The South America electric capacitor market is evaluated at US$424.608 million for the year 2020, growing at a CAGR of 1.91%, to reach a market size of US$484.227 million by the year 2027.
The electric capacitor, like a rechargeable battery, can store energy in the form of electrical charge while producing a static voltage across its plates. It has effectively superseded traditional batteries due to its simple charging and discharging features and lightweight. As technology has progressed, capacitors have become an essential component in producing practically every electronic device. The growing use of electric capacitors in industries such as industrial, automotive electronics, consumer electronics, energy, and others is propelling the South American electric capacitors market forward.
The market is driven by the electric capacitor's increased capacitance value. Electric capacitors are an important component in the circuit designer's inventory, combining small size with high capacitance and low cost compared to other types of capacitors. The electric capacitor market is growing due to its extended service life and low cost.
Limited energy storage, on the other hand, may cause market growth to slow due to its poor energy capacity. If electric capacitors are not mounted properly, they will not attain the correct capacitance and may cause internal gas pressure, leading to an explosion. As a result of these shortcomings, market growth may suffer.
Moreover, if installed correctly, electric capacitors are a very integral part of circuit design, as they can provide high capacitance for a small capacitor. As a result of the rising demand for consumer durables, the demand for electric capacitors is expected to rise, potentially creating an opportunity for the electric capacitor market.
Brazil, Ecuador, Chile, Peru, and Argentina had the most COVID-19 instances in South America. South American governments have adopted various measures to protect their populations and stem the spread of the virus. As a result of the drop in commodity prices and the fall in export volumes, the region is experiencing lower export revenues, particularly with China, Europe, and the United States, which are all significant trading partners. The electrical and auto industry faced several issues, including decreased purchasing power owing to COVID-19, improvements to charging infrastructure, and consumer expectations for future technological advancements to lower vehicle prices and increase range. Furthermore, the shortage of automotive semiconductors began at the end of 2020 and is expected to last through the first part of 2022, according to the Korea Automotive Technology Institute, or Katech. Some businesses may continue to be impacted even after 2023.
The CeraLink capacitor line from TDK Corp (TSE:6762) has been expanded. Only large, ready-to-wear sizes were previously offered. To broaden the range of applications, smaller variants with the original chip design have been added to the portfolio. The new portfolio begins with the EIA 2220 size, which is 5.7 x 5 x 1.4 mm, is rated at 500 V, and has a capacitance of 250 nF and low parasitic coefficients. The new B58043* ordering code capacitors are available in conventional and soft terminations. In the future, TDK will add more designs and voltage classes.
By type, the market for film-based electric capacitors is expected to increase steadily due to their utilization in automotive electronic units, as well as their ability to perform stable operations in higher temperature and vibrating settings. The high voltage handling capability of these items, in comparison to their competitors, is attributable to their widespread applicability.
Polarized electric capacitors are expected to rise in the coming years, according to polarisation. High capacitance, the capacity to endure large charge and discharge cycles, as well as rapid supply and charge storage are all key attributes that are driving product adoption. The non-polarized section, on the other hand, will grow because of its excellent stability, reduced current leakage, and low losses at high frequencies.
In terms of voltage, the growth of the low voltage market will be fuelled by rising demand for consumer electronics, fuelled by strong urban population growth, and steadily falling prices. Furthermore, economic expansion has increased disposable income. Because of the increased focus on decreasing power system losses and providing an efficient and continuous power supply, the high voltage sector will rise.
Considering the industry vertical or the end-user, the electric capacitor market will expand due to increased demand for cell phones, digital camcorders, and laptops, as well as their short replacement cycles. The introduction of new technologies such as 4K and OLED televisions that have a variety of electronic content and functionality needs improved energy density, capacitance, and bandwidth, promoting acceptance of technology.
The market for capacitors in South America has grown dramatically in recent years as a result of greater digitalization in both developing and industrialized countries throughout the region. The adoption of modern infrastructure, and smart and electronic gadgets is experiencing a surge, powered by growing urbanization and digitization. This is projected to be a growth proliferator for the industry in the future time zone. Because of the increased need for wearable electronics in the industry, the consumer electronics category accounted for the largest proportion of market demand based on products. The market vehicles, on the other hand, are expected to rise rapidly during the forecast period due to increased investment in the region's automobile industry expansion.
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