CAGR: 6.7%Current Market Size: USD 2.9 BillionFastest Growing Region: North America
Largest Market: APACProjection Time: 2023-2030Base Year: 2022
The global electronic adhesive market is expected to grow from USD 2.9 billion in 2022 to USD 8.23 billion by 2030, at a CAGR of 6.7% during the Projection period 2023-2030. Financial development in emerging nations mainly drives the growth of the electronic adhesive market.
Due to numerous inventions and increasing sales of client electronics goods, the worldwide electronics adhesives market is being propelled by the expansion of the electrical and electronics industry. Rising technological improvements in electronics adhesive manufacturing are another important factor driving the growth of the electronics adhesives market. Similarly, innovation in the semiconductor technologies industry and client applications will most likely drive market growth over the Projection period. More research and development to employ microelectronic devices for technical purposes is supported by businesses. It is expected to propel the electronics adhesives industry forward. Similarly, the popularity of medical devices and wearables is increasing. The increased need for adhesives for joining numerous groups in medical devices is expected to drive market expansion over the Projection period. Despite the benefits of electronic adhesives, several properties limit and constrain market expansion. Increased raw material prices are expected to be a major impediment to market expansion. However, the market's developing technological advancements and advanced growth steps may represent a key opportunity during the Projection period. Similarly, the market is being hampered by stringent government rules. The necessity for electronic adhesives might give the end-user sector an advantage in producing smaller parts for effective outcomes. The rising use of adhesives in electrical devices such as cell phones and laptops is expected to drive electronic adhesive market development over the Projection period.
Sample Request: - Global Electronic Adhesive Market
Market Dynamics:
Drivers:
During the Projection period, the rapidly expanding electronic enterprise will drive the evolution of the electronic adhesive market. The increasing demand for client goods, the launch of next-generation wireless 5th-generation infrastructure networks, and the rising demand for smartphones and other electronic gadgets are driving the industry forward. As a result, product consumption can be increased. However, advantages such as higher efficiency and lower cost make electrically conductive adhesives a viable alternative to traditional tin-lead solders. As a result, these aspects will contribute to market growth.
Restraints:
Increasing raw material prices usually result in supply chain conflict for a variety of reasons. Contracts with suppliers do not include raw material costs, and they frequently try to push up the supply chain due to higher costs. However, variations in raw material pricing have an impact on the overall demand for electronic gadgets. It stifles product demand and is predicted to stifle market growth.
Opportunities:
The Asia Pacific region's rising demand for cutting-edge electronic appliances presents an excellent opportunity for the electronic adhesive industry. The Asia-Pacific area is a leading emerging industrial growth region. The enhanced utilization of machines and electronics has a large deployment opportunity in APAC. Asia Pacific will also emerge as a technology and manufacturing powerhouse. As a result, the electronic adhesive market will see significant demand from the APAC region in the next years.
Challenges:
In the electronic adhesive industry, prominent competitors must overcome numerous market obstacles. The most typical issue is the use of hazardous raw chemicals in the production of electronic adhesives. The use of hazardous raw ingredients renders the electronic adhesive untrustworthy. Because the contemporary industry requires highly long-lasting adhesives, the electronic adhesive market's key rivals must research and develop more suitable raw materials in the formulation.
Segmentation Analysis:
The global electronic adhesive market has been segmented based on resin type, application, end-user, and region.
By Resin Type
The resin type segment is epoxy, polyurethane, acrylics, and others. The epoxy segment led the largest share of the electronic adhesive market with a market share of around 41.34% in 2022. Epoxy is mostly used in electronic applications. Epoxy has enough resistance to external impacts; it has a dry and non-tacky surface that is ideal for use as a protective coating and is widely used in plastics, adhesives, paints, coatings, primers, etc., sealers, flooring, and other applications.
By Application
The application is conformal coatings, wire tacking, surface mounting, encapsulation, and others. The surface mounting segment led the largest share of the electronic adhesive market with a market share of around 50.45% in 2022. The primary application of adhesives in the electronics industry is surface mounting, commonly known as chip bonding. Surface-mount technology widely employs electronic adhesives in electronic assembly to secure electronic components to the printed circuit board's surface (PCB). Both wave soldering and reflow soldering procedures make use of electronic adhesives. These chemicals have high electrical conductivity and are simple to use. Surface-mount devices are placed on beads or dots of UV-curing adhesives and cured to firmly, and securely retain the device in place during subsequent processing of the electronic equipment being built.
By End-User
The end-user segment is consumer, automotive, IT hardware, and others. The consumer segment led the largest share of the electronic adhesive market with a market share of around 45.67% in 2022. Rapid urbanization and the advancement of new technology have increased the demand for consumer electronics.
Global Electronic Adhesive Market - Sales Analysis.
The sale of the electronic adhesive market expanded at a CAGR of 4.7% from 2016 to 2022.
Medical devices and wearables are becoming increasingly popular. Over the Projection period, the increased demand for adhesives for bonding various assemblies in medical devices is expected to drive market expansion. Acrylic electrical & electronics adhesives provide performance features that help reduce total equipment costs and time-consuming operations involved in electrical & electronics manufacturing. Adhesives have been replacing numerous fastening techniques in the medical field during the last few years. Pressure-sensitive, structural, and non-structural adhesives are utilized in a variety of applications. Substrates such as plastic, rubber, and metal can be attached without any surface preparation using bonding agents such as adhesives.
The increased need for adhesives from printed circuit boards is driving the market (PCBs). Wire tracking, component potting and encapsulation, conformal coatings of circuit boards, and surface mount component gluing all require different types of products, such as adhesives. Increased demand for computers, laptops, smartphones, household appliances, industrial & power equipment, control & navigation systems, and aerospace monitoring & testing equipment necessitates the production of a large number of adhesive items. Over the Projection period, rising demand for these goods is expected to boost the electrical & electronics adhesives market.
Thus, owing to the aforementioned factors, the global electronic adhesive market is expected to grow at a CAGR of 6.7% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the electronic adhesive market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific region dominated the electronic adhesive market and held a 38.2% share of the market revenue in 2022.
Global Electronic Adhesive Market - Country Analysis:
Germany's electronic adhesive market size was valued at USD 0.21 billion in 2022 and is expected to reach USD 0.35 billion by 2030, at a CAGR of 6.8% from 2023 to 2030. Due to increasing manufacturing capacity and ongoing R&D investments, the Electrical & Electronics industry is undergoing significant changes. Furthermore, both developed and developing economies are seeing increased demand for electrical and technological equipment. Low manufacturing operations and labor costs, particularly in Germany, are contributing to the manufacture of diverse items and equipment.
China’s electronic adhesive market size was valued at USD 0.28 billion in 2022 and is expected to reach USD 0.48 billion by 2030, at a CAGR of 7% from 2023 to 2030. China is rising as one of the largest markets for electronic adhesives, both in terms of consumption and production, accounting for slightly more than half of the total market in the Asia Pacific. Factors such as increasing urbanization and connectivity, as well as the use of modern technology in the manufacture of safety technologies and entertainment systems, are driving up demand for printed circuit boards. The Chinese consumer electronics market is worth roughly USD 248.7 billion in 2020, with revenue down 0.2% from 2019. The Chinese consumer electronics market is expected to expand by 4% to USD 258.8 billion in 2021.
India's electronic adhesive market size was valued at USD 0.22 billion in 2022 and is expected to reach USD 0.37 billion by 2030, at a CAGR of 6.9% from 2023 to 2030. The Indian government's "Make in India" policy has attracted foreign direct investments in the electronics sector, resulting in a rise in the country's electronics manufacturing services business. The Atmanirbhar plan also focuses on establishing India as a global consumer electronics manufacturing hub. For example, Amazon India said in February 2021 that it will begin producing electronic products in India, which is expected to increase demand for electronic adhesives in the nation. By 2025, the Indian electronics market is anticipated to be worth USD 400 billion. Furthermore, by 2025, India is predicted to have the world's fifth-largest consumer electronics and appliances business. Furthermore, in India, technological revolutions such as the rollout of 4G/LTE networks and IoT (Internet of Things) are pushing electronic device usage.
Key Industry Players Analysis:
To increase their market position in the global electronic adhesive market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Scope of the Report
Global Electronic Adhesive Market By Resin Type:
Global Electronic Adhesive Market By Application:
Global Electronic Adhesive Market By End-User:
Global Electronic Adhesive Market By Region:
Global electronic adhesive market is expected to reach USD 8.23 billion by 2030.
The electronic adhesive market is projected to have a CAGR of 6.7%.
Based on the resin type, the electronic adhesive market is segmented into epoxy, polyurethane, acrylics, and others.
During the Projection period, the rapidly expanding electronic enterprise will drive the evolution of the electronic adhesive market. The increasing demand for client goods, the launch of next-generation wireless 5th-generation infrastructure networks, and the rising demand for smartphones and other electronic gadgets are driving the industry forward.
Leading market players active in the global electronic adhesive market are 3M, Bostik AG, H.B. Fuller Company (Royal Adhesives & Sealants LLC), DOW Chemical Company, Konishi Co, LTD., Dymax Corporation, Evonik Industries AG, TERAOKA SEISAKUSHO CO., LTD., Henkel AG & Co. KGaA, Shin Etsu Silicones, Sika AG, TOMOEGAWA, ThreeBond, YAMATO Co., Ltd. among others.
Political Factors- Because they are critical to the formulation of laws, the electronics adhesives market should carefully analyze the critiques made by pressure organizations, social and environmental activists, and labor unions. Close partnerships with these groups may strengthen the electronics adhesives market's ability for community participation and the attainment of long-term commercial goals. A solid governance structure and a democratic political environment benefit multinational enterprise, such as those in the electronics adhesives sector.
Economic Factors- The economic prosperity of a country has a direct impact on organizational performance. As a result of rising economies, the market for electronics adhesives has numerous potentials for growth. Understanding the stage of the industrial lifecycle is also essential. Due to market saturation, entry into mature sectors may be more difficult than entry into firms in the growth stage. Furthermore, the financial feasibility of the electronics adhesives market is determined by how much money the host country's government invests in the construction of critical infrastructure. A developed infrastructure makes it easier to conduct business, which raises the likelihood of that country's gold sector thriving.
Social Factors- Culture is a critical factor for foreign marketing managers. Every culture has its own norms and values that influence how people behave as customers. The electronics adhesives industry must form partnerships and teams with local organizations in order to develop marketing strategies tailored to the local context. The market for electronics adhesives values research into socioeconomic class stratification. The demand for electronics adhesives will need to adopt specific marketing tactics in order to supply luxury goods at premium pricing to a market where the high-end consumer is relatively tiny. Market segmentation based on social class may also be unsuccessful in regions with limited social class stratification.
Technological Factors- The advancement of information and communication technologies has simplified the implementation of cutting-edge marketing methods to improve customer collaboration. Social media usage has increased dramatically in today's business world. The benefits of social media marketing can be employed to boost organizational performance in the electronics adhesives sector. Technology improvements can be used to launch unique social media campaigns aimed at building online brand communities. To stay ahead of the competition, the electronics adhesives sector must carefully evaluate recent technology breakthroughs. It is critical to keep an eye on 5G's potential to increase productivity by improving user experience, speed, and access.
Environmental Factors- People are increasingly opting for green or eco-friendly items. To win over stakeholders, the electronics adhesives market can seize the opportunity and use green business practices. Product innovation goals are shifting as a result of regulatory organizations' emphasis on ensuring compliance with environmental regulations. The electronics adhesives market must emphasize highlighting the environmental friendliness of its products over more traditional value claims. If the electronics adhesives market consistently depletes resources, it may face criticism from the general public, customers, environmental groups, and the media.
Legal Factors- Because of consumer concerns about their privacy and security, data protection has become a major issue. To protect consumer data, electronics adhesives must investigate data protection legislation. There are additional laws in place to regulate prices, maintain quality, and protect customers from fraudulent advertising claims. Certain variables must be considered in order for electronic adhesives to be compliant with consumer protection legislation. Intellectual property regulations are intended to safeguard firms' valuable ideas and patents. The position of electronics adhesives with respect to other market participants may suffer if they lose their competitive edge due to a failure to protect intellectual property rights.
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