ELECTRONICS ADHESIVES MARKET ANALYSIS

The global electronic adhesives market is projected to surpass US$ 17.7 Billion by the end of 2030, in terms of revenue, growing at a CAGR of 11.3% during the forecast period (2023 to 2030).

Drivers

Growing IT infrastructure and connected devices:

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, the global IoT market is forecast to be worth US$ 1.7 trillion in 2022 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.

The growing usage of electronic components in the automotive industry to enhance 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 electronic system, which utilizes sensors. The advent of such new electronic components in the automotive industry is projected to stimulate market growth. 

Market Restraints

The high cost associated with the market penetration:

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  Volatile Organic Compounds emission and promoting 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, and 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.

Market Opportunities

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 adhesives over the forecast period.

The growing focus of adhesives manufacturers to develop sustainable and eco-friendly products such as halogen-free, solvent-free, lead-free, and 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 that are petroleum-based due to strict government rules and regulations is further anticipated to accelerate the market growth of electronic adhesive. 

Market Trends

Many manufacturers are following the trend of introducing novel electrical solutions in order to meet the rising demand around the globe is propelling the market growth. For instance, in August 2022, Techsil announced an agreement to supply Canada-based M.G. Chemicals’ popular, high-performance range of adhesives, sealants, coatings, and cleaners to the U.K.’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 mergers and acquisitions among major players in the electrical adhesive market to gain a competitive edge is propelling market growth over the forecast period. For instance, in March 2022, Chemence, Inc., a producer of specialized adhesives, sealants, and resins, acquired the electronics adhesive business and technology of Georgia-based manufacturer Supreme Recourses, Inc.

Global Electronic Adhesives Market- Impact of Coronavirus (Covid-19) Pandemic

COVID-19 has positive impact on the electronics adhesive market. The production has increased by 2% globally. The demand for electronic components increased. Electronic adhesives are very important components in electronics as they are used in manufacturing and to protect high-performance electronic devices. This positive growth is expected to continue along with the rising demand for electronic products globally.

Figure 1. Global Electronic Adhesives Market, Revenue Share (%), By Region, 2022

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Geographically, Asia Pacific dominated the global electronic adhesives market in 2022, reporting a 65% market share in terms of revenue, followed by Europe and North America, respectively.

Figure 2. Global Electronic Adhesives Market, Revenue Share (%), By Application, in 2022

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On the basis of application, in 2022 surface mounting accounted for the largest market share of 30% in terms of revenue, followed by conformal coating and encapsulation, respectively.

Recent Developments

Henkel

In July 2022, 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

In March 2022, H.B. Fuller Company, one of the world’s leading adhesives suppliers, showcased several innovations that address growing trends in sustainable consumer goods and e-commerce packaging at PRINTPACK INDIA 2022.

In August 2022, H.B. Fuller announced the schedule for the REVEAL of the new GorillaPro Ultimate Service Truck built by Richard Rawlings and Gas Monkey Garage. The REVEAL is the culmination of a six-episode run of Gas Monkey Garage YouTube videos highlighting the step-by-step building of a new promotional vehicle for H.B. Fuller with GorillaPro products.

Competitive Section:

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

Market Definition:

Electronics adhesives are a type of glue that is used to assemble 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, and improves 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 types of electronic adhesives.