Electronics Adhesives Market

KEY FACTORS SHAPING ELECTRONICS ADHESIVES MARKET

Rise of Electronics Miniaturization to Drive Electronics Adhesives Demand

Advancements in the electronics industry has given way to electronics miniaturization to make components small and compact. Miniaturization of electronics and electronic devices has led to an increase in the number of components on a printed circuit board. The growing need for smaller and thinner devices has been driving demand for highly-integrated printed circuit boards (PCB), and the need for electronics adhesives to attach a number of components on PCBs.

With miniaturization of electrical components gaining acceptance in a majority of applications among various industries such as consumer electronics, automotive, aerospace and medical devices, and others, electronics adhesives are becoming a vital part in the industry. The current pace of miniaturization of electronic devices is anticipated to thrust the growth of the electronics adhesives market in the coming years.

Surface Mounting Technology - A Prime Demand Driver

Growing adoption of surface mounting technology to replace welding and soldering is one of the prominent trends in the electronics industry, shaping the demand for electronics adhesives. Surface mounting technology plays an essential role in the development of high speed, automated printed circuit board assemblies.

Nowadays, virtually all mass produced electronic hardware are developed using surface mount technology, which offers many advantages in terms of manufacturability and high performance, and electronics adhesives are a vital component of surface mounting.

Surface mounting uses electronics adhesives to avoid drilling and welding, so as to increase productivity and functionality of devices. With surface mounting technology expected to witness robust growth in the coming years, due to growing mass production of electronics, the electronics adhesives market is anticipated to witness decent growth as well.

Booming Electric Vehicle Demand

The electric vehicle market is witnessing growing demand, owing to mounting concerns regarding global warming and a rapidly shifting dependency on renewable energy sources. Europe and North America are currently leading the electric vehicles market, as both these regions possess well-established infrastructure, high consumer awareness, and government-backed incentives.

Governments of other developing regions such as China are promoting initiatives, like offering subsidies and incentives on the installation or consumption of renewable sources of energy to move towards “Green Energy” for reducing carbon emissions.

Electric vehicles are made of a higher number of electrical components as compared to conventional vehicles, and hence, the growth in electric vehicle demand is expected to present huge growth opportunities for the electronics adhesives market.

However, the coronavirus (COVID-19) has resulted in an economic downturn in China, being the manufacturing hub, it is adversely affecting the worldwide economic order. The pandemic in China is likely to impact the green energy industry, which includes electric vehicles (EVs), renewable heating and cooling, and battery energy storage. China leads the pack, globally, when it comes to renewable investments.

The country is seeing major production standstills due to scarcity of raw materials and staff. These activities will negatively affect EV production in China, and, in turn, hamper the demand growth of the electronics adhesives market space.  

ELECTRONICS ADHESIVES MARKET: STRUCTURE ANALYSIS

• The global electronics adhesives market is a fairly consolidated market structure, with the presence of a handful of global players. But the presence of a number tier-2 manufacturers spread across the world make it a highly competitive market landscape.
• Henkel AG & Co. KGaA, Dow Chemical Company, 3M Company, and Wacker Chemie are some of the dominant players in the global electronics adhesives market.
• Tier-I players in the electronics adhesives market are focusing on enhancing R&D capabilities and the acquisition of smaller players to strengthen their market positioning across the world.

• Base Year - 2019
• Historical Period - 2015-2019
• Forecast Period - 2020-2030
• Market Value in 2019 - US$ 6 Bn
• Segments Covered - Material, Application, End Use, and Region
• Regions Covered - North America, Latin America, Europe, South Asia, East Asia, Oceania, and the Middle East and Africa
• Key Companies - Henkel AG & Co. KGaA, Dow Chemical Company, Sika AG, 3M Company, Wacker Chemie AG, HB Fuller, Avery Dennison Corporation, Bondline Electronics adhesives Inc., DELO Industrial Adhesives LLC, and Panacol-Elosol GmbH.
• Growth Drivers
  • Rising trend of miniaturized electronic components
  • Rapid adoption of electric vehicles (EVs)
  • Accelerated shift towards advanced printed circuit board (PCB) technology 

ELECTRONICS ADHESIVES MARKET TAXONOMY

Material

• PUR
• Polyurethane
• Acrylics
• Silicones
• Epoxy

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

Region

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• MEA