Electronic Materials And Chemicals Market Size, Share & Trends Analysis Report By Product (Solid, Liquid, Gaseous), By Application (Silicon Wafers, PCB Laminates), By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global electronic materials and chemicals market size was valued at USD 65.58 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 6.2% from 2023 to 2030. Increasing product demand for manufacturing semiconductors, flat panel displays, and photolithographic printing is expected to propel the growth. Decreasing equipment prices and improved standards of living across various parts of the world is expected to be the key factor driving the consumer electronics industry’s growth, which in turn is likely to have a positive impact on this market. Growing demand for semiconductors for manufacturing mobile phones, electronic chips, and integrated circuits is expected to propel the growth.

The U.S. semiconductor industry holds a significant share in the global market. The semiconductor domestic firms accounted for over 50% of total global semiconductors sales in 2022. The manufacturers in the U.S. conduct majority of the semiconductor manufacturing in the country itself, as a result, the region is expected to witness significant growth over the forecast period.

The competition is expected to intensify among the industry participants due to the expansion of product portfolios and technological advancements. High capital costs for new manufacturing setup and R&D are anticipated to restrict the entry of new players. However, key technology innovations related to optimizing the performance characteristics of the product are likely to give new entrants a competitive advantage.

Increasing demand for silicon from other end-user industries including solar photovoltaic is expected to impact raw material availability over the forecast period. However, growing trade disputes between China, the U.S., and European Union is predicted to result in price volatility of silica over the projected period. In addition, other factors that are influencing the prices of silica are production cut that cause the shortage. For instance, in October 2021, the shortage in silica metal, which was caused by production cut in China, resulted in 300% price surge in less than 2 months.

The market does not exhibit any threat of substitution. However, it is expected to face high internal substitution, due to the absence of application-specific raw materials. Furthermore, it is expected to witness substitution of silicon with high-performance materials including graphene and molybdenite.

Electronic materials & chemicals include various electronic materials such as laminates and wafers, and various high purity chemicals such as wet chemicals, photoresists, gases, acids and solvents. They can be solid, liquid, or gaseous depending on application’s requirements. The rising demand for advanced electronic devices offering various functionalities is a key factor driving the market demand for these electronic materials & chemicals and these materials possess efficient heat dissipation properties and have high resistance.

Application specific nature of electronic products and their global availability has been a major driving force for the growth of electronic materials & chemicals market. With growing electronic market, electronic materials & chemicals market is also expected to grow in near future. Electronic materials & chemicals market is driven by its wide range of applications, which has increased R&D efforts in this sector to find out various new products. Increased R&D and technological advancements are expected to boost the growth of the electronic materials & chemicals market in near future.

The market is expected to witness significant growth over the projected period owing to its rising demand in the electronics industry. The electronic chemicals have a wide application scope in manufacturing electronic components, silicon wafers, and integrated circuits. These chemicals are primarily used to clean and polish the internal parts of the electronic gadgets. Growing demand for electronic solvents to offer uniform thickness and shape to the electronic chips and wafers is likely to propel the product demand.

The electronic materials & chemicals are an essential part of semiconductor manufacturing, as a result, as the need for semiconductor chips increases, demand for high purity chemicals and materials also increases. The market for electronic chemicals is directly influenced by the global demand for electronic products. The global consumer electronics market is anticipated to witness significant growth, especially in the emerging economies such as China, Japan, Taiwan, and India. Increasing disposable income coupled with rising population in the region is expected to increase demand for electronic products, which in turn is likely to drive the industry growth over the forecast period.

The electronics materials and chemicals is a technology driven industry and are primarily influenced by the adoption of new product designs and specifications in the product field. Electronic materials are an essential part of the electronic hardware and are used in the development and design of electronic equipment. Growing demand for modern handheld gadgets such as iPod, cell phone, laptops, and portables measuring and testing equipment has resulted in miniaturization of electronic gadgets.

Advancements in the assembly technologies and miniaturization in these electronic products are achieved through innovation in new materials and associated process techniques. Increasing technological advancements in the electronic products owing to rising consumer demand for high-tech products is expected to spur the product demand.

Growing demand for electronic materials & chemicals for manufacturing consumer and industrial electronic products has been a major factor driving the growth. However, health and environmental hazards associated with the manufacturing and application of these products are expected to be key factors affecting the market negatively. Electronic equipment contains a wide range of toxic halogenated compounds, heavy metals, and radioactive substances.

Initiatives taken by international organizations such as the U.S.EPA, the German Federal Ministry for the Environment, the National Institute of Environmental Health Sciences, and the World Health Organization (WHO) to address the global electronic waste trade and management concerns are likely to regulate various chemicals over the next eight years.

Product Insights

Solid materials and chemicals dominated the product segment with a revenue share of more than 54% in 2022.Increasing product demand for manufacturing various consumer goods such as computers, laptops, and smartphones is expected to drive demand for solid electronic materials over the forecast period.

The liquid segment is expected to witness a significant CAGR of 6.3% over the forecast period. Growing demand for liquid electronic materials for cleaning and polishing the internal parts of electronic devices is expected to be a key driver for industry growth.

The gaseous electronic materials and chemicals demand was estimated at USD 6.07 billion in 2022 owing to their rising penetration in semiconductor and PCB manufacturing. Increasing demand for gaseous materials for manufacturing LEDs, solar photovoltaic, and flat panel displays are expected to drive growth over the forecast period.

Application Insights

Silicon wafers application dominated the market with a revenue share of over 43% in 2022.Increasing demand for PCB laminates in the manufacturing of various electronic products including amplifiers and LEDs is anticipated to positively impact the industry growth over the projected period.

Photoresist is expected to be the fastest-growing application segment and is likely to grow at a CAGR of 7.2%, from 2023 to 2030, owing to the growing demand for photoresists in microsystems and microelectronics. Photoresist involves the use of various chemicals which are used for many imaging and non-imaging applications.

PCB laminates accounted for 15.76% of total revenue in 2022 and are expected to witness significant growth over the forecast period. Increasing demand for PCB laminates in the manufacturing of various products including amplifiers and LEDs is anticipated to have a positive impact on the industry growth over the projected period.

End-use Insights

Semiconductors and integrated circuits dominated the end-use segment with a revenue share of over 68% in 2022.The semiconductors & integrated circuits are likely to witness significant growth over the next eight years owing to their rising applications in the telecom industry, consumer electronics industry, defense industry, and the automotive & transportation industry.

The Printed Circuit Boards (PCBs) segment is expected to witness a substantial CAGR over the forecast period. Increasing demand for printed circuit boards as vital components of integrated circuit chip technology that is used in consumer appliances, including smartphones, computers, and laptops is expected to boost the growth.

Increasing demand for semiconductors & integrated circuits for manufacturing computers and other consumer appliances is expected to be a key factor for the industry growth. Changing consumer lifestyles coupled with increasing consumer disposable income is likely to boost demand for consumer appliances, thereby driving the market’s growth.

Regional Insights

Asia Pacific dominated the market with a revenue share of more than 68% in 2022. The region is anticipated to continue its dominance over the forecast period. Rapid industrialization and the presence of numerous electronic device manufacturers in Asian countries including China, Taiwan, Japan, and South Korea are expected to positively impact the industry’s growth.

Middle East & Africa is expected to be the third fastest growing region owing to the increasing adoption of new technologies coupled with the technology-savvy population in the countries such as UAE, Qatar, and Saudi Arabia. The region is expected to grow exceptionally in solar applications, which is expected to drive the demand for silicon wafers.

As a result, the demand for electronic chemicals and materials required for manufacturing silicon wafers and semiconductors is expected to rise. Growing foreign investments in the manufacturing field coupled with rising consumer goods demand in the Middle East is expected to open new avenues for electronic materials & chemicals over the forecast period.

North America stood at USD 7.48 billion in 2022, owing to the large number of electronic device manufacturers in the region including Micron, Intel, Fairchild, Texas Instruments, and Avago. These players are engaged in the manufacturing of digital and analog semiconductor technologies for the end-users, thereby propelling product demand over the forecast period.

North America is a key player in specialty gases and is expected to grow in near future owing to the increasing demand for plasma display panels and photovoltaic products. However, the region is likely to face strong competition from Asian countries including China, Taiwan, and Japan, which are growing at higher CAGRs owing to the rapid developments in the electronic industry.

Europe is expected to witness substantial growth during the forecast period, owing to rising application across end-use industries such as electrical & electronics and automotive. The burgeoning production of hand-held gadgets is anticipated to bring about a surge in the manufacturing of electronic components, thereby propelling industry growth.

The constantly increasing applications of electronic and chemical materials are anticipated to take the concerned market to newer heights in Europe. The major applications include sand carving, microelectronics, and fabrication of printed circuit boards, solar voltaic cells, and semiconductors.

The increasing population coupled with rapidly growing markets in Europe, especially U.K., Germany, and France, is expected to bring about an upturn in the usage of a variety of products including electronic gadgets, and solar water heaters. The growing production of this merchandise is expected to bring about an upsurge in the electronic and chemical materials industry during the next eight years.

Key Companies & Market Share Insights

The industry is highly competitive, owing to the presence of a large number of manufacturers and suppliers. It is growing rapidly and this has led many key players to adopt the mergers & acquisitions strategy to increase their presence and expand market share. For example, LG Chem Ltd., in August 2021, expanded its business portfolio by acquiring Chemical Electronic Materials (CEM), a business sector of LG Electronics Business (Business Solutions) for USD 460 million.

The industry exhibits high integration across manufacturing stages to distribution channels of the value chain. The key industry participants have developed their own supply and distribution facilities to reach a wider customer base. The cost competitiveness of the manufacturers is expected to be the key criterion influencing buyers’ decisions. Some prominent players in the global electronic materials and chemicals market include:

• Air Products & Chemicals Inc.

• Bayer AG

• Albemarle Corporation

• Ashland Inc.

• BASF Electronic Chemicals

• Air Liquide Holdings Inc.

• AZ Electronic Materials Plc

• Honeywell International Inc.

• Cabot Microelectronics Corporation

• Linde Group

• Dow Chemical Company

• KMG Chemicals Inc.

• Hitachi Chemical Company

• Sumitomo Chemical

• Monsanto Electronic Materials Co.

• Brewer Science

• Drex-Chem Technologies

• EMD Performance Materials Corp.

• EKC Technology

• Fujifilm Electronic Materials

• HD Microsystems

• High Purity Products

• JSR Micro Inc.

• Kanto Chemical Co. Inc.

• Moses Lake Industries

• Nabelin Co. Ltd.

• Rohm & Haas CMP Slurries

• Sumika Electronic Materials

• Tokyo Ohka Kogyo Co. Ltd.

• Sankeikagaku Co. Ltd.

Electronic Materials And Chemicals Market Report Scope

Global Electronic Materials And Chemicals Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global electronic materials and chemicals market report based on product, application, end-use, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Solid

  • Liquid

  • Gaseous

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Silicon wafers

  • PCB Laminates

  • Specialty gases

  • Wet chemicals and solvents

  • Photoresists

  • Other Applications

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Semiconductors & Integrated Circuits

  • Printed Circuit Boards

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa