The global hermetic packaging market size was valued at USD 3.65 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 6.4% from 2023 to 2030. The market growth is primarily attributed to the increasing research and development activities in the defense and aerospace sector leading to increased use of hermetic packages. In hermetic packaging, electronic systems are protected from environmental circumstances, including variations in atmospheric pressure and moisture that may damage sensitive electronic components or electrical connections. Various medical and electronic products benefit from the safe and reliable functionality of hermetic packaging by extending the service life of electrical components, thereby driving the market.
The U.S. is a highly significant market for hermetic packaging due to the strong foothold of major players operating in the application industry. Additionally, the defense sector is anticipated to grow significantly owing to the new policies that are implemented to strengthen the military services of the country, which is further expected to contribute to the growth of hermetic packaging during the forecast period.
Early technology adoption in North America, coupled with extensive R&D by key aerospace companies, is expected to augment demand for the ceramic to metal and glass to metal seals. However, the high cost of ceramic packaging as compared to its counterparts may hinder the market growth during the forecast period.
Demand for electronic devices is expected to increase owing to growth in disposable income and an escalation in internet usage among consumers. Governments globally are increasingly supporting digitalization, ultimately encouraging consumers to use various electronic devices, thus consequently augmenting the growth of the market.
Lockdowns, temporary suspensions of international trade and travel, partial closures of manufacturing facilities, and restricted movement were some of the methods used by most countries to prevent the spread of COVID-19. With major application industries of hermetic packaging witnessing significant supply chain disruption during the initial outbreak of the pandemic, the growth of the market was affected in 2020.
Ceramic to metal sealing is the largest product segment for hermetic packaging and accounted for a share of more than 55.5% in 2022. Ceramic to metal seals facilitate long and durable hermetic sealing and offer better insulation from electrical signals as compared to glass to metal seals, expanding their application scope across various applications.
Ceramic to metal sealing is being increasingly utilized in implantable electronic devices such as pacemakers, cochlear implants, defibrillators, and neurostimulators. Additionally, the high corrosion resistance of ceramic to metal sealing is anticipated to drive their utilization in the healthcare industry.
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. Additionally, the requirement in aircraft engines for hermetic seals that display strong resistance against vibrations and elevated temperatures is anticipated to bolster the market growth during the forecast period.
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 demand for transponder glass-based hermetic packages.
The military and defense sector dominated the market with a revenue share of 31.9% in 2022. Growing security threats, escalating defense budgets, and changing political dynamics are the factors expected to drive investments in the defense sector, thereby driving demand for hermetic packaging throughout the forecast period.
Growing government and private investment in space exploration is expected to drive the market for hermetic packaging. Furthermore, low-cost carriers and regional airlines have revolutionized the airline business with their low-fare business models resulting in a significant increase in air passengers.
Hermetic connectors are used for the integrity of delicate electronics in flight data recorders. Additionally, fuel tanks and systems use hermetically sealed connectors so that their sensors can detect and prevent spills. Thus, with an increase in air freight and transportation, along with an increase in air passengers, demand for hermetic packaging is expected to increase during the forecast period.
Increasing disposable income, urbanization, resulting upsurge in the requirement for automobiles, and the rising affordability of automobiles are anticipated to drive the market during the forecast period. The use of reed switches by the automotive industry to ensure proper sensor functionality in rollover devices and airbag equipment is likely to positively impact the market growth.
Asia Pacific accounted for the largest revenue share of above 45.0% in 2022. The proliferation of numerous electronic devices and component manufacturers, coupled with the increased government budget for the aerospace and defense sector, particularly in China, Japan, and India, has led to high demand for the product in the region.
North America was the second-largest market for hermetic packaging in 2022 with aeronautics and space being one of the major applications of hermetic packaging in the region. The industry is expected to offer huge opportunities for market growth on account of the presence of numerous aerospace companies in the U.S.
The healthcare expenditure in Canada reached USD 264.4 billion in 2020 and health spending is further expected to increase in the near future. With the hygiene of packaging and material handling products being paramount important, the demand for hermetic packaging for the healthcare industry in the country is expected to increase.
In addition, Europe is home to some of the world's largest automotive manufacturers, which invest in electric cars and self-driving technology, which require high-performance engines. Thus, increasing research and development activities within the automotive space in the region are expected to drive demand for hermetic packaging in the automotive industry.
The hermetic packaging market is characterized by the presence of local as well as established players. With the view to enhance their competitive edge in the market, some of the key product manufacturers have adopted several aggressive strategies, including product launches, expansion of capacity, and acquisitions. For instance, in January 2022, Schott AG introduced hermetic packaging components for augmented reality. This packaging is developed by utilizing the company’s expertise in glass-to-metal sealing.
Additionally, in 2021, Ametek Inc. increased its sales operations and activities related to customer service. This decision had taken by the company to grow its market share during the coming years, as the demand for hermetic packaging has been continuously rising for the health, aerospace, and defense industry. Some of the prominent players in the global hermetic packaging market include:
NGK Spark Plug Co., Ltd.
Teledyne Microelectronic Technologies
Legacy Technologies, Inc.
Special Hermetic Products, Inc.
Sinclair Manufacturing Company
Market size value in 2023
USD 3.82 billion
Revenue forecast in 2030
USD 5.90 billion
CAGR of 6.4% from 2023 to 2030
Base year for estimation
2018 - 2021
2023 - 2030
Revenue in USD million, CAGR from 2023 to 2030
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Product, application, region
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa
U.S.; Canada; U.K.; Germany; France; Italy; Spain; Netherlands; China; Japan; India; South Korea; Australia; Brazil; Saudi Arabia; UAE
Key companies profiled
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; Mackin Technologies
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This report forecasts revenue growth at the global, regional, and country levels in addition to provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global hermetic packaging market report based on the product, application, and region:
Product Outlook (Revenue, USD Million, 2018 - 2030)
Ceramic To Metal Sealing
Glass To Metal Sealing
Application Outlook (Revenue, USD Million, 2018 - 2030)
Aeronautics & Space
Military & Defense
Regional Outlook (Revenue, USD Million, 2018 - 2030)
Central & South America
Middle East & Africa
b. Some of the key players in the market are 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
b. Some of the factors that are driving the growth of the hermetic packaging market include proliferating global demand for commercial aircraft, the rising development in the U.S. military & defense sector, and rising automotive sales in the Asia Pacific region.
b. The global hermetic packaging market size was estimated at USD 3.65 billion in 2022 and is expected to reach USD 3.83 billion in 2023.
b. The global hermetic packaging market is expected to grow at a compound annual growth rate of 6.4% from 2023 to 2030 to reach USD 5.9 billion by 2030.
b. The military and defense accounted for 31.9% share in 2022. Changing political scenarios and increasing research and development activities in the military and defense industry have increased military spending thereby increasing the demand for hermetic packaging.
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