In 5G smartphones and pure electric vehicles, the use of MLCCs (Multi-Layer Ceramic Capacitors) has significantly increased. For 5G smartphones, MLCC usage exceeds 1,000 units, while pure electric vehicles can use over 30,000 MLCCs, which is ten times more than traditional fuel vehicles. Despite their simple manufacturing process, MLCCs are fundamental in the electronics industry, and demand is rising with the advancement of 5G, electric vehicles, and data centers.
01: "Grains of Rice" in the Electronic World
Passive components, such as resistors, capacitors, and inductors, are essential in electronics. Although their production is relatively straightforward, the market for these components is expanding rapidly due to new technologies like 5G and electric vehicles.
In 2021, the global market for passive components reached $32.77 billion, with a projected growth to $42.82 billion by 2027, at a CAGR of 4.56%. Capacitors, representing 62% of the market, play a crucial role, with various types including aluminum electrolytic, tantalum electrolytic, ceramic, and film capacitors. Ceramic capacitors, especially MLCCs, dominate the market due to their small size and high performance.
Capacitors
Capacitors are essential components in electronic circuits and are widely used in various electronic devices. They hold a significant position in the passive component market, accounting for 62% of the market value.
Capacitors are categorized based on dielectric materials into aluminum electrolytic, tantalum electrolytic, ceramic, and film types. Aluminum electrolytic capacitors are commonly used in communication devices and electric vehicles, while tantalum electrolytic capacitors are prevalent in military and aerospace applications. Ceramic capacitors, known for their small size, long lifespan, and high-temperature tolerance, dominate the market, with Multi-Layer Ceramic Capacitors (MLCCs) being one of the fastest-growing electronic components.
Resistors
Resistors are fundamental components in electronic circuits, controlling voltage and current by resisting the flow of electricity. They are classified into fixed, variable, and special resistors, with fixed resistors being the most prevalent. Surface mount resistors, known for their small size and stability, are used widely. The demand for these resistors is growing, especially in automotive electronics and consumer electronics, with global monthly demand reaching 350 billion units in 2020 and expected to rise to 513.6 billion units by 2025.
Inductors
Inductors, used for energy storage, filtering, and interference suppression, come in various types such as high-frequency, power, and EMI inductors. Their applications are crucial in mobile communications and automotive electronics, with 35% of inductors used in mobile communications and 13% in automotive electronics. The demand for inductors in electric vehicles is notably high, with the component value in electric vehicles significantly surpassing that in traditional fuel vehicles.
02: MLCCs: The Core of Automotive Electronics
MLCCs are made from alternating layers of ceramic dielectric and electrodes, resembling layered cakes. They come in sizes like 3216, 2012, 1608, etc., with larger sizes indicating greater volume.
MLCCs are categorized into standard and high-end types, with high-end MLCCs used in demanding environments like automotive and military applications. The demand for MLCCs is growing in consumer electronics, automotive, and 5G sectors.
In 2020, high-end smartphones used 1,000-1,200 MLCCs, and this demand is expected to rise by 30%-40% for 5G models compared to 4G. Automotive applications use between 3,000 and 18,000 MLCCs per vehicle, depending on the type. The global demand for automotive MLCCs is expected to grow at 4.6% annually.
03: MLCC Market Competition and Future Trends
In the global MLCC market, companies from Japan, South Korea, and Taiwan lead, including Murata, TDK, Kyocera, and Yageo. By 2020, the top three companies held 31%, 19%, and 15% of the market share, respectively. Despite China's large consumption and production of MLCCs, high-end MLCCs are still heavily imported, with 3.08 trillion units imported in 2020, 36% of which came from Japan.
The growth in electric vehicles and autonomous driving technology is expected to further boost MLCC demand. China's MLCC industry is rapidly advancing and aims to gain a more significant global market share through technological progress and market expansion.
