Annual Automotive MLCC Demand for 2021 Expected to Reach 449 Billion Pcs, With Potential for Additional Growth Next Year, as Suppliers Compete Over Shares in Automotive Market, Says TrendForce

TAIPEI, Taiwan--()--Various MLCC suppliers’ book-to-bill ratios as well as quarterly shipments for 4Q21 now show signs of decline, according to TrendForce’s latest investigations. Not only has the demand for consumer electronics slowed, but ODMs’ clients have also eased their procurement activities due to issues including the global chip shortage, mismatched component availabilities, and China’s power rationing. Demand in the automotive market, on the other hand, has remained strong since 3Q21. Automotive applications have therefore become an important point of focus in MLCC suppliers’ latest product planning and capacity expansion efforts. Thanks to these in-demand applications, annual MLCC demand from the automotive market for 2021 is expected to reach 449 billion pcs, a 20% YoY increase.

TrendForce further indicates that the growth of the EV market and improvements in ADAS specifications have resulted in a twofold increase in automotive MLCC consumption. While EVs’ electrified drivetrain and high safety requirements represent a high barrier to entry for MLCC suppliers, these hurdles have also in turn raised MLCC products’ ASP and profitability. Hence, the automotive electronics industry has been increasing its annual MLCC demand by double-digits in recent years. In particular, an analysis of different vehicles and their respective MLCC consumption reveals the following: a conventional EV requires 2.2 times the MLCC usage of a conventional gasoline vehicle, an ADAS-equipped EV requires 2.7 times, and an autonomous EV requires as much as 3.3 times.

Regarding MLCC suppliers, Japanese companies including Murata, TDK, and Taiyo Yuden continue to dominate the automotive MLCC market. These suppliers will expand their production capacities for automotive applications in overseas facilities in China, Philippines, and Malaysia next year, with powertrains, ADAS, and connected systems being among the most significant of the aforementioned applications. Korea-based Samsung, on the other hand, specializes in powertrain applications by leveraging its MLCC offerings’ small form factor, high capacitance, and high voltage. Finally, Taiwanese suppliers, such as Yageo and Walsin, are actively invested in developing automotive products and High-Q products for RF applications in an effort to increase their presence in the infotainment system market and EV charging station market.

Looking ahead to 2022, TrendForce expects annual automotive MLCC demand to reach 562 billion pcs, a 25% YoY increase, primarily attributed to the continued electrification of vehicles. While the global implementation of carbon-neutral policies and excellent sales performances of Tesla vehicles bring about widespread adoption of EVs, various countries have successively set concrete dates for the termination of gasoline vehicle sales. Hence, EVs are gradually becoming not only the mainstream option in the automotive market, but also the primary driving force behind the future growth of the MLCC industry.

For further details of this press release, along with figures showing the annual automotive MLCC demand from 2019 to 2022 as well as the estimated MLCC consumption by vehicle type, please visit: https://www.trendforce.com/presscenter/news/20211108-10996.html

For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms. Latte Chung from the Sales Department at lattechung@trendforce.com

For additional insights from TrendForce analysts on the latest tech industry news, trends, and forecasts, please visit our blog at https://insider.trendforce.com/

About TrendForce (www.trendforce.com)

TrendForce is a global provider of the latest development, insight, and analysis of the technology industry. Having served businesses for over a decade, the company has built up a strong membership base of 500,000 subscribers. TrendForce has established a reputation as an organization that offers insightful and accurate analysis of the technology industry through five major research departments: Semiconductor Research, Display Research, Optoelectronics Research, Green Energy Research, and ICT Applications Research. Founded in Taipei, Taiwan in 2000, TrendForce has extended its presence in China since 2004 with offices in Shenzhen and Beijing.

Contacts

Ms. Esther Feng
Tel: +886-2-8978-6488 ext. 667
estherfeng@trendforce.com

Ms. Pinchun Chou
Tel: +886-2-8978-6488 ext.669
pinchunchou@trendforce.com

Release Summary

TrendForce expects annual automotive MLCC demand for 2021 to reach 449 million pcs, with more potential upside next year thanks to bullish EV market

Contacts

Ms. Esther Feng
Tel: +886-2-8978-6488 ext. 667
estherfeng@trendforce.com

Ms. Pinchun Chou
Tel: +886-2-8978-6488 ext.669
pinchunchou@trendforce.com