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The organic substrate packaging material market size is forecast to increase by USD 3.57 billion at a CAGR of 4.6% between 2023 and 2028. The market is experiencing notable growth due to the surge in global demand for consumer and smart electronic devices. This trend is particularly prominent in the rise of portable electronic devices, which require lightweight and protective packaging solutions. Furthermore, the increasing adoption of self-driving vehicles is fueling market growth, as organic substrate packaging materials offer superior insulation and protection for sensitive electronic components. Organic substrates, which are derived from renewable resources, also align with the global push toward sustainable manufacturing practices, adding to their market appeal. Consequently, the Organic Substrate Packaging Material Market is poised for significant expansion in the coming years.
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As a PCB manufacturer specializing in PCB technologies for electronics in automotive applications, iNPACK excels in meeting the stringent requirements of the defense and military industry. They prioritize innovation while adhering to regulations concerning polycyclic aromatic compounds to ensure environmental safety and compliance. iNPACK's expertise spans designing and manufacturing PCBs that withstand rigorous conditions demanded by defense applications, integrating cutting-edge technologies essential for military operations. Their commitment to quality and reliability in electronic components supports critical systems used in defense, where precision and durability are paramount.
Surge in global demand for consumer and smart electronic devices is notably driving market growth. The Organic Substrate Packaging Material Market is witnessing significant growth due to the increasing demand for printed circuit boards (PCBs) in various industries, including the semiconductor industry, aviation sector, and portable electronic devices. The International car sales and the Parliament of Member States' approval of the Internet of Technology (IoT) have led to an increase in PCB manufacturer's production, thereby driving the demand for organic substrate packaging materials. The semiconductor industry, particularly in the production of chips, is experiencing a shortage due to the high demand for ICs in self-driving vehicles, electric motors, and other applications. This shortage has resulted in the exploration of alternative substrate materials, such as organic substrates, which offer operational efficiency and environmental safety. O
Furthermore, organic substrates, made from organic small molecules like Pentacene, Anthracene, and Rubrene, are gaining popularity due to their low cost, lightweight, and flexibility. These substrates are used for heat distribution and signal distribution in semiconductors, making them suitable for various applications. The environmental impact of inorganic substrates, such as Nickel, Palladium, Copper, Titanium, Aluminum, and Iron ore, has become a concern, leading to the shift towards organic substrates. The Coronavirus disease has also accelerated the adoption of organic substrates due to their ability to reduce manufacturing costs and improve mechanical safety and electrical conductivity. Overall, the Organic Substrate Packaging Material Market is expected to grow at a substantial rate during the forecast period due to its applications in semiconductor technologies and the increasing demand for portable electronic devices and electric vehicles. Thus, such factors are driving the growth of the market during the forecast period.
Rising integration of ICs in automobiles is the key trend in the market. The international automotive industry's increasing reliance on semiconductors for advanced safety systems and the integration of technology in vehicles, such as self-driving and electric, has significantly boosted the demand for organic substrate packaging materials. PCB manufacturers are turning to these materials to create high-performance printed circuit boards (PCBs) for semiconductor applications, including those used in portable electronic devices, the aviation industry, and the semiconductor industry. The scarcity of Nickel, Palladium, Copper, Titanium, and Aluminum, key components in inorganic substrates, due to the global chip shortage, has further fueled the adoption of organic substrates.
Furthermore, these materials, derived from organic small molecules like Pentacene, Anthracene, and Rubrene, offer several advantages, including mechanical and environmental safety, electrically conductive interconnects, and heat and signal distribution. The European Parliament and Member States have imposed stringent regulations on the environmental impact of manufacturing processes, compelling companies to adopt more sustainable alternatives. Organic substrates are a viable solution, as they have a lower carbon footprint compared to inorganic substrates. The coronavirus disease outbreak has also highlighted the importance of operational efficiency and technology in various industries, further driving the growth of the organic substrate packaging material market. Thus, such trends will shape the growth of the market during the forecast period.
Regulations associated with organic substrate packaging materials is the major challenge that affects the growth of the market. Organic substrate packaging materials play a crucial role in the semiconductor industry, particularly in the manufacturing of printed circuit boards (PCBs) for various applications, including portable electronic devices, the aviation industry, self-driving vehicles, and electric motors. PCB manufacturers are constantly innovating, integrating advanced technologies such as the Internet of Things (IoT) into their products, leading to smaller, multifunctional packages. These packages require lead-free materials and strict adherence to material specifications from packaging assemblers and testers. The semiconductor industry is currently experiencing a chip shortage, increasing the demand for efficient and reliable packaging materials.
Furthermore, organic substrates, made from organic small molecules like pentacene, anthracene, and rubrene, offer advantages such as improved mechanical safety, environmental safety, and electrically conductive interconnects. However, suppliers of organic substrate packaging materials must comply with stringent environmental regulations, such as the RoHS Directive in the European Union, which restricts the use of hazardous metals and substances like nickel, palladium, copper, titanium, aluminum, and iron ore. This directive, along with others, aims to minimize the environmental impact of semiconductor applications. The challenge for suppliers is to meet these regulations while maintaining operational efficiency and ensuring heat distribution and signal distribution in the packaging materials. Hence, the above factors will impede the growth of the market during the forecast period
The market share growth by the consumer electronic segment will be significant during the forecast period. The Organic Substrate Packaging Material Market is witnessing significant growth due to the increasing demand for advanced technology in various industries, including the semiconductor, aviation, and automotive sectors. PCB manufacturers are increasingly adopting organic substrates for their production due to their superior electrical and thermal properties.
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The consumer electronics segment was the largest segment and was valued at USD 4.21 billion in 2018. Consumer electronics are one of semiconductors' most important end-user markets. Some of the trending factors that have been driving this segment's growth include the expansion of the smartphone market, an increasing adoption of wearable and smart products, and a growing presence of consumer IoT devices for applications like home monitoring. According to numerous chip manufacturers, high-silicon 5G smartphones will be extremely popular worldwide during the forecast period.
APAC is estimated to contribute 62% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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In the APAC region, technology powerhouses like Taiwan, China, Japan, and South Korea dominate the market. These countries house both domestic and international firms continually innovating in this field. The recent reduction in tensions between China and Taiwan has led to greater integration in their semiconductor industries. The rising popularity of smart mobile devices and consumer electronics is driving the demand for these packaging materials.
The Organic Substrate Packaging Material Market is fragmented in nature. Some significant players include Amkor Technology Inc., ASE Technology Holding Co. Ltd., AT and S Austria Technologie and Systemtechnik Aktiengesellschaft, Compass Technology Co. Ltd., DuPont de Nemours Inc.
Amkor Technology Inc. - The company offers organic substrate packaging materials such as ePad TSSOP, MSOP, SOIC, SSOP, and LQFP.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Fujikura Co. Ltd., Kyocera Corp., Micro Systems Technologies Management GmbH, Mitsubishi Electric Corp., Niterra Co. Ltd., Resonac Holdings Corp., Rogers Corp., Samsung Electronics Co. Ltd., Shinko Electric Industries Co. Ltd., Sumitomo Bakelite Co. Ltd., TAIYO YUDEN Co. Ltd., TDK Corp., TONG HSING Electronics Industries Ltd., TTM Technologies Inc., and Zhen Ding Technology Holding Ltd.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
Thin Film Encapsulation (TFE) Market Growth by Application, Technology, and Geography - Forecast and Analysis
Melamine Market Analysis APAC, Europe, North America, Middle East and Africa, South America - China, US, India, Germany, Japan - Size and Forecast
Outsourced Semiconductor Assembly And Test (OSAT) Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Taiwan, South Korea, Japan - Size and Forecast
Electronics for automotive applications demand robust electrically conductive interconnect solutions to ensure reliability and serviceability. Efficient power distribution and optimal functionality in varying dimensions are achieved through advanced packaging technologies like Small Outline Packages, Quad Flat Packages, and Dual In-Line Package. In semiconductor packaging, leadless chip carriers, pin grid arrays, ball grid arrays, and quad flat no-leads packages accommodate diverse needs for chip scale and System in Package solutions, including 3D integrated circuits. These innovations support applications ranging from mobile phones to flat plate displays, enhancing system configuration and performance. For manufacturers in emerging countries, embracing semiconductor packaging offers a cheaper alternative to traditional methods, though concerns about threats to serviceability and functionality persist. As technology advances, optimizing packaging technologies remains crucial to meet evolving demands in automotive electronics and beyond, ensuring both performance and cost-effectiveness in global markets.
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Market Scope |
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Report Coverage |
Details |
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Page number |
176 |
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Base year |
2023 |
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Historic period |
2018- 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.6% |
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Market growth 2024-2028 |
USD 3.57 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.18 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 62% |
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Key countries |
China, Taiwan, US, Japan, and South Korea |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Amkor Technology Inc., ASE Technology Holding Co. Ltd., AT and S Austria Technologie and Systemtechnik Aktiengesellschaft, Compass Technology Co. Ltd., DuPont de Nemours Inc., Fujikura Co. Ltd., Kyocera Corp., Micro Systems Technologies Management GmbH, Mitsubishi Electric Corp., Niterra Co. Ltd., Resonac Holdings Corp., Rogers Corp., Samsung Electronics Co. Ltd., Shinko Electric Industries Co. Ltd., Sumitomo Bakelite Co. Ltd., TAIYO YUDEN Co. Ltd., TDK Corp., TONG HSING Electronics Industries Ltd., TTM Technologies Inc., and Zhen Ding Technology Holding Ltd. |
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Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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