Electronic Adhesives Market size is set to grow by USD 2.29 billion from 2024-2028, Technological advancements in adhesives boost the market, Technavio

NEW YORK, Aug. 14, 2024 /PRNewswire/ -- The global electronic adhesives market size is estimated to grow by USD 2.29 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 6.78%  during the forecast period. Technological advancements in adhesives is driving market growth, with a trend towards new product launches by players. However, fluctuating raw material prices  poses a challenge. Key market players include 3M Co., Arkema Group, Avery Dennison Corp., Beiersdorf AG, Chemence Inc., Dow Chemical Co., Dr. Honle AG, DuPont de Nemours Inc., Dymax Corp., Elkem ASA, EpoxySet Inc., H.B. Fuller Co., Henkel AG and Co. KGaA, Indium Corp., LG Corp., Master Bond Inc., Meridian Adhesives Group, Parker Hannifin Corp., RAG Stiftung, Sika AG, and Sony Group Corp..

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Market Driver

The global electronic adhesives market is experiencing significant growth due to new product launches by both regional and international players. These new offerings contribute to increased revenue and expanded consumer bases for vendors. For instance, in May 2024, DELO introduced DELO DUALBOND EG6290, a closed-cavity packaging solution for semiconductors and monitoring systems. In November 2022, Dow Inc. Launched VORATRON MA 8200S, a high-bonding adhesive for electric vehicle battery packs. Additionally, Indium Corporation unveiled InTACK, a new adhesive solution for semiconductor applications, at PCIM Europe in April 2022. These new product launches not only enhance market shares but also provide a competitive edge for companies in the global electronic adhesives market. 

The Electronic Adhesives market is thriving in various industries including Electronics, Surface mounting on PCBs, Semiconductors, and more. Trends such as miniaturization/automation in Computers, Communications, Consumer goods, Industrial, Medical, Automotive, and Mobile devices drive the demand for these adhesives. Epoxies and silicones are popular choices due to their thermal conductivity, electrical conductivity, durability, and optical clarity. Potting & encapsulations are essential for protecting electronic circuits, while chip-scale packaging and power semiconductors require high-performance adhesives. The Communications industry, including fiber-optic connectivity, data centers, and optical transceivers, relies heavily on electronic adhesives. Eco-friendly, non-toxic options are increasingly preferred for environmental concerns. Adhesives used in touch screens & displays, medical electronic systems, and optomechanical assemblies require specific properties like cure speed and optical clarity. Key players include network companies, wireless carriers, broadband carriers, and electronic component manufacturers. The market continues to grow with advancements in technology and the increasing use of epoxies and silicones in various applications. 

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Market Challenges

•         The electronic adhesives market is influenced by the cost structure of raw materials and their availability. Key materials include plastic resins, synthetic rubber, inorganic chemicals, industrial inorganic chemicals, and refined petroleum products. Fluctuations in oil prices, driven by global demand and Middle Eastern political unrest, impact these materials' costs. Additionally, high logistics costs due to fuel price increases add to the challenge. Manufacturers face pressure to keep prices low for electronic adhesives, which are cost-intensive to produce. Electrical conductive adhesives (ECAs) cost is directly related to their electrical conductivity, and price volatility can negatively impact the market. Factors like ease of application, viscosity, electrical conductivity, and mechanical properties influence ECA costs and end-user industry operating costs. Therefore, price instability may hinder the growth of the global electronic adhesives market.

•         The Electronics industry, including sectors like Automotive, Medical Devices, Luxury Packaging, MRO, and 3D Printing, faces unique challenges in adhesive selection. Bostik and Henkel are key players in this market. At Formnext in Frankfurt, technological advancements like contactless interaction and 3D Printing are driving demand for customized adhesives. Attributes like high strength, flexibility, electrical properties, and rapid curing are essential. Raw material prices, miniaturized devices, and urbanization push the need for non-stringing, long shelf life, and non-viscosity change adhesives. Challenges in chip bonding, printeds circuit boards, and soldering techniques like wave soldering, reflow soldering, and tin-soldering require UV curing adhesives and acrylics or urethane acrylates. Safety technologies, infotainment systems, and connectivity in electric vehicles call for high-performance adhesives. The Automotive and Medical Devices sectors also prioritize air entrapment prevention and pot life extension. The Indian government's Atmanirbhar initiative further boosts local production and self-reliance in the electronics sector.

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Segment Overview 

This electronic adhesives market report extensively covers market segmentation by  

1. Application 
• 1.1 Surface mounting
• 1.2 Conformal coating
• 1.3 Wire tacking
• 1.4 Potting and encapsulation
2. Product 
• 2.1 Electrically conductive adhesives
• 2.2 Thermally conductive adhesives
• 2.3 UV curing adhesives
• 2.4 Others
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Surface mounting-  The electronic adhesives market has experienced growth due to the increasing use of surface mounting adhesives in various industries. Surface mounting adhesives are essential in surface mounting assemblies for PCBs, ensuring components remain in place during high-speed production processes. Heraeus, a leading vendor in the market, offers one-component thermo-setting solvent-free surface mounting adhesives with high surface insulation resistance for applications such as printing, dispensing, pin transfer, and jetting. Master Bond Inc. Provides dielectric and conductive surface mounting adhesive systems for major electrical applications, enhancing functionality and productivity. Their silver-filled thixotropic epoxy paste adhesives can replace metallurgical solders in surface mounting assembly applications, adhering to a wide range of substances. Key industries, including medical, aerospace, electronics, automotive, and specialty OEMs, have benefited from surface mounting adhesives, enabling efficient component dispensing and increased productivity. As a result, the surface mounting segment is projected to expand significantly, driving the global electronic adhesives market throughout the forecast period.

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Learn and explore more about Technavio's in-depth research reports

The Global Industrial Adhesives Market is projected to grow significantly, driven by rising demand in automotive, construction, and electronics industries. Key players are focusing on eco-friendly adhesives and technological advancements. Similarly, the Global Phenolic Resin Market is expected to expand due to its increasing use in insulation, laminates, and coatings. This market is characterized by innovations in product formulations to enhance performance and sustainability. Both markets are influenced by growing industrialization and demand for high-performance materials in emerging economies.

Research Analysis

Electronic adhesives are essential materials used in the electronics industry for various applications, including surface mounting, PCBs, semiconductors, potting & encapsulations, and electronic circuits. They are used in various sectors such as computers, communications, consumer goods, industrial, and more. Electronic adhesives come in different forms, including epoxies and silicones, coatings, and electrically conductive adhesives. These adhesives play a crucial role in bonding electronic components to circuit boards and in the encapsulation of sensitive electronic components. Technological advancements in the electronics industry, such as the development of 5G infrastructure networks and the production of smartphones, have led to an increased demand for electronic adhesives. However, environmental factors and raw material prices can impact the market. Tin-lead solders, contactless interaction, and chip bonding are other areas where electronic adhesives are used. UV curing adhesives and tin-soldering are also popular methods used in the industry. The market for electronic adhesives is expected to grow significantly due to the increasing demand for electronic devices and the need for reliable and efficient bonding solutions.

Electronic adhesives play a crucial role in the electronics industry, enabling surface mounting of components on Printed Circuit Boards (PCBs) and securing the attachment of semiconductors. These adhesives are essential in various sectors, including computers, communications, consumer goods, industrial, medical, automotive, and more. The market encompasses epoxies and silicones, used for potting & encapsulations, electronic circuits, and chip-scale packaging. Electronic adhesives offer attributes like thermal conductivity, electrical conductivity, durability, optical clarity, and cure speed. They are eco-friendly and non-toxic, making them suitable for diverse applications. In the communications industry, they contribute to fiber-optic connectivity, data centers, and optical transceivers. In the mobile electronic devices sector, they are integral to touch screens & displays, smartphones, and wireless communication. The market is influenced by technological advancements, product launches, and product portfolio expansion. Raw material prices, environmental factors, and the growing demand for 5G infrastructure networks also impact the market. Epoxies and silicones are widely used in various applications, from power semiconductors to optomechanical assemblies. Network companies, wireless carriers, and broadband carriers are significant consumers of electronic adhesives. The market includes various resin types, such as epoxy resin, silicone resin, acrylic resin, polyurethane resin, and others. Applications range from industrial to commercial aviation, luxury packaging, MRO, and more. Key trends include miniaturization/automation, customization, and the increasing use of electrically conductive adhesives as alternatives to tin-lead solders. Major events like Formnext in Frankfurt showcase the latest technological advancements and product offerings. Companies like Henkel and Bostik are significant players in the market, catering to various industries and applications. The market continues to evolve with the increasing demand for eco-friendly, non-toxic adhesives and the growing importance of 5G infrastructure networks and electric vehicles.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Surface Mounting
• Conformal Coating
• Wire Tacking
• Potting And Encapsulation
• Product
• Electrically Conductive Adhesives
• Thermally Conductive Adhesives
• UV Curing Adhesives
• Others
• Geography
• APAC
• Europe
• North America
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio