Global Aluminum Electrolytic Capacitors Markets 2020-2027 - Miniaturization Trend and Space-Saving Constraints in Modern Devices Spurs Innovations

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Dec 09, 2020, 09:00 ET

DUBLIN, Dec. 9, 2020 /PRNewswire/ -- The "Aluminum Electrolytic Capacitors - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.

Excluding WFM Essentials, COVID-19 Has Infected the Consumer Electronics Market, Highlighting the Depth & Width of the Damage is the -4.3% Slump in the Aluminum Electrolytic Capacitors Market

A part of the upstream semiconductor industry, global Aluminum Electrolytic Capacitors market is expected to slump by -4.3% in the year 2020 in response to the challenges facing the downstream electronics industry. The market thereafter will recover and grow to reach US$7.3 billion by the year 2027, trailing a post COVID-19 CAGR of 2.5% over the analysis period 2020 through 2027.

A key part of the electronics value chain, aluminum electrolytic capacitors are facing the risk of disruptions in a modular value chain. The electronics industry is a complex assembly sector and over the decades, the push for cost reduction, performance optimization, faster time-to-market, speed of innovation, do more with less principle and an increasingly narrower window of opportunity have encouraged modularity of the value chain.

Over the last 20 years, Greater China defined as mainland China, Hong Kong, and Taiwan have come to accounts for a large percentage of world imports of intermediate electronics goods or electronic intermediaries. Electronics industry in virtually every country today has massive contract manufacturers from China.

The current pandemic has exposed the risk of heavy reliance on China for electronic intermediaries. Outbreak of the virus in the country, lockdowns & travel restrictions imposed, closure of non-essential manufacturing plants, trade bans, restrictions on movement of goods, have together disrupted the global supply chain leaving electronics manufacturing struggling to cope with raw material shortages. Manufacturers of electronic products are facing dual challenges of production bottlenecks as a result of supply chain disruptions and inability to deliver on backlogged orders and weak new orders as a result of soft consumer demand.

Electronics supply chain already in state of flux in the pre-pandemic period by the U.S. and China trade and tariff war has been pushed into crisis with little preparation at the start of the pandemic in January 2020. With most electronic raw material supply dependent on Southeast Asian countries and China, over 75% of companies witnessed shipment delays which in the month of April rose to 3 to 5 weeks. The overall velocity of the value chain to perform and fulfil orders has reduced significantly. In addition, the pandemic has disrupted supply chains causing massive damage for manufacturing companies reliant on China for supplies.

These supply chain disruptions will step up the pressure to decouple from China. Rethinking supply chains will spur the movement of production out of China, including for electronics. Consumer electronics manufacturing, followed closely by automotive and industrial electronics remain the worst impacted. With companies cancelling and delaying modernization plans and with IT budgets slashed, industrial electronics is also feeling the pain of the general slowdown. With most electronic companies expected to witness decline in sales and profitability, the semiconductor industry also remains impacted and likely to face short-term financial hardships.

The shutdown has disrupted economic activities in a manner hitherto unimagined and the human cost of the pandemic is continuing to grow and is expected to deal an unprecedented blow to people, businesses and economies worldwide. As businesses struggle to keep afloat, job cuts and bankruptcies are expected to rise sending millions into unemployment. The loss in consumer confidence and erosion of household wealth and discretionary spending will impact virtually every industry and business worldwide.

The COVID-19 pandemic has therefore pushed consumers to conserve cash. With unemployment rates rising amid the virus induced economic crisis, consumers are cutting spending budgets. Unemployment rates have hit never-before highs with the US topping the charts with 12.5% unemployed as a % of total labor force. Social outlook against this background remains grim with households expected witness erosion in wealth.

Personal financial outlook, community, economy, job security confidence, purchasing and investment confidence are all tumbling as the human and economic cost of the global pandemic rises. For the electronics industry this brings grim news of falling sales and revenues as consumers hold back on discretionary spending.

As discretionary funds are used to purchase consumer electronics, demand highly correlates with GDP. Excluding electronic and networking hardware required for work-from-home (WFM), demand for all other consumer electronics are declining sharply. Smartphones, TVs, smart speakers, automobiles, cameras, smartwatches, smart home appliances, among others have all recorded declines in retail sales.

Competitors identified in this market include, among others:

Barker Microfarads Inc.
Capacitor Industries
CapXon International Electronic Co., Ltd.
Cornell Dubilier Electronics Inc.
DuraCap International Inc.
Elna America Inc.
Elna Co. Ltd.
EPCOS AG
Hitachi AIC Inc.
Hitano Enterprise Corp.
Kemet Corp.
Lelon Electronics Corp.
Liket Corp.
Man Yue Technology Holdings Ltd.
Nantong Jianghai Capacitor Co., Ltd.
NIC Components Corp.
Nichicon Corp.
Nippon Chemi-Con Corporation
Panasonic Corp.
Rubycon Corp.
Samwha Capacitor Group
Samyoung Electronics Co., Ltd.
Sun Electronic Industries Corporation
Taiwan Chinsan Electronics Industrial Co., Ltd.
The Aihua Group
Vishay Intertechnology Inc.

Key Topics Covered:

1. MARKET OVERVIEW

Impact of Covid-19 and a Looming Global Recession
Disrupted Supply Chains, Weak Business Confidence & Virus Led Economic Slowdown Impacts Prospects for Aluminum Electrolytic Capacitors
Capacitors: An Introduction
Aluminum Electrolytic Capacitor (AEC)
Key Applications
Key Applications of Aluminum Electrolytic Capacitors (AECs) by End-Use Sector: A Snapshot
Outlook
Solid AECs Register Faster Growth
China Retains Largest Share of AEC Market
Competition
Chinese Players Vie for Bigger Share
Supply Chain Structure: An Overview
Recent Market Activity

2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS

Miniaturization Trend and Space-Saving Constraints in Modern Devices Spurs Innovations
Surface Mount Devices Gain Popularity
Flat Structure Aluminum Electrolytic Capacitors Gain Interest
Organic Polymer Cathodes Gain Prominence
Telecom Upheaval to Provide Boost to Hybrid Aluminum Electrolytic Capacitors
A Return to Economic Normalcy to Reignite Growth Drivers in the Consumer Electronics End-Use Sector
Computers and Peripherals: An Important End-Use Market
Mobile Computing & Wider Adoption of BYOD Concept Impacts PC Sales
Wider Proliferation of Mobile Devices Contracts AEC Shipments in Computers & Peripherals Vertical
Recovery in Global PC Shipments Amidst Coronavirus Pandemic Bodes Well for Market Growth
AEC Demand in the Industrial Sector
AECs Assume Critical Importance in Inverters
General-Use Inverters
Inverter Air Conditioners
Rising Importance of Industrial Automation Extends New Opportunities
Post COVID-19 As Technology Steps Forward to Help With Social Distancing, Renewed Focus Will Be Shed on Industrial Automation
Growing Penetration of Industrial Robots Perks Up Demand Growth
Expanding Role of Process Control Equipment
Rise in Demand for UPS Systems Augurs Well for Market Growth
Expanding Pace in Telecommunication Sector Favors Market Growth
Surging Investments on Advanced Telecom Infrastructure Builds New Momentum
Accelerating Expansion of 5G to Drive Growth
Automotive Sector's Increased Thrust on Electronics Drives New Demand for AECs
Recovery in Automotive Industry Post COVID -19 to Support Demand
Growing Emphasis on Intelligent Highway to Drive Increase in AECs Share in Automotive Sector
Potential Opportunities in the Electric Vehicles Segment
Rising Focus on Renewable Energy Accelerates Market Prospects
Expanding Role of Electronics in the Healthcare Sector Augurs Well for AECs
With Telemedicine Gaining Spotlight Amid COVID-19, Demand for AECs to Remain Strong in the Post COVID-19 Period
Key Issues for AECs Market

4. GLOBAL MARKET PERSPECTIVE

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