ELECTRICALLY CONDUCTIVE ADHESIVES MARKET ANALYSIS

The global electrically conductive adhesives market size was valued at USD 2275.55 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 5.61% from 2023 to 2030. ECAs are ideal for a range of applications, including high-reliability aerospace and defense, automotive, medical and telecom products. Growing demand from aforementioned sectors is fuelling growth of the electrically conductive adhesive market.  Apart from this, they are also used in different applications, such as bonding heat-sensitive components, filling in gaps, and making EMI/RFI shielding. They're also a great choice for making conductive connections in applications where soldering isn't possible, such as when bonding to glass or soft materials which is further anticipated to foster the market growth.

Global Electrically Conductive Adhesives Market: Regional Insights

Regionally, Asia Pacific is expected to dominate the global electrically conductive adhesives market over the forecast period owing to the strong presence of electronic industry and increasing focus on renewable source of energy. For instance, in October 2020, China brought a 2.2 GW solar farm and was one of the world’s largest farms in terms of generation capacity, which is located in the northwest province of Qinghai. National Energy Administration (NEA) has set the renewables target at 11% for 2021, up from 9.7% in 2020. It also has plans to increase the proportion of solar and wind in the national power mix to 16.5% by 2025.

North America is also expected to witness fastest growth in the market owing to the strong presence of solar power industry in the region. According to the Solar Energy Industries Association (SEIA), the solar industry in the country grew by 43% and installed a total of 19.2 gigawatts (GW) of capacity in 2020 and reached a total of 97.7 GW capacity. The United States solar industry is estimated to install more than 320 GW of solar power capacity in the next ten years.

Figure 1. Global Electrically Conductive Adhesives Market Share (%), By Region

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Global Electrically Conductive Adhesives Market Drivers:

Growing demand from power electronic application to accelerate market growth

The conductive components of an electrically conductive adhesive are made up of silver or another type of metal that has low resistivity, such as copper, gold, nickel, aluminum and graphite. These fillers are mixed into a resin base, and the electrically conductive compound is called an electrically conductive adhesive (ECA). This make them ideal for power electronic application.

Increasing application in healthcare sector to propel market growth

In the medical industry, electrically conductive adhesives are used to bond a variety of materials that need to be held together and have an ability to pass current between components. These adhesives are a great alternative to solder and can reduce costs, improve performance, and speed up production.

Global Electrically Conductive Adhesives Market Opportunities:

Growing application of electrically conductive adhesives from electric vehicle application is expected to provide significant growth opportunities. Increasing sale of electric vehicle is expected to positively shape the market growth. According to the IEA, the global electric vehicles sales are expected to increase rapidly in the coming years. In 2017, there were a total of around 3.1 million electric vehicles that traveled the roads globally. In 2020, there were a total of around 10 million electric cars were travelling on the roads globally. The electric cars registration has seen a spike by more than 40% year-on-year in 2020, despite the pandemic.

The conductive glue is generally thermally curable, with UV light curable and anisotropic options also available. It can be dispensed in single-component and two-component formulations, with the single-component adhesives requiring mild processing conditions. This makes them a great alternative to lead-based solder for many applications, such as electronic assembly. These properties of electrically conductive adhesives are expected to hold potential market opportunities.

Global Electrically Conductive Adhesives Market Trends:

Silver-filled conductive adhesives are gaining traction in market

Silver-filled conductive adhesives are very popular for hybrid assembly, and can be used to attach a range of devices. These include transistors, diodes, capacitors, and other parts that require ohmic contact to their substrates. The adhesive is generally not used for IC die that don't require ohmic contacts.

Development of new product due to ongoing innovation

Key players are introducing novel ECAs due to continuous research in the field and this is expected to favor the market growth in the near future. For instance, in November 2022, Henkel has developed an electrically conductive adhesive (ECA) that cures at room temperature, improving yield rates and protecting sensitive structures within mobile devices, such as compact camera modules (CCMs).

Global Electrically Conductive Adhesives Market Restraints:

Unfavorable conditions arising due to the covid-19 impact

Due to the outbreak of Covid-19 pandemic all economic activities, excluding essential services, came to a halt across the world during the first half of 2020. Electrically conductive adhesives industry have come to halt especially in China, India, Taiwan, Japan, and the U.S. This has negatively impacted the electrically conductive adhesives market.

Stringent environmental regulations

Stringent environmental regulations for volatile organic compounds (VOC) emissions are impacting the electrically conductive adhesives market negatively. However, the emergence of public charging infrastructures in China, Norway and France will create an opportunity for the market in the near future.

Figure 2. Global Electrically Conductive Adhesives Market Share (%), By Segment Type

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Global Electrically Conductive Adhesives Market Segmentation:

The global electrically conductive adhesives market report is segmented into chemistry type, type, application, and geography

Based on chemistry type, the market is segmented into epoxy, silicone, polyurethane, acrylic, and other chemistry types. Out of which, epoxy is expected to dominate the global market over the forecast period. Epoxy type are often used to replace solder in processes that can experience significant mechanical and thermal cracking. These conductive resins are also a cost-effective alternative to polyurethane or silicone, which can reduce prices and speed up production times.

Polyurethane segment is also expected to witness significant growth in the near future. These chemistries provide high thermal and mechanical properties for excellent strength and stiffness. They also offer low flammability, making them an ideal choice for high-end automotive and aerospace applications.

Based on type, the market is segmented into isotropic and anisotropic. Out of which, Isotropic is expected to dominate the global market over the forecast period. Isotropic conductive epoxy adhesives (ICAs) are one of the most popular types of conductive adhesive for use on a wide variety of substrates. They can be cured at room or heat temperatures and are available as single- or two-component formulations.

Anisotropic segment is also expected to witness significant growth in the near future. Anisotropic conductive adhesives (ACAs) exhibit special conductive materials, such as Silver (Ag), Gold (Au), graphite, and others, in the micrometer (µm) range, which allow electricity conduction in all directions or bi-directions.

Based on application, the market is segmented into Solar Cells, Automotive Electronics, LED Lightning, Printing Circuit Board, LCD Displays, and Other Applications. Out of which, Solar Cells segment is expected to dominate the global market over the forecast period. ECAs are widely used as a cell interconnection materials in solar cells. Epoxy, silicone, acrylic and hybrid adhesive solutions are widely used in the production of solar cells

Automotive Electronics segment is also expected to witness significant growth in the near future. ECAs is widely used in engine control units, anti-lock braking systems, and transmission control units.

Global Electrically Conductive Adhesives Market: Key Developments

In December 2019, The Creative Materials Inc. introduced a new product: GPC 251A/B2612, which a two-component, 100-percent solids, silver-filled, electrically conductive epoxy adhesive. This product is very useful in wearable applications, especially those requiring wash durability of more than 100 wash cycles, such as mounting of connectors, components, and sensors to wearable devices. The product cure at room temperature up to 120°C and have high conductivity, high tensile strength, flexibility, and low stress.

In February 2020, The Creative Materials Inc. introduced a new product, 128-17A/B, which is a two-component silver-filled electrically conductive adhesive that cures at room temperature. Its applications include electrical and mechanical attachments on electrical components and devices. The major feature of the product is its very fast set-up time allowing it for rapid processing and repair in various applications. 128-17A/B has tensile strength >400 psi and thermal stability up 180°C

In April 2019, The Dow announced its successful separation from DowDuPont to form Dow, becoming a more streamlined, focused, and leading materials science company. The company launched on a global scale and leading positions in three main segments: consumer care, packaging, and infrastructure.

In May 2019, Dow  introduced  a  new  product,  DOWSIL™  EC-6601,  which  is  an  electrically conductive adhesive material engineered for reliability, high performance, and electromagnetic  compatibility  (EMC)  in  demanding  electrical  and  electronics applications of communications, transportation, and consumer markets. This new silicone adhesive has durable mechanical and conductive properties over time and strong electromagnetic interference (EMI) shielding capabilities across a wide range of frequencies.

In May 2018, The Henkel Ag & Co. KGAA Adhesive Electronics division introduced a new series of electrically conductive adhesives, which facilitate lower-cost, process-friendly, and more reliable assembly of solar devices. The LOCTITE ABLESTIK ICP 8000 series - electrically conductive adhesives are destined to elevate the module performance and give way to various assembly processes such as cell interconnect ribbon bonding and shingled solar modules, etc.

Global Electrically Conductive Adhesives Market: Key Companies Insights

The global electrically conductive adhesives market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global electrically conductive adhesives market are 3M, Aremco, Creative Materials Inc., Dow, H.B. Fuller Company, Henkel AG & Co. KGaA, HITEK Electronic Materials Ltd, Master Bond Inc., MG Chemicals, Panacol-Elosol GmbH, Parker Hannifin Corp., Permabond LLC, and Bostik

*Definition: Electrically conductive adhesives are a useful tool for making a variety of conductive connections. They're commonly used in scientific and industrial applications where soldering is not an option. They can also be useful for quick repairs, as they can bridge gaps and fill in cracks.