Hermetic Packaging Market Analysis By Product (Ceramic To Metal, Glass To Metal, Transponder Glass, Reed Glass, Passivation Glass), By Application (Aeronautics, Defense, Automotive, Healthcare, Telecom), And Segment Forecasts, 2018 - 2025

Industry Insights

The global hermetic packaging market size was valued at USD 2.83 billion in 2016. The increase in global aerospace and defense expenditure is anticipated to drive the market. In addition, growing commercial aircraft production is expected to provide a positive scope for utilization of the product over the forecast period.

The increase in demand for electronic products is likely to drive the market over the next eight years. Technological advancements in the field of portable and smart consumer devices including smart watches, smart televisions, and smart phones are expected to propel the utilization of the product over the forecast period. However, ongoing research to find low-cost substitutes for the product is expected to hinder the market growth.

U.S. hermetic packaging market revenue, by product, 2014 - 2025 (USD Million)

Utilization of electronics across numerous industries and applications is expected to drive the demand for hermetic packages over the forecast period. Increasing demand for electronic components in development of efficient devices is likely to provide a positive scope for hermetic packaging.

Hermetic packaging has been traditionally used for the protection of MEMS devices from gas or moisture in various industries including defense, healthcare, aerospace, and automobiles. Countries including Japan, the Netherlands, Germany, the U.S., Switzerland, and Canada have invested considerably in order to study the potential applications of MEMS in military & defense sector, which is likely to positively impact the product demand. However, stringent military standards and hermetic packaging testing methods are anticipated to restrain the growth over the next eight years.

Key players in the market are either involved in manufacturing hermetic packages for custom applications & standard products or manufacturing packages as an integrated process for their own electronic components. However, in-house production and assembly of hermetic packages is considered to be beneficial as compared to outsourcing.

Utilization of plastic packaging, also known as non-hermetic packaging, in automotive and telecommunication industry is expected to hamper the hermetic packaging industry growth. Cost efficiency of polymer encapsulation is further expected to restrain the demand for the product over the forecast period.

Product Insights

Ceramic to metal sealing accounted for a revenue share of over 40.0% in 2016. The ability of the product to withstand varied temperature conditions as compared to other products is expected to drive the market growth.

Ceramic to metal sealing display various advantages such as anti-corrosive property, greater mechanical strength, and thermal resistance as compared to other products which is expected to drive the demand over the forecast period. However, ceramic to metal product after welding might be prone to corrosion.

Glass to metal sealing is expected to witness considerable growth over the forecast period. Glass can easily form a bond with metals without any need for welding and soldering. In addition, high compressive strength of glass is likely to drive the utilization of the product in various industries.

Passivation glass is used for the protection of electrical components including diodes, power rectifiers, and integrated circuits from chemical substances, and humidity. These control the electric properties of the component and provides stable operation which is expected drive the demand for the product over the forecast period.

Application Insights

The demand for hermetic packaging from aeronautics & space application accounted for 25.5% of the overall revenue share in 2016. Increasing commercial aircraft production due to growing passenger traffic and affordable air ticket pricing is expected to drive the demand for the product over forecast period.

The healthcare application is expected to witness significant growth of over 6.0% from 2017 to 2025 on account of significant technological advancements in the field of medical implants. However, requirement of hermetic packages which are biocompatible is likely to restrain the manufacturers from utilizing all the elements that are typically used for production of hermetic packaging.

Global hermetic packaging market revenue, by application, 2016 (%)

Other applications include petrochemicals, food & beverages, and consumer electronics. Increasing global operations by upstream petrochemical companies is anticipated to provide a positive outlook for hermetic packaging market over the next eight years.

Food and beverage industry utilizes hermetic packaging to protect the food from bacteria, molds, yeasts, and dirt. FDA has set standards for the hermetic packaging seals used in rigid metal cans and glass bottles. Any failure of hermetic seals causing spoiling of food can be reported to FDA.

Regional Insights

Asia Pacific accounted for the largest revenue share of over 40.0% in 2016. Presence of numerous electronics manufacturers has led to high demand for the product in the region. China, Japan, Taiwan, South Korea, and India are expected to drive the industry in Asia Pacific.

India has been facilitating foreign direct investment in defense sector which is expected to propel the market growth in the economy. Increasing disposable income, rapid urbanization, and shift in consumer demand towards high quality devices are expected to bolster the market growth.

Presence of key players in North America is expected to drive the demand for hermetic packages across the region. However, they have shown interest towards utilization of non-hermetic packaging which is likely to restrain the market development.

Europe is expected to be the second fastest growing region witnessing a CAGR of over 6.5% from 2017 to 2025. High investment on defense sector in Russia, UK, France, Germany, and Italy is expected to drive the demand over the forecast period.

Competitive Insights

Key manufacturers of hermetic packages are involved in expansion to attain maximum market share. In July 2015, Amkor Technology expanded its assembly and test factory located in China which supported the company to increase its production capacity in the economy and cater to the rising demand for advanced products employing die stacking, wafer-level, and package stacking technologies.

The companies were involved in launching new products to meet changing consumer demand and serve various applications. In March 2017, Schott AG launched puravis, and autoclavable solider LED that helped company to strengthen their business position in medical industry.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the hermetic packaging market on the basis of product, application and region:

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Ceramic to Metal Sealing

  • Glass to Metal Sealing

  • Transponder Glass

  • Reed Glass

  • Passivation Glass

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Aeronautics & Space

  • Military & Defense

  • Automotive

  • Healthcare

  • Telecom

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

  • Europe

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa