LONDON – The global electronic adhesives market was valued at $5.5 billion in 2018 and is expected to grow at an ~8% CAGR during the forecast period 2019-2029, according to Future Market Insights.
The electrical and electronics industry is experiencing notable changes as a result of continuous investments by manufacturers in research and development, which is boosting demand and production of value-added products. This, in turn, is creating new sales opportunities for electronic adhesives, according to the research firm.
Electronic adhesives are highly dependent on the availability of their raw materials, such as petroleum-derived plastic resins, elastomers, synthetic rubber, and agents or additives used to improve certain characteristics of electronic adhesives. As uninterrupted supply of raw materials by market players has increased demand from end-user industries, demand for electronic adhesives is likely to grow in the coming year. Therefore, more players are entering the market for raw material development for electronic adhesives production.
The East Asia region has greatly profited from the electronic industry by incorporating production networks, which result in enhancing the trade with countries of Asia Pacific such as China, says the firm.
China plays a crucial role in the electronic adhesives market. China imports various electronic parts and devices from various Asia Pacific countries and exports them worldwide, which creates a positive impact on the electronic adhesives market. Moreover, Thailand is one of the largest electronic device assembly bases among Asian countries, with over 2,300 companies powered by a 400,000 labor force. It is a world leader in manufacturing hard drives, semiconductors, and integrated circuits.
Based on material, silicone is expected to remain the most sought-after material during the upcoming period and is anticipated to hold ~30% value share of the global electronic adhesives market. The demand for silicone is mainly driven by its cost-effectiveness and high elasticity at low temperature.
Collectively, conformal coatings and surface mountings are expected to hold ~35% of the total revenue share. Increasing demand for mobile and other electronic devices will spur demand for electronic adhesives due to wide consumption of protective coatings in these devices.
The expanding base of electronic component suppliers in East and South Asia will improve the overall region’s image, as well as boost the electronic adhesives market in the near future.