Against a backdrop of growing demand from AI data centres and vehicle electrification, Japan’s MLCC market is seeing increased demand for high-value-added components. Technologies such as high-capacitance, high-voltage and embedded products are becoming increasingly important, reports indicate.
Japan’s multilayer ceramic capacitor (MLCC) market was valued at $1.9 billion in 2025 and is expected to exceed $7.4 billion by the end of 2035, with a projected CAGR of 19.8%.
Growing demand from AI data centres and the promotion of vehicle electrification are driving demand for high-value-added MLCC products. Components with advanced specifications, particularly high-capacitance, high-voltage and embedded products, are becoming increasingly important.
Product categories are expanding and technology differentiation is advancing in areas including embedded MLCC development, high-frequency decoupling and automotive soft-termination products. Japanese companies are pursuing opportunities in the power architectures of AI servers and vehicles, building on their strengths in materials science and manufacturing technology.
A notable development in Japan’s market is that TDK and Taiyo Yuden signed a memorandum of understanding in September 2026 to consider a comprehensive partnership, with strengthening supply-chain resilience and developing advanced MLCCs among the topics under discussion.
Japan’s MLCC market is expected to see materials and manufacturing sophistication become a determining factor in competitiveness, alongside changes in the demand structure of the AI infrastructure and automotive sectors.