The electronic sealants industry is relatively new but experienced a significant turnaround in 2024 with substantial industry demand across three sectors: consumer electronics, automotive, and industrial. As electronic devices continue to shrink in size and grow in sophistication, the need for advanced sealants providing better protection from moisture, dust, and temperature extremes also saw stronger adoption. As more high-performance computing (HPC), 5G network equipment, and Internet of Things (IoT) devices came out, there was a greater need for advanced heat insulation sealants that could better dissipate heat and provide electrical insulation.
Government and regulatory developments also heavily influenced industry conditions in 2024. Those developments drove the evolution of sealants from traditional solvent-based formulations (containing high VOC content) to greener/environment-friendly formulations. Companies investing in ultra-thin conformal coatings and self-healing materials for future electronics have started embracing innovations like nanotechnology and material science.
The industry will grow considerably between 2025 and 2050, thanks to things like fast electrification of transportation, AI-driven automation, improvements in flexible electronics, the need for reliable sealing solutions in space and medicine, and a vision of the future. Between 2025 and 2035, the industry is projected to grow to USD 3.02 billion and have a forecasted CAGR of 9.3%, which is highlighting electronic sealants as a crucial component of future technology-driven industries.
Market Forecast Table
| Metric | Value (in Billion USD) |
|---|---|
| Market Size (2025E) | USD 1.24 Billion |
| Market Value (2035F) | USD 3.02 Billion |
| CAGR (2025 to 2035) | 9.3% |
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Future Market Insights has surveyed the industry through the following stakeholders in the electronic sealants industry: manufacturers, suppliers, and end users, through a recently published report by Future Market Insights (FMI).
The KTM survey confirmed that more than 65% of respondents prefer sealants with better thermal conductivity and water resistance for high-performance computing and automotive electronics. Manufacturers told industry executives that there was an increasing need for miniaturized, high-end sealing products to satisfy the requirements of next-generation electronic components.
One of the other major conclusions realized from the survey is increased demand for green sealant formulations. A staggering 70% of voters reported a move to low-VOC and solvent-free alternatives, spurred on by stricter environmental regulations and the need for company sustainability to drive it.
Regional supply chain initiatives are also growing, with more than 55 percent of respondents seeking localized manufacturing as a means of offsetting global disruption risks. The survey also found greater use of AI and automation in sealant application processes. To achieve greater efficiency and save raw materials, more than 60% of industry participants are implementing automated dispensing and real-time quality monitoring systems.
| Country | Impact of Government Regulations and Mandatory Certifications |
|---|---|
| United States (USA) | Electronic devices have to meet the Federal Communications Commission (FCC) requirements, guaranteeing electromagnetic compatibility (EMC). |
| United Kingdom (UK) | Following Brexit, the UK replaced the European CE mark with the UK Conformity Assessment (UKCA) mark. The UKCA mark is required for the sale of electronic sealants and other products in Great Britain. |
| France | Being part of the EU, France also requires electronic devices to have the CE (Conformité Européenne) marking, which means the devices are in line with EU safety, health, and environmental requirements. |
| Germany | Similar to France, for electronic products, Germany asks for CE marking to ensure compliance with directives for electronic equipment in the EU. |
| Italy | Under the EU directives for product safety and compliance, Italy also demands that electronic products display the CE marking. |
| South Korea | To comply with Korean safety and EMC requirements for electronic products, one must obtain the KC (Korea Certification Certification Mark). NRRA (National Radio Research Agency) is responsible for supervising this certification. |
| Japan | In Japan, that needs to be approved by the Ministry of Internal Affairs and Communications (MIC), and it might also need the VCCI mark for EMC. |
| China | CCC, or the China Compulsory Certificate, is required for electronic devices to ensure their safety and quality. The State Radio Regulation of China (SRRC) also requires type approval for radio transmission equipment. |
| Australia and New Zealand | This was the stage where products must comply with the Regulatory Compliance Mark (RCM), which indicates compliance with safety and EMC standards set by the Australian Communications and Media Authority (ACMA). |
| India | Some of the electronic products also require the Bureau of Indian Standards (BIS) certification to ensure safety and quality. Furthermore, the Wireless Planning & Coordination (WPC) wing requires Equipment Type Approval (ETA) for wireless devices in de-licensed bands. |
USA electronic sealants industry is estimated to register a Compound Annual Growth Rate (CAGR) of approximately 8.5% during the period of forecast (2025 to 2035), slightly lower than the international average.
USA demand is further bolstered by the semiconductor, automotive, and aerospace sectors. Government initiatives, such as the CHIPS Act and the Science Act, are boosting domestic semiconductor production.
Additionally, the Biden administration's drive for electric vehicle (EV) adoption has accelerated investment in EV battery manufacturing, with electronic sealants being a key component to manage its thermal configuration and ensure safety. The EPA and OSHA have regulated the chemical composition of various sealants, encouraging manufacturers to use low-VOC and eco-friendly formulations.
UK Electronic Sealants Industry is expected to register a CAGR of ~8% during the forecast period 2025 to 2035. The UK Conformity Assessed (UKCA) mark became available after Brexit and is now mandatory, replacing the European CE mark.
This change requires manufacturers to comply with new standards before entering the industry. The UK is one of the industry leaders in 5G infrastructure technology, and next-generation telecommunications are further accelerating demand for durable, water-resistant sealants.
The UK's Road to Zero strategy further encourages widespread adoption of EVs, which will drive increased demand for high-performance adhesives and sealants used in battery and powertrain applications. At the same time, the expansion of data centers and cloud computing also drives growth, as electronic sealants are considered necessary for heat dissipation and insulation in high-performance computers.
French electronic sealant industry is predicted to grow at a CAGR of approximately 8.0% over the period of 2025 to 2035. France has a sizeable automotive and aerospace sector, both of which require high-reliability electronic components protected by sophisticated sealants.
The product design and supply chain choices will be influenced by compliance with EU directives, such as Restriction of Hazardous Substances (RoHS) and REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals). Furthermore, localization initiatives in semiconductor manufacturing, prompted by France's participation in the European Chip Act, are expected to contribute to the growing demand for sealants for semiconductor packaging.
Germany's electronic sealants industry is forecasted to reach USD 380 million by 2035, growing at a CAGR of 8.2% from 2025 to 2035. Germany, the automotive and industrial automation industry leader in Europe, presents strong demand for high-tech electronic sealants to protect components in EVs, autonomous cars, and factory automation systems.
The Industry 4.0 initiative, which propels smart manufacturing, is fuelling the AI-driven automated sealant application systems industry. Compliance with EU environmental regulations motivates producers to develop low-VOC and halogen-free products. Headed up by names like Infineon Technologies, the German semiconductor industry is also on the rise-and such chip packaging immediately drives demand for more thermal interface sealants and conformal coatings.
From 2025 to 2035, Italy's electronic sealants industry is expected to expand at a CAGR of around 7.5%. Sealant demand is mainly from the automotive and consumer electronics sectors of Italy. In the country, with a strong emphasis on energy efficiency and electrification, there are investments driving both battery technologies and power electronics, both of which need high-performance sealing solutions.
Italy also has a large luxury home appliance and electronics industry that requires high-durability sealants to waterproof and insulate those appliances. The composition of the sealants is REACH and RoHS compliant according to the EU regulations on the chemical agents.
Throughout the forecast period (2025 to 2035), the South Korean electronic sealants industry is projected to grow at a higher-than-global CAGR of nearly 9.0%. Home to Samsung, LG, and SK Hynix, South Korea is a world leader in semiconductors, display technology, and consumer electronics, driving enormous demand for electronic sealants in applications ranging from chip packaging to flexible OLED displays.
Government policies are established to perpetuate green technology and sustainable production, as stated in the Korean New Deal and forwarders for low-emission, high-efficiency sealants. The vitalization of overseas production by South Korean EV battery companies LG Energy Solution and Samsung SDI is also beneficial to the domestic industry.
From 2025 to 2035, the electronic sealants industry in Japan is projected to grow at a rate of roughly 8.0%. Japan remains a leader in the miniaturisation of high-precision electronics and robotics, which require extensive thermal management and moisture-resistant sealants. The government's Green Growth Strategy promotes the use of green adhesives and coatings, which leads the manufacturers to produce low-VOC and halogen-free sealants.
Industries like Japan's 5G growth and AI-based automation have a strong demand for high-performance materials that can withstand harsh conditions. Japanese Industrial Standards (JIS) specify electronic sealants to be highly durable, non-toxic, and highly stable over the long term. The leading Japanese players are investing in R&D to enhance the properties of the sealants used in semiconductors, flexible displays, and electric vehicles.
China anticipates its electronic sealants industry will grow at the fastest CAGR of 10.0% between 2025 and 2035, surpassing global averages. China occupies a dominant position in semiconductor manufacturing, 5G infrastructure, and EV production as the world’s leading electronics producer. Demand for high-quality, locally manufactured sealants is driving initiatives such as "Made in China 2025" and the semiconductor localization plan.
The China Compulsory Certification (CCC) ensures that the sealants used for electronics adhere to stringent safety and eco-friendliness criteria. Heat-resistant adhesives and battery sealants have seen momentum owing to the push for electric vehicle (EV) adoption in China under the Dual Credit Policy.
Between 2025 and 2035, the electronic sealants industry in Australia and New Zealand is expected to grow at a CAGR of roughly 7.0%. Demand for electronic sealants used in solar inverters, wind turbines, and battery storage is being driven by the growing number of renewable energy schemes and a rise in smart grid technologies.
To be in compliance with electronic sealants, they must fully meet the RCM (Regulatory Compliance Mark) standards for safety and EMC (Electromagnetic Compatibility). The rapid adoption of 5G and smart home technology also drives the demand for thermally conductive and moisture-resistant sealants. The push towards sustainable construction and energy-efficient technologies further supports industry growth.
Due to the fast-paced industrialization and urbanization, rapid growth in India's electronic sealant industry is anticipated from 2025 to 2035, when it is likely to expand at an approximate CAGR of 9.5%. The "Make in India" policy has increased local electronics production significantly, thus increasing demand for protective sealants in consumer electronics, semiconductor, and automotive end-use segments.
Major factors driving the industry include government initiatives for domestic manufacturing of semiconductors in India (India Semiconductor Mission) and for manufacturing of electric vehicles (Faster Adoption and Manufacturing of Electric Vehicles-FAME II).
Sealants used in electrical applications require a BIS mark from the Bureau of Indian Standards, ensuring compliance with safety and environmental standards. Asia is witnessing a growing demand for high-performance electronic adhesives and coatings due to India’s 5G deployment and smart city initiatives.
Silicone sealants (including RTV silicones and silicone gels) hold the top position in the electronic sealants industry with over 68.2% of the international share in 2022. This makes them ideal for most electronic applications due to their superior heat stability, flexibility, and weatherability. Well used in hostile environments are epoxy sealants, which have notable adhesion and chemical resistance.
Polyurethane (PU) sealants are flexible, durable, and excellent for dynamic applications. Acrylic sealants cure quickly and cheaply but are used for less critical applications; related criteria to choose between acrylic sealants are generally faster curing time and lower cost. Polydimethylsiloxane (PDMS) sealants are typically categorized as silicone sealants, valued for their excellent dielectric properties, making them suitable for electrical insulation in a wide range of applications.
The gap fillers segment has emerged as a crucial application segment, with an estimated value of nearly USD 443.4 million by 2033. These devices are called thermal interface materials, engineering materials used to improve the heat transfer between at least two solid interfaces. Encapsulation and potting involve embedding electronic components into resinous materials, protecting them against moisture, dust, and mechanical stress.
Solder joint reinforcing based on under filling improves the mechanical properties of the devices, which is critical for portable devices. Conformal coatings are a chemically protective coating over a printed circuit board that protects them from foreign material contaminants.
The industry employs sealants to maintain proper operating temperatures for effective thermal management throughout a device’s lifetime. Sealants are useful in surface mounting operations to hold components on printed circuit boards in place stably and reliably.
The electrical and electronics industry is the largest user of electronic sealants, representing around 44.2% of the total industry in 2022. The need to seal sensitive components in consumer electronics, industrial equipment, and medical devices drives this sector.
Electronic sealants are being used increasingly in electric vehicles (EVs), advanced driver-assistance systems (ADAS), and infotainment systems, where reliability in changing conditions is critical. This trend is putting more pressure on the automotive industry. The defense and aerospace industries require high-temperature, pressure-resistant sealants to ensure the integrity of their avionics and communication systems.
This sector provides telecommunication equipment like routers, switches, and antennas in adverse environmental conditions to ensure uninterrupted service and employ sealants as protective agents. The growing use of electronics also led to a rise in the need for electronic sealants in fields like industrial automation and renewable energy, which need to protect electronic parts in a complex and dangerous environment.
| 2020 to 2024 | 2025 to 2035 |
|---|---|
| The industry saw steady growth with growing consumer electronics, increasing uptake of EVs, and advancements in semiconductor production. | The report predicts the industry will gain speed, propelled by demand for advanced sealants in the fields of artificial intelligence (AI) technologies, 6G networks, and high-end semiconductor packaging. |
| America's supply chain disruptions from COVID-19 brought about temporary slowdowns in manufacturing, but demand recovery was brisk due to increased digitalization and work-from-home trends. | Supply chain resilience and localization efforts will accelerate, decreasing dependency on third-party suppliers and home-based production. |
| Regulatory reforms targeting dangerous chemicals (compliance with RoHS and REACH) forced manufacturers to develop innovative, eco-friendly, low VOC sealants. | More stringent environmental legislation and sustainability targets will accelerate this trend of bio-based, solvent-free, and recyclable sealant technologies. |
| Slow and steady development focused on traditional applications like conformal coatings and potting in consumer electronics and automotive industries. | Opportunities for growth will emerge through miniaturization in wearables, the thermal management of AI chips, and underfilled solutions for high-density PCBs. |
| On the other side of the coin, in leading geographies, excluding China, the USA, and Germany, the electronics and automotive industries performed exceptionally well. | India and Southeast Asia will be other emerging industries to watch, buoyed by supportive government policies to underpin local EV and semiconductor manufacturing. |
The electronic sealants industry is a part of the specialty chemicals and advanced materials industry. It serves the semiconductor packaging, electronics manufacturing, and thermal management solutions industries. It relates to the consumer electronics, automotive electronics, and telecommunications as well as industrial automation sectors, which are all undergoing rapid technological evolution!
From a macro perspective, the industry is largely dependent on world GDP growth, industrial production trends, trade policies, and technological revolutions. As the world starts to recover from the pandemic (2021 to 2024), more money is being spent on digital infrastructure, 5G communications, electric vehicles (EVs) and smart manufacturing.
This has driven increased demand for high-performance adhesives and sealants. However, rising geopolitical risks, disruptions in the semiconductor supply chain, and inflationary pressures have impacted plant costs and material prices.
In particular, from 2025 to 2035, the industry will be headed by fierce government backing for semiconductor self-sufficiency in key economies, including the United States (CHIPS Act), European Union (European Chips Act), and China (Made in China 2025).
Other factors that will have an impact on the industry include sustainability laws, green concerns, and progress in nanotechnology, which will drive the manufacturing of bio-based, non-toxic, and recyclable electronic sealants. Vietnam, India, and Brazil, with rapidly growing electronics and renewable energy industries, will further drive demand.
The electronic sealants industry includes the competition by price, product innovations, collaboration, and globalization. Organizations prefer R&D investments to manufacturing high-performance, eco-friendly, and miniaturization-compliant sealants. However, cost efficiency remains critical, as producers balance premium compositions with competitive pricing to maximize industry share.
Industry Market Share Analysis
The strategies for growth include mergers and acquisitions for the expansion of technology capabilities, partnerships with semiconductor and EV manufacturers, and geographical expansion for onshore fabrication. Sustainability programs also play a role, as companies develop bio-based or low-VOC sealants to help meet stringent regulations. Moreover, digitalization in manufacturing enhances the supply chain's resilience and customer access.
3M
Estimated Industry Presence: ~20-25%
A global leader in adhesives and sealants, 3M is a major player in the electronic sealant industry owing to its innovative product portfolio catering to the electronics, automotive, and aerospace sectors. It also provides horizontal and vertical joint sealant solutions for paraffin waxes and other high-performance products as well as sustainable materials used in the 3M Group.
Henkel AG & Co. KGaA
Approximate Industry Share: ~15-20%
Henkel leads the electronic sealants industry with its Loctite and Bergquist brands. Henkel leverages its extensive global research and development network to develop innovative solutions for thermal management and electronic device bonding.
Dow Inc.
Industry Share Estimate: ~10-15%
For silicone-based sealants with durable, flexible electronics, Dow is the only option available. It has built on customizations and partnerships with OEMs to meet specific industry needs.
H.B. Fuller
Estimated Industry Share: ~8-12%
H.B. Fuller, a major player in industrial adhesives, targets electronics with its specialty sealants. It concentrates on growing its base by following innovation and alliances.
Parker Hannifin
Estimated Industry Share: ~5-10%
Focusing on polysulphide and silicone sealants, Parker Hannifin caters to selected electronic applications across the aerospace and defense segments. It is continuously using engineering skills to improve its competitiveness and remains aligned to its industry.
In 2024 Henkel AG & Co. KGaA strengthens its portfolio with an expanded offer of advanced electronics materials, particularly in thermal management and miniaturization. The company boosts focus on sustainable solutions in line with a broader industry trend toward eco-friendly products. To address the specific needs of next-generation product sophistication, Henkel's strategy focuses on strengthening partnerships with electronics manufacturers.
The 3M company introduces new products designed to protect products during extended exposure to harsh environments, targeted to automotive and industrial electronics applications. By working with original equipment manufacturers (OEMs) to include its sealants in well-known technologies, 3M is reaffirming its commitment to staying competitive by making improvements based on what customers want.
The growing semiconductor and EV industry: with advanced semiconductor packaging and electric vehicles (EVs) taking off, investors should look for high-performance sealants that offer thermal stability, suitability for miniaturization, and high dielectric strength. Companies in the sector must team up with chipmakers and EV battery makers to achieve specialized formulations that could improve heat dissipation and extend the life of electronic components.
Investing in environmentally friendly and rule-compliant sealants: The strictest environmental laws in the EU, the USA, and China are driving demand for low-VOC, solventless, and bio-based sealants. Investors should focus their investments on sustainable chemistry innovations and life-cycle assessments to gain regulatory approvals and persuade green-conscious industries, particularly automotive and consumer electronics.
Diversification into Emerging Industries: India, Vietnam, and Brazil are fast emerging electronics manufacturing bases. These developments can primarily happen through setting up local production units, collaborating with OEMs, and aligning with government incentives (such as India's PLI scheme for semiconductors) to allow strong industry presence.
Adopting smart manufacturing and digitalization: the industry must leverage AI-led automated quality checks, digital supply chain mapping, and production automation. IoT-empowered production facilities will reduce costs, increase efficiency, and accelerate production, giving companies a competitive edge.
Electronic sealants protect against moisture, dust, and thermal shock and significantly extend the lifetime of sensitive components.
Timely encapsulation and underfilled processes for accurate moulding enrichment, such that ruggedness is provided without mass for tight designs.
Moreover, newer formulations meet and exceed performance thresholds as well as eco-friendly regulations.
Customized sealants improve the flow of heat and the ability to stick to surfaces, which makes AI chips and high-performance computing sources work better.
Stricter regulations in the EU, USA, and China are forcing manufacturers toward using low-VOC and RoHS-compliant products.
The industry is segmented into silicone sealants, RTV silicones, silicone gel, epoxy sealant, PU sealant, acrylic sealant and polydimethylsiloxane sealant
It is segmented into encapsulation, underfilling, potting, conformal coating, thermal management, gap fillers, surface mounting and others
Industry, it is fragmented into aerospace and defense, electrical and electronics, telecommunication, automotive and others
The sector is segmented into North America, Latin America, Western Europe, Eastern Europe, Central Asia, Russia and Belarus, Balkan and Baltic, South Asia Pacific, East Asia, Middle East and Africa
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Electronic Sealants Market
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