Electronic Adhesives Market Size, Share & Trends Report

Electronic Adhesives Market Size, Share & Trends Analysis Report By Product (Thermal Conductive, Electrically Conductive), By Application(Surface Mount Devices, Conformal Coatings), And Segment Forecasts, 2015 - 2022

  • Published Date: Jul, 2016
  • Base Year for Estimate: 2014
  • Report ID: 978-1-68038-492-5
  • Format: Electronic (PDF)
  • Historical Data: 2012 - 2013
  • Number of Pages: 150

Industry Insights

The global electronic adhesives market size was valued at USD 3.3 billion in 2014. Soldering systems are substituted by electronic adhesives owing to enhanced conductive and thermal properties. Rising importance of compact devices such as CDs, flash drives, and communication drives is anticipated to drive the demand for specialty coating materials.

Miniaturization of electronics is expected to drive the industry over the foreseeable future. The trend of replacing PCBs with multi-chip modules is a major factor driving product demand. PCBs are laminated plastic boards that utilize these adhesives in bonding conformal coatings, surface-mount components, wire tacking, and encapsulating components.

U.S. electronic adhesives market

Innovative semiconductor technologies used in industrial and consumer applications are anticipated to have a favorable impact on the growth and increase product application scope. Major applications of solid state devices include information processing devices that comprise lighting and displays as well as smart cards based on LEDs and OLEDs.

Growing demand for ADAS, audio systems, emergency call systems, alcohol ignition interlocks, and accident recorder systems in the automotive industry is anticipated to drive the demand for the product. Rising application of other flexible electronics, particularly in the healthcare and government sectors, is anticipated to boost the electronic adhesives market growth over the coming years.

High installation costs of laminating and packaging machinery as well as product assembly are expected to hinder the industry growth. Rising R&D investments in microelectronic devices are expected to create new avenues for industry growth. Development of microelectronic systems such as chemical detectors, explosive detectors, flexible sensors, and imaging devices can be used for detecting security threats.

Application Insights

Surface mount devices were the largest application segment and they generated a revenue of USD 1.3 billion in 2014. The segment is anticipated to be the fastest growing application segment over the forecast period. Rising electronics manufacturing capabilities in Europe and Asia Pacific is expected to drive this segment over the forecast period.

Conformal coatings are anticipated to witness stagnant growth over the forecast period. Rising need for protecting circuit boards from corrosion and abrasion is a major factor contributing demand in the segment. These coatings also provide significant protection from external stress, which is also estimated to enhance product penetration.

Potting and encapsulation is anticipated to witness rapid growth over the forecast period owing to significant requirement in applications including relays, automotive power trains, and fly-back transformers. Technological advancements, coupled with increasing demand for consumer electronics including mobile phones and video games, have boosted the segment growth.

Adhesives are used to surround electronic components to protect them from harsh environmental conditions. Encapsulants are gaining popularity in LED for brake lights and fiber optics. Performance of high voltage components relies on the connections and response of the relays and chips. Recent developments in adhesive and vacuum impregnation techniques are expected to enhance its utilization over the forecast period.

Product Insights

Demand for electrically conductive adhesives was 448.5 kilotons in 2014. They are considered to be a replacement for traditional tin-lead solders. Cost effectiveness and better efficiency are the primary factors expected to drive the product demand over the forecast period.

Thermal conductive adhesives containing silicone, epoxy or acrylics generated a revenue of USD 1.0 billion in 2014. The product is anticipated to witness average growth over the next few years on account of rising demand from numerous applications including power semiconductors and chip scale packaging. These products are expected to witness surging growth owing to their lightweight, heat dissipation, and extended thermal cycling capability.

Global electronic adhesives market

Increased demand for high performance electronics requires adhesives with good thermal conductivity and insulating properties. Electronic potting and encapsulation application has increased the requirement for protection of wire bonded chips using thermal conductive adhesive. Other products that require these adhesives include connectors, mold compounds, and wiring circuits. UV curing adhesives are anticipated to be the fastest growing product segment with a CAGR of above 12.0% over the forecast period. The segment growth is attributed to rising demand for medical devices.

Regional Insights

Asia Pacific was the largest regional electronic adhesives market in 2014 and it generated a revenue of USD 1.7 billion. The growth is attributed to large scale manufacturing of surface mount devices and conformal coatings. This trend is anticipated to continue over the forecast period owing to growing electronics sector in economies such as India, China, Taiwan, and South Korea, wherein India and China dominate the electronic adhesive production.

Europe accounted for over 25.0% share in the market in 2014. The markets in MEA and North America are estimated to witness stagnant demand owing to declining downstream demand. Central and South America is anticipated to grow significantly on account of favorable government policies to increase electronics production in countries such as Brazil and Mexico.

Growing demand for medical equipment in compliance with industrial regulations has promoted the manufacturing and usage of electronics adhesives in Europe. Automotive industry requiring light weight bonding materials to protect the electronic components in harsh environment is expected to drive innovations in deploying of adhesives.

Electrically conductive adhesives were the largest product segment in North America on account of their excellent antifreeze properties. They are commonly used on temperature sensitive substrates, circuit boards, and RFIDs. Growing consumer electronics industry in North America is anticipated to fuel product demand over the forecast period.

Electronic Adhesives Market Share Insights

Henkel AG & Co, Dow Chemicals, and Hitachi Chemicals dominated the global market in 2014 and accounted for over 50.0% share of the overall volume. Other companies operating in the industry include HB Fuller, Kyocera Chemical Corp, 3M Company, Mitsui Chemicals LG Chemical Limited, and Indium Corporation.

Major companies are making high investments in product development and enhancing distribution efficiency. Companies are also involved in M&A and strategic collaborations with biotechnology companies to venture into sustainable product innovation.

Report Scope

Attribute

Details

Base year for estimation

2014

Actual estimates/Historical data

2012 - 2013

Forecast period

2015 - 2022

Market representation                                

Volume in Kilotons, Revenue in USD Million, and CAGR from 2015 to 2022

Regional scope

North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa

Country scope

U.S., Germany, Italy, France, China, India, and Japan

Report coverage      

Revenue forecast, company share, competitive landscape, growth factors and trends

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