Film Capacitor Market Trends

Growth Drivers

• Growing demand for consumer electronics - Rising demand for smartphones, laptops, and other such electronic devices is major driver for the film capacitor market. In May 2024, Vishay Intertechnology rolled out its new series of metalized polypropylene film capacitors at the Electronica China 2024 event, targeting high-performance applications that range from automotive electronics to industrial equipment and consumer devices. With the demand from consumers for state-of-the-art electronics continuing to increase, film capacitor manufacturers are developing advanced solutions that enable the latest technologies to flourish through a whole range of applications.

• Growth of electric vehicles and hybrid electric vehicles - The wave of electric mobility is propelling the demand for film capacitors in EV powertrains, onboard chargers, and other automotive electronics. As a result, players are developing capacitors to target the EV industry.
  
  For instance, in July 2024, TDK Corporation introduced its new TDK EV Series film capacitors designed for electric vehicle power trains and charging systems. Their best-in-class performance in the harsh EV environment is ensured by their specialized polymer film dielectric. This is an indication of how component makers are supporting exponential growth in the electric vehicle market.

Challenges

• High production costs - Complex manufacturing methods and raw materials used in film capacitance are translating to high costs of production, thereby acting as a potential restraint in the market. The cost of raw materials of polypropylene film has turned volatile over the recent years, which affects the profitability of manufacturers in the film capacitor segment. As per the data from the U.S. Bureau of Labor Statistics, in June 2023, the PPI for plastic products, including polypropylene film, increased by 3.2% over the same month in the previous year, indicating a rise in difficulty for film capacitor producers to keep their input costs under control.

• Technological limitations of film capacitor hindering adoption- While film capacitors offer several advantages, they also face technological limitations, such as lower capacitance values compared to other capacitor types. This can restrict their use in certain applications where high capacitance is required.