Hermetic Packaging Market Size, Share & Trends Analysis Report By Product (Ceramic To Metal Sealing, Glass To Metal Sealing, Transponder Glass), By Application, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global hermetic packaging market size was valued at USD 3.47 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.4% from 2022 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 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 the key aerospace companies, is expected to augment the demand for ceramic to metal and glass to metal seals. However, 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 an increase in disposable income and an increase 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.

Application Insights

The military and defense sector dominated the market with a revenue share of over 30.0% in 2021. Growing security threats, escalating defense budgets, and changing political dynamics are expected to drive investments in the defense sector, thereby driving the 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, the demand for hermetic packaging is expected to increase during the forecast period.

Increasing disposable income, urbanization, the resulting increase in the requirement for automobiles, and the increasing affordability of automobiles are anticipated to drive the market over 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.

Product Insights

Ceramic to metal sealing is the largest product segment for hermetic packaging and accounted for a share of over 50.0% in 2021. 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 over 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 the demand for transponder glass-based hermetic packages.

Regional Insights

Asia Pacific accounted for the largest revenue share of over 40.0% in 2021. 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 2021 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 the 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 the health spending is further expected to increase in the near future. With 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 the demand for hermetic packaging in the automotive industry.

Key Companies & Market Share Insights

The 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 2020, Schott AG introduced its revolutionary HEATAN technology and launched a range of hermetic products, which expanded the company’s product portfolio.

Additionally, in 2020, SCHOTT Primoceler's glass laser bonding technology was used in NanoRetina's NR600 Artificial Retina Device. The development of NanoRetina's retinal implant could provide a solution to degenerative vision loss. The ultra-miniature, all-glass enclosure of the device was created using SCHOTT Primoceler's hermetic glass wafer micro bonding technology. Some prominent players in the global hermetic packaging market include:

• 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

Hermetic Packaging Market Report Scope

Global Hermetic Packaging Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global hermetic packaging market report on the basis of product, application, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Ceramic To Metal Sealing

  • Glass To Metal Sealing

  • Transponder Glass

  • Reed Glass

  • Passivation Glass

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Aeronautics & Space

  • Military & Defense

  • Automotive

  • Healthcare

  • Telecom

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia & New Zealand

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa