Electronic materials & chemicals market size was USD 47.71 Billion in 2015. Increasing demand for electronic materials & chemicals for manufacturing semiconductors, flat panel displays, and photolithographic printing is expected to propel market growth. Decreasing equipment prices and improved standards of living across various parts of the world is expected to be the key factors driving consumer electronics market, which in turn is likely to have a positive impact on the industry growth. Growing demand for semiconductors for manufacturing mobile phones, electronic chips, and integrated circuits is expected to propel market growth.
The market is fragmented owing to the presence of numerous manufacturers. The market competition is expected to intensify among the players due to the expansion of product portfolios and technological advancements. The high capital cost for new manufacturing set up and R&D are anticipated to restrict entry of new players. However, key technology innovations related to optimizing performance characteristics of the product is likely to give new entrants a competitive advantage.
U.S. electronic materials & chemicals revenue, by application, 2013 - 2024 (USD Million)
The rising demand for electrical & electronic appliances is expected to increase production of silicon wafers, PCB laminates, specialty gasses, and photoresists, which in turn is expected to drive market growth. Various raw materials including silicon, copper, nickel, and specialty gasses are used to manufacture the electronic materials & chemicals, and these raw materials are catered by many players. The electronic materials & chemicals market is highly competitive owing to the presence of a large number of manufacturers and suppliers.
In terms of revenue, the silicon wafer was the largest application segment for electronics and chemicals followed by PCB laminates. Increasing demand for PCB laminates in the manufacturing of various electronic products including amplifier and LEDs is anticipated to have a positive impact on the market growth over the projected period. The photoresist is expected to be the fastest growing application segment for the industry and is likely to grow at CAGR of over 7%, from 2016 to 2024.
Product Insights
Solid was the largest product segment, accounting for 50% of global electronic materials & chemicals market revenue in 2015. The electronics industry uses a numerous solid material such as semiconductor, metals, carbides, nitrides, silicides and metal oxides. Growing demand for metal oxides for manufacturing thin layer films in the electronics is expected to have a positive impact on the growth.
Rising demand for liquid electronic materials for cleaning and polishing the internal parts of the electronic devices is expected to be a key driver for growth. Technological advancements in the electronic equipment designing and manufacturing, which consumes high purity electronic specialty gasses is expected to drive the demand for gaseous electronic materials & chemicals.
Semiconductor and integrated circuits were the largest end-use segment for the industry accounting for 65% of the total market. Whereas, the demand for electronic materials & chemicals for manufacturing printed circuit boards was accounted over USD 18 million in 2015.
Printed circuit boards (PCB) are vital components of integrated chip technology used in consumer electronic appliances. Rising application scope of PCBs in automotive, defense and aerospace industry are likely to open new avenues for electronic materials & chemicals market over the next eight years.
Asia Pacific dominated the industry in 2015 and is anticipated to witness significant growth over the forecast period. Rapid industrialization and presence of numerous device manufacturers in the Asian countries including China, Taiwan, Japan and South Korea are expected to have a positive impact on the market growth.
North America accounts for a large consumer base including Micron, Intel, Fairchild, Texas Instruments and Avago, which are engaged in manufacturing of digital and analog semiconductor technologies for the end-users. Technology innovation related to the use of advanced electronic materials in manufacturing integrated circuits is likely to propel demand. As a result, demand for electronic materials and chemicals is expected to grow at a significant rate in the region.
The market is characterized by integration across manufacturing stages to distribution channels of the value chain. Key players involved in the manufacturing of electronic materials & chemicals have their distribution and supply facilities established globally, which makes the product easily available for the buyers. The cost competitiveness of the manufacturers is expected to be the key criteria influencing buyers decision.
Key players in the industry include Air Products & Chemicals Inc., Ashland Inc., Air Liquide Holdings Inc., BASF Electronic Chemicals, Honeywell International Inc., Cabot Microelectronics Corporation, Linde Group, KMG Chemicals Inc., Fujifilm Electronic Materials, Kanto Chemical Co., Inc. and Tokyo Ohka Kogyo Co., Ltd.
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