Electronics Adhesives Market
Electronics Adhesives Market Size, Share & Industry Analysis, By Product Type (Electrically Conductive, Thermally Conductive, UV Curing, Others), By Application (Conformal Coating, Encapsulation, Surface Mounting, Wire Tacking), By End-Use Industry (Computers, Communications, Consumer Electronics, Industrial, Medical Devices, Automotive), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa) - Share, Size, Outlook, and Opportunity Analysis, 2024-2031.
Market Overview
The Electronics Adhesives Market is projected to grow at a CAGR of 8.5% from 2024 to 2031. The market value is expected to rise from USD XX billion in 2024 to USD YY billion by 2031.
Asia-Pacific currently dominates the market, accounting for the largest share of global revenue. Key metrics include the growth of the electronics industry, advancements in adhesive technologies, and increasing demand for miniaturization in electronic devices.
The rapid expansion of the consumer electronics industry, increased acceptance of electric vehicles, and the expanding trend of Internet of Things (IoT) devices are all driving the market's robust growth. The demand for high-performance, dependable adhesives that can resist harsh environments while maintaining good electrical and thermal conductivity is a key driver of market expansion.
Electronics Adhesives Market Dynamics:
Market Trend: Growing demand for flexible and wearable electronics
The electronics sector is seeing a big transition towards flexible and wearable gadgets, which is pushing up demand for specialised adhesives. These adhesives must retain their bonding qualities while allowing for flexibility and endurance in wearable electronics like smartwatches, fitness trackers, and medical monitoring devices.
Recent advances in conductive and elastic adhesives have permitted the creation of more sophisticated flexible electronics. For example, a paper published in the journal Advanced Materials described the discovery of a highly stretchy and conductive glue that retains electrical performance even when stretched to 700% of its original length, opening up new possibilities for flexible electronic applications.
Market Driver: Increasing adoption of electric vehicles and autonomous driving technologies
The automobile industry's move to electric vehicles (EVs) and self-driving technology is considerably increasing demand for electronics adhesives. These adhesives are essential for attaching and preserving numerous electrical components in electric vehicles, such as battery packs, power electronics and sensors.
The International Energy Agency estimates that global electric car sales would reach 6.6 million in 2021, more than tripling from 2020. The rapid rise of the EV market has created a significant demand for high-performance adhesives that can endure high temperatures, vibrations, and have good thermal management properties.
Furthermore, the rising complexity of automotive electronics, with the average automobile housing over 100 electronic control units, is driving the demand for dependable and long-lasting adhesive solutions.
Market Restraint: Environmental and regulatory challenges
The electronics adhesives market is facing challenges due to environmental concerns and severe regulatory regulations. Many old adhesives include volatile organic compounds (VOCs) and other harmful materials that can harm the environment and human health.
The European Union's Restriction of Hazardous Substances (RoHS) Directive and the United States Environmental Protection Agency (EPA) have put stringent limitations on the use of specific chemicals in electronic equipment. This has compelled manufacturers to engage in the research and development of environmentally friendly adhesive solutions.
Approximately 30% of electronics firms claim difficulty complying with changing environmental regulations while retaining product performance. While the move to green adhesives is vital, it often comes with a greater cost and significant performance trade-offs, which can have an influence on market growth.
Segment Overview:
Electrically Conductive Adhesives segment dominates the Electronics Adhesives market:
The Electrically Conductive Adhesives category currently has the highest market share in the Electronics Adhesives business. This dominance is primarily due to rising demand for miniaturisation in electronic devices and increased usage of innovative packaging technologies in the semiconductor sector.
Electrically conductive adhesives are essential for a variety of electronic applications, including die attach, surface mount technology, and EMI/RFI shielding. These adhesives have various advantages over traditional soldering procedures, including low processing temperatures, fine-pitch capability, and environmental friendliness.
The market for electrically conductive adhesives has expanded significantly in recent years, particularly in the consumer electronics and automobile industries. According to IDC estimates, the worldwide smartphone market, which is a key consumer of electrically conductive adhesives, will ship around 1.35 billion units in 2021. This enormous volume of production generates a significant need for improved bonding solutions.
Furthermore, the move to 5G technology opens up new potential for electrically conductive adhesives. The higher frequencies utilised in 5G applications necessitate better EMI shielding and thermal control, two areas where specialised conductive adhesives thrive. According to our projections, the 5G infrastructure market is predicted to increase at a CAGR of more than 30% between 2024 and 2031, providing a significant growth opportunity for the electrically conductive adhesives category.
Innovation in this market has been swift, with producers inventing novel formulations to address the changing needs of the electronics industry. For example, a major glue manufacturer recently produced a silver-based electrically conductive adhesive that cures at ambient temperature, saving significant energy and allowing the use of temperature-sensitive components.
Regional Outlook:
Asia-Pacific leads the Electronics Adhesives market:
The Asia-Pacific region currently dominates the global Electronics Adhesives market, accounting for the vast majority of revenues. This dominating position is due to a number of factors, including the region's strong electronics manufacturing base, rapid technical breakthroughs, and increased R&D expenditure.
China, Japan, South Korea, and Taiwan are significant contributors to the market's expansion in this area. These countries are home to some of the world's major electronics manufacturers, as well as established supply lines for electronic components and materials.
Asia-Pacific's supremacy in the electronics adhesives market is strengthened by the region's leadership in semiconductor manufacturing. According to the Semiconductor Industry Association, Asia-Pacific accounted for over 60% of worldwide semiconductor sales in 2021. This high concentration of semiconductor production creates a large need for sophisticated adhesive solutions utilised in chip packaging and assembly procedures.
Recent advancements in the Asia-Pacific market have included the spread of 5G infrastructure and the growth of the electric car industry. China, for example, has been quickly deploying 5G networks, with over 1.4 million base stations expected by the end of 2021. This rapid rise has boosted the demand for specialised adhesives used in 5G equipment and devices.
The electric car market in Asia-Pacific has also grown significantly, particularly in China. According to the China Association of Automobile Manufacturers, new energy vehicle sales in China will reach 3.52 million units in 2021, representing a 157.5% increase over the previous year. This expansion in the EV sector presents considerable prospects for electronics adhesive makers, particularly in battery assembly and power electronics applications.
Furthermore, government attempts to promote the electronics industry in countries like as India and Vietnam are expected to boost the region's market growth. For example, India's "Make in India" program and output Linked Incentive (PLI) scheme for large-scale electronics manufacturing are drawing investments and increasing local output, which is expected to drive up demand for electronics adhesives in the next years.
Competitive Intelligence
The Electronics Adhesives market is characterised by fierce rivalry, with a few major firms dominating the scene. To preserve their market positions and extend their product portfolios, key corporations prioritise product innovation, strategic partnerships, and mergers and acquisitions.
Henkel AG & Co. KGaA, 3M Company, H.B. Fuller Company, Dow Inc., and Hitachi Chemical Co., Ltd. are among the industry's leading players. These companies have established themselves as market leaders by combining excellent R&D capabilities, vast distribution networks, and a diverse product portfolio.
Henkel AG & Co. KGaA, for example, has maintained its market leadership through ongoing innovation and strategic acquisitions. In 2021, Henkel's Adhesive Technologies business unit reported revenues of €9,641 million, with electronics applications accounting for a sizable percentage. The company has concentrated on producing long-lasting adhesive solutions and extending its footprint in new markets.
3M Company has used its vast technology portfolio to provide breakthrough solutions for the electronics industry. The company's Electronics & Energy sector, which includes electronics adhesives, had sales of $3.3 billion in 2021. 3M is investing in innovative materials for 5G infrastructure and electric car applications.
H.B. Fuller Company has improved its position in the electronics adhesives market by making smart acquisitions and forming collaborations. In 2021, the company's Engineering Adhesives division, which covers electronics applications, generated $1,334 million in net revenue. H.B. Fuller has focused on developing adhesives for next-generation display technologies and improved semiconductor packaging.
Mergers and acquisitions have significantly influenced the competitive landscape. Dow Inc., for example, has been able to focus more intensely on its electronic materials business, including adhesives for semiconductor and circuit board applications, thanks to its merger with DuPont and subsequent spinoff.
Looking ahead, the competitive landscape is projected to be driven by rising demand for environmentally friendly adhesives, as well as the growing importance of adhesives in developing technologies such flexible electronics and advanced driver assistance systems (ADAS). Companies that can effectively address these developments while remaining cost competitive stand to earn a considerable market edge.
Analyst Opinion:
The Electronics Adhesives market is expected to increase significantly in the future years, driven by technical advances in the electronics sector and the increasing complexity of electronic gadgets. The market's trajectory is directly related to trends in consumer electronics, automotive technology, and industrial automation.
One of the most intriguing advancements in the industry is the expanding role of adhesives in enabling novel form factors and functionality in electronic devices. As we go towards more flexible, wearable, and integrated electronics, the function of improved adhesives becomes more important. Manufacturers' capacity to design adhesives that can withstand extreme bending, stretching, and climatic conditions will be a crucial market difference.
Another area with high promise is the development of adhesives for sophisticated packaging technologies in the semiconductor industry. As chip designs get more complicated and three-dimensional packaging becomes more common, there is an increased demand for adhesives that can provide both electrical conductivity and thermal management. Companies that can develop in this area are likely to gain a large portion of the high-value semiconductor market.
The shift to electric and self-driving automobiles creates both opportunities and challenges for the electronics adhesives business. While increased electrical content in vehicles drives demand, adhesives must fulfil higher performance and reliability demands. Adhesives that can endure the severe automotive environment while also having outstanding electrical and thermal properties will be in great demand.
However, the market confronts some hurdles, particularly in terms of environmental sustainability and regulatory compliance. The quest for greener electronics, as well as worries about electronic device disposal at the end of life, are pushing the demand for more environmentally friendly adhesive solutions. To meet these growing criteria, manufacturers will need to engage in the development of bio-based or easily recyclable adhesives.
Overall, the Electronics Adhesives market is at a pivotal point, with substantial prospects for innovation and expansion. Success in this sector will be determined by a company's ability to foresee and respond to the fast changing needs of the electronics industry, balance performance with environmental concerns, and efficiently negotiate the complicated global supply chain landscape.
Major Players:
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Henkel AG & Co. KGaA
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3M Company
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H.B. Fuller Company
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Dow Inc.
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Hitachi Chemical Co., Ltd.
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Sika AG
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Arkema Group
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Huntsman Corporation
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DuPont de Nemours, Inc.
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Lord Corporation
Key Developments:
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In June 2023, Henkel AG & Co. KGaA introduced a new line of electrically conductive adhesives for flexible electronics applications, with a focus on the burgeoning wearable technology market.
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In April 2023, 3M Company announced a strategic agreement with a top electric vehicle manufacturer to create customised adhesive solutions for battery pack assembly and heat management systems.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium)
5. COMPANY PROFILES
5.1. Henkel AG & Co. KGaA
5.2. 3M Company
5.3. H.B. Fuller Company
5.4. Dow Inc.
5.5. Hitachi Chemical Co., Ltd.
5.6. Sika AG
5.7. Arkema Group
5.8. Huntsman Corporation
5.9. DuPont de Nemours, Inc.
5.10. Lord Corporation (*LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Growing demand for flexible and wearable electronics
6.1.2. Advancements in adhesives for semiconductor packaging
6.1.3. Increasing focus on environmentally friendly adhesive solutions
6.2. Market Drivers
6.2.1. Increasing adoption of electric vehicles and autonomous driving technologies
6.2.2. Rapid expansion of the consumer electronics sector
6.2.3. Growing trend of Internet of Things (IoT) devices
6.3. Market Restraints
6.3.1. Environmental and regulatory challenges
6.3.2. Performance trade-offs in eco-friendly adhesives
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY PRODUCT TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Electrically Conductive
7.2. Thermally Conductive
7.3. UV Curing
7.4. Others
8. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. Conformal Coating
8.2. Encapsulation
8.3. Surface Mounting
8.4. Wire Tacking
9. BY END-USE INDUSTRY (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. Computers
9.2. Communications
9.3. Consumer Electronics
9.4. Industrial
9.5. Medical Devices
9.6. Automotive
10. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
10.1. North America
10.1.1. United States
10.1.2. Canada
10.1.3. Mexico
10.2. South America
10.2.1. Brazil
10.2.2. Argentina
10.2.3. Rest of South America
10.3. Europe
10.3.1. Germany
10.3.2. United Kingdom
10.3.3. France
10.3.4. Italy
10.3.5. Spain
10.3.6. Russia
10.3.7. Rest of Europe
10.4. Asia-Pacific
10.4.1. China
10.4.2. Japan
10.4.3. India
10.4.4. Australia
10.4.5. South Korea
10.4.6. Rest of Asia-Pacific
10.5. Middle-East
10.5.1. UAE
10.5.2. Saudi Arabia
10.5.3. Turkey
10.5.4. Rest of Middle East
10.6. Africa
10.6.1. South Africa
10.6.2. Egypt
10.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
By Product Type:
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Electrically Conductive
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Thermally Conductive
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UV Curing
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Others
By Application:
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Conformal Coating
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Encapsulation
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Surface Mounting
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Wire Tacking
By End-Use Industry:
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Computers
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Communications
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Consumer Electronics
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Industrial
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Medical Devices
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Automotive
By Region:
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North America
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Europe
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Asia-Pacific
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Latin America
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Middle East & Africa
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