Electronic Materials and Chemicals Market Size, Share & Trends Analysis Report By Product (Solid, Liquid, Gaseous), By Application, By End-Use, By Region, And Segment Forecasts, 2016 - 2024

Industry Insights

Global electronic materials and chemicals market size was estimated at USD 47.71 billion in 2015, and is expected to grow at a CAGR of 6.1% over the forecast period. Increasing product demand 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 industry, 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 U.S. semiconductor industry holds a significant share in the global market. The semiconductor domestic firms accounted over 50% total global semiconductors sales in 2014. 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 a 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 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.

Increasing demand for silicon from other end user industries including solar photovoltaic is expected to impact raw material availability over the forecast period. In addition, growing trade disputes between China, U.S., and European Union is predicted to result into price volatility of silica over the projected period.

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

Product Insights

Solid was the largest product segment, accounting over 50% of market revenue in 2015. Increasing product demand for manufacturing various consumer goods such computers, laptops and smartphones is expected to drive demand for solid electronic materials over the forecast period.

Liquid electronic chemicals and materials are expected to witness significant growth rate of 4.0% over the forecast period. Growing demand for liquid electronic materials for cleaning and polishing the internal parts of the electronic devices is expected to be a key driver for the industry growth.

Global gaseous electronic materials and chemicals demand was estimated at USD 4,207.7 million in 2015 owing to its rising penetration in semiconductor and PCB manufacturing. Increasing demand for gaseous materials for manufacturing LEDs, solar photovoltaic and flat panel displays is expected to drive the market growth over the forecast period.

Application Insights

Silicon wafer was the largest application segment for electronics and chemicals followed by PCB laminates. Increasing demand for PCB laminates in manufacturing of various electronic products including amplifier and LEDs is anticipated to have a positive impact on the industry growth over the projected period.

Photoresist is expected to be the fastest growing application segment for the industry and is likely to grow at CAGR of 7.1%, from 2016 to 2024, owing to the growing demand for photoresist in Microsystems and microelectronics. Photoresist involves use of various chemicals which are used for many imaging and non-imaging applications.

PCB laminates accounted for 16.1% of total revenue in 2015 and are expected to witness significant growth over the forecast period. Increasing demand for PCB laminates in manufacturing of various products including amplifier and LEDs is anticipated to have a positive impact on the industry growth over the projected period.

End-Use Insights

Semiconductors & integrated circuits were the largest application segment, accounting for 67.5% of market revenue in 2015. The semiconductors & integrated circuits are likely to witness significant growth over the next eight years owing to its rising applications in telecom industry, consumer electronics industry, defense industry and automotive & transportation industry.

Printed circuit boards (PCBs) is expected to witness substantial growth rate 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 over the projected period.

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

Regional Insights

Asia Pacific dominated the industry in 2015 and is anticipated to witness growth of 6.8% over the forecast period. Rapid industrialization and presence of numerous electronic device manufacturers in the Asian countries including China, Taiwan, Japan and South Korea is expected to have a positive impact on the industry growth.

North America stood at USD 5.97 billion, 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 manufacturing of digital and analog semiconductor technologies for the end-users, thereby propelling the product demand over the forecast period.

Europe is expected to witness a substantial growth owing to its 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.

Global Electronic Materials and Chemicals Market Share Insights

The electronic materials and chemicals market is highly competitive owing to the presence of a large number of manufacturers and suppliers. The global electronic materials and chemicals market is growing rapidly and this has led many key players to adopt the mergers & acquisitions strategy to increase their presence and expand market share.

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 in order to reach wider customer base. The cost competitiveness by the manufacturers is expected to be the key criteria influencing buyers decision.

Report Scope