Electronics Adhesives Market 2017–2027
Electronics adhesives are a type of glue that is used to assemble the electronic components as it offers high bond strength. Electronic adhesives provide fast cures and resistance to water and many other chemicals. Moreover, it has a low coefficient of thermal expansion, improve electrical and thermal conductivity. They can be used across Portable device materials solutions, wearable’s sealing and assembly, PCB assembly, circuit board protection, fingerprint sensor, image sensor, flat panel display, and automotive. Low temperature, fast cure liquids, reactive hot melts, light cure materials, 2K liquids, Polyurethane, Silicone, and Film are some of the type of electronic adhesives.
The global electronic adhesives market is projected to surpass US$ 14.0 billion by the end of 2027, in terms of revenue, growing at CAGR of 12.1% during the forecast period (2019 to 2027).
Growing IT infrastructure and connected devices especially in the Asia Pacific region is accelerating the market growth of electronics adhesives over the forecast period. According to the Tech Jury, and the global IoT market is forecast to be worth US$ 1.7 trillion in 2019 and there are expected to be more than 64 billion IoT devices worldwide by 2025. Therefore, growing IT infrastructure around the globe is projected to propel the market growth of Electronics adhesives over the forecast timeframe.
Growing usage of electronic components in the automotive industry to enhance the drivability and other related advantages such as vehicle safety is accelerating market growth. According to Coherent Market Insights analysis, the new concept of the X-by-wire system is drawing the attention of automobile makers. In the X-by-wire system, hydraulic or mechanical power systems are replaced by an electronics system, which utilizes sensors. The advent of such new electronic components in the automotive industry is projected to stimulate market growth.
Geographically, Asia-Pacific dominated the global electronic adhesives market in 2018, reporting 62% market share in terms of revenue, followed by Europe and North America, respectively.
Figure 1. Global Electronic Adhesives Market, Revenue Share (%), By Region, 2018
The high cost associated with the market penetration and testing procedures of electronic adhesive is estimated to impact the market growth to some extent in the near future. Electronics adhesives are majorly tested for their required properties such as strength, performance, and durability and these tests are performed through acoustic microscopy, gas chromatography, etc. which are expensive, thus hampering the market growth.
Strict government rules and regulations regarding VOC emission and promote sustainability is expected to restrict the market growth of electrical adhesive. According to the Coherent Market Insights analysis, China is a major producer of electronics adhesives, VOC regulations in the country are not as stringent as that of western countries. However, as a part of “Beautiful China”, the Chinese government is taking various initiatives to implement strict regulations against VOC emissions.
Growing focus of key end-user industries to develop compact miniature components for miniaturization of the final product is expected to offer potential growth opportunities to the market of electrical adhesives. Miniaturization of electrical devices such as mobiles and laptops has raised the usage of adhesives in encapsulation and conformal coating types of applications are further projected to augment the market growth of electronic adhesive over the forecast period.
The growing focus of adhesives manufacturers to develop a sustainable and eco-friendly product such as halogen-free, solvent-free, lead-free, and have low VOC content is expected to stimulate market growth over the forecast period. Moreover, shifting the focus of the manufacturer is trying to limit the usage of polyurethane are petroleum-based due to strict government rules and regulations is further anticipated to accelerate the market growth of electronic adhesive.
Figure 2. Global Electronic Adhesives Market – Opportunity Analysis
Many manufacturers are following the trend of introducing novel electrical solutions in order to meet the rising demand around the globe is propelling market growth. For instance, in August 2016, Techsil announced an agreement to supply Canadian based M.G. Chemicals’ popular, high-performance range of adhesives, sealants, coatings, and cleaners to the UK’s electronics manufacturing sector. This adhesive is high quality and high-performance ideal solution for the electronics industry. Therefore, innovation in the electrical adhesive is augmenting the market growth over the forecast period.
The rising trend of adopting smart strategies such as merger and acquisition among major players in the electrical adhesive market in order to gain a competitive edge is propelling market growth over the forecast period. For instance, in March 2018, Chemence, Inc., a producer of specialized adhesives, sealants, and resins, acquired electronics adhesive business and technology of Georgia-based manufacturer Supreme Recourses, Inc.
Figure 3. Global Electronic Adhesives Market, Revenue Share (%), By Application, in 2018
On the basis of application, in 2018, surface mounting accounted the largest market share of 30% in terms of revenue, followed by conformal coating and encapsulation, respectively.
Figure 4. Global Electronic Adhesives Market – Value Chain Analysis
Key players active in the global electronic adhesives market are Henkel AG & Co. KGaA, H.B. Fuller Company, 3M Company, Evonik Industries AG, Dymax Corporation, and Dow Corning
Few Recent Developments
- In July 2019, Henkel is to invest US$ 45 million in its Salisbury facility in Rowan County. The German chemical and consumer goods company will install updated equipment, which will include a new production line for UV Acrylic Adhesives used in tapes and labels within the packaging and other industries. The 825 Cedar Springs Road facility produces adhesive products that are suitable for various industries such as packaging, electronics, and consumer goods