The global sales of power capacitors is estimated to be worth USD 15,349.0 million in 2024 and anticipated to reach a value of USD 25,995.4 million by 2034. Sales are projected to rise at a CAGR of 5.4% over the forecast period between 2024 and 2034. The revenue generated by emergency lighting in 2023 was USD 14,561.2 million. The application is anticipated to exhibit a Y-o-Y growth of 5.0% in 2024.
Power capacitors are electrical devices designed to store and discharge electrical energy mainly used to improve the power factor and voltage stability in an alternating current AC system. They play an integral role in power systems industrial, commercial, and residential installations where they compensate for the reactive power which is energy oscillated back to the source without performing useful work.
Reactive power arises in the systems with inductive loads, such as motors, transformers and fluorescent lighting due to causes of displacement of phase between voltage and current.
The primary advantage of power capacitors is that they can correct the power factor of a power supply-the amount of electrical power converted into useful work output. This is achieved by introducing capacitive reactance to offset the inductive effects of loads, which saves energy losses and ensures the closer approach of the power supply operation to its peak capacity.
As a result, businesses benefit with reduced electricity costs, since excessive power factor will incur penalties from utility companies, driving the growth of power capacitors market.
Power capacitors also improve voltage regulation through stabilization of the voltage levels in electrical networks. It helps reduce fluctuations that can damage sensitive equipment and ensures that all systems function systematically. It also reduces the currents flowing through the transmission lines, thereby reducing resistive loss, which enhances the lifetime of electrical components, as well as reliability in power distribution networks.
Owing to this, capacitors, in renewable sources such as solar and wind power, become very significant for the smoothing of variations in voltage that help to assist grid integration. Their compact size and durability, combined with very low maintenance requirements, make them a cost-effective solution for managing energy distribution in modern electrical grids.
Global Power Capacitors Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 14,561.2 million |
| Estimated Size, 2024 | USD 15,349.0 million |
| Projected Size, 2034 | USD 25,995.4 million |
| Value-based CAGR (2024 to 2034) | 5.4% |
Increased investment in the semiconductor industry and rising demand for electronic devices are the main drivers of the power capacitors market. Semiconductors are the foundation of contemporary electronics, powering electronics from laptops & cellphones to industrial automation systems & infrastructure for renewable energy.
To fulfill the need for cutting-edge technologies like 5G, the Internet of Things, artificial intelligence, and electric cars, semiconductor devices demand is increasing notably Power capacitors are essential for dependable and effective power management systems, which are therefore plays important role.
With the rise of portable devices, smart appliances, and wearables in the electronics industry, there is increasing demand for compact and efficient energy storage & regulation systems.
Power capacitors support voltage stabilization, energy efficiency, and electrical load management, thereby keeping such devices performing to their best at their highest level of longevity. In addition, improvements in semiconductor fabrication enable the production of highly compact, high-capacity capacitors, suitable for the miniaturization of electronics.
On a larger scale, rise in the use of renewable energy systems, such as solar and wind power, fuels demand for power capacitors. These capacitors are crucial in the integration of the grid, energy storage, and voltage regulation, to stabilize output since energy is generated from variable sources. Electric vehicles also require more power capacitors in battery management systems and charging infrastructure, supporting the industry trend.
Continued innovation in the semiconductor industry along with increasing consumer expectations for energy-efficient devices will fuel power capacitors' steady demand. Support from government such as incentives for green energy projects and advancements in capacitor technologies ensure continued market growth in the projected timeframe.
The below table presents the anticipated CAGR for the global power capacitors market over several semi-annual periods spanning from 2024 to 2034. This assessment outlines changes in the Power capacitors industry and identify revenue trends, offering key decision makers an understanding about market performance throughout the year.
H1 symbolizes first half of the year from January to June, H2 spans from July to December, which is the second half. In the first half (H1) of the year from 2023 to 2033, the business is expected to grow at a CAGR of 4.9%, followed by an increased growth rate of 5.3% in the second half (H2) of the same year.
| Particular | Value CAGR |
|---|---|
| H1, 2023 | 4.9% (2023 to 2033) |
| H2, 2023 | 5.3% (2023 to 2033) |
| H1, 2024 | 4.6% (2024 to 2034) |
| H2, 2024 | 5.8% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 4.6% in the first half and remain higher at 5.8% in the second half. In the first half (H1) the market witnessed a decrease of 30 BPS while in the second half (H2), the market witnessed an increase of 50 BPS.
Adoption of Smart Grids and Miniaturization of Capacitors are Emerging Trend in Power Capacitors Market
Smart grids, which involve integration of digital and traditional power networks with utilities communicating two-way with consumers to optimize electricity generation, distribution, and consumption, is currently a key trend driving the power capacitors market.
Power capacitors have a fundamental role in enhancing the power factor, supporting voltage levels, and reducing energy losses. As smart grids become essential for providing smooth power supply considering fluctuating demand and variable input of distributed energy resources, such as solar & wind power, the demand for advanced power capacitors has increased.
Besides that, smart grids highlight efficiency in terms of energy. This is whereby power capacitors are expected to enhance efficiencies during operation by compensating for reactive power.
Utilities take advantage of these capacitors for voltage stabilization, which is crucial for maintaining a constant voltage for appliances while they are switched on in smart grids. Addition to this, as EVs and renewable energy systems form a core part of smart grids, amplifying the demand for power capacitors in stabilizing the grid becomes inevitable.
Moreover, miniaturization is a revolutionary trend in the power capacitors market, given the rapidly expanding demand for compact, high-capacity energy storage solutions for modern electronic devices.
Advanced research & development in dielectric materials and leading-edge manufacturing methods have made it possible to design more compact capacitors with increased energy density, thermal stability, & strength. This is especially relevant for portable electronics like smartphones, laptops, and wearable devices, where space and weight are major concerns.
As electronic devices become more multifunctional, power capacitors are challenged to offer efficient voltage stabilization and energy storage in smaller footprints. Miniaturized capacitors allow designers to make devices thinner and lighter while having the same performance. This is further fostered by the expansion of 5G networks, IoT devices, and edge computing, all demanding more powerful power management in compact system designs.
Rising Demand for Consumer Electronics is fueling the Power Capacitors Market Growth
The primary driver behind the growth of the power capacitors market is consumer electronics, as more people opt for smartphones, laptops, tablets, and wearable devices. These devices considerable depends on power capacitors for energy storage, voltage regulation, and power factor correction functions. Capacitors guarantee stabilized voltage levels, optimize energy efficiency, and save sensitive electronic components from jitter & spikes.
With consumer electronics expected to become more multi-functional, with features such as high-resolution display panels and faster processors; high-speed interconnects (5G and Wi-Fi 6), necessitate the need for high-performance capacitors.
Such applications drive innovation in capacitor materials and designs to be compact, reliable, efficient, & suitable for energy storage, ranging from ceramic to polymer capacitors. Demand is also spurred further by the trend of miniaturization in electronic devices that requires small, high-capacity capacitors to be used in smaller spaces without compromise in performance.
The proliferation of IoT-enabled devices and smart home appliances also increases the role of power capacitors, as these systems require continuous energy management. With the global consumer electronics market augmenting rapidly, particularly in emerging economies, the demand for power capacitors is expected to grow significantly in the coming years.
Advancements in Dielectric Materials and Investment in Renewable Energy is Creating Ample Opportunities for Power Capacitors Market
Innovations in dielectric materials create new opportunities for the power capacitors market by improving the efficiency, reliability, & versatility of capacitor applications. Dielectric materials are at the heart of capacitor performance-factors that determine their ability to store energy, thermal stability, and lifespan. Advances in ceramics, polymers, and nanomaterials have opened up new ways to make capacitors with higher energy densities, faster response times, and greater resistance to rough environments.
For instance, advanced ceramic or polymer-based dielectrics may better withstand the higher voltages and temperatures and can be used for electric vehicles, renewable energy systems, & industrial automation. These materials also enable the miniaturization of capacitors without affecting their capacity and meet the existing demand for compact, high-performance components in consumer electronics and IoT.
Also, with governments and private organizations taking a stride into investing significantly in renewable energy ventures toward sustainability, the demand for power capacitors for grid applications is also expected to grow. In addition, capacitors contribute to an increase in the efficiency of microgrids, which are vital to rural electrification and energy self-sufficiency in remote places.
In solar power installations, capacitors handle rapid voltage changes due to cloud cover and establish a stable supply of power. The same applies to wind farms, with capacitors regulating power output and ensuring the quality of electricity fed into the grid. Additionally, they are integral to energy storage systems in that they automatically ensure that renewable energy is gradually brought into the existing power infrastructure.
High Initial Costs and Raw Material Price Volatility may affect Power Capacitors Market Growth in the Projected Timeframe
One of the major restrains for the adoption of advanced power capacitors is their high initial costs. Advanced capacitors, such as those having higher energy density and superior thermal stability, are usually tied with the availability of advanced materials and more complex processes that account for their premium pricing, which remains out of reach for cost-sensitive markets, especially the developing ones.
For instance, the automobile, renewable energy, and industrial automation sectors often demand high-performance capacitors with enhanced reliability. These capacitors offer long-term operation advantages, though generally carry a higher cost that deters smaller businesses and budget-constrained organizations to adopt them, particularly in an emerging economy where price competitiveness is always the single crucial factor for purchasing decisions.
The power capacitors market is also influenced by volatility in the prices of raw materials, especially key materials such as aluminum, polymers, and ceramics. Raw materials enable the production of capacitors, impacting their working, strength, and cost. Volatility of raw materials' prices can be induced by various factors such as geopolitical tensions, supply chain disruptions, and changes in global demand.
The global Power capacitors market registered a CAGR of 4.6% during the historic period between 2019 and 2023. The growth of Power capacitors industry was progressive as it reached a value of USD 14,561.2 million in 2023 from USD 11,749.2 million in 2019.
Power capacitors marked growth through 2019 to 2023, primarily due to technological improvements; increasing energy demand, and shift towards energy efficiency. A significant boost in adoption of renewable energy sources like solar and wind was also witnessed, wherein power capacitors form an integral part of energy storage, voltage stabilization, and grid integration.
Governments and private sectors from around the world invested heavily in renewable energy projects, thus creating a strong demand for advanced capacitor solutions.
The market was initially disturbed owing to the emergence of Corona virus across the globe at the start of 2020. However, with increased demand for electronic devices due to notable digitization, it accelerated the growth of the power capacitors market. Miniaturized capacitors with high energy density became imperative for power management in smaller, multifunctional electronic devices, especially as 5G technology and IoT adoption intensified during this period.
Tier 1 companies holds noteworthy market share up to 50% to 55% in the global market. These companies have massive financial resources, large-scale production capabilities, and significant market leadership.
Tier 1 players often dominate multiple sectors in the industry, including automotive, renewable energy, consumer electronics, and industrial automation. Companies primarily belonging to Tier 1 are ABB Ltd., General Electric (GE Grid Solutions), Siemens Energy, Eaton Corporation, Schneider Electric, and Hitachi Energy.
Tier 2 companies are strong companies with a strong market presence but operate on a relatively smaller scale as compared to Tier 1 players. They lacks the global reach or financial resources like Tier 1 players; however, Tier 2 companies are still significant contributors to the market. Some the key players in this tier include; L&T Electrical & Automation, Shreem Electric Ltd., Taiyo Yuden Co., Ltd., Toshiba Corporation, and Electro Technik Industries.
Tier 3 companies are typically smaller companies or regional players with limited product offerings and market reach. These companies often focus on specific niche applications, such as power supplies for small-scale consumer electronics or localized industrial systems. Despite having a smaller market share, they can succeed by targeting specific customer demands in low- to mid-volume markets.
The section below covers the market analysis for the power capacitors market for different countries. Market demand analysis on key countries in several regions of the globe, including the USA, Germany, China, India, Brazil, and UK is provided. The United States is anticipated to remain at the forefront in North America, with a value share of 76.3% through 2034. In East Asia, South Korea is projected to witness a CAGR of 5.3% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 5.9% |
| Germany | 4.7% |
| China | 6.2% |
| India | 6.5% |
| UK | 5.2% |
North America, spearheaded by the USA which currently holds around 71.2% share of the North America power capacitors markets in 2023. USA Power capacitors market is anticipated to grow at a CAGR of 5.9% throughout the forecast period.
Electric grid modernization and integration of renewable sources across the USA have been driving steady growth for the power capacitors market in the country. Advanced power capacitors have been increasingly adopted as the solutions needed to improve the stability of grids, energy storage, and voltage regulation, mainly due to the rapid growth of solar and wind energy projects.
Apart from that, the capacitors increasingly gained applications in automotive, consumer electronics, and industrial automation markets for efficient power management and to support EV infrastructure. The USA government investments in smart grid technologies, coupled with strict energy efficiency regulations, is further propelling the industry growth.
China’s Power capacitors market is poised to exhibit a CAGR of 6.2% between 2024 and 2034. Currently, it holds the significant market share in the East Asia market, and the dominance is expected to continue through the forecast period.
China is one of the largest and fastest-growing markets for power capacitors due to its massive investments in infrastructure as well as renewable energy project. The ambitious goals of carbon neutrality by 2060 and rapid transition in the country toward renewables such as solar & wind power have increased the demand for power capacitors in grid applications, energy storage, & power factor correction. The Chinese government’s support for smart grids and energy efficiency initiatives has created a favorable environment for capacitor adoption.
India’s Power capacitors market is expected to witness a CAGR of 6.5% in the forecast period and hold considerable market share in South Asia & Pacific region through 2034.
In India, the power capacitors market has been expanding due to the country’s growing energy demands, and infrastructure development. The Indian government’s initiatives, such as the Smart Cities Mission and Make in India campaign, are also contributing to the market growth by encouraging energy efficiency and the use of advanced technologies in the power sector.
Various key market players are establishing capacitor production plants in India which is expected to accelerate the industry growth in the country in forecast period. For instance, in October 2024, Keltron Component Complex Limited (KCCL) has established India’s first super-capacitor production facility in Kannur, Kerala.
The Kerala government has announced plans for an additional investment of around USD 120 million to position the state as a hub for electronic equipment manufacturing, including modernizing existing units like Keltron.
The section contains information about the leading segments in the market. By type, low voltage power capacitors segment is estimated to grow at a CAGR of 5.9% throughout 2034. Additionally, the by industry, automotive segment is projected to expand at 6.0% till 2034.
| Type | High Voltage (HV) Power Capacitors |
|---|---|
| Value Share (2024) | 41.2% |
High voltage power capacitors segment is expected to acquire share of 41.2% in the market in terms of type in 2024. These capacitors are important for maintaining grid stability, improving power quality, and ensuring efficient energy delivery over long distances. High-voltage power lines experience significant reactive power losses, which can compromise efficiency. HV capacitors counteract this by compensating for reactive power, thus improving power factor and reducing energy losses.
| Industry | Manufacturing |
|---|---|
| Value Share (2024) | 29.3% |
The manufacturing segment is expected to capture share of 29.3% in 2024. They are extensively used in this industry due to their critical role in ensuring energy efficiency, operational reliability, and cost optimization.
In manufacturing, equipment such as motors, compressors, and welding machines operate on inductive loads, which often cause a lagging power factor. This inefficiency increases energy losses and can lead to higher electricity costs. Power capacitors mitigate this issue by compensating for reactive power, improving the power factor, and reducing overall energy consumption.
Key players operating in the power capacitors market are investing in advanced technologies and also entering into partnerships. Key power capacitors providers have also been acquiring smaller players to grow their presence to further penetrate the market across multiple regions.
Recent Industry Developments in Power Capacitors Market
In terms of type, the industry is divided into low voltage power capacitors, medium voltage power capacitors, and high voltage power capacitors.
In terms of technology, it is divided ceramic capacitors, aluminum electrolytic capacitors, plastic film capacitors, tantalum capacitors, and others.
The industry is classified as aerospace & defense, energy & utilities, automotive, manufacturing, IT & telecommunications, healthcare, and others.
Key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe, and Middle East & Africa (MEA) have been covered in the report.
The global Power capacitors industry is projected to witness CAGR of 5.4% between 2024 and 2034.
The global Power capacitors industry stood at USD 14,561.2 million in 2023.
The global Power capacitors industry is anticipated to reach USD 25,995.4 million by 2034 end.
South Asia & Pacific is set to record the highest CAGR of 6.3% in the assessment period.
The key players operating in the global power capacitors industry include ABB Ltd., General Electric (GE Grid Solutions), Siemens Energy, Eaton Corporation, Schneider Electric, and Hitachi Energy.
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