Electric Vehicles to Propel Aluminum Electrolytic Capacitor Market
The aluminum electrolytic capacitor market was valued at US$6,379.323 million in 2019 and is expected to increase at a CAGR of 1.56 percent to reach US$7,111.326 million by 2026. The increased adoption of electric vehicles is the primary factor driving market growth. Aluminum electrolytic capacitors have a pure aluminum foil anode electrode and a significant volumetric capacitance, making them one of the most often used electrolytic capacitors. In many electronic devices, aluminum electrolytic capacitors are used to smooth and buffer rectified DC voltages in power supplies and DC-DC converters. They are also used in industrial power supply systems. Aluminum electrolytic capacitors are polarized due to their anodization principle. Aluminum electrolytic capacitors have the best capacitance, which allows them to store a large quantity of energy. Government and private investments are also driving the aluminum electrolytic capacitor industry forward.
Electric Vehicles Are on the Rise During the Forecasted Period Propelling the Growth of Aluminum Electrolytic Capacitor Market
Due to the high power supply, electrolytic capacitors are used in electric vehicles, while aluminum electrolytic capacitors are famous for their high efficiency. That is why, as the use of electric vehicles increases, the aluminum electrolytic market is expected to grow at a faster rate than predicted. According to the International Energy Agency, sales of electric vehicles worldwide reached 2.1 million in 2019, more than in 2018, which was a record year. In addition, the number of electric vehicles sold increased by 40% year on year. Despite the epidemic, sales of electric vehicles increased by 43 percent by 2020 compared to 2019. Many countries have been rapidly expanding their charging infrastructure to create an adequate network of electric vehicles. According to the IEA, government spending on electric car incentives increased by 25% year over year in 2020, with governments throughout the world spending a total of 14 billion US dollar on tax deductions and direct purchase incentives for electric cars. After a decade of strong growth, the global electric automotive market reached ten million by 2020, showing a commendable increase of 43 percent over 2019 and a 1% shareholding. With the rapid expansion of electric vehicles, the demand for an aluminum electrolytic capacitor is rising in order to provide highly efficient power delivery, which is expected to drive the aluminum electrolytic capacitor market over the projected period.
Increasing Demand for Miniaturization of the Electronic Devices During the Projected Period
One of the major reasons expected to drive the growth of aluminum electrolytic capacitors over the analysis period is the shrinking size of electronic gadgets. Miniaturization of electronic equipment, such as mobile phones, medical gadgets, touch screens and displays, and other electronic devices, is becoming more popular. Manufacturers are developing miniaturized electronic devices in order to improve product performance, sophistication, and market penetration. Aluminum electrolytic capacitors are well-suited for usage in small electronic devices. Aluminum electrolytic capacitors have a substantially higher amount of capacitance for a given space than other electrolytic capacitors, implying that high value electrolytic capacitors can be relatively tiny. As a result of this, analysts predict that as electronic devices become smaller, the need for aluminum electrolytic capacitors will keep increasing, and the aluminum electrolytic market is expected to rise at a fast rate throughout the analysis period. Furthermore, due to a growth in the demand for consumer electronics around the world, the demand for aluminum electrolytic capacitors will rise during the projected period.
Additional Factors Leading to the Growth of Aluminum Electrolytic Capacitor Market During the Analysis Period
In addition, electrolytic capacitors market expansion will be fueled by factors such as a growing concentration of OEMs and ODMs across industries such as consumer electronics, automotive, healthcare, industrial, and others in the coming years, indicating that the market for aluminum electrolytic capacitors will grow in the coming years. Various firms have been developing new and innovative products in the market in response to increased demand, which is expected to contribute to market growth. Demands for space savings, weight reduction, and power efficiency for in-vehicle devices raise performance requirements, such as lower equivalent series resistance (ESR) and larger ripple current, which conventional electrolytic capacitors cannot handle. Rubycon Corporation has developed a highly efficient hybrid capacitor based on conductive polymer aluminum solid electrolytic capacitor using its own hybrid technology to meet these requirements, thus contributing to the high performance of automotive machinery.
Poor High-Frequency Characteristics Likely to Impeded the Growth of Aluminum Electrolytic Capacitors
It also has drawbacks as such as poor high-frequency characteristics and a considerable leakage current (the dielectric of the capacitor has a great obstacle to DC current). The re-formed and mended oxide film will generate a very little current, called leakage current, when a voltage is applied because the aluminum film has a coating of film-like material on it. In general, as temperature and voltage rise, the leakage current rises as well. Filtering in power supplies and low-frequency circuits are common applications.
The Asia Pacific Segment of the Market Will Grow at a Lightning Speed
Based on geography, the market is segmented into the North American region, the South American region, the Asia Pacific region, the Middle East and African region, and the European region. Due to the existence of large-scale electronic device manufacturers in the region, such as China, Hong Kong, and South Korea, among others, and the development in manufacturing, the Asia Pacific region is expected to hold a significant market share and to experience substantial growth. Because of rising investments in electricity and energy, North America is expected to see significant market expansion. Additionally, increased output in the Asia Pacific region's manufacturing sector to meet domestic demand for higher-quality products and expanding exports from the region are factors driving up demand for aluminum electrolytic capacitors in the APAC region. According to the IEA, by 2020, the European car market has declined by 22%. However, registrations for new electric vehicles increased by more than double to 1.4 million approximately, representing 10% of the market share. China has the largest fleet of ships, with 4.5 million electric vehicles, but Europe has the largest annual growth, reaching 3.2 million by 2020 and the American car market has dropped by 23%, although the registration of electric vehicles has dropped below the total market.
Corona Virus Pandemic Analysis
The analysis report also provides a deep study about the impact of the coronavirus on market for aluminum electrolytic capacitors, stating how the lockdown and employment have severely impacted the aluminum electrolytic capacitor market owing to a delay in recovery of the market. The report also covers the impact of a disrupted supply chain in the industry.
