Strong Demand For New Energy, Film Capacitors Welcome Development Opportunities

Strong Demand For New Energy, Film Capacitors Welcome Development Opportunities

It is predicted that the CAGR of the global film capacitor market in 2021-2025 will be 13%. Film capacitors have the advantages of high voltage resistance, high current carrying, high temperature resistance, non-polarity, self-healing, long life, strong anti-surge ability, etc., and are widely used in industrial control, new energy, electric power, rail transit, and other fields. In 2021, the global thin film capacitor market size was about 3.2 billion US dollars, and it is expected to grow to 5.2 billion US dollars by 2025, with a CAGR of 13% in 2021 to 2025.

On the demand side, the film capacitor market will convert old and new kinetic energy, the lighting market will decline, industrial control and home appliances will rise steadily, and the new energy field will become the main incremental market. Three years will maintain high growth.

The film capacitor industry has high barriers and relatively stable competition: film capacitors are difficult in technology, production process control, tooling, and fixtures, and require long-term technical accumulation and precipitation in order to have better yield and gross profit margin. In addition, there are also strong barriers in customer certification, such as electric vehicles, photovoltaic wind power, and industrial control. On the one hand, there are higher requirements for product reliability and service life, and on the other hand, the certification cycle is also long. In 2018, the global film capacitor market CR5 reached 40%, of which Panasonic, Kemet, Farah Electronics, Nichicon, and TDK-EPCOS accounted for 9%, 8%, 8%, 8%, and 7%, respectively.

In the high-end market of film capacitors, Panasonic, Kemet (acquired by Yageo), and Nichicon have a larger share. In recent years, domestic manufacturers' automotive and industrial control product lines have basically achieved the technical level of Japanese and American manufacturers. As the leader of domestic thin-film capacitors, Farah Electronics ranks among the top three in the world, and its market share in automotive, industrial control, photovoltaic, and other fields exceeds that of overseas manufacturers. Overseas film capacitor manufacturers are more cautious in expanding production. Domestic manufacturers are expanding production aggressively.

Farah Electronics will expand production by 100% in 2021 and plans to expand production by 100% in 2022. Photovoltaic film capacitors will also maintain an annual expansion of 50%. At the above rate, Farah Electronics' revenue from new energy in the first quarter of 2022 accounted for 64%. Jianghai film capacitors have not only entered a large-scale application stage in consumer electronics and industrial equipment, but have also begun mass delivery in new energy electric vehicles and military industries, entering a period of rapid growth. In 2022, automotive film capacitors will also expand by 70-80%. It is predicted that local manufacturers are expected to further expand their share in the high-end market in the future.

With the rapid expansion of the new energy vehicle and renewable energy industries, the demand for high-reliability film capacitors continues to grow. At the same time, the electrical connection components that support these capacitors are becoming increasingly important for ensuring stable power transmission and system efficiency.

As a professional manufacturer of electrical connection components, our company also provides New Energy Vehicle Film Capacitor Busbars, which are designed to deliver low inductance, high current carrying capacity, and excellent thermal stability for power electronics systems such as inverters, DC link modules, and battery management systems. Through precision stamping, welding, and insulation processes, our busbars ensure reliable electrical connections and optimized performance in demanding EV and renewable energy applications.

If you are looking for high-quality film capacitor busbars for electric vehicles or energy storage systems, feel free to contact us for customized solutions and technical support.