India MLCC - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The increasing popularity of portable and connected devices is contributing to achieving compact designs without compromising on performance

• The case sizes for MLCCs are 0 201, 0 402, 0 603, 0 805, 1 005, 1 206, 1 210, and others. Case size 0 201 holds the largest market share of 34.84% in terms of volume and was expected to generate a revenue of USD 66.89 million in 2022. Case size 1 005 is the fastest growing segment, with a CAGR of 25.70% (2022-2029).
• The ongoing trend of miniaturization, coupled with the need for higher component density, drives the demand for these components. The increasing popularity of portable and connected devices further contributes to the demand for 0 201 MLCC components, as they enable manufacturers to achieve compact designs without compromising on performance.
• The usage of 0 1005 MLCCs spans diverse applications, particularly in compact electronic devices such as smartphones, wearables, and IoT devices, enabling manufacturers to achieve sleek and compact designs without compromising performance. The smartwatch sector in India has continued to grow owing to the affordability of smartwatches and a range of options.
• The compact 0 402 case size is widely adopted as a form factor for surface-mount ceramic capacitors. The automotive industry relies on 0 402 MLCCs for various applications, including engine control units, infotainment systems, advanced driver-assistance systems (ADAS), lighting control, and more. These capacitors provide reliable performance in harsh automotive environments. The Indian government plans to invest USD 3.5 billion in incentives over five years ending in 2026 under a new scheme to promote the production and export of Clean Technology Vehicles, thereby increasing automotive production in the country, creating a demand for 0 402 MLCCs.

India MLCC Market Trends

Development of the e-commerce industry is expected to propel the production of light commercial vehicles

• In India, there is an increasing need for pickup trucks due to the expansion of the e-commerce and logistics industry. This has led to a rise in the production of light commercial vehicles, with a total of 54.28 thousand units manufactured in 2019.
• The majority of commercial vehicle sales in India consisted of diesel-fueled CVs, as diesel is the traditional fuel engine, generates more power, and is easily available. It is a must in commercial usage. However, norms by the government, awareness of e-mobility, development in charging infrastructure, and incentives are boosting the Battery Electric Vehicles (BEV) segment in the Indian commercial vehicle market. The expansion of diverse sectors like e-commerce, construction, and logistics, coupled with the demand for fuel-efficient transportation, is fueling the rise of light commercial vehicles throughout India. Contrarily, the light commercial vehicles (LCV) market is predicted to be positively influenced during the projected time frame due to factors like the government's increase in initiatives to promote e-mobility and the logistics sector's growing demand for electric trucks.
• With regard to EV (Electric Vehicle) deployment, India continues to move slowly compared to its other decarbonization initiatives. Companies are launching electric goods carriers. For instance, in May 2022, Tata Motors launched an electric version of the ACE light commercial vehicle, and the company signed MOUs with Bigbasket, Flipkart, Amazon, and other companies for the delivery of 39,000 units.
• These key elements are fueling India's production demand for heavy trucks. The country produced 61.73 thousand units in 2022, which is expected to increase in the future.

Shifting focus to electric cars to boost the market growth

• Passenger car production has grown significantly over the past few years, and 3.62 million units were produced in 2019. However, the market witnessed its worst fall of 21.84% in 2020 over 2019. Relaxation in the COVID-19 pandemic-induced restraints and the resuming of business operations revived the passenger cars market with a slight growth of 28.01% in 2021 over 2020.
• While the demand for ICE vehicles is declining gradually, India is currently shifting focus to electric cars to reduce emissions. An increase in the electrification of vehicles and the banning of fossil fuel vehicles by 2035 is expected to boost the Indian passenger cars market in the future. In India, Tata’s Nexon BEV SUV was the bestselling model, accounting for two-thirds of EV sales, and most other offerings were SUVs.
• The government's numerous incentives and rebate programs are increasing the demand for battery electric cars nationwide. The governments of several states have updated the policies and amount levels on battery electric car subsidies. In 2021, India extended its main EV demand stimulating FAME II policy to 2024. It also increased subsidies for electric two-wheelers and made budgetary commitments for battery swapping policies and the development of EV manufacturing and battery supply capacity. These factors are expected to increase demand for electric passenger cars in India in the future.

India MLCC Industry Overview

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