Electrolyte Capacitor Market - Forecast (2024 - 2030)

The Electrolyte Capacitor market size is forecast to reach USD 6.24 billion by 2029, after growing at a CAGR of 2.4% during the forecast period 2024-2029. Capacitors that employ an electrolyte to provide a higher capacitance than other capacitor types are known as electrolytic capacitors. Ion concentration is high in a liquid or gel that is called an electrolyte, Since the positive and negative terminals of almost all electrolytic capacitors are polarised, the voltage on the positive terminal needs to be higher at all times. aluminium, tantalum, or any other oxidizable metal oxide film used as an oxide dielectric in an electrolytic capacitor. End-users demand aluminium electrolytic capacitors with longer lifespans and enhanced durability to ensure the reliability and longevity of electronic devices.

The report “Electrolyte Capacitor Market– Forecast (2024-2029)”, by IndustryARC, covers an in-depth analysis of the following segments of Electrolyte Capacitor.

By Type: Aluminium Electrolytic Capacitors, Tantalum Electrolytic Capacitors, Niobium Electrolytic Capacitors, Polymer Electrolytic Capacitors.

By End User: Industrial, Computer and Telecommunications, Consumer Electronics, Energy and Power, Automotive, Aerospace and Defence, Others.

By Geography: North America, South America, Europe, Asia Pacific, RoW

The Aluminium Electrolytic Capacitors segment occupied a major share of the electrolyte capacitor market in 2023. Aluminium electrolytic capacitors are widely used in various electronic devices and equipment due to their relatively low cost, high capacitance values, and suitability for high-voltage applications. They are commonly used in power supplies, audio equipment, lighting, and automotive electronics.

The need for chip-type aluminium electrolytic capacitors with equal capacitance to replace radial lead-type aluminium electrolytic capacitors has increased due to the trend in many industries towards surface mounting of electronic components. Additionally, high-capacitance capacitors are required for various applications such as power backup, and there is an ongoing need for more compact and high-capacitance aluminium electrolytic capacitors. The UCK series of chip-type aluminium electrolytic capacitors with high capacitance and low voltage (a guaranteed life of 5,000 hours at 105°C) was introduced by NICHICON CORPORATION on October 24, 2023. They are perfect for usage in telecommunications and automobile equipment. 

 February 21, 2023, KYOCERA AVX, a top global producer of cutting-edge electronic components with the goal of advancing technological innovation and creating a better future, has introduced a wide array of new radial-leaded aluminium electrolytic capacitors intended for use in consumer electronics, communications, and industrial applications. The lead time for these capacitors is currently the shortest of any competing capacitor on the market, at 24 weeks. Developments in aluminium electrolytic capacitors, such as the introduction of new product series, expanded applications, reduced lead times, technological advancements, and a competitive landscape, act as drivers for the overall electrolytic capacitor market.

In 2023, the Industrial segment held the majority of the electrolyte capacitor market. Electrolytic capacitors are essential components in industrial end-use applications, driven by several key factors. These capacitors are prized for their high capacitance and voltage ratings, ensuring they can handle the demanding conditions encountered in industrial environments. Their reliability and durability are paramount, as industrial equipment must operate continuously and withstand harsh conditions. Stable performance is crucial for precise control and regulation in machinery, motors, and power supplies. Capacitors designed for industrial use must also withstand high temperatures.

For applications requiring a large capacitance in a small physical volume, electrolytic capacitors are frequently used. A lot of small surface-mount devices are employed, especially when working at relatively low voltages. Radial-leaded electrolytes are widely used in consumer and industrial applications.

Industrial processes and automation systems require stable and consistent performance from electrolytic capacitors to maintain precise control, regulation, and operation of machinery, motors, power supplies, and control circuits, without voltage fluctuations or signal distortions.

Asia Pacific Regions dominate the electrolyte capacitor market in 2023. APAC is experiencing rapid growth in consumer electronics consumption, driven by rising disposable incomes, urbanization, and technological advancements. Smartphones, laptops, tablets, wearables, and home appliances all require electrolyte capacitors for power management and energy storage, fueling market demand.

According to Invest India statistics, from FY22, the domestic electronics output was valued at $101 billion in FY23 and is divided into many categories: consumer electronics occupies a 12%  share. Consumer electronics, which includes products like smartphones, laptops, tablets, televisions, and home appliances, relies heavily on capacitors for various functions such as energy storage, filtering, and voltage regulation. Therefore, any changes in the consumer electronics industry, including shifts in demand, technological advancements, or regulatory developments, can directly influence the demand for electrolyte capacitors.

APAC is a leading market for automotive production and sales, with countries like China, Japan, South Korea, and India playing significant roles. According to the International Organization of Motor Vehicle Manufacturers (OICA), production of passenger cars increased from 2,836,534 units in 2020 to 4,783,628 units in 2023. Electrolyte capacitors are essential components in automotive electronics. 

Electrolyte capacitors are used in energy storage systems, such as batteries and ultracapacitors, which play a critical role in renewable energy integration. These storage systems help stabilize the intermittent nature of renewable energy sources, store excess energy during times of low demand, and release stored energy during peak demand periods or when renewable sources are not available.

Investments in smart grid projects, such as those announced by Japan, the US, and Canada, involve the deployment of advanced technologies and systems to enhance the efficiency, reliability, and resilience of electricity networks. Electrolyte capacitors play a crucial role in smart grid applications, including voltage regulation, power factor correction, harmonic filtering, and energy storage, supporting the implementation of these modernization initiatives. For Instance, To encourage investments in smart power grids, Japan announced in 2022 a financing scheme worth USD 155 billion.  The US launched the Grid Resilience Innovative Partnership (GRIP) Programme in 2022, offering USD 10.5 billion in financing to help the modernization and growth of the country's electric networks.  Through the purposes of its Smart Grid Programme, Canada is allocating USD 100 million to facilitate the implementation of smart integrated systems and smart grid technology.

The increasing demand for renewable energy sources drives the need for electrolyte capacitors in various renewable energy systems and applications, supporting the transition towards a cleaner, more sustainable energy future.

Government laws and environmental concerns are driving a huge change in the automobile industry towards electric and hybrid cars. Electrolyte capacitors play a crucial role in these vehicles, particularly in the power electronics systems, battery management systems, motor drives, and onboard charging infrastructure, supporting the efficient and reliable operation of electric propulsion systems.

The total number of passenger vehicle sales climbed from 30,69,523 to 38,90,114 units, as reported by the Society of Indian Automobile Manufacturers (SIAM). In FY-2022–2023, passenger car sales also grew, rising from 14,67,039 to 17,47,376. Modern vehicles increasingly incorporate advanced driver assistance systems such as adaptive cruise control, lane departure warning, automatic emergency braking, and parking assistance. These systems rely on sophisticated electronic components, sensors, and control units, all of which require electrolyte capacitors.

According to the India Brand Equity Foundation (IBEF), the value of the Indian passenger automobile market was estimated at US$ 32.70 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of more than 9% between 2022 and 2027 to reach US$ 54.84 billion. The automotive industry is a global market with production facilities and sales networks spanning across regions. As automotive production and sales continue to grow worldwide, the demand for electrolyte capacitors in automotive applications also expands, creating opportunities for capacitor manufacturers and suppliers to meet the increasing demand.

Challenges – Electrolyte Capacitor Market

The production of electrolyte capacitors requires various raw materials, including aluminium foil, electrolytes, and dielectric materials. Shortages or disruptions in the supply of these materials can constrain capacitor production and limit the availability of capacitors for manufacturers and end-users. Material shortages and supply chain disruptions can lead to increased costs for capacitor manufacturers. Prices of raw materials rise due to scarcity, competition, or fluctuations in market conditions, resulting in higher production costs. 

Supply chain disruptions and material shortages create uncertainty in the electrolyte capacitor market, making it difficult for manufacturers, distributors, and end-users to forecast demand, plan production schedules, and manage inventory levels effectively. Uncertainty in the market can lead to volatility in prices, supply constraints, and challenges in meeting customer requirements.

In 2023, the Major players in the electrolyte capacitor market are Panasonic Corporation, Rubycon Corporation, Nippon Chemicon, Corporation, Elna Co Ltd, Vishay Intertechnology, Inc, TDK Corporation, AVX Corporation, Illinois Capacitor Inc, Nichicon Corporation and Others.