Multi-layer Ceramic Capacitor Market Trends

Growth drivers

• The development of 5G infrastructure: The initiatives of governments across different countries to develop 5G infrastructure are expected to fuel the demand for multi-layer ceramic capacitors. As per the disclosure by 5G Americas in April 2025, 5G has expanded to 2.2 billion connections, reaching a global inflection point. The integration of MLCCs in 5G networks is crucial for stable electricity for high-frequency signals and the reduction of noise interferences, leading to improved network performance. In addition, MLCCs in smartphones enable storage and release of high-speed data and complex functionalities, which 5G demands.
• The development of IoT-based devices: Continuous development of IoT-based devices, ranging from smart home devices to health monitoring devices to equipment required for industrial automation, is demanding MLCCs for seamless connectivity. MLCCs are engineered for impedance matching in high-frequency circuits that are utilized in compact IoT-based devices. The emergence of certain IoT-based devices in the market is even contributing to increasing the effectiveness of MLCCs. For instance, TDK Corporation announced the launch of the TDK SensEI product line, edgeRX Vision. This is an AI-enabled system for defect detection and is capable of managing even the smallest MLCCs with high precision.
• Advancements in material science and manufacturing: The advancements in material science and manufacturing through innovation led to the miniaturization of the MLCCs, increasing the scope of proliferation of electronic devices and their performance enhancement. Advancements in material science and manufacturing have also led companies to develop miniaturized MLCCs. For example, in September 2024, a leading innovator of electronics items, Murata, unveiled the world’s smallest MLCC sized 006003-inch (0.16 mm x 0.08 mm). A lower volume ratio by 75% is represented by the new MLCCs compared to the components available in the market.

Challenges

• Disruptions in the supply chain: Disruptions in the supply chain of the raw materials, including the primary electrode material Nickel, are a significant matter of concern in the growth of the global multi-layer ceramic capacitor market. Manufacturers in the industry are vulnerable to delays in production, owing to the risk of a lack of accessibility to nickel that can be caused by natural disasters or geopolitical landscape. Global dependency on certain countries for nickel supply increases the likelihood of the discussed risk significantly.  
• Volatility in the prices: Fluctuations in the prices of raw materials required to produce MLCC lead to an increase in the prices of end products.  Otherwise, operating with adequate profit can be challenging for the manufacturers of the component. As disclosed U.S. Geological Survey, the prices of Nickel increased by 270% in 2022. The market is vulnerable to price challenges due to the need for rare metals, including neodymium and samarium. The prices of the rare materials vary from market to market based on availability, indicating production challenges for the key players in the certain multi-layer ceramic capacitors market.