Electronic Adhesives Market Size 2024-2028

TThe electronic adhesives market size is forecasts to increase by USD 2.30 billion with  growth at a CAGR of 6.78% between 2023 and 2028. Adhesives are substances that can be applied to either one or both surfaces of two different items and help them bind together. They distribute stress more efficiently across the joints of the surface to which they are applied. Adhesives play a vital role in electronics. Electronic adhesives are widely used in electronic packaging applications (die-attach and hybrid and display assemblies). They provide a mechanical bond and electrical interconnection between a chip carrier and a circuit board contact pad. The growth of the market depends on several factors technological advancements in adhesives, rising demand for electronic adhesives in APAC and increased use in the automobile industry.

What will be the  Market Size During the Forecast Period?

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Market Dynamics

The market encompasses a wide range of products used in the surface mounting of PCBs (Printed Circuit Boards) and the encapsulation of semiconductors in various electronic circuits, including those found in computers, communications systems, consumer goods, industrial applications, and 5G infrastructure networks. These adhesives include electronic adhesives, epoxies, and silicones, which play a crucial role in bonding electronic components to circuit boards and providing protection against environmental factors. Technological advancements in the electronics industry have led to the development of electrically conductive adhesives, tin-lead solders, and contactless interaction technologies.

These innovations have enabled the production of advanced electronic devices such as smartphones, electric vehicles, and chip bonding in printed circuit boards. Raw material prices, particularly for semiconductors and other electronic components, have a significant impact on the market. Additionally, the use of coatings, such as UV curing adhesives and tin-soldering techniques like wave soldering and reflow soldering, further expands the market's scope. Overall, the market is a critical component of the electronics industry, driving technological advancements and enabling the production of various electronic devices. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Technological advancements in adhesives are the key factor driving the growth of the market. The market is experiencing significant growth due to the increasing demand for high-performance adhesives in manufacturing smaller, lighter, and more energy-efficient electronic systems. These offer advantages such as shorter cure times, improved adhesion to various substrates, and resistance to chemicals and moisture. In the electronics industry, adhesives are used extensively in processes like printed circuit board manufacturing, wave soldering, and reflow soldering. UV curing adhesives and tin-soldering are also gaining popularity for their rapid curing and high strength properties. Acrylics and urethane acrylates are commonly used adhesive types, with silicone adhesives undergoing research to enhance their electrical and thermal effectiveness. Key trends include the miniaturization of devices, urbanization, and the increasing use of safety technologies, infotainment systems, and connectivity in various industries. The Atmanirbhar initiative in India is also expected to boost the demand for locally manufactured electronics industry. Factors such as shelf life, non-stringing, wet weight, and pot life are crucial considerations in the selection of adhesives for various applications. Thus, such innovations in adhesives for use in the electronics industry will drive the market growth during the forecast period.

Significant Market Trends

New product launches by players are the key trend driving the growth of the market. The market experiences growth through new product launches by regional and international players. Notable launches include DELO's pressure-sensitive electronic adhesives in November 2020, which cater to display frames and smartphone speaker surfaces due to their low fill factor, reducing costs. In the realm, various types such as UV curing adhesives, acrylics, and urethane acrylates are utilized in processes like printed circuit board manufacturing, wave soldering, and reflow soldering. These offer advantages like rapid curing, high strength, flexibility, and electrical properties, addressing concerns of air entrapment, viscosity changes, and pot life. With urbanization, connectivity, safety technologies, infotainment systems, and the Atmanirbhar initiative driving demand for miniaturized devices, the market is poised for expansion. Key considerations include shelf life, non-stringing, wet weight, and the ability to withstand tin-soldering processes. Thus, new product launches will boost the growth of the market during the forecast period.

Major Market Challenge

Fluctuating raw material prices is the major challenge that hinders the growth of the market. The market is significantly influenced by the cost and accessibility of raw materials, primarily plastic resins, synthetic rubber, inorganic chemicals, industrial inorganic chemicals, and refined petroleum products. These materials, often petroleum-derived, are subject to volatility in commodity prices, particularly oil, which impacts the entire industry. Additionally, logistics costs increase due to rising fuel prices. Manufacturers strive to control the prices of these materials and equipment to produce affordablly. Electronic adhesives are essential in manufacturing processes like printed circuit boards, wave soldering, and reflow soldering. UV curing adhesives, tin-soldering, and acrylics or urethane acrylates are commonly used. Shelf life, non-stringing, wet weight, rapid curing, high strength, flexibility, electrical properties, air entrapment, and viscosity changes are crucial factors. With urbanization, connectivity, safety technologies, infotainment systems, and the Atmanirbhar initiative, the demand for miniaturized devices drives market growth. Key challenges include managing raw material costs, ensuring product safety, and addressing environmental concerns. Thus, price volatility can impede the growth of the market during the forecast period.

Market Segmentation 

Market Application Insights

The surface mounting segment is estimated to witness significant growth during the forecast period. The market has experienced significant growth in recent years, driven by the increasing use of epoxies and silicones in surface-mount assemblies for PCBs. These coatings play a crucial role in fixing electronic components to circuit boards during soldering or reflow processes. They ensure component stability during high-speed processes and provide mechanical strength for Ball Grid Array (BGA) bonding. 

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The surface mounting segment was the largest segment and was valued at USD 2.15 billion in 2018. Advanced electronic adhesives are also utilized in 5G infrastructure networks, smartphones, and other devices for ECAs and solders. Companies in this market offer in various forms, including liquid, paste, and solid, based on epoxy resin, silicone resin, acrylic resin, polyurethane resin, and others. Industrial applications span the electronics industry, commercial aviation, automotive industry, medical devices, luxury packaging, MRO, and more. Key players include Bostik, Henkel, and Formnext at events like 3D Printing in Frankfurt. Customization attributes such as contactless interaction, and technological advancements continue to shape product launches and product portfolios. Factors like environmental factors, raw material prices, and the rise of electric vehicles also impact market trends. Therefore, the surface mounting segment is expected to grow significantly, which will drive the market during the forecast period.

Market Product Insights

Electrically conductive adhesives (ECAs) are thermosetting binding mediums used for interconnecting electronic components on circuit boards. Common types include acrylics, silicones, urethane acrylates, and epoxies. Silver, graphene, and graphene/carbon composites are preferred fillers due to their high conductivity. The demand for ECAs is driven by electronic packaging in the semiconductor industry. Strict regulations on lead usage have reduced soldering in electronics, boosting the need for ECAs. Henkel's LOCTITE adhesives are popular for PCB interconnections. ECAs provide electromagnetic interference (EMI) protection for wireless devices operating in high-frequency environments. The growing demand for portable electronic equipment drives the ECA market and the market overall.

Region Analysis

APAC is estimated to contribute 69% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.

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The market, encompassing epoxies and silicones, plays a pivotal role in the APAC region, where it is experiencing significant market research and growth. Driven by the second and third-largest economies, China and Japan, as well as the fastest-growing consumer markets in China and India, this market shows high potential in the global landscape. Electronic components, such as coatings and circuit boards, rely on electronic adhesives in liquid, paste, or solid form, including epoxy resin and silicone resin. Environmental factors, 5G infrastructure networks, and technological advancements, such as ECAs and tin-lead solders, are key factors fueling demand. Industrial applications span across various sectors, including the electronics industry, automotive industry, medical devices, luxury packaging, MRO, and more. Key players like Bostik, Henkel, and Formnext showcase extensive product portfolios, with attributes like customization and technological advancements setting them apart. Product launches and market trends include the increasing use of devices, contactless interaction, and 3D Printing at events like Formnext in Frankfurt. Raw material prices, electric vehicles, and chip bonding are additional factors influencing market dynamics. Such factors will drive the demand in the region during the forecast period.

Key Companies

Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.

3M Co.: The market caters to electronic adhesives, including 3M's Scotch Weld Epoxy Potting Compound DP270 (Black, 400 mL Duo Pak), Scotch Weld Epoxy Adhesive DP190 (Gray), and Scotch Weld Urethane Adhesive DP640.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including: 

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.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

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Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Application Outlook 
  • Surface mounting
  • Conformal coating
  • Wire tacking
  • Potting and encapsulation
• Product Outlook 
  • Electrically conductive adhesives
  • Thermally conductive adhesives
  • UV curing adhesives
  • Others
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is a significant segment in the larger Adhesives industry. PCBs (Printed Circuit Boards) and semiconductors require the use of advanced adhesives for mounting and bonding components. Components such as capacitors, resistors, and inductor coils are mounted using electronic adhesives. These adhesives provide good thermal conductivity, electrical insulation, and mechanical strength. The market is driven by the growing demand for electronic devices and the increasing complexity of these devices. The use of electronic adhesives in the automotive industry is also on the rise due to the growing trend of electrification. The market is competitive, with key players including 3M, H.B. Fuller, and Henkel.

The market is segmented based on product type, application, and end-use industry. The product types include thermosetting adhesives, thermoplastic adhesives, and conductive adhesives. The applications include surface mount technology, through-hole technology, and wire bonding. The end-use industries include consumer electronics, automotive, telecommunications, and industrial electronics. The market is expected to grow at a CAGR of around 5% during the forecast period. The market growth analysis is attributed to the increasing demand for miniaturization and the need for high-performance adhesives in various applications. The market is also expected to be driven by the increasing use in emerging applications such as wearable devices and flexible displays.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the size of the market and its contribution  in focus to the parent market
• Accurate predictions about upcoming market trends and changes in consumer behavior
• Growth of the market across APAC, Europe, North America, South America, and Middle East and Africa
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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