Electronics Adhesives Market

Key Points Covered in Electronics Adhesives Market

• Market estimates and forecast 2015-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Brand share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Electronics Adhesives and How to Navigate
• Recommendation on Key Winning Strategies

2016-2020 Global Electronics Adhesives Market Outlook Compared to 2021-2031 Forecast

Demand for electronics adhesives grew at 7.5% CAGR in the historic growth period during 2016-2020. Increasing global population levels and the rise in per capita income of population have supported the sales of automobiles with comfort and safety features through electronic systems. This in turn has bolstered the prospects of the electronics adhesives market.

The electronics adhesives market has seen remarkable growth in Europe and East Asian countries. Moreover, looking at the types of electronics adhesives, the demand for encapsulation processes is likely to grow at rapid pace, particularly in the mobiles and telecommunication industry.

Challenges such as high installation costs involved in product assembly, along with lamination and packaging of advanced machinery, are key concerns of manufacturers. Manufacturers have increased investments towards product development with respect to industry-specific applications to fulfil these consumer requirements.

The rise of the global automobile sector is generating demand for electronics adhesives. This can be attributed to applications in collision avoidance systems, engine status displays, power electronic modules, anti-theft systems, and LED packaging.

Owing to the ongoing COVID-19 pandemic, the production and supply chain activities have witnessed a short-term slump, with a notable drop in Y-o-Y growth. However, use will improve through economic recuperation as restrictions are relaxed following the conclusion of the crisis.

Strong penetration of electronic devices and appliances across developed and developing countries are now driving demand, which is expected to continue through the coming decade. According to FMI’s research, growth is projected to increase even faster over the next years, touching a CAGR of 8.6% for the forecast period 2021-2031, due to rising demand for different types of safety and other systems from the automotive industry.

What is the Commercial Potential of Electronics Adhesives?

The growth of the mobiles and telecommunication industry is expected to have a major impact on the demand for electronics adhesives. The mobiles and telecommunication industry are anticipated to carry this remarkable growth pattern during the forecast period, particularly with the advent of Internet of Things (IoT) technologies.

Electronics adhesives finds applications in various end use applications such as mobiles and telecommunication, desktop and networks, televisions, home appliances, automotive electronics, aerospace & defense, analytical & measurement instruments, and medical equipment.

Country-wise Insights

What Makes China a Leading Market for Electronics Adhesives?

Future Market Insights has projected China to remain a lucrative regional market throughout the forecast period. China is expected to attain a value of US$ 854.3 Mn in 2021. One of the key factors supporting growth in the country. As China is the leading country in the production of electronic devices and circuits growth prospects will be very promising over the coming years.

Despite the impact of the covid-19 pandemic, the second half of 2020 has witnessed commodity prices moving towards stability, creating sustainable market opportunities, which translate into positive effects on the global electronic industry. Attributing to these factors China remains one of the largest markets for electronics adhesives in the world, which invariably makes it a lucrative sector for manufacturers.

Why is Expansion of Electronic Industry Key to Growth in India?

India is expected to generate a total absolute $ opportunity of US$ 537.5 Mn by the end of the forecast period. The demand for electronics adhesives can largely be attributed to the mobiles and telecommunications sector. Also, the country’s automotive industry is expanding at a high pace, which generates a requirement for relevant raw material supplies.

Also, India is the second-largest country by population, which will generate significant opportunities for market players. Moreover, Indian players are investing in aerospace and defense activities, which is also creating robust development opportunities for electronic devices and circuit manufacturers.

What is the Outlook for Electronics Adhesives in the U.S.?

The U.S. is anticipated to hold more than 80% of the market share in North America. The U.S. has one of the most advanced defense systems in the world owing to investments into research and development (R & D) for advanced technologies. This creates an outstanding demand for electronic devices and circuits which in turn promote the sales of electronics adhesives in the country.

However, due to the current pandemic situation, the demand is expected to be muted especially from the automotive and aerospace industry owing to a slower recovery pattern. However, demand from other end use industries like defense and mobile and telecommunication will aid in faster recovery.

How is the Electronics Adhesives Market in Germany Set to Fare? 

Germany is one of the global leaders in terms of manufacturing activities and infrastructure. The country is expected to grow at CAGR of 7.2% during the forecast period. Germany has strong presence of automotive manufacturers and suppliers. The country caters to the demand for the automotive industry from a number of countries.

This creates robust opportunities for manufacturers in the country. Electronics adhesives are used in many automotive systems including collision avoidance systems, engine status displays, power electronic modules, anti-theft systems, and LED packaging. Moreover, positive prospects for electric vehicles are boosting the sales of electronics adhesives during the forecast period.

Is Japan a Lucrative Market for Electronics Adhesives?

Japan is the second largest market for electronics adhesives after china in the East Asia region and has an estimated market value of US$ 628.6 Mn in 2021. Japan is well known for its technological advancement, research and development, and manufacturing activities.

Japan is one of the global leaders for industrial automation and robotics, which creates significant demand for electronic devices and circuits in the country. The growing trend of miniaturization of existing electronic products will also prove beneficial.

Category-wise Insights

Why is the Demand for Polyurethane Electronics Adhesives Higher?

Polyurethane holds about 50% of the global electronics adhesives market share. Electronics adhesives are segmented on the basis of material type in polyurethane, acrylics, silicones, and epoxy.

Polyurethane is gaining greater consumer interest due to its advantages such as thermal resistance, and longer life cycle.

Driven by these characteristics, polyurethane is expected to be the fastest growing segment of electronics adhesives with an 8.5% CAGR.

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What Type of Functionality is Key to Revenue Generation?

Electronics adhesives find roles in a number of functions including thermal management, conformal coating, encapsulation, surface mounting wire tracking, soldering, underfills, sealing, and construction. Of these, the demand for conformal coating will hold a relatively larger market share, accounting for more than US$ 1.1 Bn in 2021.

Other functionalities including encapsulation, surface mounting, wire tacking, soldering, underfills, sealing, and construction are expected to reflect relatively high rates of growth for the duration of the forecast period.

Which End-use Industry Drives Demand for Electronics Adhesives?

The automotive sector dominates the global electronics adhesives market, with it accounting for 18.8% market share. This growth can be attributed to the high demand for electronic devices and circuits in new and upcoming automobile vehicles across the globe.

In the past few years, the mobiles and telecommunications sector has also witnessed substantial growth due to increasing demand. Desktop and networks manufacturers seen significant growth owing to industrialization.

Competitive Landscape

The electronics adhesives market is a highly competitive space dominated by global players offering cost-competitive raw materials. The market is a moderately fragmented industry, where regional players hold significant value share.  The market is characterized by a large supplier base and strong B2B networks.

The market has robust partnerships throughout the value chain. There is ample focus on strong research and development activities with innovation in mind. Companies are aiming at strategic collaborations with end users and regional distributors to address the requirements of an expanding customer base.

Suppliers of electronics adhesives adopt acquisition and regional expansion strategies to establish a stronger foothold. Brand consciousness and aggressive marketing make it challenging for new entrants in this space. Furthermore, the advent of online sales is also expected to create positive growth prospects for market players.

In May 2021, ShengChyuarn announced its operations for the specialization in the production and distribution of high-quality organosilicon materials for commercial industrial production applications at affordable pricing.

In November 2020, DELO announced the development and launch of pressure-sensitive electronic adhesives, aimed for application in display frames and smartphone speaker surfaces for low fill factor, reducing costs.

In February 2021, Henkel Adhesive Technologies and Quad Industries collaborated to offer support for technological value creation, prototyping solutions for printed electronics across multiple end use industries.

Some of the leading companies operating in the market are:

• 3M
• Dymax Corporation
• DOW Chemical Company
• Henkel AG & Co. KGaA
• H.B. Fuller Company (Royal Adhesives & Sealants LLC)
• Evonik Industries AG
• Sika AG
• Bostik AG
• ThreeBond
• Shin Etsu Silicones
• Konishi Co, LTD.
• TERAOKA SEISAKUSHO CO., LTD.
• TOMOEGAWA
• YAMATO Co.,Ltd

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of Report

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Market Segmentation by Category

By Material Type

• Polyurethane
• Acrylics
• Silicones
• Epoxy

By Application

• Thermal Management
  • Gap Fillers
  • Thermal Conductivity Solutions
  • Thermal Conductivity Insulators
  • Gap Pads
• Conformal Coatings
• Encapsulation
• Surface Mounting
• Wire Tacking
• Soldering
• Underfills
• Sealing
• Constructional

End Use

• Mobiles and Telecommunication Devices
• Desktops and Networks
• Televisions
• Home Appliances
• Automotive Electronics
• Aerospace Electronics
• Analytical & Measurement Instruments
• Other Industrial

By Region

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• Middle East & Africa