Significant Growth in Advanced Consumer Electronics to Create Opportunities for the Global Multi-Layer Ceramic Capacitor Market Through 2020, Reports Technavio
By Business Wire News
By Business Wire News
Technavio analysts forecast the global multi-layer ceramic capacitor (MLCC) marketto exceed 6 billion by 2020, according to their latest report.
The research study covers the present scenario and growth prospects of the global multi-layer ceramic capacitor marketfor 2016-2020. According to the report, MLCCs are the most widely produced capacitors in the semiconductor industry. MLCCs are mainly used in manufacturing electronic devices such as consumer appliances, smartphones, tablets, automobiles, and industrial machinery.
Technavio hardware and semiconductor analysts highlight the following five factors that are contributing to the growth of the global MLCC market:
- Significant growth in advanced consumer electronic products
- Implementation of improved industrial policies in China
- Need for highly improved MLCCs in LED lightings
- Fast product replacement cycle
- Increase in new product development
Significant growth in advanced consumer electronic products
The consumer electronics market has undergone massive changes in recent times. It has been inundated with a plethora of user-friendly electronic devices. Smartphones are replacing feature phones, laptops are replacing PCs, LED TVs and smart TVs have replaced CRT TVs, and household electronic appliances such as coffee makers and washing machines have become fully automated. With such a level of innovation and increased demand for better electronics, manufacturers are constantly focusing on bringing better consumer products with improved functionalities. This explains the crucial role of MLCCs that are heavily used in consumer electronics.
Implementation of improved industrial policies in China
The emerging consumer electronics industry in China has led to increased demand for semiconductor equipment in the country. The Chinese government is expanding electric equipment production and developing infrastructure to meet the demand for this equipment. This is likely to drive the need for new and advanced electronic equipment and technologies in the sector. Improved industrialization has increased the demand for semiconductor equipment that involves the application of MLCCs in their manufacturing process. This has resulted in high demand for MLCCs in the nation.
Need for highly improved MLCCs in LED lightings
LED lighting is gaining momentum globally due to the growing need for power conservation, efficient lighting, and advanced lighting features. Initially, ceramic capacitors were not favored by LED designers due to acoustic noise and flickering light. However, with advances in technology, vendors such as Murata are offering MLCCs with acoustic noise reduction and DC smoothing for LED applications. This has increased the integration of MLCCs in LED lighting.
Fast product replacement cycle
The buying pattern of consumers is changing due to technology advances and increase in disposable income. Nowadays, smartphones and mobile devices have short product replacement cycles, as they become obsolete with the launch of a higher version or better technology by the manufacturer. For instance, Apple generates 70% of its total revenue in the smartphone segment through replacement sales and only 30% through new sales. The replacement sales are expected to rise to 80% of the overall sales in the future. According to Asif Gani, a lead analyst at Technavio for semiconductor equipment research, “Such a rapid pace of product replacement is likely to accelerate the demand for semiconductor components such as MLCCs during the forecast period.”
Increase in new product development
The MLCC manufacturers keep updating and introducing new products and technologies to the existing array of products. This helps the semiconductor industry as a whole grow and generate high returns. “The IoT has revolutionized the product development process as a result of which, companies can understand customer needs and consumer behavior deeply and accurately. They can develop products frequently and effectively with improved connectivity, efficiency, productivity, and security,” says Asif.
Browse Related Reports:
- Multilayer Ceramic Capacitor (MLCC) Market in China 2015-2019
- Global Ultracapacitor Market 2015-2019
- Global Low Voltage Capacitor Market 2016-2020
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Technaviois a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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