Electronics Adhesives Adoption to Swell 2X Over 2020-2030
The electrical & electronics industry is rapidly expanding, with an immense range of applications. Printed circuit boards (PCBs) are an integral component in automotive, domestic, military, and industrial devices, and require protection from the external environment. Lack of protection hampers performance, or at worst, leads to total breakdown. Electronics adhesives fit well in this situation, given their excellent mechanical properties. The worldwide consumption of electronics adhesives would ascend nearly twice over the forecast period of 2020-2030.
Electronics Adhesives Market: Key Insights
- The electronics adhesives market will exceed US$ 6 Bn in 2020.
- The market growth would primarily be driven by the increasing trend of miniaturization of electronic components and circuit boards.
- Given the rising demand for consumer electronics and appliances, conformal coatings and surface mounting would be key application areas of electronics adhesives.
- Benefits such as high elasticity, flexibility, and heat resistance properties are broadening the adoption of silicone electronics adhesives across several end-use industries.
- Owing to the fast-paced growth of the consumer electronics industry, the adoption of electronics adhesives would remain prominent in mobile and telecommunication devices.
- East Asia continues to offer investment opportunities, attributed to strong foothold of electronic device and component manufacturers in the region.
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.
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Report Metrics |
Details |
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Base Year |
2019 |
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Historical Period |
2015-2019 |
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Forecast Period |
2020-2030 |
|
Market Value in 2019 |
US$ 6 Bn |
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Segments Covered |
Material, Application, End Use, and Region |
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Regions Covered |
North America, Latin America, Europe, South Asia, East Asia, Oceania, and the Middle East and Africa |
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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. |
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Growth Drivers |
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PUR and Silicones Collectively Capture 60% Revenue Share
PUR is ideal for low temperature applications. The properties of this organic material - thixotropy, hardness, and flexibility - can be modified as per requirement. Moreover, its adhesion and mechanical strength can be improved to significantly greater scales. Driven by these umpteen benefits, manufacturers continue to rely on PUR for developing electronics adhesives. While silicone also exhibits similar properties, it is easily contaminated and provides lower adhesive strength versus PUR. Further, this study underscores that, around 6 out of 10 electronics adhesives are manufactured either from PUR or silicone.
Asian Markets Maintain their Supremacy
Manufacturers in the electronics adhesives market would stay glued to Asia, influenced by boost in the production of electrical & electronics in China, Japan, and India. Several distributors in the automotive industry are focusing on offering cost-efficient advanced driver-assistance systems (ADAS) for compact and medium-sized and vehicles. New car analysis programs in Asia are mandating features such as lane departure warning and automatic emergency braking systems. In addition, governments are offering incentives and subsidies on the adoption of electric vehicles (EVs) as a part of their eco-friendly strategy. EVs significantly comprise electrical components as compared to conventional vehicles. Upsurge in the production of EVs would thus offer value-creation prospects to electronics adhesive manufacturers.
Miniaturization Trend On-ramp to Positive Growth Trajectory
Advancements in electronics miniaturization are addressing technology challenges across industries, from new horizons driven by lightweight electronics payloads to healthcare advancements underpinned by tiny implantable solutions. Lightweight and compact electronics pave the way to develop products with optimum form factors. The trend of miniaturization of electronic components is gaining ground in several industries - automotive, aerospace, and consumer electronics. Rising need for devices with smaller footprint is fueling the adoption of highly-integrated PCBs, and thus, electronics adhesives to attach myriads of components on PCBs.
High preference for PUR
Manufacturers to shift away from silicone
Conformal coating remains primary application
Increasing application scope in surface mounting
High adoption in mobiles and tele- communication devices
Automotive electronics to offer lucrative prospects
How Growth will Unfold
Expansion of the global electrical & electronics industry would be the key factor bolstering the adoption of electronics adhesives in several end uses. Manufacturers would reap meaningful revenue from mobiles and telecommunication devices, and automotive electronics. In 2024, both end-use categories would share the same divide in the overall electronics adhesives market. Market players are also citing increasing scope of application in aerospace electronics. Furthermore, these end-use categories would register over US$ 2 Bn towards the end of the projection period.
* This data is only a representation. Actual data may vary and will be available in report.
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Overview
A recent market study published by FMI on the electronics adhesives market includes global industry analysis of 2015-2019 and opportunity assessment for 2020-2030, and delivers a comprehensive assessment of the most important market dynamics. Our analysts conduct thorough research on the historical as well as current growth parameters of the market to obtain the growth prospects with maximum precision.
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
What's Included
The report initiates with the executive summary of the electronics adhesives market, which includes a summary of the key findings and statistics of the market. It also includes the demand & supply-side trends pertaining to the electronics adhesives market.
In this chapter, readers can find the definition and a detailed taxonomy of the electronics adhesives market, which will help them understand the basic information about the electronics adhesives market. Along with this, comprehensive information about electronics adhesives is provided in this section. This section also highlights the inclusions and exclusions, which help readers understand the scope of the electronics adhesives market report.
This section includes key successful factors and strategies adopted by key market participants.
This section explains the global market value analysis and forecast for the electronics adhesives market for the forecast period of 2020-2030. This chapter includes a detailed analysis of the historical electronics adhesives market, along with an opportunity analysis for the future. Readers can also find the absolute $ opportunity for the current year (2019), and an incremental $ opportunity for the forecast period (2019-2029). Along with this, pricing analysis of the electronics adhesives market at the regional level has been provided in this section. This section also explains the global market volume analysis and forecast for the Electronics adhesives market in the forecast period of 2020-2030.
This chapter explains key macroeconomic factors that are expected to influence the growth of the electronics adhesives market over the forecast period. Along with the macroeconomic factors, this section also highlights supply chain, forecast factors, and value chain analysis for the electronics adhesives market. Moreover, in-depth information about the market dynamics and their impact analysis on the market have been provided in the successive section.
This chapter provides details about the electronics adhesives market on the basis of material and has been classified into PUR, polyurethane, acrylics, silicones and epoxy. In this chapter, readers can understand the market attractiveness analysis based on material.
This chapter provides details about the electronics adhesives market on the basis of end use, and has been classified into mobiles and telecommunication devices, desktop and networks, televisions, home appliances, automotive electronics, aerospace electronics, analytical & measurement instruments and other industrial. In this chapter, readers can understand the market attractiveness analysis based as well.
This chapter provides details about the electronics adhesives market based on material and has been classified into thermal management, conformal coating, encapsulation, surface mounting, wire tacking, soldering, underfills, sealing, and constructional.
This chapter explains how the electronics adhesives market will grow across various geographic regions such as North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa (MEA).
This chapter includes a detailed analysis of the growth of the North America electronics adhesives market, along with a country-wise assessment that includes the U.S. and Canada. Readers can also find the pricing analysis, regional trends, and market growth based on material and countries in North America.
This chapter provides the growth scenario of the electronics adhesives market in Latin American countries such as Brazil, Mexico, and the Rest of Latin America. Along with this, an assessment of the market across target segments has been provided.
Important growth prospects of the electronics adhesives market based on its end users in several countries such as Germany, France, the U.K., Spain, BENELUX, Russia, Italy, and the Rest of Europe are included in this chapter.
This chapter highlights the growth of the electronics adhesives market in East Asia by focusing on China, Japan, and South Korea. This section also helps readers understand the key factors that are responsible for the growth of the electronics adhesives market in East Asia.
This chapter highlights the growth of the electronics adhesives market in South Asia by focusing on India, Thailand, Indonesia, Malaysia, and the Rest of South Asia. This section also helps readers understand the key factors that are responsible for the growth of the electronics adhesives market in South Asia.
This chapter provides information about how the electronics adhesives market will grow in Australia and New Zealand, during the forecast period of 2020-2030.
This chapter provides information about how the electronics adhesives market will grow in major countries in the MEA region such as GCC, Turkey, Northern Africa, South Africa, and the Rest of MEA, during the forecast period of 2020-2030.
In this chapter, readers can find detailed information about the tier analysis and market concentration of key players in the electronics adhesives market, along with their market presence analysis by region and product portfolio.
In this chapter, readers can find a comprehensive list of all the prominent stakeholders in the electronics adhesives market, along with detailed information about each company, which includes company overview, revenue shares, strategic overview, and recent company developments. Some of the market players featured in the report are 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.
This chapter includes a list of acronyms and assumptions that provides a base to the information and statistics included in the electronics adhesives market report.
This chapter help readers understand the research methodology followed to obtain various conclusions as well as important qualitative and quantitative information about the electronics adhesives market.
How the research was conducted?
Primary Research
- C - Level Executives
- Marketing Directors
- Product Managers
- Engineers
- Business Development Officers
- Production Managers
- Procurement Heads
- Sales Executives
- Distributors
- Traders
- Raw Material Suppliers
- Industry Experts
- End Users
- Current market dynamics and challenges
- Yesteryear trends
- Market characteristics
- Market performance and growth quadrants
- Competition structure and market structure
- Strategic growth initiatives
- Near-term and long-term market growth prospects
- Market segment splits and authenticity
- Opinions on market projections and validity of assumptions
Secondary Research
- Industry Publications
- Industry Associations
- Electronic Industries Alliance (EIA)
- IMF
- World Bank
- Factiva
- Company Press Releases
- Annual Reports and Investor Presentations
- Research Papers
- Government Websites and Publications
- Trade Websites
Primary Interview Splits
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