The multilayer ceramic capacitor market is expected to grow from USD 14.0 billion in 2022 to USD 26.6 billion by 2027; it is expected to grow at a Compound Annual Growth Rate (CAGR) of 13.8% from 2022 to 2027.

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The market has a promising growth potential due to several driving factors including, growing demand from automotive industry due to advent of EVs; increasing adoption in telecommunications end-user industry due to rapid development of 5G technology; and rising incorporation of MLCCs in smartphones, smart wearables, and other electronic devices further drives the multilayer ceramic capacitor market.

The Class I dielectric type segment is expected to account for the larger size of the MLCC market throughout the forecast period. It is further expected to grow at a significant rate during the forecast period. Class I MLCCs have low capacitance values, but they have near-perfect capacitance stability regardless of temperature, making them a good choice for applications requiring frequency control, such as radio or television tuners. Class I dielectric type MLCCs are typically employed in applications that need high reliability, low acoustic noise, and low dielectric loss. DC blocking, tuning, transient voltage suppression, energy storage, crucial timing, decoupling, data acquisition filters, PLL low pass filter, and bypassing are examples of a few of the applications of Class I MLCCs.

Driver: Growing demand from automotive industry due to advent of EVs

The automotive industry is one of the major end users of MLCCs. In recent years, automotive-grade MLCCs have gained popularity, which is predicted to fuel the entire MLCC market's growth. The increasing deployment of electronic devices in automobiles, such as engines, powertrains, and infotainment systems, is accelerating the demand for multilayer ceramic capacitors. Constant advances in the automotive industry demand component miniaturization, increase in capacitance, and improvements in safety features. Moreover, self-driving vehicles, hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and advanced driver assistance systems (ADAS) used in cars inherently require MLCCs.

Opportunity: Emergence of Internet of Things (IoT)

The advent of the Internet of Things (IoT) is generating a plethora of market prospects. Because of their inherent reliability and long service life, high-capacitance MLCCs are a perfect solution for IoT devices. MLCCs have a proven mean time to failure (MTTF) ranging from 10,000 to over 1,000,000 hours and offer low equivalent series resistance (ESR) and inductance (ESL). According to GSMA Mobile Economy 2021, the total number of IoT connection in North America alone is expected to reach 5.1 billion by 2025.

The Asia Pacific region accounted for the largest share of MLCC market in 2021 and is also expected to grow at the highest CAGR during the forecast period. With Asia Pacific being one of the largest electronics manufacturers, as well consumers, in the world, it is the largest consumer of multilayer ceramic capacitors for the electronic end-user industry. The region is one of the largest consumers of smartphones. According to India Brand Equity Foundation (IBEF), in 2021, India alone recorded shipment of ~173 million smartphone units, which is 14% more as compared to 2020. Apart from smartphones, the region produces and consumes a broad range of electronic goods, ranging from commercial to household and entertainment gadgets. The region also has a well-established automotive industry. The rapid development of EVs in China is expected to drive the MLCC market further. The number of MLCCs installed per smartphone is about 400 to 500 for low-end smartphones, about 700 to 800 for mid-range smartphones, and about 900 to 1,100 for high-end smartphones. Similarly, on an average, BEVs are projected to use more than ~10,000 MLCCs. The increasing demand for consumer electronics and automotive is accelerating the demand for multilayer ceramic capacitors in the region.

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Although the MLCC market is growing at a steady pace, it is consolidated owing to the presence of several players such as Murata (Japan), Samsung Electro-Mechanics (South Korea), TAIYO YUDEN (Japan), YAGEO (Taiwan), Walsin Technology (Taiwan) venturing into continuous R&D and patented manufacturing technologies in the MLCC market. Key strategies adopted by these players to enhance their product portfolios, increase their market share, and expand their presence in the market mainly include product launches, deals (mergers, acquisitions, joint ventures, and investments), and others (expansions). These strategies enabled them to efficiently cater to the growing demand for MLCCs from different end-user industries and expand their footprint by offering products in all the major regions.