Electronic Chemicals and Materials Market by Type (Specialty Gases, CMP Slurries, Conductive Polymers, Photoresist Chemicals, Low K Dielectrics, Wet Chemicals, Silicon Wafers, PCB Laminates), Application, and Region - Global Forecast to 2028
Updated on : April 23, 2024
Electronic Chemicals And Materials Market
Electronic Chemicals And Materials Market size was valued at USD 59.1 billion in 2023 and is projected to reach USD 77.8 billion by 2028, growing at 5.6% cagr from 2023 to 2028. The electronic chemicals and materials market is poised for growth, fueled by escalating demand from the microelectronics and chip manufacturing sectors worldwide. These industries rely on a wide array of specialized chemicals and materials for various processes, including semiconductor fabrication and circuit assembly. With the proliferation of electronic devices across consumer, industrial, and automotive sectors, the need for advanced electronic materials continues to surge. This demand is further propelled by technological advancements driving smaller, faster, and more efficient electronic components. As companies strive to meet these evolving demands, the electronic chemicals and materials market is expected to expand significantly in the coming years, presenting lucrative opportunities for manufacturers and suppliers operating in this space.
Attractive Opportunities in the Electronic Chemicals And Materials Market
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Electronic Chemicals And Materials Market Dynamics
Driver: Growth in the semiconductor industry will augment the demand of electronic chemical and material
In today's rapidly evolving technological landscape, the growth of the semiconductor industry stands out as a key driving force. Semiconductors, often referred to as the "brains" of electronic devices, power everything from smartphones to advanced medical equipment. As this industry continues to expand, the demand for innovative manufacturing processes also intensifies.
The semiconductor industry is expected to grow in the medium-to-long term largely due to the continuous technological innovations amid an accelerating transition to a data-driven society backed by the spread of technologies such as the Internet of Things (IoT), artificial intelligence (AI), and 5G. With technological advancements through R&D, companies from different industries are embedding ICs into their products to make them efficient and smart. With the ongoing trend of lightweight, fast, dense, and miniature electronic devices, a surge in demand for compact and complex ICs has been observed. As per the data provided by the Semiconductor Industry Association, the global sales of semiconductors exhibited a substantial rise, climbing from USD 139.0 billion in 2008 to reach USD 557.4 billion by the year 2022. This growth represents a compounded annual growth rate of approximately 6.67% over this period. Furthermore, the World Semiconductor Trade Statistics (WSTS) Fall 2022 Semiconductor Industry Forecast projects a minor decline in worldwide semiconductor industry sales, with an anticipated value of USD 555.6 billion for 2023, followed by a subsequent increase to an estimated USD 602 billion in 2024.
Consumer electronics, a significant end-user segment for semiconductors, illustrates the relentless demand for chips. Data from International Data Corporation (IDC) shows that smartphone shipments alone exceeded 1.4 billion units in 2021. Given that each of these devices incorporates numerous semiconductor chips, the ripple effect on the demand for electronic chemicals and materials is profound, necessitating a wide array of high-purity materials for their production.
To meet the soaring demand, significant investments are being made in semiconductor manufacturing capacity. For instance, leading semiconductor companies and governments worldwide are investing billions of dollars in new fabs and expanding existing ones. These investments not only increase the demand for semiconductors but also for the electronic chemicals and materials essential for their production.
The semiconductor industry is a major driver of the electronic chemicals and materials market. As the backbone of all electronic devices, the demand for semiconductors is soaring, fueled by increasing needs for chips in consumer electronics, data centers, and automotive electronics. The industry's push towards smaller, faster, and more efficient chips also necessitates advanced materials and chemicals, driving the growth of this market.
Restraint: Stringent health and environmental regulations regarding certain chemicals and materials
The utilization of hazardous chemicals and materials in the production of electronic goods has necessitated companies to adhere to various regulations, directly impacting their profitability. Silica, commonly used in semiconductor manufacturing, poses significant health risks to workers, as highlighted by OSHA regulations in the US. Exposure to respirable crystalline silica can lead to debilitating conditions like silicosis and lung cancer. Additionally, there are numerous other potential hazards such as hydrogen chloride gas, flammable gases, and solvents, posing threats to both the environment and human health. The electronics industry relies on a diverse array of materials and chemicals in its production processes, subjecting it to a complex web of regulations. In Europe alone, there are nearly 500 laws governing the electronics sector, covering aspects like energy efficiency, product recycling, and the use of hazardous substances. Ensuring compliance with these regulations is paramount to avoid environmental disasters and health crises. However, this compliance comes at a considerable cost, affecting every stage of the supply chain from raw material procurement to product disposal. This imposes significant financial burdens on electronics manufacturers, impacting their operational costs significantly.
Opportunities: Improved IT infrastructure and upcoming technologies such as AI and IoT.
The emergence of cutting-edge technologies like IoT (Internet of Things) and AI (Artificial Intelligence) has given rise to a burgeoning product niche: intelligent home devices. As per insights from the Wall Street Journal, IoT is poised for rapid expansion, particularly within the industrial sector, with a projected growth rate of 65%. By 2023, the overall market is anticipated to soar to USD 662 billion. The integration of AI-driven solutions has unlocked a plethora of opportunities for electronics manufacturers. Furthermore, the surging demand for electric vehicles has created fresh revenue avenues in the electronic wet chemicals market. Additionally, advancements in the digital display industry, exemplified by the introduction of premium LED and LCD television sets, are expected to drive the need for high-quality electronic chemicals for cleaning and etching purposes. Consequently, there exists ample opportunity for players in the electronic wet chemicals market to explore new revenue streams.
Challenges: A rapid decline in the use of old technologies
The demand for technologies such as memory chips and data centers is rapidly declining due to the emergence of cloud-based storage solutions. With the decreased need for physical data storage, there's a noticeable downturn in memory chip production. Smaller players in the electronic chemicals and materials industry are struggling to keep pace with these changes. Adapting to new technologies takes time, which could result in profit losses for these smaller companies. As mobile device usage continues to rise, the trend towards smaller integrated chips and semiconductors intensifies. This necessitates precise and high-quality chemicals for semiconductor manufacturing to achieve optimal outcomes. Introducing new products often requires significant investments in constructing new facilities or upgrading existing setups, leading to substantial capital expenses that ultimately factor into the product's overall cost.
Electronic Chemicals And Materials Market Ecosystem
The semiconductors segment is projected to be the larger application of electronic chemicals and materials during the forecast period.
Semiconductors are solid materials or compounds capable of conducting electricity under specific conditions, often influenced by dopants introduced during manufacturing. Technological progressions within the electronics sector significantly impact the semiconductor industry. Beyond the increasing need for circuit boards and memory chips, emerging technologies like artificial intelligence (AI) are poised to propel semiconductor demand. To ensure proper functionality, semiconductor devices necessitate maintenance, which entails utilizing specific electronic chemicals and materials for cleaning, etching, polishing, doping, and servicing.
Silicon wafers segment is the largest type of electronic chemicals and materials market.
Silicon wafers, thin slices of semiconductor material typically crafted from crystalline silicon, play a pivotal role in producing integrated circuits, the fundamental components of electronic devices like computers and smartphones. Beyond their core application in integrated circuits, silicon wafers find utility in diverse areas such as tire pressure monitoring systems and solar cell manufacturing. Anticipated expansion in the integrated circuits and solar markets is poised to drive growth in the silicon wafers market over the forecast period.
Asia Pacific is estimated to account for the largest market share during the forecast period.
The Asia Pacific region stands at the forefront of the global market for printed circuit boards (PCBs), poised to command the largest market share throughout the forecast period. This dominance is underpinned by the region's dynamic electronics industry, which has experienced exponential growth over the past two decades. One of the primary drivers of this expansion is the relentless pace of technological advancement, particularly in telecommunications and information technology (IT). As countries across Asia Pacific embrace digital transformation, there has been an insatiable demand for advanced PCBs to power the infrastructure of communication networks, data centers, and smart devices. Moreover, the proliferation of smart cards, electronic gaming platforms, and consumer electronics has further fueled the need for sophisticated PCB solutions. From digital cameras and mobile phones to personal computers, the region's appetite for cutting-edge electronic devices has created a robust ecosystem for PCB manufacturers.
The symbiotic relationship between the electronics industry and PCB production is evident in Asia Pacific's role as a global manufacturing hub. With an extensive network of suppliers, skilled labor force, and supportive regulatory environment, countries like China, Japan, South Korea, and Taiwan have emerged as key players in the PCB market. Furthermore, Asia Pacific's strategic position as a gateway to emerging markets, coupled with its robust supply chain infrastructure, has attracted significant investments from multinational corporations looking to capitalize on the region's growth potential. This influx of capital has catalyzed innovation and fostered collaborations across the entire value chain, driving the continuous evolution of PCB technologies.
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Electronic Chemicals And Materials Market Players
The Electronic chemicals and materials market comprises key manufacturers such as are Shin-Etsu Chemical Co., Ltd. (Japan) , Linde Plc (England) , Fujifilm Corporation (Japan), Resonac Holding Corporation (Japan), Air Liquide (Paris), Solvay (Belgium), BASF SE(Germany), Mitsui Chemicals America, Inc. (US), Merck KGaA (Germany), Covestro AG (Germany), SUMCO Corp. (Japan), Air Products & Chemicals, Inc. (US), and Songwon (South Korea). are the top manufacturers covered in the electronic chemicals and materials market. Expansions, mergers & acquisitions, new product launches and deals were some of the major strategies adopted by these key players to enhance their positions in the electronic chemicals and materials market. A major focus was given to the expansions and deals.
Electronic Chemicals And Materials Market Report Scope
|
Report Metric |
Details |
|
Market size available for years |
2021–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD Million) |
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Segments covered |
Type, Application, and Region |
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Geographies covered |
North America, Asia Pacific, Europe, South America, and Middle East & Africa. |
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Companies covered |
Shin-Etsu Chemical Co., Ltd. (Japan), Linde Plc (England), Fujifilm Corporation (Japan), Resonac Holding Corporation (Japan), Air Liquide (Paris), Solvay (Belgium), BASF SE(Germany), Mitsui Chemicals America, Inc. (US), Merck KGaA (Germany), Covestro AG (Germany), SUMCO Corp. (Japan), Air Products & Chemicals, Inc. (US), and Songwon (South Korea) are the top manufacturers covered in the electronic chemicals and materials market. |
This research report categorizes the electronic chemicals and materials market based on material type, end-use industry, application, and region.
Electronic Chemicals and Materials Market by Type
- Specialty Gases
- CMP Slurries
- Conductive Polymers
- Photoresist Chemicals
- Low K Dielectrics
- Wet Chemicals
- Silicon Wafers
- PCB Laminates
Electronic Chemicals and Materials Market by Application
-
Semiconductors
- Integrated Circuits
- Printed Circuit Boards
- Others
Electronic Chemicals and Materials Market by Region
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
Recent Developments
- In November 2023, Resonac, a Japanese chip manufacturer, is establishing an R&D center in Silicon Valley to tap into innovation, focus on advanced semiconductor packaging for AI and emerging technologies, and expand its global reach by better serving American customers and enhancing brand recognition. The center is set to open in 2025, complementing Resonac's existing facility in Japan. This move highlightss the growing importance of specialized chip packaging in the semiconductor industry.
- In September 2023, Resonac Corporation, a leading chemical company, and Matmerize Inc., an AI-powered materials science startup, announced a strategic partnership. This collaboration aims to revolutionize the development of new semiconductor materials for 6G technology.
- In January 2023, The Linde Plc has acquired the remaining (i.e., 77.2%) stake in nexAir, LLC, one of the largest independent packaged gas distributors in the United States.
- In December 2022, Fujifilm Corporation revealed an intention to build a new facility in South Korea to manufacture advanced semiconductor materials in order to grow the electronic materials industry. Modern evaluation tools and cutting-edge manufacturing capabilities will be available at the new facility, enabling the creation of goods with superior performance.
- In December 2022, The Air Liquide has signed a long-term contract with Kumho Mitsui Chemicals Corporation to supply additional hydrogen and carbon monoxide for its 50% methyl diphenyl diisocyanate (MDI) production expansion.
- In May 2020, Air Products & Chemicals, Inc. plans to add one large-volume high-purity nitrogen (HPN) generator to support the Printed Circuit Board (PCB) and contract manufacturer’s expansion in Northern China..
Frequently Asked Questions (FAQ):
What are electronic chemicals and materials?
Electronic chemicals and materials refer to highly pure substances utilized in various processes such as manufacturing, cleaning, etching, polishing, doping, and servicing of semiconductors, integrated circuits (ICs), and printed circuit boards (PCBs).
What are the commonly used chemicals and materials in the electronics industry?
Specialty gases, CMP slurries, photoresists, conductive polymers, wet chemicals, acids, gases, solvents, and electronic materials like wafers and PCB laminates are the primary types of chemicals and materials utilized in the electronics industry.
What are the major applications of electronics and chemicals?
Electronic chemicals and materials play a critical role in the semiconductor industry, particularly in the manufacturing and maintenance of integrated circuits (ICs) and printed circuit boards (PCBs).
What are the major drivers of the electronic chemicals and materials market?
The major drivers of electronic chemicals and materials include advancements in semiconductor technology, demand for smaller and more powerful devices, and innovations in renewable energy systems.
What are the upcoming opportunities in the electronic chemicals and materials market globally?
Trends such as the growing utilization of PCBs in the telecommunications sector and the worldwide enhancement of IT infrastructure are opening up avenues for the utilization of electronic chemicals and materials. .
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The study involved four major activities for estimating the current size of the global electronic chemicals and materials market. Exhaustive secondary research was carried out to collect information on the market, the peer product market, and the parent product group market. The next step was to validate these findings, assumptions, and sizes with the industry experts across the value chain of electronic chemicals and materials through primary research. Both the top-down and bottom-up approaches were employed to estimate the overall size of the electronic chemicals and materials market. After that, market breakdown and data triangulation procedures were used to determine the size of different segments and sub-segments of the market.
Secondary Research
In the secondary research process, various secondary sources such as Hoovers, Factiva, Bloomberg BusinessWeek, and Dun & Bradstreet were referred to, to identify and collect information for this study on the electronic chemicals and materials market. These secondary sources included annual reports, press releases & investor presentations of companies; white papers; certified publications; articles by recognized authors; regulatory bodies, trade directories, and databases.
Primary Research
The electronic chemicals and materials market comprises several stakeholders in the supply chain, which include raw material suppliers, processors, end-product manufacturers, buyers, and regulatory organizations. Various primary sources from the supply and demand sides of the markets have been interviewed to obtain qualitative and quantitative information. The primary participants from the demand side include key opinion leaders, executives, vice presidents, and CEOs of companies in the electronic chemicals and materials market. Primary sources from the supply side include associations and institutions involved in the electronic chemicals and materials industry, key opinion leaders, and processing players.
Following is the breakdown of primary respondents
Notes: Other designations include product, sales, and marketing managers.
Tiers of the companies are classified based on their annual revenues as of 2022: Tier 1 = >USD 5 Billion, Tier 2 = USD 1 Billion to USD 5 Billion, and Tier 3= <USD 1 Billion.
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Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the size of the global electronic chemicals and materials market. These approaches were also used extensively to estimate the size of various segments of the market. The research methodology used to estimate the market size included the following details:
- The key players in the industry were identified through extensive secondary research.
- The supply chain of the industry and market size, in terms of value, were determined through primary and secondary research.
- All percentage share splits and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research includes the study of reports, reviews, and newsletters of key industry players, along with extensive interviews with key officials, such as directors and marketing executives.
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Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market was split into several segments and sub-segments. The data triangulation and market breakdown procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments of the electronic chemicals and materials market. The data was triangulated by studying various factors and trends from both the demand- and supply-side.
In addition, the market size was validated by using both the top-down and bottom-up approaches. Then, it was verified through primary interviews. Hence, for every data segment, there are three sources—top-down approach, bottom-up approach, and expert interviews. The data were assumed to be correct when the values arrived at from the three sources matched.
Market Definition
The electronic chemicals and materials market refers to the industry involved in the production, distribution, and sale of chemicals and materials specifically designed for use in the manufacturing of electronic components and devices. These chemicals and materials play crucial roles in various stages of electronics production, including semiconductor fabrication, printed circuit board (PCB) assembly, and display manufacturing. Key segments within this market typically include materials such as Specialty Gases, CMP Slurries, Conductive Polymers, Photoresist Chemicals, Low K Dielectrics, Wet Chemicals, Silicon Wafers, and PCB Laminates. The market encompasses a wide range of products tailored to meet the specific needs of electronic manufacturers, ensuring the performance, reliability, and longevity of electronic devices. As technology advances and electronic devices become more sophisticated, the demand for advanced electronic chemicals and materials continues to grow, driving innovation and expansion within the industry.
Key Stakeholders
- Electronics chemicals and materials manufacturers
- Electronics chemicals and materials traders, distributors, and suppliers
- End-use industry participants of different segments of electronics chemicals and materials
- Government and research organizations
- Associations and industrial bodies
- Research and consulting firms
- R&D institutions
- Environment support agencies
- Investment banks and private equity firms
Report Objectives
- To define, analyze, and project the size of the electronic chemicals and materials market in terms of value based on type, application, and region.
- To project the size of the market and its segments with respect to the five main regions, namely, North America, Europe, Asia Pacific, Middle East & Africa, and South America
- To provide detailed information about the key factors, such as drivers, restraints, opportunities, and challenges, influencing the growth of the market
- To analyze the opportunities in the market for stakeholders and provide a detailed competitive landscape of the market leaders.
- To analyze the competitive developments, such as new product launches, expansions, and acquisitions, in the electronic chemicals and materials market
- To strategically profile the key players operating in the market and comprehensively analyze their market shares and core competencies.
Available Customizations
Along with the given market data, MarketsandMarkets offers customizations as per the specific needs of the companies. The following customization options are available for the report:
Product Analysis:
- Product Matrix which gives a detailed comparison of the product portfolio of each company
Regional Analysis:
- Further breakdown of the Rest of APAC market
- Further breakdown of Rest of Europe market
Company Information:
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Electronic Chemicals and Materials Market