I. Industry Overview: Highly Prosperous Cycle Driven by New Energy

Thin-film capacitors, as the "cornerstone" of electronic circuits, are widely used in new energy vehicles, photovoltaic and wind power, electronic appliances, industrial control, and other fields due to their excellent characteristics such as non-polarity, high insulation resistance, excellent frequency response, low dielectric loss, and high voltage resistance. With the rapid development of the global new energy industry, the thin-film capacitor market is experiencing strong growth.

According to the latest in-depth industry report released by QY Research and the China Electronic Components Association (CECA), the market size of organic thin-film capacitors in China has stabilized at around RMB 18.5 billion in 2023. It is expected that by 2026, the market size of organic thin-film capacitors in China will exceed the RMB 26 billion mark, reaching approximately RMB 26.5 billion, with the compound annual growth rate (CAGR) during the period of 2022-2026 expected to remain high at over 18%.

II. Technological breakthrough: The core driving force for promoting industry upgrading

Significant breakthroughs have been made in material modification technology

In recent years, continuous breakthroughs in thin film material modification technology have significantly enhanced the intrinsic performance boundaries of polypropylene-based dielectrics. The Ningbo Institute of Materials Technology and Engineering, Chinese Academy of Sciences, has achieved a β-crystalline phase content in polypropylene films exceeding 45% by introducing β-crystalline nucleating agents and precisely controlling biaxial stretching process parameters. Compared to the traditional α-crystalline dominant structure, its breakdown field strength has increased by approximately 18%, reaching over 780 kV/mm. The "SiO2@Al2O3 core-shell nanoparticles/polypropylene" composite system, jointly developed by the School of Materials Science and Engineering at Tsinghua University and Faraday Electronics, significantly enhances voltage withstand stability while maintaining low dielectric loss.

Ultra-thin capacitive film achieves localization and mass production

Zhonglun New Materials' high-performance capacitor film officially entered mass production in 2026, breaking the 30-year monopoly held by Japanese and American companies. This product has a dielectric loss 20% lower than similar products from Japan and the United States. The first production line was put into operation in November 2025, and the second production line will also be launched in the second half of 2026, with an annual production capacity of approximately 2,400 tons per line. Furthermore, the domestically produced ultra-thin capacitor film has achieved an ultra-thin limit of 2 microns. With the support of biaxial stretching technology, both breakdown strength and dielectric properties have been improved, achieving consistent performance while significantly reducing energy consumption, thus overcoming the challenge of being both thin and strong.

Manufacturing processes are continuously optimized

In terms of manufacturing processes, uniformity control in metallized evaporation, "Edge Spray" technology, as well as structural designs for low inductance (Low ESL) and low loss (Low ESR) have become core elements. Faraday Electronics' capacitors utilizing Zn-Al (8% Zn) composite electrodes exhibit a self-healing energy threshold that is approximately 37% higher than that of pure aluminum foil under a 5 kV/μs pulse voltage impact, while the equivalent series resistance (ESR) only increases by 0.8 mΩ. Furthermore, laser micro-pore array technology has been incorporated into electrode structure design. By preforming regular micro-pores with a diameter of 10–20 μm on the surface of the metal foil, it not only enhances the adhesion of gold spraying but also optimizes the uniformity of current distribution.

III. Market Growth: New Energy Vehicles and Energy Storage Emerging as Major Drivers

The demand for new energy vehicles is robust

New energy vehicles are the core engine driving the growth in demand for thin-film capacitors. A new energy vehicle requires the use of 500-600 grams of capacitor film, significantly exceeding the tens of grams used in traditional household appliances. As the penetration rate of new energy vehicles continues to increase, the demand for thin-film capacitors is also experiencing explosive growth. It is estimated that by 2026, the sales volume of new energy vehicles in China will exceed 15 million units, with a market penetration rate expected to surpass 45%, directly driving the demand for related capacitors to grow by over 20%.

In the field of new energy vehicles, thin-film capacitors are primarily utilized in high-voltage systems such as battery packs, electric drives, and electronic controls, as well as various connectors. These capacitors are required to withstand voltages ranging from 800-1000V or even higher, and must meet high protection standards such as IP67/IP68. With the accelerated deployment of the 800V high-voltage platform, the value of thin-film capacitors per vehicle is expected to increase from the current range of 800-1200 yuan to 1500-2000 yuan, and even higher for high-end models.

The energy storage market is experiencing rapid development

The energy storage market represents another significant growth area for thin-film capacitors. With the rapid expansion of new energy storage installations globally, the demand for thin-film capacitors is set to continue rising. By 2026, the global new energy storage installations are projected to reach 392.76 GWh, marking a year-on-year surge of 27.3%. When long-duration energy storage is included in the statistics, the total installed capacity is expected to surpass the 518 GWh mark.

In the field of energy storage, thin-film capacitors are primarily utilized for DC support, filtering, and buffering. Their high voltage resistance and reliability ensure high energy conversion efficiency. With the booming market for energy storage power converters (PCS), the demand for thin-film capacitors will form a new growth pole.

IV. Domestic substitution: Accelerate promotion to break foreign monopoly

Breakthrough in localization of high-end membrane materials

For a long time, the high-end capacitive film market has been monopolized by giants such as Toray and Tosoh from Japan, and 3M from the United States, with a global market share exceeding 85%. In recent years, domestic enterprises have made significant progress in the field of high-end film materials. The mass production of high-performance capacitive film by Zhonglun New Materials has broken the 30-year technological blockade imposed by Japan and the United States. Its dielectric loss is 20% better than that of international competitors, and its cost is reduced by more than 25% compared to imported products. In addition, Zhejiang Nanyang Technology has achieved mass production of biaxially oriented polypropylene (BOPP) film with a thickness control accuracy of ±0.1μm, breaking the long-term monopoly of Toray and Brückner from Germany.

The market share of local enterprises is gradually increasing

In the field of thin-film capacitor manufacturing, local enterprises such as Faratron, Jianghai Stock, and Tongfeng Electronics have gradually increased their market share through technological innovation and cost advantages. Faratron, as the global leader in thin-film capacitors, has a market share of approximately 19.8%. Its annual production capacity for DC-Link capacitors used in new energy vehicles will reach 600 million units by the end of 2025, with market penetration exceeding 75% in the Yangtze River Delta and Pearl River Delta regions. Tongfeng Electronics holds a market share of over 35% in the segment of thin-film capacitors for high-voltage direct current transmission, with its products capable of withstanding voltages up to ±800kV, filling multiple domestic gaps.

Policy support drives domestic substitution

The country has included high-end film materials in the scope of key new material support, and places such as Xiamen have also provided strong support for new energy core material projects. The Ministry of Industry and Information Technology's "Guidance Catalogue for the First Batch of Application Demonstration of Key New Materials (2025 Edition)" has included automotive-grade capacitive films in the scope of support, further promoting the process of domestic substitution.