Driven by new energy vehicles, photovoltaics and wind power, film capacitors have great market potential

Film capacitors have unique application advantages in many power electronics fields. Film capacitors have the characteristics of high voltage, high capacitance, and long service life, and the structural design of the film ensures that the capacitor has good self-healing properties.In the dc link scenario, film capacitors play an important role no less than IGBT modules.Benefiting from this,film capacitors are widely used in various frequency conversion and ac-dc conversion scenarios, such as electric drives, OBCs, charging piles of electric vehicles, as well as inverters and converters of photovoltaic and wind power.

The compound growth rate from 2021 to 2025 is 13.3%, with new energy vehicles, photovoltaics, and wind power being the main driving forces.We estimate that the average value of film capacitors used in new energy vehicles is more than 400 yuan per vehicle. The value of film capacitors used in photovoltaics and wind power is also very high, about 6,000 yuan/MW and 5,000 yuan/MW respectively.Benefiting from the growth of the above-mentioned markets, we estimate that the market size of film capacitors will reach 24 billion yuan by 2025, with a compound growth rate of 13.3% from 2021 to 2025.Among them, the total demand brought by the new energy vehicle, photovoltaic, and wind power markets in 2025 will exceed half of the overall demand for film capacitors, which will be 9.2 billion yuan, 1.85 billion yuan, and 920 million yuan respectively.The compound growth rates from 2021 to 2025 are 33.9%, 12.1%, and 8.23% respectively.

Driven by the localization of the industrial chain, domestic manufacturers are expected to fully benefit. New energy vehicles, photovoltaics, and wind power are important driving forces in the film capacitor industry. China has an important industry position in the world, both on the demand side and on the supply side.Domestic players now have very strong competitiveness. With the increasing demand from downstream customers for localization of the industrial chain, domestic manufacturers are expected to further increase their market share in the future.In addition, as the demand for film capacitors increases, the demand for polypropylene base film also increases.Currently, base film is in short supply. Some domestic base film companies already have the ability to supply base film below 3 micron for new energy vehicles. Under the current high prosperity,domestic base film companies have also ushered in development opportunities.