NEXT GENERATION PACKAGING MARKET ANALYSIS

Global Next generation packaging was valued at US$ 51.2 Billion in 2022 in terms of revenue, exhibiting a CAGR of 7.1 % during the forecast period (2023 to 2030).

Global Next Generation Packaging Market– Growth Drivers

Increasing Device Miniaturization Demand Will Drive up Demand for Advanced Packaging

As technology develops, manufacturers are concentrating on providing small electronic devices in numerous industry verticals, including consumer electronics, healthcare, automotive, and semiconductor IC production. In order to accomplish precise patterning on wafers and chips, these businesses are reducing integrated circuits. Additionally, the market for medical devices is witnessing a spike in demand for Nano-sized robotic surgery equipment due to the sophistication and improvements in wearable and personalized healthcare gadgets. Small electrical devices are becoming more popular, thus designers must use smart packaging instead of more conventional techniques. The semiconductor industry is seeing development in miniaturized electrical devices because of the rising need for high-performance electronics.

Figure 1. Global Next Generation Packaging Market Value Share (%), By Region, 2022

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Improved System Performances and Advanced Packaging Optimization to Accelerate the Advanced Packaging Market Growth

The semiconductor packaging industry is helping to build next-generation chip designs by supplying enhanced IC containers. For new devices, the integrated circuit industry has traditionally used classic chip scaling and unique architectures. Furthermore, multi-chip packages are found in every phone, data center, consumer electronics, and network, fuelling the advancement of advanced packaging by promoting system optimization. Because it allows a range of different processing modules and memories to be coupled together utilizing very high-speed interconnects, advanced packaging encourages the use of AI, machine learning, and deep learning. As a result, several industry verticals, including automotive, healthcare, aerospace, and defense, and the industrial sector, are increasingly using innovative packaging. For instance, in 2022, the U.S. Is taking the first steps toward bringing larger-scale IC packaging production capabilities back to the U.S. as supply chain concerns and trade tensions grow. The U.S. is among the leaders in developing packages, especially new and advanced forms of the technology that promise to shake up the semiconductor landscape. And while the U.S. has several packaging vendors, North American’s share of global packaging production stands at only 3%, according to a new report from the IPC trade group and Tech Search International.

Global Next Generation Packaging Market– Restraints

High Cost to Limit Market Growth for Advanced Packaging

Advanced semiconductor packing methods are more costly than conventional semiconductor packaging methods. At some stages, it becomes too costly to develop and manufacture semiconductors for each subsequent node. Furthermore, wafer production costs are significantly higher as a result of the complexity of the ICs. As more chips and integrated circuits are packed with intricate designs, the cost of sophisticated packaging increases, limiting its adoption. The semiconductor industry finds advanced packaging to be especially practical because of its many benefits, which include simpler and bigger interconnections for chips and wafers as well as the capacity to integrate heterogeneously. However, because these qualities are so easily accessible, advanced packaging is more expensive than ordinary packaging, which makes it challenging for small enterprises to adopt.

Global Next Generation Packaging Market– Market Trend

• Product launching among next-generation packaging provider is a growing trend in the market. For instance, in June 2022, MULTIVAC, launched W 500, a universal flow packaging solution, provides increased flexibility and output for packaging food products in pillow packs, while supporting the use of sustainable film and paper-based materials.
• Plastic remains the most used raw material for packaging, and hence, it occupies the highest market share among all the raw materials deployed by the manufacturers in the packaging industry. Plastic provides the flexibility of being cost-effective to manufacturers. Its inert nature to the contents being stored in it has allowed it to be utilized for packaging products in specific industry verticals.
• Plastic continues to be the most used material for the protective packaging of products across various industries. Advanced packaging materials, such as polypropylene, can provide a high barrier against contamination and temperatures, thereby protecting the packaged product from being damaged. The wide adoption of plastic packaging in the food and beverage industry, which includes bags, pouches, shrink films, sleeves, and tubes, primarily owing to their flexibility, low weight, and durability, are some of the factors that may continue to create demand for the plastic protective packaging solutions.

Global Next Generation Packaging Market– Market Segmentation

North America region dominated the global next generation packaging market in 2022, accounting for a 34% share in terms of value, followed by Europe and Asia Pacific, respectively.

Global Next Generation Packaging Market– By Application

On the basis of application, food & beverages dominated the global next-generation packaging market in 2022 with around 44% of market share in terms of revenue, followed by healthcare & pharmaceuticals and personal care, respectively.

Figure 2. Global Next Generation Packaging Market Value Share (%), By Application, 2022

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Global Next Generation Packaging Market- Impact of Coronavirus (Covid-19) Pandemic

Most industries across the world have been negatively impacted over the last 18 months. This can be attributed to significant disruptions experienced by their respective manufacturing and supply-chain operations as a result of various precautionary lockdowns, as well as other restrictions that were enforced by governing authorities across the globe. The same applies to the global Next Generation Packaging market. Moreover, consumer demand has also subsequently reduced as individuals are now keener on eliminating non-essential expenses from their respective budgets as the general economic status of most individuals have been severely affected by this outbreak. These aforementioned elements are expected to burden the revenue trajectory of the global Next Generation Packaging market over the forecast timeline. However, as respective governing authorities begin to lift these enforced lockdowns, the global Next Generation Packaging market is expected to recover accordingly.

Global Next Generation Packaging Market– Recent Development

In April  2020, DuPont, launched new Tyvek 40L in China,  plans for availability worldwide For the launch of DuPont Tyvek 40L medical packaging, a new class of Tyvek for medical packaging applications that offers a practical solution for safeguarding portable, low-risk equipment, we thank DuPont Protection Solutions.

In May 2022, Microchip Technology Inc., has unveiled the GridTime 3000 GNSS time server, a software-configurable system that protects power plants and substations from surges, bad weather, and cyber-attacks targeting critical infrastructure.

In May 2022, Analog Devices, Inc., has unveiled a three-axis MEMS accelerometer that may be used in a variety of healthcare and industrial applications, such as vital sign monitoring, hearing aids, and motion-enabled metering devices. The ADXL367 accelerometer reduces power consumption by two times compared to the previous generation (ADXL362) while boosting noise performance by up to 30%. The new accelerometer also has a longer field duration, which extends battery life while lowering maintenance frequency and costs.

In May 2022, Qualcomm Technologies, Inc. and Viettel Group announced plans to collaborate on the development of a next-generation 5G Radio Unit (RU) with enormous MIMO capabilities and distributed units (DUs). This is aimed at accelerating the development and deployment of 5G network infrastructure and services in Vietnam and around the world. Viettel expects to accelerate the development and commercialization of high-performance Open RAN massive MIMO solutions, which simplify network deployment and lower total cost of ownership, by combining the Qualcomm® X100 5G RAN Accelerator Card and Massive MIMO Qualcomm® QRU100 5G RAN Platform with its own advanced hardware and software systems (TCO).

Global Next Generation Packaging Market– Key Companies

Major players operating in the global next-generation packaging market include Amcor Limited, WestRock Company, Sonoco Products Company, Sealed Air Corporation, Stora Enso Oyj, Bemis Company, Inc., MULTIVAC, WS Packaging Group, Inc., Active Packaging Ltd., and ULMA Packaging, S.Coop.

*Definition: Next-generation packaging is an advanced packaging solution that offers various benefits in terms of product quality information and traceability. It helps in tracking and monitoring the product during the entire supply chain process from shipments to delivery of the product to the location. This ensures the safe delivery of the product to the consumer while preventing damages of the packaged materials. Food & beverages, personal care, healthcare & pharmaceuticals, and logistics are some of the major end users of next-generation packaging.