Saturday, January 18, 2014: According to a new study by Electronics and Computer Software Export Promotion Council (ESC), the global demand capacitors is set to peak at $20.2 billion by 2018. At the same time, India’s export of capacitors was valued at a miniscule $96.3 million in 2012-13, quite like a drop in the ocean scanario. The ESC study in a way gives a wake up call to manufacturers and exporters back home to answer to the market’s current situation, rather than being left behind. India has to gear up its share in global exports considering the surge in global demand for capacitors.
Germany is the largest export destination for the Indian capacitors, accounting for a share of 27.88 per cent in India’s total capacitor export valued at $96.2 million for 2012-13. Export of capacitors to Germany during 2012-13 is therefore estimated at approximately $31 million. This was followed by the US with a share of 11.73 per cent valued at approximately $10 million. China, Turkey and Hong Kong are the next 3 destinations with a share of around 5 per cent each, with UAE falling under the top 15 countries of export for Indian capacitors.
The ESC position paper pointed out that the world demand is now for compact, portable, and complex capacitors with higher capacitance value with a low cost. Also, there is a preference for devices with better connectivity and mobility, further adding that the world demand for electronic devices would surge in the coming years.
However, global demand for capacitors is growing at a healthy rate of compound annual growth rate (CAGR) 2.5 per cent and is expected to continue even after 2018. This will throw up opportunities for the Indian companies, which have the potential to considerably ‘up’ the production in tune with the global demand.
