Phase-In Capacitors Market Report : Global Revenue Size Around RMB 2.75 Billion by 2024

According to the Phase Inlet Capacitors Market report published by YH Research, this report provides the Phase Inlet Capacitors market scenario, definitions, classifications, applications and industry chain structure, also discusses the development policies and plans as well as the manufacturing processes and cost structures, analyzes the Phase Inlet Capacitors market's development status and future market trends. And also analyze the Phase-In Capacitors market from both production and consumption perspectives, to analyze the top producing regions, the top consuming regions, and the top manufacturers of Phase-In Capacitors market.

First, the market growth momentum: the dual drive of technological upgrading and policy restructuring

According to the latest research data of YH Research, the global phase-in capacitor market reached RMB 2.75 billion in 2024 and is expected to grow to RMB 3.68 billion in 2031, with a compound annual growth rate (CAGR) of 4.2%. Behind this growth rate is the acceleration of the global industrial automation process and the deep integration of the energy efficiency revolution.

Product core value and technology evolution
As a core component in the field of power electronics, the core function of phase-in capacitors (also known as start-up capacitors or power factor correction capacitors) is to correct the hysteresis current triggered by inductive loads and significantly improve the energy efficiency of motor systems. Typical application scenarios include:

Industrial motor start-up: Compensating power factor to 0.9 or above during the start-up phase of single-phase/three-phase induction motors to reduce reactive power losses;
Welding Equipment Optimization: Increase welding transformer output power by 15%-20% through instantaneous current compensation;
Lighting system tuning: in high-pressure sodium lamps, metal halide lamps and other scenarios, to extend equipment life and reduce energy consumption.
The technology iteration shows two major trends:

Material science breakthroughs: Nichicon introduced nanocrystalline film capacitors with a temperature resistance rating of 125°C and a lifespan exceeding 100,000 hours;
Intelligent integration: ABB i-bus intelligent capacitor system, which can monitor grid harmonics in real time and automatically adjust the compensation strategy.
Second, the regional market pattern: tariff game under the reconstruction of the supply chain

North American market: policy shock and localization return
The U.S. 2025 tariff strategy adjustment has a chain reaction on the phase-in capacitor industry chain:

Cost conduction effect: Shihlin Electric, which built its plant in Mexico, circumvents the 25% tariff through the U.S.-Mexico-Canada Agreement (USMCA), and its cost advantage is highlighted;
Upgrade of technical barriers: EBARA CORPORATION for the U.S. wind power market, the development of explosion-proof capacitors in line with NEMA standards, market share increased to 18%.
European market: energy efficiency standards to force industrial upgrading
After the implementation of the EU ERP Energy Efficiency Directive (EU) 2019/1782:

Germany EPCOS (TDK) launched Tier 2-compliant low-loss capacitors, with a penetration rate of 32% in the industrial motor sector;
The French market is characterized by a “double cycle”: the local brand Armat (Jiangsu) occupies the mid-range market, while the high-end medical equipment sector still relies on Japan's Nichicon.
Progressive Capacitors

Asia-Pacific market: new energy demand driven by the explosion of the industry
Driven by China's “dual-carbon” goal, the application of phase-in capacitors is expanding at an accelerated pace:

New energy vehicles: Zhejiang Ge Yue Electric customized 800V high-voltage capacitors for BYD, with charging efficiency increased by 30%;
Photovoltaic inverters: KEMET film capacitors account for over 40% of the supply chain of Huawei and Sunny Power;
Make in India program: Electro Technik Industries (ETI) set up a factory in Gujarat to meet the demand of local home appliance rural policy.
Third, application scene deepening: from traditional industry to the emerging field of the leap

Split by product type:

Low-voltage capacitors (≤1kV): occupying 62% of the market share, mainly focusing on home appliances and lighting, Schneider Electric's modular design improves installation efficiency by 50%;
High-voltage capacitors (＞1kV): demand is surging in new energy power generation and rail transportation fields, and Armat high-voltage capacitors purchased by China CNR have a failure rate of less than 0.03%.
Split by application area:

Three-phase motors: 45% of the overall market, petrochemical, metallurgical industry energy efficiency transformation to release the increment;
Transformer: extra-high voltage project construction to drive the demand for high-voltage capacitors, the State Grid procurement of NISSIN products in the winning rate of 28%;
Lighting system: LED drive power supply field, Cooke Kolb Electric (Shanghai) developed intelligent dimming capacitors, so that the street lamp system energy saving rate of 40%.
IV. Industry Challenges and Breakthrough Strategies

Three major development bottlenecks:

Technology homogenization: 83% of global products still use traditional metallized film technology, and the high-end market is monopolized by Japanese companies;
Price war intensification: Southeast Asia market appeared $0.8/kvar low price competition, the industry average profit margin fell to 12%;
Certification barriers: UL, CE, CQC and other standard differences lead to cross-border supply cycle extended by 4-6 weeks.
Innovation breakout path:

Material revolution: Electro Technik developed nano-composite dielectrics to reduce capacitor losses to 0.1W/kvar;
Service Transformation: Advance Capacitors launched the “trade-in + energy-efficiency hosting” model, increasing customer stickiness by 60%;
Localized production: Zhejiang Ge Yue set up a factory in Vietnam to avoid trade barriers and respond to the RCEP zero-tariff policy.
V. Future development trend: three strategic directions to reshape the industrial ecology

New energy supporting demand explosion
Wind power, photovoltaic installed capacity growth will drive the demand for high-voltage capacitors increased by 8.7% per year, is expected to 2030 market size exceeded 1.2 billion yuan;
Demand for supercapacitors in energy storage systems has emerged, and Tesla Megapack has initiated related technology bidding.
Intelligent and integrated upgrade
IoT capacitor (iCapacitor) realizes remote monitoring and automatic compensation, and the penetration rate is expected to reach 35% in 2027;
ABB launched the PowerWave system, which integrates capacitors with circuit breakers and contactors, reducing installation space by 60%.
Structural opportunities in regional markets
Middle East: Saudi Arabia's “Vision 2030” promotes investment in petrochemical projects, with demand for high-voltage capacitors increasing by 11% annually;
Latin America: Brazil's power grid renovation program will unleash $120 million in capacitor procurement demand;
Africa: the construction of Nigeria's industrial park to drive imports of low-voltage capacitors increased by 23% annually.
Sixth, the enterprise strategy proposal: to grasp the policy dividend and technology wind mouth

Tariff response strategy:
The North American market adopts “Mexico assembly + U.S. labeling” mode to avoid Section 301 tariffs;
European market through localized certification (such as EAC) to enter the Russian and Eastern European markets.
Technology layout focus:
Invest in solid-state capacitor R&D to crack the problem of liquid electrolyte leakage;
Developing -40℃ to 150℃ wide temperature range products to meet the demand of polar wind power and desert photovoltaic.
Emerging market development:
Southeast Asia: Establish ODM cooperation with local home appliance brands (e.g. Haier Thailand);
Middle East: Participate in the smart grid construction project of NEOM New City in Saudi Arabia.
VII. Conclusion: Value Reconstruction in the Energy Efficiency Revolution

The global phase-in capacitor market is at the intersection of technology iteration and policy change. Enterprises need to build a three-dimensional capability system of “technology research and development - intelligent manufacturing - local service”, focusing on three strategic pivots:

Technology adaptation capability in new energy field;
Data value mining of intelligent products;
Localized operation innovation in emerging markets.