The global electronics adhesives market size is expected to be valued at USD 5.1 billion in 2023. Advancements in 5G technology, bolsters the overall scope for electronics adhesives market, which is projected to grow at a CAGR of 9.0% between 2023 and 2033, totaling around USD 12.1 billion by 2033.
| Data Points | Key Statistics |
|---|---|
| Electronics Adhesives Market Value 2023 | USD 5.1 billion |
| Electronics Adhesives Market Projected Value (2033) | USD 12.1 billion |
| Electronics Adhesives Market CAGR (2023 to 2033) | 9.0% |
The emergence of smart manufacturing and Industry 4.0 concepts is revolutionizing the electronics manufacturing industry, leading to increased demand for adhesives that can support efficient and automated assembly processes. Smart manufacturing refers to the use of advanced technologies such as Internet of Things (IoT), artificial intelligence, robotics, and data analytics to optimize manufacturing operations and enhance productivity.
Industry 4.0, on the other hand, represents the fourth industrial revolution characterized by the integration of digital technologies into industrial processes, enabling real-time data exchange, automation, and smart decision-making. The implementation of smart manufacturing and Industry 4.0 principles in electronics production is transforming traditional assembly methods and driving the need for innovative adhesives.
One of the key requirements of smart manufacturing is the ability to achieve faster production cycles and higher throughput. Adhesives with quick cure times are crucial in meeting these demands. Fast-curing adhesives enable rapid bonding and fixation of components, reducing assembly time and increasing production efficiency. Manufacturers are increasingly adopting adhesives that offer rapid curing properties, allowing for faster handling, inspection, and packaging of electronic devices.
Another important aspect of smart manufacturing is the integration of automated assembly systems. Adhesives compatible with automated production lines are essential to ensure smooth and seamless operations. The adhesives should possess properties that enable precise and consistent dispensing, such as low viscosity for accurate application, controlled flow, and the ability to bond various substrates and components. Adhesives with high dispensing accuracy facilitate automated dispensing processes, reducing the risk of errors, improving product quality, and enhancing production speed.
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The global demand for electronics adhesives is projected to increase at a CAGR of 6.5% during the forecast period between 2018 and 2022, reaching a total of USD 12.1 billion in 2033.
According to Future Market Insights, a market research and competitive intelligence provider, the electronics adhesives market was valued at USD 4.7 billion in 2022.
The increasing demand for wearable devices is a significant factor driving the growth of the electronics adhesives market. Wearable devices have gained immense popularity in recent years due to their ability to integrate technology into everyday accessories, providing convenience, connectivity, and enhanced functionalities to users.
Wearable devices encompass a wide range of products, including smartwatches, fitness trackers, health monitors, smart clothing, and AR glasses. The devices often consist of small, intricate electronic components that need to be securely bonded and protected. Electronics adhesives play a vital role in ensuring the durability, reliability, and performance of these devices.
One of the key requirements for wearable devices is the ability to withstand the challenges of daily use and exposure to environmental factors. Electronics adhesives provide essential protection by bonding and encapsulating the sensitive components, safeguarding them from moisture, dust, and mechanical stress. The adhesives create a barrier that prevents the ingress of water, dirt, and other contaminants, preserving the functionality and longevity of the wearable device.
Wearable devices are designed to be compact, lightweight, and comfortable for users to wear throughout the day. This places specific demands on the adhesives used in their assembly. The adhesives must be able to provide strong bonding while being thin and flexible, ensuring a comfortable fit and seamless integration into the wearable device. Adhesives with low-profile characteristics are preferred to maintain the sleek and compact design of wearable devices.
Miniaturization of Electronic Devices is Likely to be Beneficial for Market Growth
The miniaturization of electronic devices is a significant trend in the electronics industry that is driving the demand for advanced electronics adhesives. Electronic manufacturers are continuously striving to reduce the size and weight of their products while maintaining optimal performance, as consumers demand smaller and more compact devices with increased functionality.
Advanced electronics adhesives used for miniaturized devices are formulated with specific characteristics to meet the requirements of microelectronic applications. The adhesives offer excellent bond strength, precise control over application, and the ability to bond sensitive components without causing damage or affecting their performance. They also provide reliable protection against environmental factors, such as moisture, temperature variations, and mechanical stresses.
The miniaturized electronic devices require adhesives that can withstand the thermal challenges associated with compact designs. Heat dissipation becomes a critical factor, as components are placed in close proximity to each other. Electronics adhesives with enhanced thermal conductivity properties help transfer heat away from sensitive components, ensuring efficient thermal management and preventing overheating issues.
Miniaturization often involves the use of flexible and bendable substrates, such as flexible circuits or wearable electronics. Electronics adhesives with flexibility and elasticity are needed to accommodate the bending and flexing of these substrates without compromising the integrity of the bond. The adhesives should exhibit excellent adhesion to different materials, including plastics, metals, and flexible substrates, ensuring robust bonding even in dynamic conditions.
Increased Adoption of Flexible Electronics to Fuel the Market Growth
The increased adoption of flexible electronics is a significant trend in the electronics industry that is anticipated to accelerate the demand for specialized adhesives. Flexible electronics refer to electronic devices and circuits that are designed to be bendable, stretchable, and conformable to various surfaces. The technology offers numerous benefits such as lightweight design, space efficiency, and the ability to integrate electronics into unconventional shapes and materials.
Flexible displays, sensors, and printed circuit boards are some of the key applications of flexible electronics. Flexible displays, for instance, are being used in smartphones, wearable devices, e-readers, and signage, allowing for curved or foldable screens. Flexible sensors are used in applications such as healthcare monitoring, smart textiles, and automotive systems. Printed circuit boards (PCBs) in flexible form enable the development of thin and lightweight electronic devices.
The adoption of flexible electronics requires adhesives that can bond components to flexible substrates and provide strong, reliable, and durable adhesion. The adhesives must have the ability to withstand repeated bending, stretching, and twisting without compromising the performance or integrity of the electronic device. They should exhibit excellent adhesion to a variety of materials, including flexible substrates such as polyimide or polyethylene terephthalate (PET) films.
Specialized flexible electronics adhesives are formulated to meet these requirements. They offer flexibility, elasticity, and high bond strength to ensure robust adhesion in dynamic and bending conditions. The adhesives provide the necessary mechanical stability to withstand the stresses associated with repeated flexing, while maintaining electrical conductivity and signal integrity.
Principal Consultant
Increasing Electronics Manufacturing to Boost Market Demand
Future Market Insights has projected China to remain a lucrative regional market throughout the forecast period. China is expected to attain a CAGR of 8.5% during the analysis period. One of the key factors supporting growth in the country. China is the leading country in the production of electronic devices and circuits growth prospects will be very promising over the coming years.
Attributing to factors such as increasing electronics manufacturing, as well as rising demand for smartphones and consumer electronics, China remains one of the largest markets for electronics adhesives in the world, which invariably makes it a lucrative sector for manufacturers.
Investments in Aerospace & Defense Activities to Boost Market Demand
India is expected to generate a total absolute USD opportunity of USD 537.5 Mn by the end of the forecast period. The demand for electronics adhesives can largely be attributed to the mobiles and telecommunications sector. The country’s automotive industry is expanding at a high pace, which generates a requirement for relevant raw material supplies. The country is expected to witness a CAGR of 8.2% during the forecast period.
India is the second-largest country by population, which will generate significant opportunities for market players. The Indian players are investing in aerospace and defense activities, which is also creating robust development opportunities for electronic devices and circuit manufacturers.
Increasing Integration of Electronic Systems to Boost Market Demand
The United States is anticipated to hold more than 80% of the market share in North America. The United States has one of the most advanced defense systems in the world owing to investments into research and development (R&D) for advanced technologies, which creates an outstanding demand for electronic devices and circuits which in turn promote the sales of electronics adhesives in the country.
The automotive industry in the country is witnessing a rapid transformation with the increasing integration of electronic systems in vehicles. Advanced features such as infotainment systems, autonomous driving technologies, and electrification require robust electronics adhesives that can withstand harsh automotive environments and provide secure bonding and protection for electronic components.
The United States is witnessing significant growth in the renewable energy sector, particularly in solar and wind power generation. The manufacturing and installation of solar panels, wind turbines, and energy storage systems require electronics adhesives for various applications, including bonding, sealing, and encapsulation of components. The expansion of the renewable energy industry is expected to drive the demand for electronics adhesives. The country is expected to witness a CAGR of 8.1% during the forecast period.
Increasing Demand for Electric Vehicles to Boost Market Prospects
Germany is one of the global leaders in terms of manufacturing activities and infrastructure. The country is expected to grow at CAGR of 7.2% during the forecast period. Germany has strong presence of automotive manufacturers and suppliers. The country caters to the demand for the automotive industry from a number of countries.
Electronics adhesives are used in many automotive systems including collision avoidance systems, engine status displays, power electronic modules, anti-theft systems, and LED packaging. Positive prospects for electric vehicles are boosting the sales of electronics adhesives during the forecast period.
Increasing Demand for Electronics Miniaturization to Boost Market Prospects
Japan is the second largest market for electronics adhesives after China in the East Asia region and has an estimated market value of USD 628.6 Mn in 2022. Japan is well known for its technological advancement, research and development, and manufacturing activities.
Japan is one of the global leaders for industrial automation and robotics, which creates significant demand for electronic devices and circuits in the country. The growing trend of miniaturization of existing electronic products will also prove beneficial. The country is expected to witness a CAGR of 8.0% during the forecast period.
Greater Consumer Interest to Boost Growth
Polyurethane holds about 50% of the global electronics adhesives market share. Electronics adhesives are segmented on the basis of material type in polyurethane, acrylics, silicones, and epoxy.
Polyurethane is gaining greater consumer interest due to its advantages such as thermal resistance, and longer life cycle. Driven by these characteristics, polyurethane is expected to be the fastest growing segment of electronics adhesives with an 8.5% CAGR.
Growth in Mobiles & Telecommunications to Boost the Market Demand
The automotive sector dominates the global electronics adhesives market, with it accounting for 18.8% market share. The growth can be attributed to the high demand for electronic devices and circuits in new and upcoming automobile vehicles across the globe.
In the past few years, the mobiles and telecommunications sector has also witnessed substantial growth due to increasing demand. Desktop and networks manufacturers seen significant growth owing to industrialization. The segment is expected to hold a CAGR of 8.6% during the forecast period.
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Electronics adhesives market startup players are adopting various marketing strategies such as new product launches, geographical expansion, merger and acquisitions, partnerships and collaboration to create a larger customer base. For instance,
Key players in the electronics adhesives market are strongly focusing on profit generation from their existing product portfolios along while exploring potential new applications. The players are emphasizing on increasing their electronics adhesives production capacities, to cater to the demand from numerous end use industries. Prominent players are also pushing for geographical expansion to decrease the dependency on imported electronics adhesives.
Some of the leading companies operating in the market are:
Recent Developments
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD Billion for Value and Kilotons for Volume |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; and the Middle East & Africa |
| Key Countries Covered | USA, Canada, Germany, UK, France, Italy, Spain, Russia, China, Japan, South Korea, India, ASEAN, Oceania, Turkey, Northern Africa, and South Africa |
| Key Segments Covered | Type, Application, End Use, and Region. |
| Key Companies Profiled | 3M; Dymax Corporation; DOW Chemical Company; Henkel AG & Co. KGaA; H.B. Fuller Company (Royal Adhesives & Sealants LLC); Evonik Industries AG; Sika AG; Bostik AG; ThreeBond; Shin Etsu Silicones; Konishi Co, LTD.; TERAOKA SEISAKUSHO CO., LTD.; TOMOEGAWA; YAMATO Co., Ltd |
| Report Coverage | Market Forecast, Brand Share Analysis, Competition Intelligence, DROT analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
Mobile & telecommunications sector holds high revenue potential.
The United States, India, and China dominate the global market.
The market is forecast to register a CAGR of 9% through 2033.
During 2018 to 2022, the market registered a CAGR of 6.5%.
The popularity of wireless devices are the current market trends.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 5.1. Metal 5.2. Polymer 5.3. Others 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Price Range 6.1. Below US$ 20 6.2. US$ 20 - US$ 40 6.3. US$ 40 - US$ 60 6.4. Above US$ 60 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Sales Channel 7.1. Direct 7.2. Retail Sales 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. Asia Pacific 8.5. MEA 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1. Caktus, Inc. 16.2. Ecomo 16.3. Groking Lab, Ltd. 16.4. Hidrate, Inc. 16.5. Open-2 16.6. Moikit 16.7. Thermos, LLC 16.8. Trago, Inc. 16.9. Hydra Coach, Inc. 16.10. Lifefuels, Inc. 17. Assumptions & Acronyms Used 18. Research Methodology
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Electronics Adhesives Market
