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Report Outlook
| Market Size | CAGR | Dominating Region |
|---|---|---|
| USD 95.63 Billion by 2029 | 6.0% | Asia Pacific |
| By Type | By Application | By Region |
|---|---|---|
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|
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SCOPE OF THE REPORT
Electronic Chemicals and Materials Market Overview
The electronic chemicals and materials market is expected to grow at 6.0% CAGR from 2022 to 2029. It is expected to reach above USD 95.63 Billion by 2029 from USD 60 Billion in 2020.
The consumer electronics sector has experienced rapid expansion in recent years. Consumers’ rising disposable income and the affordable availability of gadgets like mobile phones, TVs, and laptops are the main drivers of the consumer electronics market’s expansion. In the majority of growing nations, including India, Brazil, and the UAE among others, smartphone penetration has considerably increased. In order to reduce overall fabrication and manufacturing costs and create goods that are accessible, manufacturers are adopting cost-effective materials. The market penetration of consumer electronic gadgets is anticipated to rise even further as a result of these strategies. Hence, as the global electronics sector expands, so does the demand for electronic chemicals and materials, fueling market expansion.
The market for electronic chemicals and materials is expanding rapidly due to the increase in demand for products used in the production of semiconductors. For the manufacture of diverse electronic components and goods, the electronic industry uses a sophisticated and wide spectrum of specialty chemicals. Chemicals in the solid, liquid, and gaseous states are included in the category of electronic chemicals. Among the chemicals used are agrichemicals, adhesives, cleaning agents, industrial gases, lubricants, polymers, paints, surfactants, and other substances. One of the key factors boosting the market growth for electronic chemicals and materials is the recovery of the semiconductor sector. The market for electronic chemicals and materials is also expected to grow quickly as a result of technical advancements in the electronics sector. However, the absence of local electronic manufacture in the developing countries and the severe environmental and health regulations that apply to specific chemicals and materials are further predicted to impede market expansion in the years to come. The improved IT infrastructure and upcoming technologies like AI and IoT, the rise in PCB usage in the telecommunication industry, and the rise in demand for quick diagnostic systems due to the COVID-19 pandemic outbreak will all provide additional growth prospects for the electronic chemicals and materials market. Yet, the rapid decline in the use of outdated technology may further restrict the market’s expansion for electronic chemicals and materials.
| ATTRIBUTE | DETAILS |
| Study period | 2020-2029 |
| Base year | 2021 |
| Estimated year | 2022 |
| Forecasted year | 2022-2029 |
| Historical period | 2018-2020 |
| Unit | Value (USD BILLION) |
| Segmentation | By Type, By Application, By End user, By Region |
| By Type |
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| By Application |
|
| By Region |
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The semiconductor business uses a wide range of electronic chemicals and materials, including silicon wafers, conductive materials, insulators, and specialty gases. Electronic components including transistors, integrated circuits, and diodes are produced using semiconductors. Electronic products including computers, smartwatches, televisions, and smartphones are all made with the help of these components. Due to improved lifestyles, an increase in per capita income, and rising urbanisation, there is a huge demand for smartphones, smartwatches, and other electronic devices. Thus, the market expansion is being driven by the rising demand for electronic devices as well as the high usage of various chemicals and materials in semiconductors.
Market growth for electronic chemicals and materials is being driven by the increase in demand for LED and OLED televisions. China, South Korea, and Taiwan are home to the majority of the world’s flat panel display producers, who also dominate the supply of these devices on the market. These displays can be found in a number of products, including cellphones, personal computers, industrial machinery, and automobiles. Most TV screens are made of liquid crystal displays (LCDs). Organic light-emitting diodes (OLEDs) and quantum dots are additional display types utilised in televisions. Smartphone screens also employ LCDs and OLEDs. The creation of flat panel displays involves the employment of numerous chemicals and materials. Thus, a rising demand for flat panel displays across the globe is driving the growth of electronic chemicals and materials market.
In the process of making electronics, the electronics sector requires a wide variety of materials and chemicals. In Europe alone, the electronics sector is governed by close to 500 laws. The regulations range from those pertaining to conflict minerals, recycling of the product, usage of refrigerants, ozone-depleting substances, and energy efficiency. To avoid an environmental catastrophe or a health emergency, the electronics maker must abide by these rules. The cost of operation is considerable due to the compliance with these requirements. In the supply chain, rules pile up, and the purchase of raw materials, manufacture, packaging, distribution, and final product disposal come at a high cost.
A new product subcategory of intelligent home gadgets has been produced as a result of the introduction of new technologies like loT (Internet of Things) and Al (Artificial Intelligence). The Wall Street Journal predicts that lot would increase at an explosive rate, particularly in the industrial area, where a growth of 65% is predicted. The market’s overall size would be USD 662 billion. For makers of electronic materials, the utilisation of Al-related technologies has created a wide range of options. The market for electronics materials has gained access to a new revenue stream as a result of the growing demand for electric vehicles. The market participants for electronic chemicals and materials can thus investigate new revenue streams.
Covid-19 caused limitations to be enacted in major economies like China, India, Germany, and the United States, which disrupted the supply chain for businesses that produce electronic chemicals and materials. The disruption of the supply chain and logistics caused a 15-20% reduction in electronic chemical products, according to Independent Chemical Information Services. Many businesses ceased operations due to there was less demand from the end user. In addition, there was less demand for electronic goods as a result of shipping limitations on non-essential items, which had an effect on the entire electronics industry. The largest manufacturer and exporter of electronic goods’ raw materials worldwide is China. The nation had to halt production throughout the outbreak. It forced other electronic manufacturers, particularly those from the US and Europe, to momentarily suspend the production of finished items, resulting in a gap between the supply and demand for electronic goods. On the other hand, by the middle of 2020, demand for certain electronic devices such as tablets, phones, laptops, tablets, and other gadgets surged, mostly as a result of the widespread use of teleworking systems. These elements severely affected the demand for electronic chemicals and materials.
Electronic Chemicals and Materials Market Segment Analysis
The electronic chemicals and materials market is segmented based on type, application and region.
By type, the market is bifurcated into (Specialty gases, CMP slurries, Conductive polymer, Photoresist chemicals, Low K dielectrics, Wet chemicals, Silicon wafers, PCB laminates). By application into (Semiconductors, Others) and region.
The market for electronic chemicals and materials is divided into many categories depending on what they are used for, including specialty gases, CMP slurries, photoresist chemicals, conductive polymers, low k dielectrics, wet chemicals, silicon wafers, and PCB laminates. The market’s greatest share was held by the silicon wafers segment in 2019, and this trend is anticipated to continue over the coming years. The manufacture of integrated circuits uses silicon wafers, which act as a substrate for microelectronic devices. One of silicon wafers’ most important uses is for integrated circuits, which are the building blocks of computers, smartphones, and all other electronic devices. Tire pressure monitoring devices and solar cells are further uses. The segment is predicted to develop as a result of the rapidly rising demand for silicon from a variety of end-use industries, including solar photovoltaic. Silica price volatility is projected to occur throughout the forecast period as a result of escalating tension and trade conflicts between China, the United States, and the European Union.
The semiconductor and other application-based segments make up the electronic chemicals and materials industry. In 2019 the semiconductor segment accounted for a greater market share, and this dominance is anticipated to continue throughout the projected period. Integrated circuits and printed circuit boards are the two additional divisions of the semiconductor market. To improve operation and ensure correct maintenance, electronic chemicals and materials are used to clean, etch, polish, dope, and service semiconductors. The semiconductor industry is impacted by technological developments in the electronics sector. For instance, it’s anticipated that emerging technologies like artificial intelligence (AI) would dominate this industry during the projection period.
Electronic Chemicals and Materials Market Key Players
The electronic chemicals and materials market key players includes BASF Electronic Chemicals, Air Products & Chemicals Inc., Albemarle Corporation, Bayer AG, Honeywell International Inc., Linde plc, Showa Denko Materials Co., Ltd., DuPont de Nemours, Inc., Shin-Etsu Chemical Co. Ltd., Cabot Microelectronics Corporation.
Industry Development:
19 December 2022: BASF has delivered the first batch of nickel-cobalt-manganese (NCM) cathode active materials (CAM) via its majority-owned joint venture BASF TODA Battery Materials LLC (BTBM) to Prime Planet Energy & Solutions (PPES), a joint venture between Toyota Motor Corporation (Toyota) and Panasonic Holdings Corporation (Panasonic).
08 December 2022: BASF’s ColorBrite® Airspace Blue ReSource basecoat, certified by REDcert² according to a biomass balance approach, made its debut in China. This is the first time BASF’s biomass balance automotive OEM coatings were introduced to Asia since the official launch in Europe in May of this year.
Who Should Buy? Or Key Stakeholders
- Electronics manufacturers
- Chemical manufacturers
- Suppliers and distributors
- Research and development organizations
- Government agencies
- Investors and financial institutions
- Regulatory Authorities
- Others
Electronic Chemicals and Materials Market Regional Analysis
The electronic chemicals and materials market by region includes North America, Asia-Pacific (APAC), Europe, South America, and Middle East & Africa (MEA).
- North America: includes the US, Canada, Mexico
- Asia Pacific: includes China, Japan, South Korea, India, Australia, ASEAN and Rest of APAC
- Europe: includes UK, Germany, France, Italy, Spain, Russia, and Rest of Europe
- South America: includes Brazil, Argentina and Rest of South America
- Middle East & Africa: includes Turkey, UAE, Saudi Arabia, South Africa, and Rest of MEA
With China, Japan, and India being the main nations with promising growth potential, the Asia-Pacific region is anticipated to have the quickest rate of growth in the market for electronic chemicals and materials during the forecast period. Printed circuit boards are in extremely high demand due to the considerable global growth the electronics industry has experienced over the last 20 years. The largest PCB manufacturer is located in Asia-Pacific. The PCB market is expanding, which is boosting the market for electronic chemicals and materials in the area. Other industries that are developing include telecommunications and IT, smart cards, electronic gaming, consumer goods, and smart cards, among others. Furthermore anticipated to have significant growth potential during the forecast period are North America and Europe.
The market in North America is expanding significantly as a result of the quickly increasing demand for electronic gadgets. For the production of electronic devices, the region has seen a growth in the usage of CMP slurries, Low-K dielectrics, and photoresist chemicals. In addition, the market is being stimulated by technological developments and semiconductor R&D.
A larger use of electronic gadgets with cutting-edge technologies, such as smart homes and offices, is what defines the market’s expansion in Europe. Also, the region’s significant suppliers and producers of electronic equipment and supplies encourage the use of electronic chemicals and materials. Furthermore, the region’s market is anticipated to be driven by Germany, which is the region’s leading provider of electronic appliances, electronic medical systems, and household appliances.
Key Market Segments: Electronic Chemicals and Materials Market
Electronic Chemicals And Materials Market By Type, 2020-2029, (USD Billion), (Kilotons).
- Specialty Gases
- Cmp Slurries
- Conductive Polymer
- Photoresist Chemicals
- Low K Dielectrics
- Wet Chemicals
- Silicon Wafers
- Pcb Laminates
Electronic Chemicals And Materials Market By Application, 2020-2029, (USD Billion), (Kilotons).
- Semiconductors
- Others
Electronic Chemicals And Materials Market By Region, 2020-2029, (USD Billion), (Kilotons).
- North America
- Asia Pacific
- Europe
- South America
- Middle East And Africa
Important Countries In All Regions Are Covered.
Exactitude Consultancy Services Key Objectives:
- Increasing sales and market share
- Developing new application
- Improving profitability
- Entering new markets
- Enhancing brand reputation
Key Question Answered
- What is the expected growth rate of the electronic chemicals and materials market over the next 7 years?
- Who are the major players in the electronic chemicals and materials market and what is their market share?
- What are the end-user industries driving demand for market and what is their outlook?
- What are the opportunities for growth in emerging markets such as Asia-Pacific, Middle East, and Africa?
- How is the economic environment affecting the electronic chemicals and materials market, including factors such as interest rates, inflation, and exchange rates?
- What is the expected impact of government policies and regulations on the electronic chemicals and materials market?
- What is the current and forecasted size and growth rate of the global electronic chemicals and materials market?
- What are the key drivers of growth in the electronic chemicals and materials market?
- What are the distribution channels and supply chain dynamics in the electronic chemicals and materials market?
- What are the technological advancements and innovations in the electronic chemicals and materials market and their impact on type development and growth?
- What are the regulatory considerations and their impact on the market?
- What are the challenges faced by players in the electronic chemicals and materials market and how are they addressing these challenges?
- What are the opportunities for growth and expansion in the electronic chemicals and materials market?
- What are the products offerings and specifications of leading players in the market?
- What is the pricing trend of electronic chemical and material in the market and what is the impact of raw material prices on the price trend?
FAQ
The electronic chemicals and materials market is expected to grow at 6.0% CAGR from 2022 to 2029. It is expected to reach above USD 95.63 billion by 2029 from USD 60 billion in 2020.
Asia Pacific held more than 44% of the electronic chemicals and materials market revenue share in 2021 and will witness expansion in the forecast period.
The semiconductor business uses a wide range of electronic chemicals and materials, including silicon wafers, conductive materials, insulators, and specialty gases. Electronic components including transistors, integrated circuits, and diodes are produced using semiconductors. Electronic products including computers, smartwatches, televisions, and smartphones are all made with the help of these components. Due to improved lifestyles, an increase in per capita income, and rising urbanisation, there is a huge demand for smartphones, smartwatches, and other electronic devices. Thus, the market expansion is being driven by the rising demand for electronic devices as well as the high usage of various chemicals and materials in semiconductors.
The consumer electronics sector has experienced rapid expansion in recent years. Consumers’ rising disposable income and the affordable availability of gadgets like mobile phones, TVS, and laptops are the main drivers of the consumer electronics market’s expansion. In the majority of growing nations, including India, Brazil, and the UAE among others, smartphone penetration has considerably increased. In order to reduce overall fabrication and manufacturing costs and create goods that are accessible, manufacturers are adopting cost-effective materials. The market penetration of consumer electronic gadgets is anticipated to rise even further as a result of these strategies. Hence, as the global electronics sector expands, so does the demand for electronic chemicals and materials, fueling market expansion.
With China, Japan, and India being the main nations with promising growth potential, the asia-pacific region is anticipated to have the quickest rate of growth in the market for electronic chemicals and materials during the forecast period. Printed circuit boards are in extremely high demand due to the considerable global growth the electronics industry has experienced over the last 20 years. The largest pcb manufacturer is located in Asia-Pacific. The PCB market is expanding, which is boosting the market for electronic chemicals and materials in the area. Other industries that are developing include telecommunications and it, smart cards, electronic gaming, consumer goods, and smart cards, among others. Furthermore anticipated to have significant growth potential during the forecast period are north america and europe.
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