ELECTRONICS ADHESIVES MARKET ANALYSIS

Market Challenges And Opportunities

Drivers

Growing IT infrastructure and connected devices:

Growing IT infrastructure and connected devices, especially in the Asia Pacific region is accelerating the market growth of electronics adhesives over the forecast period. According to the Tech Jury, the global IoT market is forecast to be worth US$ 1.7 trillion in 2022 and there are expected to be more than 64 billion IoT devices worldwide by 2025. Therefore, growing IT infrastructure around the globe is projected to propel the market growth of electronics adhesives over the forecast timeframe.

The growing usage of electronic components in the automotive industry to enhance drivability and other related advantages such as vehicle safety is accelerating market growth. According to Coherent Market Insights analysis, the new concept of the X-by-wire system is drawing the attention of automobile makers. In the X-by-wire system, hydraulic or mechanical power systems are replaced by an electronic system, which utilizes sensors. The advent of such new electronic components in the automotive industry is projected to stimulate market growth. 

Market Restraints

The high cost associated with the market penetration:

The high cost associated with the market penetration and testing procedures of electronic adhesive is estimated to impact the market growth to some extent in the near future. Electronics adhesives are majorly tested for their required properties such as strength, performance, and durability and these tests are performed through acoustic microscopy, gas chromatography, etc. which are expensive, thus hampering the market growth.

Strict government rules and regulations regarding VOC  Volatile Organic Compounds emission and promoting sustainability is expected to restrict the market growth of electrical adhesive. According to the Coherent Market Insights analysis, China is a major producer of electronics adhesives, and VOC regulations in the country are not as stringent as that of western countries. However, as a part of “Beautiful China”, the Chinese government is taking various initiatives to implement strict regulations against VOC emissions.

Market Opportunities

Growing focus of key end user industries to develop compact miniature components for miniaturization of the final product is expected to offer potential growth opportunities to the market of electrical adhesives. Miniaturization of electrical devices such as mobiles and laptops has raised the usage of adhesives in encapsulation and conformal coating types of applications are further projected to augment the market growth of electronic adhesives over the forecast period.