Encapsulants Market size is forecast to reach $1.91 billion by 2025, after growing at a CAGR of 5.5% during 2020-2025. The rising in the functionality of electronics devices and the trend of miniaturization in devices are the major reasons for the growing importance of encapsulants in the semiconductor and electronics industry. Encapsulants play a major role by maintaining the accuracy in the arrangement by creating a layer on the structure of the device and ensuring that all components are in place. Encapsulant is considered to be the better alternative in manufacturing processes used through automated dispensing equipment.
By Types - Segment Analysis
The room temperature cure segment held the largest share in the Encapsulants Market in 2019. Room temperature curing systems offer easy processing and high reliability. These one and two component systems are used in bonding, sealing, coating and potting/encapsulation applications. It has low stress & excellent electrical properties. Addition cured system do not require exposure to air for cross-linking. No by-products are released during cure. They can cure in closed environments.
By Chemistry Types - Segment Analysis
The Silicone segment held the largest share in the Encapsulants Market in 2019. Demand for electronic devices as well as commercialization of electric vehicles is driving the silicone segment in encapsulants market. Silicone is commonly a softer and less-dense material. Early silicone-packaged devices encountered failures due to weaker mechanical and environmental protection, for example, against moisture. Adhesion is also weak causing air gaps between LED chips and encapsulants, which lead light extraction to be reduced. Recent progress in material properties has promoted usage of silicone; die bonding also prefers to use silicone resin rather than the conventional epoxy. Epoxy segment held the second largest share in the Encapsulants market. It is the semi-conductor encapsulants which is used in most products where semi-conductors are applied, such as general home appliances including mobile phones, refrigerators and TVs, industrial devices and vehicles. With the development of IT technology and the development of electronic products based on modern technologies, the global semi-conductor market is expanding and the Epoxy Encapsulants demand is increasing.
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By End User - Segment Analysis
Consumer electronics has been the primary market for encapsulants and is expected to register a growth of 6.1% during the forecast period of 2020-2025. The rapidly growing semiconductor & electronics industry and the increasing demand for smart electronic gadgets are the major factors fueling the demand for encapsulants in this industry. The trend of miniaturization and increasing multi-functionality of electronic devices have increased the number of components and risks associated with short-circuiting. These have necessitated the use of encapsulants in electronic devices. China, Japan and South Korea are the main manufacturers of Consumer Electronics Products. But due to the recent trade war between US and China, India emerges as the substitute were the MNCs shifted their production plants due to the cheap labor and skilled scientist and engineers. Another most important factor is that the India has the second largest consumer base for the consumption of these Consumer Electronics.
Geography - Segment Analysis
Asia-Pacific (APAC) dominated the Encapsulants Market with the share of 39.4% in 2019 followed by North America and Europe. The economy of APAC is mainly influenced by the economic dynamics of countries such as China and India, but with growing foreign direct investment for economic development of South East Asia, the current scenario is changing. Countries in South East Asia are witnessing high growth in Consumer Electronics and transportation industries. China was the leading regional market, accounting for 45% of total Asia-Pacific market. India is the second major market after china. The availability of skilled labor at lower wages in this region also attracts manufacturers.
Drivers – Encapsulants Market
Upsurge in the consumer electronics market
The demand for televisions, smartphones, and wearable devices are increasing. In addition, rising disposable income, coupled with increasing adoption of smart devices by individuals are other factors fueling growth of the target market. Technology proliferation, development of semiconductor industry, cheap Encapsulants materials are major advantages. Rapid development and technological advancements in gaming industry is also expected to propel growth of the global Encapsulants market over the forecast period.
Advancements in the sensors market
Sensors are the primary market for the Encapsulants. The demand of the sensor is rising due to its wide range of applications in flood & water level monitoring systems, environmental monitoring, traffic monitoring & controlling, energy saving in artificial lighting, remote system monitoring & equipment fault diagnostics, and precision agriculture & animal tracking. Asia-pacific and North America are the major market for it.
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Challenges- Encapsulants Market
Fluctuation in crude oil prices
Volatility in raw material prices could restrain the global encapsulants market. Raw materials required for the manufacturing of encapsulants are derived from petroleum-based resins. Therefore, fluctuation in crude oil prices could act as a major restraint for the encapsulants market. In the global scenario, OPEC counties and Russia are fluctuating the price of crude oil. And recent US sanctions on Iran is a major factor that will increase per barrel of crude oil price. These are the restraints which will affect the global Encapsulants Market near future.
Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Metal Cleaning Chemical market. Major players in Encapsulants Market are ACC Silicone, BASF SE, Creative Materials Incorporated, DOW Corning Corporation, Dymax Corporation.
Acquisitions/Technology Launches/ Product Launches
In 24 August 2017, The ICM Silicones Group of companies, of which ACC Silicones Europe is a part, has announced that it has been acquired by the German Chemical Group CH.
In 27 October 2017, Creative materials Incorporated has launched the Conductive Ink named 127-28, 127-29, for the Silicone Hardcoat Substance. With 127-38 and 127-39, the user is able to print functional and decorative features on windows, instrument cluster covers, and other displays where a non- stick hardcoat surface is required.
Key Takeaways
Asia-Pacific dominates the Encapsulants Market. Growth of the manufacturing sector and availability of cheap labor are key factors to drive the growth of encapsulants market in the Asia Pacific region.
The rapid growth of solar photovoltaic panel market provides an opportunity for encapsulants market.
Fluctuation in crude oil prices could act as a major restraint for the encapsulants market.
The presence of large no. of companies in electronics sector and growing demand of consumer electronics products further strengthen the market for encapsulants agents.
Related Reports:
1.Conductive Silicone Market
https://www.industryarc.com/Research/Conductive-Silicone-Market-Research-500171
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