CAGR: 7.1%Current Market Size: 1.60 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2022-2029Base Year: 2021
Global low dielectric materials market is expected to grow from USD 1.60 billion in 2021 to USD 2.72 billion by 2029, at a CAGR of 7.1% during the Projection period 2022-2029. The rise in demand for materials with a low dielectric constant in high-speed communication devices has driven the growth of the global market.
In the semiconductors industry, the low dielectric material is a material with a smaller dielectric constant as compared to silicon dioxide. These materials are usually referred to as a class of insulating materials with poor electricity conduction. It helps to enable the scaling of microelectronics devices. The low dielectric constant of a material indicates that it is a good insulator and is a significantly poor conductor of electricity, sound, or heat. These materials are preferred to be used in high-power or frequency applications for reducing electric power loss. The types of low dielectric materials include fluoropolymers, modified polyphenylene ether, cyanate ester, polyimide, cyclic olefin copolymer, and liquid crystal polymer.
The applications range of dielectric materials includes communication cables, antennas interlayer dielectrics, and telecommunications equipment.
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Market Dynamics:
Drivers:
There is increasing usage of dielectric material as an insulating layer in the Printed Circuit Boards (PCBs) build-up. Hence, ongoing demand for PCBs in the telecom sector boosts the growth of the global market. In the telecom industry, an extensive range of electronic components are used in various equipment/devices that are electrically connected with the integration of high-end PCBs.
Moreover, there is a significant need for reducing transmission losses as well as the delay of signal propagation on the circuit board. Hence, more PCB fabricators are actively using laminates with properties such as low dielectric constant and low loss.
The ongoing growth of the automobile industry has enabled advancements in-car infotainment and autonomous vehicles. This has boosted demand for a higher level of packaging reliability. Autonomous vehicle manufacturers are employing packaging materials with low dielectric constant to meet the demand for fast response, high-speed operation, and low delay. On the other hand, in past few years, there is a rising trend of electrification of commercial aircraft to minimize dependence on hydraulic, mechanical, and pneumatic systems by replacing them with electrical systems. Such factors have created a demand for low dielectric materials in the airplanes and automobiles sector, fueling the growth of the global market.
Restraints:
In the global semiconductors industry, PCB production has significantly been affected by the COVID-19 pandemic. This has also led to the high demand and short supply of certain raw materials such as copper foil and aluminum. This has further negatively affected the growth of the global low dielectric materials market.
Opportunities:
The emergence of 5G technology has led to the rise in demand for specialty materials that exhibit enhanced dielectric performance properties for innovative PCBs, FPCs, and other electronics. In the global communications industry, manufacturers are planning to optimize 5G arrays by using ultra-low loss dielectrics to enable maximum amplitude of signals across the networks. In addition, the industry players are developing advanced low dielectric materials to meet the demand created by 5G technology.
For instance, in July 2021, Toray Industries, Inc. developed a high-performance polybutylene terephthalate (PBT) with comparatively low dielectric losses than conventional PBT. This offering is mainly focused on Automated Driving, 5G Communications, and Intelligent Transportation Systems Applications.
Challenges
There is significant pricing competition in the global low dielectric materials market. This is mainly attributed to the capability of Chinese manufacturers to undercut prices offered by foreign competitors. Moreover, the global low dielectric materials industry is considerably fragmented with the presence of several international and local players. Hence, the unorganized sector creates cheaper alternatives as local manufacturers in various countries are competing strongly with global suppliers. This also poses significant challenges for international players to provide low-cost dielectric materials at low costs and reduced profit margins.
Segmentation Analysis:
The global low dielectric materials market has been segmented based on type, material type, application, and region.
By Type
The type segment includes thermoplastic, thermoset, and ceramics. The thermoplastic segment led the low dielectric materials market with a market share of around 48.2% in 2021. Thermoplastics usually have more favorable dielectric properties such as lower dissipation factors and lower dielectric constants as compared with thermosets. In addition, high-performance thermoplastics such as polyaryletherketones and fluoropolymers are seeing huge demand across aerospace applications due to their high purity, low outgassing characteristics, and broad chemical resistance. Moreover, low-cost thermoplastics including polycarbonate (PC), acrylonitrile butadiene styrene (ABS), and poly methyl methacrylate (PMMA) are experiencing emerging demand from applications in 6G communications systems. Such factors are mainly contributing to the growth of the low dielectric materials market.
By Material Type
The material type segment includes fluoropolymer, modified polyphenylene ether, polyimide, cyclic olefin copolymer, cyanate ester, liquid crystal polymer, and others. The fluoropolymer segment led the low dielectric materials market with a market share of around 27.33% in 2021. This is attributed to the rising demand for fluoropolymers along with specialty thermoplastics in advanced electronic components in the 5G communications field. In addition, the demand for fluoropolymers in electronics applications such as TVs, mobiles, and other appliances due to their low cost and excellent dielectric properties has further boosted the growth of the segment.
By Application
The application segment includes PCBs, antenna, microelectronics, wire & cable, radome, and others. The PCBs segment led the low dielectric materials market with a market share of around 37.02% in 2021. This is attributed to the fact that dielectric materials are essential components of PCBs to provide a non-conductive substrate layer between the conducting copper layers. Hence, increased investment in digitization along with the demand for consumer gadgets such as PCs, smartphones, tablets, and gaming consoles boosts the growth of the PCBs segment.
By Regional Analysis:
The regions analyzed for the low dielectric materials market include North America, Europe, South America, Asia Pacific, and the Middle East, and Africa. Asia Pacific region dominated the low dielectric materials market and held a 39.02% share of the market revenue in 2021.
Global Low Dielectric Materials Market- Country Analysis:
In the Europe region, Germany is the largest market shareholder in the low dielectric materials market. In addition, this country is one of the leading countries in terms of semiconductor production. This factor has been the primary contributor to the German low dielectric materials market.
Germany's low dielectric materials market size was valued at USD 0.18 billion in 2021 and is expected to reach USD 0.30 billion by 2029, at a CAGR of 7.0% from 2022 to 2029.
Further, in July 2020, Polytronics Technology Corp., the global manufacturer of thermal management products and thermally conductive boards signed an agreement with Henkel AG & Co. KGaA, a German multinational chemical and consumer goods company to acquire Henkel’s thermal clad dielectric material (TCLAD) business division. Such strategies adopted by global market players to expand their presence in the country have further boosted the growth of the market.
China's low dielectric materials market size was valued at USD 0.35 billion in 2021 and is expected to reach USD 0.59 billion by 2029, at a CAGR of 6.9% from 2022 to 2029. In the past few years, China has become more self-sufficient in semiconductor development owing to government funding and policies aimed at the development of this sector. For instance, in August 2020, China’s State Council announced policies to promote the high-quality development of the integrated circuit industry. Under these policies, the China Integrated Circuit Investment Industry Fund (CICIIF) was projected to introduce an estimated $150 billion in state funding to support the domestic semiconductors industry. Such investments have created lucrative growth opportunities for China's low dielectric materials market.
India's low dielectric materials market size was valued at USD 0.11 billion in 2021 and is expected to reach USD 0.19 billion by 2029, at a CAGR of 7.3% from 2022 to 2029. India is one of the strongest growing economies in Asia. This country is seeing increased investment in digitization along with the flourishing demand for consumer electronics products, fueling the growth of the low dielectric materials market.
Moreover, India has become a prominent investment hub for global PCB manufacturers. This factor has further created growth opportunities for the low dielectric materials market. For instance, recently, Wistron, a Taiwanese contract manufacturer announced to the relocation of its PCB manufacturing plant from China to Bengaluru, India with an investment of about $1 billion.
Key Industry Players Analysis:
To increase their market position in the global low dielectric materials business, top companies are focusing on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, and partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year |
2021 |
CAGR (%) |
7.1% |
Market Size |
1.60 billion in 2021 |
Projection period |
2022-2029 |
Projection unit |
Value (USD) |
Segments covered |
Type, material type, application, and Regions |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Huntsman Corporation, Arxada, SABIC, Asahi Kasei, Topas Advanced Polymers, Zeon Corp., Chemours Company LLC, DIC Corporation, Arkema, and Mitsubishi Corporation among others |
By Type |
|
By Material Type |
|
By Application |
|
Regional scope |
|
Scope of the Report
Global Low dielectric materials Market by Type:
Global Low Dielectric Materials Market by Material Type:
Global Low Dielectric Materials Market by Application:
Global Low dielectric materials Market by Region:
Global low dielectric materials market is expected to reach USD 2.72 billion by 2029, at a CAGR of 7.1% from 2022 to 2029
PCBs application segment led the low dielectric materials market with a market share of around 37.02% in 2021.
China, Germany, Japan, Czechia, and India
Leading market players active in the global low dielectric materials market are Huntsman Corporation, Arxada, SABIC, Asahi Kasei, Topas Advanced Polymers, Zeon Corp., Chemours Company LLC, DIC Corporation, Arkema, and Mitsubishi Corporation among others.
The regions analyzed for the low dielectric materials market include North America, Europe, South America, Asia Pacific, and the Middle East and Africa.
Rise in demand for materials with low dielectric constant in high-speed communication devices is primarily driving the growth of the low dielectric materials market
Political Factors- In the past few years, China has become more self-sufficient in semiconductor development owing to government funding and policies aimed at the development of this sector. For instance, in August 2020, China’s State Council announced policies to promote the high-quality development of the integrated circuit industry. Under these policies, the China Integrated Circuit Investment Industry Fund (CICIIF) was projected to introduce an estimated $150 billion in state funding to support the domestic semiconductors industry. Such investments have created lucrative growth opportunities for China's low dielectric materials market.
Economical Factors- There is significant pricing competition in the global low dielectric materials market. This is mainly attributed to the capability of Chinese manufacturers to undercut prices offered by foreign competitors. Moreover, the global low dielectric materials industry is considerably fragmented with the presence of several international and local players. Hence, the unorganized sector creates cheaper alternatives as local manufacturers in various countries are competing strongly with global suppliers. This also poses significant challenges for international players to provide low-cost dielectric materials at low costs and reduced profit margins. For instance, recently, Wistron, a Taiwanese contract manufacturer announced to the relocation of its PCB manufacturing plant from China to Bengaluru, India with an investment of about $1 billion.
Social Factor- Germany is the largest market shareholder in the low dielectric materials market. In addition, this country is one of the leading countries in terms of semiconductor production. This factor has been the primary contributor to the German low dielectric materials market. Further, in July 2020, Polytronics Technology Corp., the global manufacturer of thermal management products and thermally conductive boards signed an agreement with Henkel AG & Co. KGaA, a German multinational chemical and consumer goods company to acquire Henkel’s thermal clad dielectric material (TCLAD) business division. Such strategies adopted by global market players to expand their presence in the country have further boosted the growth of the market.
Technological Factors- The emergence of 5G technology has led to the rise in demand for specialty materials that exhibit enhanced dielectric performance properties for innovative PCBs, FPCs, and other electronics. In the global communications industry, manufacturers are planning to optimize 5G arrays by using ultra-low loss dielectrics to enable maximum amplitude of signals across the networks. In addition, the industry players are developing advanced low dielectric materials to meet the demand created by 5G technology. For instance, in July 2021, Toray Industries, Inc. developed a high-performance polybutylene terephthalate (PBT) with comparatively low dielectric losses than conventional PBT. This offering is mainly focused on Automated Driving, 5G Communications, and Intelligent Transportation Systems Applications.
Environmental Factors- Prominent market players in the low dielectric market are focusing on producing low-emission MDI-based foam systems which are expected to reduce pollution and provide a positive impact on the environment. High-voltage (HV) materials and components are provided to increase environmental pollution and affect the environment negatively.
Legal Factors- Huntsman Corporation launched the ACOUSTIFLEX LE and RUBIFLEX LE polyurethane product lines. These products are a novel range of low-emission MDI-based foam systems mainly aimed at serving automotive interior applications. Shin-Etsu Chemical Co., the largest chemical company in Japan announced an investment of about ¥3 billion for the mass production of the SLK Series of Low Dielectric Constant Thermosetting Resins. This investment is mainly focused on widespread demand resulting from the implementation of the next-generation 5G telecommunications.
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