Hermetic Packaging Market Size, Share & Trend Analysis Report By Product (Ceramic to Metal, Glass to Metal), By Application (Aeronautics & Space, Military & Defense), And Segment Forecasts, 2019 - 2025

Industry Insights

The hermetic packaging market size was estimated at USD 3.21 million in 2018, growing at a CAGR of 6.6% over the forecast period. The growth of the aerospace & defense industry has been favoring the hermetic packaging industry. Relatively cheaper airways coupled with low fuel costs have been encouraging new fliers across the globe, thereby leading to rising flying frequency.

The aviation industry fuels the demand for hermetic packaging owing to its reliance on new aircraft, thereby strengthening the hermetic packaging industry. Furthermore, increasing research and development in defense and aerospace sector is expected to drive the use of hermetic packages. The U.S. defense sector is anticipated to grow significantly as a result of new policies that are implemented to strengthen the military services of the country.

Ceramic to metal is the largest product segment for hermetic packaging and accounted for a share of 54.6% in 2018. The ceramic to metal seal market has witnessed significant growth in emerging economies such as China, India, and Brazil on account of the rising demand for electronics.

Recent years have witnessed rising demand for hermetic packaging from the electronics sector, most notably in Asia Pacific. In 2018, Asia Pacific accounted for the largest revenue share of over 40.0% in the global electronics industry. The proliferation of numerous electronic devices & component manufacturers has led to a high demand for the product in the region.

China, Japan, Taiwan, South Korea, and India are expected to drive the industry in Asia Pacific. The demand in the region has shifted toward Southeast Asian countries, such as Indonesia and Malaysia, where heavy demand for these products is being witnessed.

Continuing further, the high corrosion resistance of ceramic to metal seals is anticipated to drive their utilization in healthcare. Ceramic to metal seals are being increasingly utilized in implantable electronic devices such as pacemakers, cochlear implants, defibrillators, and neurostimulators. Gold is generally used as a braze material to join the metal pin to the ceramic insulator.

With respect to this, manufacturers of hermetically sealed implantable components are continually investing in R&D to develop small and complex implantable components. However, the high probability of corrosion when ceramic is welded or soldered with metal is anticipated to hinder the market growth.

However, changing consumer lifestyle, including the increasing consumer disposable income, is expected to have a positive impact on the demand over the forecast period. Extensive research and development in the application of hermetic packaging for the protection of electronic components is likely to play a key role in augmenting the demand for hermetic packaging over the forecast period.

Product Insights

Ceramic to metal seals facilitates long & durable hermetic sealing and offer better insulation from electrical signals as compared to glass to metal seals, increasing their application scope across various applications. The requirement in aircraft engines for hermetic seals that display strong resistance against vibrations and elevated temperatures is anticipated to bolster the market growth over the forecast period. Moreover, increasing global commercial aircraft production is expected to provide a positive scope for the market over the coming years.

Transponder glass is expected to witness significant growth across Asia Pacific due to the huge livestock market in the region. The increasing availability of technology, disposable income, and awareness across the region are facilitating the usage of RFID devices by farmers, thereby driving the demand for transponder glass-based hermetic packages.

Reed glass segment accounted for a market share of 4.0% in 2018. Increasing utilization in reed switches across various industries such as automobile, healthcare, and aeronautics & space is expected to augment the demand for reed glass over the coming years. Reed glass is widely used in brake fluid control and seat belt & crash sensors in the automotive industry, electrical & electronic home appliances such as water heaters and electric toothbrushes, and semiconductor test equipment. These are highly preferred in applications where open & close electrical circuits without any mechanical system are required.

Application Insights

Military & defense accounted for the largest share of 31.8% of the global revenues in 2018. Rising defense and military budgets, growing security threats, falling crude oil prices, and stable growth in global gross domestic product (GDP) are expected to propel investment in the defense sector, which would ultimately lead to an increase in demand for hermetic packaging over the forecast period.

Increasing investment by both private companies & government agencies in space exploration is expected to drive the market growth of hermetic packaging. The high R&D and testing involved in this application are expected to provide a definite scope for the product over the forecast period. Top agencies such as NASA have started considering non-hermetic or near-hermetic products, which could hinder market growth over the forecast period. Polymer encapsulation method is regarded as a possible substitute for hermetic packaging in the space sector.

Automotive sector accounted for a share of 11.3% in 2018. Increasing disposable income, urbanization, and the resulting increase in the requirement for automobiles, in addition to the increasing affordability of automobiles, is anticipated to drive the market growth over the forecast period. The use of reed switches by the automotive industry in order to ensure proper sensor functionality in rollover devices and airbag equipment is likely to provide a positive scope for the market.

Regional Insights

Asia Pacific accounted for the highest share of the global hermetic packaging market in 2018. The expanding consumer electronics sector in the region coupled with increased government budget for aerospace & defense sector in China, Japan, India, and East Asian countries is expected to provide positive opportunities for the market across the region.

North America was the second-largest market for hermetic packaging and accounted for 27.9% of the total market share in 2018. Aeronautics & space is one of the major applications of hermetic packaging in the region. The industry is expected to offer huge opportunities for the market growth on account of presence of numerous aerospace companies.

Moreover, early technology adoption in North America coupled with extensive R&D by the key aerospace companies is expected to augment the demand for ceramic to metal and glass to metal products. Owing to the high cost of hermetic packaging, an active search to find its substitute is being conducted, which is expected to hinder the market development over the forecast period.

Hermetic Packaging Market Share Insights

Key players in the industry are focusing on launching new products in the market to offer efficient features and meet the changing consumer trends. The expansion was a common strategy adopted by the companies to increase their production capacity and to grab higher market share. Mergers and acquisitions were carried out by companies to strengthen their technical expertise.

Schott AG, Ametek, Inc.; NGK Spark Plug Co., Ltd., Teledyne Microelectronic Technologies; Kyocera Corporation; Egide S.A.; Legacy Technologies, Inc.; Willow Technologies; SST International; Special Hermetic Products, Inc.; Sinclair Manufacturing Company; and Mackin Technologies are the key players in the market.

Majority of the global manufacturers belong to the North America region. These manufacturers supply hermetic packages to other regions through a wide distribution network. There is intense competition among the market players to fulfill the changing consumer demands. Product differentiation also plays a major role in strengthening a company’s position in the market.

Report Scope

Segments covered in the report

This report forecasts revenue growth at a regional & country level 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 global hermetic packaging market report based on product, application, and region:

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

  • Ceramic to Metal

  • Glass to Metal

  • 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

    • The U.S.

  • Europe

    • France

    • Germany

  • Asia Pacific

    • China

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa