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The solder materials market is estimated to grow at a CAGR of 3.77% between 2022 and 2027. The size of the market is forecast to increase by USD 840.63 million. The growth of the market depends on several factors, including increasing electronic components in vehicles, increasing product launches, and growing demand from the consumer electronic sector.
This report extensively covers market segmentation by product (wire, bar, paste, flux, and others), end-user (consumer electronics, automotive, industrial, building, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing number of electronic components in vehicles is notably driving the market growth, although factors such as volatility in raw material prices may impede the market growth. 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.
Key Solder Materials Market Drivers
The increasing number of electronic components in vehicles is notably driving market growth. The demand for automotive PCBs (printed circuit boards) is expected to increase due to the rising use of electronic components in vehicles, such as the introduction of advanced driver-assistance systems (ADAS) and infotainment systems in mass mid-segment vehicles. The increasing deployment of automation systems in vehicles is leading to the higher integration of advanced electronic components, such as actuators, microcontrollers, and sensors, to enable in-vehicle communication.
Moreover, the increasing use of in-vehicle electronics in automobiles will accelerate the demand for advanced PCBs supporting many electronic components integrated into them. Thus, the integration of many electronic components requires soldering of those components to maintain the electrical flow. This, in turn, will augment the demand for solder materials and, in turn, will drive the growth of the market during the forecast period.
Significant Solder Materials Market Trend
The increasing adoption of automated solutions for soldering is an emerging trend in the market. With awareness regarding increasing automation among vendors and vendors seeking to gain a competitive advantage through automation, the use of automation in the soldering process has been increasing significantly. While small-scale automation for soldering was being used by vendors, the advances in robotics technology have led to the use of robots in soldering processes. The adoption of robots in soldering enhances the efficiency of soldering processes, improves the quality of soldering, increases productivity, and minimizes scrap.
Vendors are providing robotic systems ranging from single-robot to multiple-robot configurations. Moreover, vendors are also providing solder materials that can be used in the automated soldering process. For instance, GENMA offers solder wires that can be used in robotic soldering. Thus, the increasing adoption of automated soldering has augmented with the offering of suitable products by the vendors operating in the market, which will drive the growth of the market in focus during the forecast period.
Major Solder Materials Market Challenge
The volatility in raw material prices is a major challenge impeding market growth. Manufacturers of solder materials are exposed to the availability and price fluctuations of commodities used in the manufacturing of solder materials (primarily steel, brass, copper, silver, and aluminum alloys). The availability and prices for energy costs and raw materials including steel and non-ferrous metals and materials are subject to volatility and are influenced by worldwide economic conditions, world supply and demand balance, inventory level, availability of substitute materials, currency exchange rate, anticipated or perceived shortage, and government trade practices.
For instance, in 2022, Russia's invasion of Ukraine led to economic uncertainties and supply chain disruptions in the steel industry, especially in European regions. The suspension of steel plants in Ukraine and logistical constraints due to the unavailability of Ukraine seaports negatively impacted the steel industry. Thus, all these factors have disrupted the European and global steel industry and caused an increase in the prices of steel. This affects the profitability of solder material manufacturers by increasing the cost of the product or reducing the cost of goods sold. Thus, factors like these will negatively impact the market in focus during the forecast period.
Key Solder Materials Market Customer Landscape
The solder materials market 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 Solder Materials Market Customer Landscape
Vendors 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.
Fusion Inc. - The company is primarily engaged in the production of brazing and soldering. The key offerings of the company include solder materials such as solder pastes.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the wire segment will be significant during the forecast period. There has been a considerable increase in the demand for solder wires for repair and maintenance applications in various sectors, especially in the consumer electronics, automotive, and infrastructure segments. The increase in the number of vehicles also leads to a higher requirement for maintenance and repair services, driving the demand for solder wires.
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The wire segment was valued at USD 1,323.20 million in 2017 and continued to grow until 2021. The global automotive industry is on the rise owing to increased digital demands and diverging markets. The growing interest in autonomous cars is leading to the growth of printed circuit boards (PCBs). These cars require many embedded systems to work, and therefore, there is an increase in the demand for electronic components integrated into PCBs. This, in turn, increases the demand for solder materials such as wires for joining metal surfaces or any components in PCBs. Soldering also provides continuity in electrical flow without any interruption. This makes soldering an important part of the electronic circuit, which, in turn, drives the demand for solder materials. Thus, the demand for solder materials such as wires from various end-users, such as automotive and consumer electronics, will drive the growth of the segment and, in turn, the market in focus during the forecast period.
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APAC is estimated to contribute 33% 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.
In 2022, the growth in end-user industries such as automotive, consumer electronics, building, and power in the region resulted in the increased demand for solder materials. Additionally, owing to the growing urban population in APAC, several governments and public-private partnership (PPP) projects targeted toward the development of public infrastructure and utility infrastructure have been initiated in the region. For instance, in May 2022, the Asian Development Bank (ADB) approved a policy-based loan worth USD 400 million to help the government of the Philippines in the development of infrastructure projects during the forecast period. Many infrastructure projects are targeted toward developing roads and bridges, with some significant investments in airports, seaports, flood control measures, railways, mass transit, and establishing new cities. This will drive the demand for solder materials and, in turn, will drive the growth of the regional market during the forecast period.
With industrial activities gaining momentum and several Asian countries witnessing strong economic growth, the market for the automotive industry is growing in APAC. The demand for both passenger and commercial vehicles in APAC is increasing. Owing to the rising demand for automobiles in APAC, several multinational companies are setting up their manufacturing plants in the region. Thus, these factors are expected to increase the demand for solder materials in the automotive industry in APAC during the forecast period.
The outbreak of COVID-19 in 2020 adversely affected the growth of the market in APAC. However, the initiation of the large-scale COVID-19 vaccination drives in early 2021 and the resumption of operations in end-user industries stabilized the growth of the regional market in 2021. Moreover, the rising demand for automobiles and government initiatives to revive the economy are expected to stimulate the growth of the regional market during the forecast period.
The solder materials 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.
Technavio categorizes the global solder materials market as a part of the global diversified chemicals market within the global chemicals market. The global diversified chemicals market covers companies engaged in the manufacturing of a diverse range of chemical products that are not included in the categories of industrial gases, commodity chemicals, specialty chemicals or fertilizers, and agricultural chemicals. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
Solder Materials Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.77% |
Market growth 2023-2027 |
USD 840.63 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.15 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 33% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Belmont Metals Inc., Deoksan Hi Metal, Element Solutions Inc., Fusion Inc., GENMA Europe GmbH, Handy and Harman Manufacturing Singapore Pte. Ltd., Harima Chemicals Group Inc., Indium Corp., INVENTEC PERFORMANCE CHEMICALS SAS, KOKI Co. Ltd., Qualitek International Inc., Senju Metal Industry Co. Ltd., STANNOL GMBH and Co. KG, Tamura Corp., Warton Metals Ltd., Digi Key Corp., Fakhri Metals, Saru Silver Alloy Pvt. Ltd., Superior Flux and Mfg. Co., and Waytek Inc. |
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, and Market condition analysis for the 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. |
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