Why the Multilayer Ceramic Capacitor (MLCC) Market is Critical for Modern Tech
The global multilayer ceramic capacitor (MLCC) market is on an accelerated growth trajectory, projected to surpass a valuation of US$ 17.9 billion by the end of 2032, according to Persistence Market Research (PMR). The market, which stood at around US$ 12.5 billion in 2025, is forecast to expand at a CAGR of 5.3% during the period from 2025 to 2032.
A surge in demand from industries such as electric vehicles (EVs), 5G telecommunications, consumer electronics, and industrial automation is fueling this impressive growth. Industry analysts attribute the momentum to the crucial role MLCCs play in ensuring reliable performance, miniaturization, and high-capacitance features in modern electronic systems.
EV Boom: A Catalyst for MLCC Growth
One of the standout drivers of the MLCC market is the rapid electrification of the automotive sector. As consumers and governments push for cleaner alternatives to fossil fuels, EV sales are skyrocketing worldwide.
Modern electric vehicles integrate thousands of MLCCs to support complex electronic systems, from power management to advanced driver-assistance systems (ADAS). According to the Henry Royce Institute, a typical electric vehicle utilizes over 10,000 MLCCs, primarily in the engine management systems and computer electronics.
“The transition to electric mobility is dramatically increasing MLCC content per vehicle,” said a spokesperson from Murata Manufacturing Co. Ltd, a leading MLCC producer. “Battery electric vehicles often require five times more MLCCs than their non-electric counterparts.”
Rising fuel costs and environmental concerns are further propelling the EV market, opening lucrative opportunities for MLCC manufacturers. Between 2020 and 2025, battery electric vehicle production is anticipated to surge from around 1.05 million units to over 2.61 million units, significantly boosting MLCC consumption.
5G and Digitalization Amplify Demand
Beyond the automotive sector, digitalization trends and the proliferation of 5G technology are also shaping the MLCC market landscape. MLCCs are indispensable in high-frequency and RF designs required in telecommunications infrastructure, smartphones, and networking equipment.
As countries race to deploy 5G networks, telecom manufacturers are ramping up their use of high-capacitance, miniaturized MLCCs capable of handling higher data speeds and frequencies.
“MLCCs are the backbone of modern telecom hardware, ensuring signal integrity and stable performance under demanding conditions,” said a senior analyst from PMR. “The move to 5G will continue to be a significant tailwind for the industry.”
Consumer Electronics and IoT Fuel Further Growth
The boom in consumer electronics and IoT devices is also driving substantial demand. Wearables, smartphones, smart home devices, and emerging gadgets increasingly rely on high-density electronic circuits requiring numerous MLCCs.
These capacitors are prized for their high capacitance in compact dimensions, allowing manufacturers to design smaller, thinner devices without sacrificing performance.
Moreover, growth in sectors like cloud computing, artificial intelligence (AI), and factory automation continues to stimulate demand for MLCCs used in servers, robotics, and industrial equipment.
Regional Outlook: North America, Japan, and Europe Emerge as Hotspots
North America
North America stands out as a critical market, forecast to generate significant revenue opportunities for MLCC manufacturers. Regional sales are projected to grow from US$ 5.43 billion in 2025 to approximately US$ 18.09 billion by 2032.
The region’s dominance is anchored by the strong presence of EV manufacturers such as Tesla, Rivian, and Li Auto, as well as telecom giants including CISCO, Motorola, and L3 Technologies.
For instance, the Tesla Model 3 alone contains more than 9,000 MLCCs, underscoring the integral role these components play in the region’s technology ecosystem.
United States
Within North America, the United States remains the powerhouse, with the market poised to reach US$ 14.1 billion by 2032. From 2019 to 2024, the U.S. MLCC market expanded at a CAGR of 14.8%, and growth is expected to continue at 11.6% CAGR through the next decade.
Analysts highlight the country’s thriving electronics manufacturing sector and leadership in emerging technologies as key growth enablers.
United Kingdom
In Europe, the United Kingdom’s MLCC market is on track to hit US$ 2.1 billion by 2032, advancing at a solid 11.9% CAGR. The country benefits from significant research activities, such as initiatives at the University of Sheffield’s Functional Materials and Devices Group, which has been developing lead oxide-free high-energy-density capacitors.
The UK’s diverse applications of MLCCs across telecom, healthcare, and automotive sectors are fostering market expansion.
Japan
Japan’s market is projected to grow at an impressive 12.2% CAGR through 2032, reaching US$ 3.3 billion. The country’s strength lies in its established MLCC manufacturing ecosystem, spearheaded by companies like Murata Manufacturing Co. Ltd.
Murata’s extensive portfolio includes the GRM series capacitors, offering capacitance from 0.10 pF to 330 μF and voltage ratings up to 3150 Vdc. Such versatility enables Japanese manufacturers to cater to diverse application needs across automotive, telecommunications, and consumer electronics.
High-Voltage MLCCs in Demand
High-voltage MLCCs are projected to remain the top-selling segment, expanding at a 12.7% CAGR from 2025 to 2032. These components are essential in applications requiring rated voltages between 2kV and 100kV, such as automotive power systems and high-frequency telecom equipment.
“The trend toward higher voltage applications is accelerating,” noted an engineer from TDK Corporation. “Innovations in material science are enabling MLCCs to handle greater electrical stresses, essential for next-generation EV powertrains and advanced telecom systems.”
Automotive Industry Leads End-Use Segments
Among end-use industries, the automotive sector will continue to command the largest share of MLCC demand. Between 2025 and 2032, the automotive MLCC segment is forecast to expand at 12.6% CAGR.
Applications range from basic power control to sophisticated systems like ADAS and in-vehicle infotainment. As autonomous driving technologies evolve, the MLCC count per vehicle is set to rise, further strengthening market prospects.
Competitive Landscape: Innovation and Capacity Expansion
Competition in the MLCC market remains fierce, with leading players including:
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Murata Manufacturing Co. Ltd
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Kyocera Corporation
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TDK Corporation
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Taiyo Yuden Co. Ltd
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Yageo Corporation
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Samsung Electro-mechanics
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Vishay Intertechnology
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Walsin Technology Corporation
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KEMET
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Darfon Electronics Corp
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Cornell Dubilier Electronics Inc.
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AFM Microelectronics Inc.
Leading companies are heavily investing in new product development, capacity expansions, and strategic acquisitions to cement their market positions.
For instance, Murata Manufacturing has invested US$ 300 million to build a new MLCC factory in Wuxi, China, scheduled for completion in 2024. Similarly, Torey Industries expanded production of specialty films used in MLCC manufacturing, signaling robust confidence in market prospects.
Outlook: A Bright Future for MLCCs
As technological convergence accelerates in the fields of electric mobility, digital connectivity, and industrial automation, MLCCs remain an indispensable component in modern electronics design.
The MLCC market is set to capture significant growth opportunities through 2032, driven by:
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Rising EV adoption worldwide
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Rapid rollout of 5G networks
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Proliferation of consumer electronics and IoT devices
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Demand for high-performance, miniaturized components in various industries
With innovation and capacity expansion on the horizon, the global MLCC market appears poised for a decade of resilient growth and technological transformation.
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