of the correct sizes. Downsizing of multilayer ceramic capacitors requires the advancement of mounting technology. Furthermore, the structure of MLCC Dielectric Materials is made up of alternating layers of thin dielectric ceramic sheets and metal electrodes. Therefore, they face technical challenges that differ from those encountered in semiconductor miniaturization. The ceramic sheet shrinks after sintering, which is a challenging component of MLCC Dielectric Materials manufacturing. Thus, the challenges associated with the miniaturization of MLCC Dielectric Materials would hamper the market growth.

MLCC Dielectric Materials Market Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies players adopt in the MLCC Dielectric Materials markets. The top 10 companies in the MLCC Dielectric Materials market are:

1. Darfon Electronics Corp.
2. Kemet Corporation
3. Kyocera Corporation (AVX Corporation)
4. Murata Manufacturing Co. Ltd.
5. Samsung Electro-Mechanics Co. Ltd.
6. aiyo Yuden Co. Ltd.
7. TDK Corporation
8. Vishay Intertechnology Inc.
9. Walsin Technology Corporation
10. Yageo Corporation

Recent Developments

• In September 2023, TDK expands MLCC lineup with new state-of-the-art, low-resistance soft termination types. Unlike conventional soft termination MLCCs with the entire terminal electrodes covered with resin layers, the new design features resin layers covering only a board mounting side, allowing electric current to pass outside the layers, reducing electrical resistance.
• In August 2022, KYOCERA announced to Increase MLCC Production for 5G, ADAS and EV Technology with New Manufacturing Plant. It will construct a new production facility at its Kokubu Plant Campus in Kagoshima, Japan, to increase its production capacity of multilayer ceramic capacitors (MLCCs), strengthen engineering development capabilities, and ensure ample manufacturing space as Kyocera's business expands.
• In April 2022, Yageo Corporation expanded its 01005-commercial high-frequency grade MLCC product range and capacity for X7R, X5R and NPO to meet the demand for miniaturization of components in end electronic devices.

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