Multilayer Ceramic Capacitor Market

Key data points: Market size in 2027 = $25.2 billion and 2035 = $46.1 billion, growth forecast = 7.8% annually for the next 8 years. Scroll below to get more insights. This market report covers trends, opportunities and forecasts in multilayer ceramic capacitor market to 2035 by class (class I, class II, and others), voltage (low voltage and high voltage), end use (computers, telecom, consumer electronics, automotive, industrial, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World) Multilayer Ceramic Capacitor Market The future of the global multilayer ceramic capacitor market looks promising with opportunities in the computer, telecom, consumer electronic, automotive, and industrial markets. The global multilayer ceramic capacitor market is expected to reach an estimated $46.1 billion by 2035 from $25.2 billion in 2027 with a CAGR of 7.8% from 2027 to 2035. The major drivers for this market are the rising demand for electric vehicles & automotive electronics, the growing demand for aerospace & defense sectors, and the increasing demand for investments in renewable energy systems. • Lucintel forecasts that, within the voltage category, low voltage is expected to witness higher growth over the forecast period due to the increasing demand for compact electronic devices. • Within the end use category, consumer electronics is expected to witness the highest growth over the forecast period due to the rising consumer electronics production and device miniaturization demand. • In terms of regions, APAC will remain the largest region over the forecast period due to the expanding electronics manufacturing ecosystem and industrial growth. Gain valuable insights for your business decisions with our comprehensive 150+ page report. Sample figures with some insights are shown below. Emerging Trends in Multilayer Ceramic Capacitor Market The multilayer ceramic capacitor market is focusing on producing higher capacitance modules with smaller case sizes. It is expected that from 2025 to 2027, the module’s demand will be mainly from electric vehicles and other adjacent systems, 5G infrastructure and artificial intelligence (AI) server farms. As per the evaluation of Lucintel, the trends in the market will remain the same for the next few years. It will be capital intensive to setup and purchase new state of the art facilities, but, market players will find it difficult to meet the demand with the existing facilities. • Miniaturization: It will be essential for suppliers to gain design wins with modules having thin dielectrics and high voltage performance for next generation products. • Automotive Qualification: For the automotive industry, it will be important for the module suppliers to meet the qualification standards for AEC-Q200. In 2025, it will be important for the module suppliers to meet the operating temperature of 150°C. For the foreseeable future, it is expected that the modules will find further increase in automotive applications. • Ai Infrastructure: Data center accelerators and power conversion equipment are growing the market for high-reliability, high-voltage components. As reported in 2025 investor materials, AI servers will have a higher growth rate than conventional servers. Meeting electrical specifications will require use of higher performance components. • Diversification of Supply: Diversification of supply is expected in Japan, South Korea, Taiwan and Southeast Asia, leaving China to focus on AI. Unless otherwise qualified, sourcing will be based on supply chain risks, location of customers and production. • Efficiency of Materials: Continued development of capacitors will allow further integration of electronics, reduced component size and improved reliability. Improvements in electrode design and dielectric materials will drive further miniaturization of components. It is expected that the market will reward suppliers that invest in technical improvements versus those focused on volume. To gain a competitive edge, suppliers will need to have process control and dielectric materials differentiation. Reliability focus will enhance pricing and margins. These improvements should benefit the industry through 2030. Recent Developments in the Multilayer Ceramic Capacitor Market Rising demand for automotive applications and other markets is resulting in gradual growth in the multilayer ceramic capacitor market. The market is primarily segmented into automotive and high-reliability capacitors, as well as AI infrastructure capacitors. Positive industry sentiment is expected in the next few years with capital investments in high-reliability capacitors. Of the many factors affecting demand, Lucintel anticipates the focus on power efficiency in the electronics systems in automobiles and data centers will continue to increase. • Capacity Expansion: In February 2025, Murata Electronics announced a $750 million investment to construct facilities to produce high-capacitance MLCCs. While the new capacity will be focused on automotive and datacenter MLCCs, it may negatively impact other, smaller, MLCC suppliers. • AI Infrastructure: In January 2025, Samsung Electro-Mechanics stated that MLCC demand for AI servers increased because MLCCs for AI Servers have a higher capacitance and a larger number of MLCCs per server compared to other server types. • Automotive Qualification: TDK began expanding automotive MLCCs in 2025 to make higher voltage and temperature products. MLCCs are used for Electrical Over Stress (EOS) protection in electronics, and with the increasing level of electrification, more MLCCs are used in each vehicle platform. Growth in the auto market should be more stable than the consumer market. • Technology Launch: In 2025, Murata developed a new line of MLCCs that have a larger capacity and took a bigger footprint. MLCCs are used in chips for computing. Thinner, more powerful chips are expected, and in order to meet these expectations, Murata must invest in research and development and production of MLCCs and use its proprietary dielectric. • Regionalization: The Chips Act of 2020 continued in 2025 with the goal of increasing semiconductor manufacturing in the EU. As a response, MLCC manufacturers will build more facilities in the EU, but increased regional focus will raise the cost and the number of customers they need to qualify. Premium vendors can be expected to charge a premium. Demand for MLCCs for electric vehicles is expected to increase and the products used in smartphones should remain the same. Superior dielectrics and automotive approvals should increase MLCC vendor market share for 2027. Strategic Growth Opportunities in the Multilayer Ceramic Capacitor Market The years 2024 to 2026 will see several new opportunities in the MLCC market due to the growing electrification of the transport sector, and the rise in the amount of data transmitted, as well as the increase in the density of electrical energy transmitted by the same. In addition, there are ongoing qualifications of MLCC products for the automotive sector. Stricter policy controls along the MLCC supply chain have also fostered investment in MLCC products. Going forward, the trends and opportunities discussed above are projected to maintain their current trajectories. • Automotive: The rising electrification of road transport has significantly increased the usage of electronics in automobiles. In addition, many MLCCs are being used in the battery management systems and advanced driver assist systems. It is expected that in the future MLCCs will be used in more automotive systems. TDK, a major MLCC producer, revealed in January 2025 that about 30% of its MLCCs were sold for automotive applications. • Artificial Intelligence: Servers used in artificial intelligence require a large number of MLCCs to help stabilize the temperature of the electronic components. The increasing investment in data center servers bodes well for the MLCC industry. In the next few years, MLCCs will help resolve many of the thermal and power constraints in the electronic industry. • High Reliability Capacitors: There are several markets (ex. medical devices, factory automation, and renewable energy) that require electronic components with higher reliability and longer operating ranges. In April 2025, Murata announced an expansion of its high reliability capacitor production and is expected to gain additional customers and improve profitability. • Regional Manufacturing: Customers are increasingly requiring the locations where their products are designed, manufactured, and distributed to be in different regions. In February 2025, the European Commission announced the Chips Act, under which the EU will invest €43 billion to establish regional semiconductor manufacturing, research, and design. With improved regional manufacturing and design capabilities, customer supply chain technology will reduce the time required to bring new source suppliers online. • Sustainability: Products manufactured with components that consume less energy and are more environmentally friendly will be prioritized by suppliers in regulated supply chains. The RoHS Directive will extend the evaluation of components to March 2025. The product features that improve environmental sustainability will also likely be prioritized by customers. The trends in the marketplace favor components manufacturers that vertically and horizontally integrate. Commoditized components will continue to be challenging, however, there is sustained demand for components designed for automotive and other regulated markets. Multilayer Ceramic Capacitor Market Drivers and Challenges Several trends including innovation, miniaturization of electronics, and the incorporation of electric powertrains in vehicles have created new opportunities in the market for multilayer ceramic capacitors. Reliably meeting demand for energy efficient connected devices and power electronics remains a challenge for market players due to escalating costs of raw materials and raw-materials dependencies. In the future, players will need to strike a balance between meeting the needs of customers in various markets while adhering to stricter environmental mandates. Lucintel asserts that innovation and strategic expansion will improve competitiveness. The market will remain concentrated during the forecast period. The factors responsible for driving this market include: • Customer Demand: The rising popularity of smart devices (e.g. smartphones and smartwatches) and other smart products (e.g. data center servers and electric vehicles), along with sophisticated industrial products, has created a greater need for small-size, high-reliability and high-frequency capacitors. It is predicted that as of January 2025, the global number of 5G connections will reach over 2 billion. The proliferation of electric vehicles creates greater demand for all types of capacitors (e.g. battery management systems, drive and control systems). Because of increasing demand and more limited space, designers and manufacturers may be motivated to use higher-value capacitance components. Components offering high reliability with low ESR will be preferred. • Increased Capacitance Density: Recent developments in dielectric materials, electrodes, and inter-layer stacking have resulted in further reductions in size of capacitors. In 2025, further improvements in manufacturing processes and technologies enabled production of even smaller capacitors. Further, the defined design rules allowed placement of more electronic functions in smaller spaces, enabling engineers to reduce the physical size of electronic devices. Improvements in process controls also reduced the number of defective capacitors and allowed them to withstand higher operating voltages. Further, the buffers and filters used in the telecommunications and automotive industries, as well as other electronic systems, operated at higher frequencies. As a result, ongoing research focused on development of high-frequency ceramic materials. The innovations in the next 3-5 years should allow entry of ceramic capacitors into the markets traditionally serviced by semiconductors, e.g. medical and communication industries. • Growth in Electrified Vehicles: The growth in sales of electric vehicles (EVs) and hybrid electric vehicles (HEVs) increased the demand for electric vehicle (EV) chargers, inverters, and other control systems, including the advance driver-assistance systems (ADAS) and electronic systems. It was estimated that in 2025, more than 20 million EVs and HEVs would be sold annually. The demand for higher system reliability and integration of more semiconductor controls, as well as the increased system flexibility, resulted in a greater number of electronic systems controls and a wider variety of electronic systems in HEVs and EVs. This increased the number of systems and functions controlled by electronics in each vehicle. It was expected that the electronics industry would undergo the same rate of growth as the vehicle electrification industry in the next 3-5 years. • Infrastructure Investment: Investments in 5G and cloud networks and automation systems create demand for passive components. 2025 was a strong year for data center growth. Development of AI and related hardware introduced increased loads on data center power and cooling systems. New data center and telecommunication infrastructure increases the need for capacitors and other electronic components with high-speed, low-loss characteristics. Modernization of power grids increases need for power conversion systems. Continuous and broad-based investment should increase market growth and lessen reliance on individual markets. Improved logistics should benefit suppliers with manufacturing and assembly facilities in multiple markets. • Efficiencies in Manufacturing: Improvements in manufacturing and powered material preparation allow component manufacturers to produce larger numbers of components at lower costs. There is strong interest in automotive, industrial and other high-end component markets. Between 2022 and 2025, many manufacturers of electronic components improved logistics and expanded their production facilities to reduce exposure to component supply and end user demand variability. Further reductions in prices are expected in the component manufacturing industry, particularly for components used in consumer electronics. Producers that invest in automated manufacturing and component testing are better positioned to meet the demands of the component manufacturing industry in the next 3 to 5 years. The challenges facing this market include: • Raw Material Supply: The supply of raw materials for the production of multilayer ceramic capacitors (MLCCs) include rare earth metals, other base metals, and ceramic powders. In 2025, the price of nickel was impacted by the supply of nickel ores in Indonesia, as well as the demand for stainless steel and batteries. Some manufacturers have switched to less expensive raw materials for their electrodes. However, the raw material electrode is critical for the performance of MLCCs. A sudden increase in the price of raw materials would negatively impact a supplier’s margin and could lead the supplier to stop accepting new customer orders. Supplying raw materials that meet the required specifications is critical. Raw material suppliers and customers are increasingly entering into long-term agreements and undertaking raw material supply diversification strategies. • Manufacturing and Quality Requirements: High reliability and smaller size requirements for MLCCs increases the complexity and time required for the layering and sintering of materials. Variability during the layering and printing process results in MLCCs that are susceptible to cracking and delamination, and could lead to insulation failure. The automotive industry’s emphasis on safety and the increased use of high-voltage components has led to increased qualification requirements. The higher qualification requirements add to the testing and development costs. NewMLCCs are required to perform reliably under various environmental stresses. Yield losses for MLCCs negatively impact a supplier’s profitability. Over the next five years, further reductions in size of MLCCs is expected. Along with smaller size, MLCCs are required to have increased capacitance and higher reliability. • Uncertainty in Geography, Laws and Customers: The market is exposed to export controls, changes in environmental laws, and supply chain disruptions. Also, there is uncertainty in consumer electronics demand. From the beginning of 2025, the EU began enforcing laws concerning the Digital Product Passport. Supply chain transparency is increasing along with requirements for providing information on the materials used in a product. Similar laws concerning environmental impact are expected to require manufacturers to disclose the energy consumed by a product, its chemical composition and whether it is recyclable. Also expected are long-term corrections in the demand for consumer electronics which may be satisfied by restricting supply. New laws may increase the cost of materials and raw materials may become restrict ed. List of Multilayer Ceramic Capacitor Market Companies Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies multilayer ceramic capacitor market companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the multilayer ceramic capacitor market companies profiled in this report include- • Murata • Samsung Electro-Mechanics • TDK Corporation • Taiyo Yuden • Yageo Corporation • Vishay Intertechnology • Darfon Electronics Multilayer Ceramic Capacitor Market by Segment The study includes a forecast for the global multilayer ceramic capacitor market by class, voltage, end use, and region. Multilayer Ceramic Capacitor Market by Class [Value ($M) from 2019 to 2035]: • Class I • Class II • Others Multilayer Ceramic Capacitor Market by Voltage [Value ($M) from 2019 to 2035]: • Low Voltage • High Voltage Multilayer Ceramic Capacitor Market by End Use [Value ($M) from 2019 to 2035]: • Computers • Telecom • Consumer Electronics • Automotive • Industrial • Others Multilayer Ceramic Capacitor Market by Region [Value ($M) from 2019 to 2035]: • North America • Europe • Asia Pacific • The Rest of the World Country Wise Outlook for the Multilayer Ceramic Capacitor Market Localization of the supply chain, increased investment in data centers, and electrification of vehicles are the key trends affecting the MLCC market. Acknowledging the current situation, market players have decided to focus on high reliability and high voltage MLCCs of smaller size. Our recent studies have found these as the main areas of focus for the market. • United States: A major trend in the U.S. market is localization of capacitor manufacture. TDK has invested $60 million (2025) to build a MLCC facility in California. With local manufacture of advanced MLCCs, it is expected that within 3 to 5 years the U.S. will be less reliant on Asia for MLCCs. • China: Aided by the Chinese government, the production of passive components has increased. In 2025, both Yageo and Fenghua Hi-Tech increased their investment for production of passive components. These projects are expected to enhance the production of automotive MLCCs and benefit China's supply chain. • Germany: TDK announced automotive MLCCs in February 2025. Some of TDK’s MLCCs can be utilized in EVs and ADAS systems. TDK’s announcement shows that the company is creating products for the German automotive industry. German automakers are shifting to electrified systems and require MLCCs that can integrate into those systems. • India: The electronics manufacturing incentive program launched by the Indian government in 2020 is gaining traction and encouraging the development of on-shore electronic component manufacturing plants. In 2025, Murata created a manufacturing joint venture that focused on supplying MLCCs for the automotive and electronic systems industries. MLCCs are a critical component for automotive systems and the growth in domestic component manufacturing will help support the increasing demand for electronic systems and vehicles in India. • Japan: The demand for high-capacitance MLCCs is increasing and Murata was able to commercialize a family of MLCCs that met the demands in 2025. As of 2030, it is expected that Japan will maintain its position in supplying high end MLCCs. Features of the Global Multilayer Ceramic Capacitor Market Market Size Estimates: multilayer ceramic capacitor market size estimation in terms of value ($M). Trend and Forecast Analysis: Market trends (2019 to 2026) and forecast (2027 to 2035) by various segments and regions. Segmentation Analysis: multilayer ceramic capacitor market size by class, voltage, end use, and region in terms of value ($M). Regional Analysis: multilayer ceramic capacitor market breakdown by North America, Europe, Asia Pacific, and Rest of the World. Growth Opportunities: Analysis of growth opportunities in different class, voltage, end use, and regions for the multilayer ceramic capacitor market. Strategic Analysis: This includes M&A, new product development, and competitive landscape of the multilayer ceramic capacitor market. Analysis of competitive intensity of the industry based on Porter’s Five Forces model. If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more. This report answers following 11 key questions: Q.1. What are some of the most promising, high-growth opportunities for the multilayer ceramic capacitor market by class (class i, class II, and others), voltage (low voltage and high voltage), end use (computers, telecom, consumer electronics, automotive, industrial, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)? Q.2. Which segments will grow at a faster pace and why? Q.3. Which region will grow at a faster pace and why? Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market? Q.5. What are the business risks and competitive threats in this market? Q.6. What are the emerging trends in this market and the reasons behind them? Q.7. What are some of the changing demands of customers in the market? Q.8. What are the new developments in the market? Which companies are leading these developments? Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth? Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution? Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?