Steady growth ahead for ceramic capacitor market
By Staff -- Purchasing, 6/17/1999
The U.S. ceramic capacitor market will grow from about $1 billion in 1998 to $1.3 billion in 2002 driven by the computer, telecommunications and consumer electronics equipment, and automotive systems.Ceramic caps will have the highest growth rate of all capacitors because of their relatively low cost, good temperature resistance, reliable performance, and ability to work in tandem with semiconductors, says Ed Hester, an analyst with market researcher The Freedonia Group.
Manufacturers have been able to offer high capacitance at low voltages and smaller packages. In recent years, some suppliers have been able to nearly double the capacitance per unit of multilayer ceramic capacitors (MLCs).
That's one reason MLCs are being used in more consumer electronic equipment, laptop computers, telecommunications and networking equipment, and automotive systems. Much of that equipment is in great demand, which obviously produces growth in unit demand for ceramic caps. Consider: A single computer has about a dozen ceramic capacitors on the board to smooth out signals and for power protection from voltage spikes.
Ceramics are growing at a faster rate than aluminum and tantalum capacitors because of their small size and low cost. Often a capacitor is chosen based on price and space constraints on the board. MLCs can be surface-mounted units, which now account for 90% of all ceramic capacitors.
Supply of ceramic capacitors is expected to be more than ample through the rest of the year. Last year, prices fell 3%-5%. Tags increased earlier this year because Palladium costs increased. But prices have started to decline, says Hester. However, tags are expected to rise 1.2% on average by the year 2002, he adds.
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