Exponential Rise in Demand from Consumer Electronics Sector to Bolster Market Growth
The Asia Pacific PP capacitor films market is anticipated to witness steady growth in the upcoming years, owing to the rise in sales of electrical devices in nations such as India, China, Malaysia, etc. The dwindling prices of electrical components coupled with advancements in the circuit technology are some of the key factors that are likely to shape the growth of the Asia Pacific PP capacitor films market during the forecast period. PP capacitor films are increasingly being used across a range of end-use industries, including consumer goods, medical devices, smart grids, and automotive.
The versatility and low cost of PP capacitor films continue to play an imperative role in driving sales– a trend that is set to continue during the forecast period. Due to the low distortion factor and favorable frequency characteristics of PP capacitor films, the adoption levels continue to move in the upward trajectory in several major nations across the Asia Pacific region. The noteworthy rise in the demand for rail transport and spurt in the production of rail locomotives in recent years are expected to augment the demand for PP capacitor films during the assessment period.
At the back of these factors, along with the growing emphasis on expanding the product portfolio by players operating in the current market landscape, the global Asia Pacific PP capacitor films market is expected to surpass 2.5 Bn mark by the end of 2030.
Increase in Adoption of Power Applications to Drive Global Market
The increasing adoption of PP capacitor films for power applications is anticipated to drive the Asia Pacific PP capacitor films market during the assessment period. PP capacitors are required in several applications, including decoupling, filters, and energy storage in the power electronics domain. PP capacitor films are an imperative component of the modern electronics sector due to high tolerance for voltage over-stress and ‘self-repairing’ properties in case of a breakdown. At present, designers and product development teams are increasingly focusing on launching PP capacitor films with improved performance and optimum self-repairing capabilities to gain a competitive edge. Conventional high-grade capacitors are gradually being replaced by cutting-edge PP capacitors due to which, the demand for PP capacitor films is on the rise. Apart from physical volume and dissipation, market players operating in the current Asia Pacific PP capacitor films market ecosystem are increasingly focusing on pricing strategies to gain an advantage.
While the power electronics sector is anticipated to provide a safe haven to the players involved in the current market for PP capacitors in the Asia Pacific region, the demand for PP capacitors as snubbers and power filters is on the rise.
Market Players to Leverage Opportunities in Automotive Sector and Green Energy
Opportunities in automotive and green energy are another factor likely to drive players involved in the current Asia Pacific PP capacitor films market landscape. Due to the surge in the demand for PP capacitors from automotive and green energy sectors, a number of players is expanding their product portfolio by launching new products. For instance, in July 2020, KEMET, a leading supplier of electronic components announced the launch of three series of PP capacitor films: C44U-M, C44P-R, and R75H. The products were primarily designed for high power conversion system applications across industrial, green energy, and energy storage systems. While expanding the product portfolio is likely to remain one of the core growth strategies, market players are also expected to increase their production capacities. For instance, in February 2019, Toray announced that the company is set to increase the production capacity for PP capacitor films.
Demand for PP Capacitor Films to Decline amid COVID-19 Pandemic
The onset of the COVID-19 pandemic is expected to have a moderate impact on the growth of the global Asia Pacific PP capacitor films market during the first half of the forecast period. The dwindling demand from various end-use industries coupled with restrictions on cross-border trade and industrial lockdowns in several major nations including China and India is estimated to hinder the growth of the Asia Pacific PP capacitor films market. The closure of several industries across China during the first quarter of 2020 has led to significant delays in orders.
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Asia Pacific PP Capacitor Films Market: Overview
According to Transparency Market Research’s latest research report on the PP capacitor films market in Asia Pacific for the base year 2019 and the forecast period 2020 to 2030, rise in usage of PP capacitor films in the automotive sector and increase in application of PP capacitor films in power plants are factors expected to boost the Asia Pacific PP capacitor films market during the forecast period
Ability of PP capacitor films to offer high efficiency, long lifespan, excellent reliability, limited temperature effects, and minimum maintenance make these films ideal for usage in smart grids and renewable energy systems
In terms of revenue, the Asia Pacific PP capacitor films market is estimated to cross US$ 2.5 Bn by 2030, expanding at a CAGR of ~6% during the forecast period
Increase in Usage of PP Capacitor Films in High Voltage Power Applications: Key Driver
PP capacitor films are frequently used in high-voltage power applications due to their properties such as high dielectric strength, low dielectric constant, and low volumetric mass
PP capacitor films are used to prevent variable power that results from damage of systems in alternative energy and smart grid applications. PP capacitor films help maintain the overall endurance of a system and prevent other components from damage caused by a spike in current or voltage.
PP capacitor films are largely used in renewable energy capacitors. PP capacitor films have been used in power transmission and distribution applications since more than 100 years.
Public awareness about renewable energy systems has increased. This has led to rise in private as well as public investments. Certain countries in Asia Pacific are focusing on environment-related concerns, and are planning to develop smart grids for improvements in the energy sector.
Increase in demand for electric energy storage devices used under extreme conditions in electric vehicles is fueling the demand for PP capacitor films, as PP capacitor films offer excellent thermal stability and energy density. Electric vehicles and hybrid vehicles are gaining popularity due to low fuel consumption and environmental footprint.
Several leading manufacturers of capacitors are working with material suppliers to improve the operation of film capacitors for future electric and hybrid electric vehicles. High quality PP films in capacitors improve the upper limit of operating temperature ranges. They also increase the dielectric constant. PP films can withstand temperatures of up to 105°C and even higher for a short period of time. These factors are likely to drive the demand for PP capacitor films in the near future.
Major Challenges for Asia Pacific PP Capacitor Films Market
PP and PET capacitor films are most commonly used in various applications. Capacitor films made of polyethylene naphthalene or polyphenylene sulfide are employed in special applications that require temperatures of more than 150°C.
Rise in demand for capacitor films that can withstand temperatures of above 100°C is restraining the demand from PP capacitor films, as PP capacitor films can withstand temperatures of up to 105°C
Polyphenylene sulfide (PPS) is preferred for its low dissipation quality and high heat resistance. PPS capacitor films can operate at 150°C and have the lowest temperature drift of capacitor films.
Ceramics are economical than PP capacitor films and are widely used in electronic circuits due to their high stability, reduced energy loss, high capacity, and compact size. These factors are anticipated to hamper the PP capacitor films market in the near future.
China to Offer Lucrative Opportunities for Asia Pacific PP Capacitor Films Market
China is a major supplier of capacitor films. Furthermore, it is a developing a technology for high electric and temperature characteristics to meet the demand of emerging as well as established applications. China is seeking opportunities in the growing eco-friendly sectors such as power generation, electric vehicles (EVs), and other industries.
Popularity of metallized PP capacitors films is attracting China-based manufacturers. Some companies are adopting the metal spraying process rather than winding of PP films to improve product specifications. For instance, Foshan Shunde incorporated the metal spraying process in its MKP-LM models, due to increased current-carrying capability, capacitance, and control over temperature rise offered by the process.
China is one of the largest producers of capacitor films in the world. There are almost 200 suppliers of film capacitors in the country; more than 80% of these are locally consumed and the remaining is exported to the U.S., Europe, the Middle East, and Asia.
Asia Pacific PP Capacitor Films Market: Competition Landscape
Tier-1 companies comprise major players such as Shin-Etsu Chemical Co., Ltd. and Toray Industries, Inc. These players have considerable presence across the globe.
These companies accounted for 40% to 50% share of the PP capacitor films market in Asia Pacific in 2019
Tier-2 companies include Terichem Tervakoski, a.s., and Sungmoon Electronics Co. Ltd. These companies held around 20% to 30% share of the PP capacitor films market in Asia Pacific in 2019
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