Electrolytic capacitors, as indispensable passive components in electronic circuits, see their market size closely linked to the development of the technology industry. In 2026, the global electrolytic capacitor market is projected to reach ¥88.114 billion, with the Chinese market accounting for approximately ¥47 billion, showing steady growth and an expected Compound Annual Growth Rate (CAGR) of about 6%-7% . This growth is primarily driven by the rapid development of new sectors such as new energy vehicles, renewable energy, and industrial automation, which are increasing the demand for high-performance electrolytic capacitors .

01 Market size and growth drivers

The electrolytic capacitor market in 2026 shows robust growth momentum. From a global perspective, the aluminum electrolytic capacitor market is expected to grow from approximately $7.457 billion in 2024 to $7.631 billion in 2025, and is projected to reach $10.582 billion by 2031, with a CAGR of about 5.6% . The Chinese market is particularly notable, having become a major engine for global market growth. China's electrolytic capacitor market is expected to grow from about ¥15 billion in 2025 to ¥21 billion by 2030, with a CAGR of about 7% . Currently, China's market size accounts for more than half of the global total, and its growth rate outpaces the global average .

Key growth drivers stem from three main areas:

• Continued expansion in demand for power supplies and power electronic equipment: As the application scope of switching power supplies, inverters, UPS, and other power electronic equipment continues to expand, the demand for aluminum electrolytic capacitors with large capacity and stable performance is increasing .

• Explosive growth in the new energy vehicle industry: In 2026, the demand for electrolytic capacitors from the new energy vehicle sector is expected to reach 180 million units, and is projected to grow to 350 million units by 2030, with an average annual growth rate of 11% .

• Advancement of industrial automation and smart manufacturing: The promotion of the Industry 4.0 concept and the deepening application of smart manufacturing technologies are leading to a continuous increase in demand for high-performance electrolytic capacitors in automated equipment and control systems .

  
  

02 Distribution of industry application fields

The application fields of electrolytic capacitors are showing a trend of diversification. The consumer electronics field, as the traditional main market for electrolytic capacitors, is expected to see demand grow by over 30% in 2026, with the market size reaching about ¥15 billion, driven by the popularization of 5G technology and the expansion of the smart home market .

In the new energy vehicle field, the market demand for electrolytic capacitors is growing most significantly. Benefiting from government policy support and the continuous surge in new energy vehicle sales, the new energy vehicle electrolytic capacitor market is expected to reach a scale of approximately ¥12 billion by 2026, with a CAGR of about 18% .

The industrial automation and smart manufacturing field is another important growth point for the electrolytic capacitor market. This sector's market size is predicted to reach about ¥9 billion by 2026, with a CAGR of about 15% .

Communication base station construction is another significant factor driving the development of the electrolytic capacitor market. With the accelerated construction of 5G base stations and the expanding application of IoT technology, the demand for high-performance, high-stability electrolytic capacitors in communication base stations has increased notably .

The home appliance industry also constitutes an important part of the electrolytic capacitor market. As home appliance products evolve towards intelligence and energy savings, the demand for high-performance electrolytic capacitors from home appliance enterprises is continuously growing .

03 Technological development trends and innovations

The electrolytic capacitor industry is undergoing a technological transformation, mainly reflected in material innovations and performance improvements. Conductive Polymer Hybrid Aluminum Electrolytic Capacitors, as a new generation of products, combine the high capacitance-voltage characteristics of traditional electrolytes with the advantages of conductive polymers' low equivalent series resistance (ESR), making them a focus of market attention .

This hybrid design offers the high capacitance and high voltage ratings typical of aluminum electrolytic capacitors, while benefiting from the excellent low ESR, high ripple current capability, and longer service life of conductive polymers. They are particularly suitable for high-performance applications requiring compactness, reliability, and long-term durability .

Solid-state aluminum electrolytic capacitor technology has also made significant progress. Compared to liquid aluminum electrolytic capacitors, solid-state aluminum electrolytic capacitors have an extremely long service life (exceeding 50 years) and cannot be broken down, eliminating worries about the drying out of liquid electrolytes or leakage affecting motherboard stability .

In high-temperature environments, solid electrolytes will not evaporate, expand, or burn like liquid electrolytes. Even beyond the tolerance limit, they only melt, preventing the capacitor's metal casing from rupturing, thereby significantly improving safety .

Technological innovations mainly focus on three directions:

• Enhancing material performance: Research on advanced conductive polymers and electrolyte formulations is improving capacitor performance, especially in terms of low ESR, high-frequency response, and reliability .

• Increasing capacity and voltage: Manufacturers are pushing the boundaries of capacitance and voltage ratings to meet the demands of more stringent applications such as electric vehicles and power electronics .

• Simultaneous advancement of miniaturization and high capacity: The trend towards thinner and lighter electronic equipment provides continuous space for technological innovation in high-energy-density, small-volume aluminum electrolytic capacitors .

04 Analysis of market competition landscape

The electrolytic capacitor market shows a clear trend towards concentration among leading players. Globally, the top five enterprises hold over 60% of the market share. Company A, as the industry leader, holds about 25% of the market share thanks to continuous technological innovation and a broad customer base .

In the domestic market, the market share of the top five enterprises is also increasing, expected to grow from 35% in 2025 to 45% in 2030, indicating a significant rise in market concentration .

Japanese companies such as Panasonic, Murata, and the Korean company Samsung Electro-Mechanics hold important positions in the global market, with market shares of 18.5%, 16.2%, and 14.7% respectively, collectively accounting for nearly half of the market share .

However, Chinese local enterprises are gradually increasing R&D investment and improving product quality and performance. For example, Dongguan Chuanghui Electronic Co., Ltd., by using imported high-purity aluminum foil (purity ≥99.99%) and its independently developed "high-stability electrolyte," has achieved a product load life of 12,000 hours at 105°C, which is 20% higher than the industry average .

Regionally, East China continues to lead, holding about 40% of the market share; South China follows closely; North China and Central China account for about 18% and 15% respectively. The strong manufacturing base, complete industrial chain, and strong market demand in these regions are the main reasons .

05 Investment value and risk analysis

From an investment perspective, the electrolytic capacitor industry demonstrates significant value. With the continuous expansion of downstream application fields, especially the rapid explosion of the new energy industry, the demand for aluminum electrolytic capacitors has experienced explosive growth, becoming a new driving force for upstream market demand .

Investment directions can focus on three areas:

• Technological innovation direction: Focus on enterprises with strong R&D capabilities, excellent product performance, and a good customer base. Particular attention should be paid to the application of new materials, new processes, and the research and promotion of intelligent production methods .

• Industry chain integration opportunities: Pay attention to opportunities for integration within the industry chain to enhance comprehensive competitiveness. For example, Company A has established long-term cooperative relationships with several well-known new energy vehicle manufacturers and promotes product iteration and upgrading through technology sharing and joint R&D .

• Import substitution in the high-end market: As domestic enterprises continue to make technological breakthroughs and their cost advantages gradually become apparent, the market share of foreign enterprises is facing challenges. It is expected that by 2026, the market share of local enterprises is expected to increase to over 30% .

The industry also faces certain risk factors for investment. Fluctuations in raw material prices may affect production costs, especially the price fluctuations of core raw materials such as aluminum foil and electrolyte, which could impact the cost control and profit margin of aluminum electrolytic capacitors .

Increasing environmental regulations and compliance costs are also potential risks. Environmental protection and chemical management regulations are becoming increasingly strict, placing higher requirements on material selection, production processes, and compliance management for aluminum electrolytic capacitors .

Intensifying competition from alternative capacitors also poses a challenge. The continuous performance improvement of solid polymer capacitors and multilayer ceramic capacitors is creating substitution pressure for aluminum electrolytic capacitors in some application fields .

The year 2026 will be a critical one for the development of the electrolytic capacitor industry. With new energy vehicle sales continuing to climb (global sales are expected to exceed 20 million units in 2026) and the large-scale construction of new energy infrastructure such as photovoltaics and energy storage, the demand gap for high-end electrolytic capacitors may further widen .

For enterprises, increasing R&D investment, breaking through technical barriers in high-end products, and integrating into mainstream supply chains will be key to seizing market opportunities. In the coming years, Chinese electrolytic capacitor enterprises are expected to make greater breakthroughs in the high-end market, further narrowing the gap with international leading companies .