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The global electronic adhesives market size is estimated to grow by USD 1,931.79 million between 2022 and 2027 exhibiting a CAGR of 6.1%. Adhesives are substances that can be applied to either one or both surfaces of two different items and help them bind together. They distribute stress more efficiently across the joints of the surface to which they are applied. Adhesives play a vital role in electronics. Electronic adhesives are widely used in electronic packaging applications (die-attach and hybrid and display assemblies). They provide a mechanical bond and electrical interconnection between a chip carrier and a circuit board contact pad.
The growth of the market depends on several factors technological advancements in adhesives, rising demand for electronic adhesives in APAC and increased use of electronic adhesives in the automobile industry.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Technological advancements in adhesives is the key factor driving the growth of the global electronic adhesives market. Innovative adhesive systems play an important role in the bonding and protection of electronic systems and have properties such as less cure time, resistance to chemicals and moisture, and better adhesion to a variety of substrates boosting the demand for high-performance adhesives in electronics manufacturing. Several research studies are being conducted on silicone adhesives to make them more electrically and thermally effective. Studies have been conducted to raise the thermal conductivity of epoxy-based thermally conductive adhesives (TCAs) by using conductive fillers. Advanced materials of adhesives include polyimide which is a high heat-resistant super engineering plastic. That is used in various forms such as adhesives, films, powders, chips, foams, moulded products, and others. It offers excellent electrical, flexural, and radiation-resistant properties, they are widely used in semiconductors, secondary batteries, and automotive and aerospace fields. Thus, such innovations in adhesives for use in the electronics industry will drive the global electronic adhesives market growth during the forecast period.
New product launches by players is the key trend driving the growth of the global electronic adhesives market. Product launches by regional and international players contribute to the growth of the global electronic adhesives market. Successful launches of new products are expected to accelerate the growth of the vendors by increasing their revenue flow and expanding their consumer base. New product launches increase the market shares of players and offer them a competitive edge over their rivals. For instance, in November 2020, DELO announced the launch of pressure-sensitive electronic adhesives. This product has applications in display frames, and smartphone speaker surfaces for its low fill factor. In July 2020, Dow launched a flexible silicone adhesive "DOWSIL VE-8001". This product is used for flexible OLED display applications in foldable and rollable consumer devices. On April 12, 2022, at PCIM Europe, Indium Corporation announced the launch of a new adhesive solution called InTACK for semiconductor applications. This product offers flux-free formic acid reflow applications. Thus, new product launches will boost the growth of the global electronic adhesives market during the forecast period.
Fluctuating raw material prices is the major challenge that hinders the growth of the market. The price and availability of raw materials are the key factors for adhesive manufacturers to determine the product's cost structure. Raw materials used by the adhesive industry are petroleum-based derivatives and are vulnerable to fluctuations in commodity prices. Due to the rising global demand and political unrest in the Middle East oil prices have been highly volatile in recent times. These also affect the electronic adhesives industry through high logistics costs, driven by increasing fuel prices. Globally, a major challenge faced by vendors is controlling the prices of raw materials and making affordable equipment required for electronic adhesives. The manufacturing process of electronic adhesives is complex and cost-intensive, which makes it difficult for manufacturers to control the prices of electronic adhesives. Thus, price volatility can impede the growth of the global electronic adhesives market during the forecast period.
This report extensively covers market segmentation by Application (surface mounting, conformal coating, wire tacking, and potting and encapsulation), Product (electrically conductive adhesives, thermally conductive adhesives, UV curing adhesives, and others), and Geography (APAC, Europe, North America, South America, and Middle East and Africa).
The surface mounting segment is estimated to witness significant growth during the forecast period. The use of adhesives in surface-mount devices has witnessed an upward trend in the last few years. Surface-mount adhesives are mainly used in surface-mount assemblies in Printed circuit boards (PCBs) to fix components to the board during soldering or double-sided reflow. In the soldering process, this help to prevent the displacement of components during high-speed processes.
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The surface mounting segment was the largest segment and was valued at USD 2,064.61 million in 2017. Various market players operating in the worldwide electronic adhesives market are offering advanced adhesives for the right fixation of components in high-speed production processes. Such adhesives are suitable for applications such as printing, dispensing, pin transfer, and jetting. For instance, Master Bond Inc. offers dielectric and conductive surface-mount adhesive systems for use in major electrical applications. These surface-mount adhesives offered by the company adhere to a wide variety of substances, including FR-4, unetched copper, silver, and ceramics. Therefore, the surface mounting segment is expected to grow significantly, which will drive the global electronic adhesives market during the forecast period.
Electrically conductive adhesives (ECAs) are thermosetting binding mediums used for interconnecting electronic components on circuit boards. Common types include acrylics, silicones, urethane acrylates, and epoxies. Silver, graphene, and graphene/carbon composites are preferred fillers due to their high conductivity. The demand for ECAs is driven by electronic packaging in the semiconductor industry. Strict regulations on lead usage have reduced soldering in electronics, boosting the need for ECAs. Henkel's LOCTITE adhesives are popular for PCB interconnections. ECAs provide electromagnetic interference (EMI) protection for wireless devices operating in high-frequency environments. The growing demand for portable electronic equipment drives the ECA market and the global electronic adhesives market overall.
APAC is estimated to contribute 68% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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APAC is the largest and fastest-growing market for electronic adhesives. China and Japan are the world's second and third-largest economies, respectively. Moreover, the fastest-growing consumer market in China and India, which had a collective population exceeding 1.82 billion people in 2021, is an important driver of the electronic adhesives market in APAC. Factors such as the increasing population, high disposable income, and new construction activities such as commercial and residential in the region are significantly driving the growth of the electronic adhesives market. Moreover, the high application of electronic gadgets used in residential and commercial sectors contributes to the growth of the market in the region.
Furthermore, the increasing number of manufacturing plants for consumer electronics will also drive the demand for electronic adhesives. For instance, In June 2021, Pentagon Corp, an assembler for Apple, Microsoft, and Sony, planned to invest USD 101 million in electronics production in Vietnam. The company also invested to build the second plant which costs USD 481 million and the third plant at the cost of USD 500 million, and move its R&D center from China to Vietnam. Such factors will drive the demand for electronic adhesives in the region during the forecast period.
The outbreak of the COVID-19 pandemic affected several industries in the region, including the electronics industry. However, with the resumption of normal industrial and manufacturing activities, the regional market started to grow significantly. The market has regained its momentum from 2021 with the large-scale vaccination drives by governments. The rising manufacturing activities across various countries in the region, including India, Australia, Vietnam, and South Korea, are expected to fuel the growth of the regional electronic adhesives market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Electronic Adhesives Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
3M Co.: The company offers electronic adhesives such as 3M Scotch Weld Epoxy Potting Compound DP270 Black 400 mL Duo Pak, 3M Scotch Weld Epoxy Adhesive DP190 Gray, 3M Scotch Weld Urethane Adhesive DP640.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Arkema Group, Avery Dennison Corp., Beiersdorf AG, Chemence Inc., Dow Chemical Co., Dr. Honle AG, DuPont de Nemours Inc., Dymax Corp., Elkem ASA, EpoxySet Inc, H.B. Fuller Co., Henkel AG and Co. KGaA, Indium Corp., LG Corp., Master Bond Inc., Meridian Adhesives Group, Parker Hannifin Corp., RAG Stiftung, Sika AG, and Sony Group Corp.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The electronic adhesives market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Electronic Adhesives Market Scope |
|
Report Coverage |
Details |
Page number |
187 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.1% |
Market growth 2023-2027 |
USD 1,931.79 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.57 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 68% |
Key countries |
US, China, India, Japan, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
3M Co., Arkema Group, Avery Dennison Corp., Beiersdorf AG, Chemence Inc., Dow Chemical Co., Dr. Honle AG, DuPont de Nemours Inc., Dymax Corp., Elkem ASA, EpoxySet Inc, H.B. Fuller Co., Henkel AG and Co. KGaA, Indium Corp., LG Corp., Master Bond Inc., Meridian Adhesives Group, Parker Hannifin Corp., RAG Stiftung, Sika AG, and Sony Group Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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