Challenging
Market Environment in 2015
The market for aluminum electrolytic capacitors has been
challenging during the past year, with declining sales to the computer and
consumer AV markets, offset by increased demand from the automotive, wireless
base station, robotic, machine tool and renewable energy segments. This
disparity in demand is causing a shift in global consumption of aluminum
electrolytic capacitors based on configuration, with increases in demand for
axial leaded designs for automotive and snap-mount and screw terminal designs
for industrial and renewable energy end-use markets. However we note stagnation
or weakness in the larger markets for radial leaded and vertical chip
capacitors consumed in consumer audio and video imaging equipment and computer
and computer peripherals.
Also, a large impact on the market over the
past year has been the currency exchange rates which favor Japanese
manufactured aluminum electrolytic capacitors because of the weakened yen.
Japanese manufactured aluminum electrolytic capacitors were extremely cost
effective in overseas sales where the weakened yen made them extremely
competitive against locally manufactured products. Therefore we saw sharp
increases in revenues at such companies as Nippon Chemi-Con and Nichicon in
yen, but this was at the expense of the rest of the world. Also, regardless of
the weakened yen, the Japanese consumption tax caused a decline in the home
market of Japan. So globally, and when measured in U.S. dollars, the global
market for aluminum capacitors actually has declined slightly, with the overall
trend and outlook remaining muted due to the uncertainty of the yen valuation
going forward (however it should be noted that in October of 2015 that the yen
has exhibited early signs of strengthening against the US dollar).
Aluminum Electrolytic Capacitor markets are
at a low point because the end-use markets into which the products are being
sold are undergoing significant change and the weak yen is diminishing the
global market of value.