Surging Demand for Automotive MLCCs Due to Electric Vehicle Adoption...Projected Growth Rate in the 20% Range

[Asia Economy Reporter Jeong Hyunjin] The market for multilayer ceramic capacitors (MLCC), known as the "rice of the electronics industry," is expected to continue its rapid growth through next year due to increased demand in the automotive sector following this year.

According to Taiwanese market research firm TrendForce on the 14th, MLCC demand in the automotive market is expected to reach 449 billion units this year, a 20% increase compared to last year. TrendForce forecasts that next year, MLCC demand in the automotive market will increase by 25% from this year, reaching 562 billion units.

(Data provided by TrendForce)

TrendForce analyzed that the growth of the electric vehicle market and the higher specifications of ADAS (Advanced Driver Assistance Systems) have significantly contributed to the MLCC market growth by doubling the demand for automotive MLCCs. MLCCs serve as components that act like a "dam," supplying electricity steadily to semiconductors, and as vehicle specifications become more electrified and advanced, the demand for MLCCs that regulate current flow increases.

TrendForce also explained, "With the expansion of the automotive electronics industry, MLCC demand has increased in double digits over recent years," adding, "Compared to conventional gasoline vehicles, electric vehicles use 2.2 times more MLCCs, electric vehicles equipped with ADAS use 2.7 times more, and autonomous electric vehicles use 3.3 times more." Furthermore, considering Tesla's steady sales performance, the spread of electric vehicles, and the accelerating shift from internal combustion engines to electric vehicles driven by carbon neutrality policies, the MLCC market growth is expected to continue for the time being.

As the automotive-related MLCC market shows such rapid growth, competition among related companies is expected to intensify. Currently, Japanese companies including Murata and TDK are dominant, but Samsung Electro-Mechanics is also increasing its market share in this sector by focusing on specialized products such as those for powertrains. When Samsung Electro-Mechanics announced its third-quarter results, it stated, "For high-capacity MLCCs, we already have a lineup similar to competitors, and our automotive MLCC sales are growing."

This content was produced with the assistance of AI translation services.