Electrically Conductive Adhesives Market Overview
Electrically conductive adhesives market size is forecast to reach US$4.3billion by 2027, after growing at a CAGR of 8.2% during 2022-2027. Electrically conductive adhesives are utilized in various end-use industries such as medical and healthcare, consumer goods, and more because it has filler materials such as silver fillers, nickel graphite, and carbon fillers that offer superior physical strength, high adhesion, and efficient electrical conductivity. Also, electrically conductive adhesives are employed in circuit assembly applications and processes that require heat curing or hot soldering. The electrically conductive adhesives market is primarily driven by the growth of the automotive industry. Moreover, the growing demand from the aerospace industry for electrically conductive adhesives is expected to further boost the electrically conductive adhesives industry growth during the forecast period.
In the year 2020, governments all across the globe implemented stringent rules and regulations such as workforce movement being restricted, non-essential products manufacturing being halted, and other such measures being taken due to the Covid-19 pandemic. Also, the production of vehicles was negatively impacted, which resulted in the decline in demand for electrically conductive adhesives. For instance, according to the Organisation Internationale des Constructeurs d'Automobiles (OICA), the global production of all vehicles in quarters 1 and 2 of 2019 was 46,074,647 units, and in quarter 1 and 2 of 2020, it was 31,223,533 units, a decline of 12%. However, in the year 2021, the countries encouraged the production of non-essential industry to strengthen the economy, which resulted in the electrically conductive adhesives industry growth. Also, it is anticipated that the impact of the Covid-19 pandemic will end by the end of 2023 and the market situation will be the same as it was before the Covid-19 pandemic.
The report: "Electrically Conductive Adhesives Market–Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Electrically Conductive Adhesives Industry.
By Type: Anisotropic Conductive Adhesives and Isotropic Conductive Adhesives
By Resin: Epoxy Polymers, Polyurethane, Silicone, Acrylic, Polyamide, and Others
By Filler Material: Silver, Copper, Gold, Aluminum, Nickel, Platinum, and Others
By Application: Printed Circuit Boards (PCBs), Radio Frequency Identification (RFID), Flexible Conductors, Display and Touchscreen Sealing, and Others
By End-Use Industry: Automotive (Passenger Car, Light Commercial Vehicles (LCV), and Heavy Commercial Vehicles (HCV)), Medical and Healthcare (Hearing Aids, Drug Releasing Pumps, Fingertip Pulse Oximeters, and Others), Consumer Goods (Light-Emitting Diode (LED), Computer, Laptop, Dryers, and Others), Aerospace (Military, Commercial, and Others), Marine (Cargo, Passenger, Naval, and Others), and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East (Saudi Arabia, UAE, Israel, and Rest of Middle East), and Africa (South Africa, Nigeria, and Rest of Africa))
- Asia-Pacific region dominated the electrically conductive adhesives market, owing to the growth in the production of heavy trucks. For instance, according to the Organisation Internationale des Constructeurs d'Automobiles (OICA), in 2019 China’s production of heavy trucks was 2,217,847 units, and in 2021 it was 2,976,459 units, an increase of 34.2%.
- New technologies, such as silver glass sphere coated electrically conductive adhesives formulation, are easy to handle due to their creamy consistency and versatility. New technologies like this are benefiting the market growth.
- Epoxy polymeric adhesives are outperforming other similar adhesives in terms of shelf life, core temperature, and storage temperature, all of which are boosting the market growth.
- Furthermore, due to a growth in demand for advanced adhesives in consumer goods industry, the demand for electrically conductive adhesives is projected to grow at a significant rate during the forecast period.
Figure: Asia-Pacific Electrically Conductive Adhesives Market Revenue, 2021-2027 (US$ Billion)
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Electrically Conductive Adhesives Market Segment Analysis – By Resin
The epoxy polymers segment held the largest share in the electrically conductive adhesives market in 2021 and is growing at a CAGR of 7.6% during 2022-2027. Electrically conductive epoxy polymers are suited for use in electrically conductive adhesives in processes where mechanical and thermal cracking are significant problems. Because the components being joined are heat-sensitive and hence unsuitable for soldering, epoxy resins are frequently utilized. Furthermore, employing electrically conductive epoxy polymers over polyurethane, silicone, or other electrically conductive resin as a solder substitute has several advantages, including reduced prices, greater performance, and faster production times. Thus, these factors are projected to propel the demand for epoxy polymers during the projected forecast period.
Electrically Conductive Adhesives Market Segment Analysis – By End-Use Industry
The automotive segment held the largest share in the electrically conductive adhesives market in 2021 and is growing at a CAGR of 8.9% during 2022-2027. In the automotive sector, electrically conductive adhesives are frequently utilized as a connecting interconnect for advanced driver assistance systems (ADAS)cameras and radars, as well as light detection and ranging (LiDARs). Electrical conductive adhesives for the automobile sector provide the advantage of lower processing temperatures and a robust connection with non-noble metallization as compared to solder pastes. The growing production of passenger light-duty electronic vehicles is propelling the market growth. For instance, according to the International Energy Agency (IEA), in the year 2019 the total production of passenger light-duty electronic vehicles was 2 million units, and in 2020 it was 3.1 million units, an increase of 55%. Thus the growing automotive industry is fueling the growth of the market.
Electrically Conductive Adhesives Market Segment Analysis – By Geography
Asia-Pacific region held the largest share in the electrically conductive adhesives market in 2021up to36%, owing to its increasing demand from various end-use industries such as automotive, aerospace, and more. For instance, the total vehicle production in Asia-Pacific till September 2020 was 17,818,598 units, and in 2021 till September was 22,685,914 units, an increase of 27%. Moreover, the growing aerospace industry in Asia-Pacific is accelerating the electrically conductive adhesives market. For instance, according to the India Brand Equity Foundation (IBEF), by 2030 the aerospace and defense (A&D) sector of India is expected to reach US$70 billion, propelled by rising demand for government initiatives and upgraded infrastructure. Thus, the growing automotive, aerospace, and other industries in Asia-Pacific are anticipated to propel the growth of the electrically conductive adhesives market during the projected period.
Electrically Conductive Adhesives Market Drivers
Rapid Development of the Consumer Goods Industry
In consumer goods industries electrically conductive adhesives are utilized in computers, light-emitting diode (LED), and other similar products. Moreover, the use of electrically conductive adhesives in consumers goods ensures that conductivity is maintained when an electronic component is connected to it. The growing production of computers and display devices is accelerating the market growth. For instance, according to the Japan Electronics and Information Technology Industries Association, in 2019 the global production of computers was valued at US$446.3 billion, and in 2020 it was US$467.2 billion, an increase of 5%. Also, the global production of display devices wasUS$127.7 billion, and in 2021 (estimated) was US4134.3 billion, an increase of 5%. Thus, the rapid development of the consumer goods industry is anticipated to fuel the growth of the electrically conductive adhesives market.
Growth of the Aerospace Sector
The electrically conductive adhesives are used in the aerospace sector for grounding, dissipation, and shielding, of static electricity. Electrically conductive adhesives contain high-strength, dimensionally stable epoxy polymers capable of attaching a wide range of incompatible substrates typically utilized in aerospace. The growing aerospace industry is accelerating the demand for electrically conductive adhesive, which is leading to market growth. For instance, according to the International Trade Administration, in the year 2020 the aerospace sector of Germany of valued at US$29.96 billion, and in 2019 it was US$31.7 billion, an increase of 5.8%. Moreover, Airbus predicts that during the next 20 years, demand for new aircraft will shift from fleet expansion to accelerated replacement of older, less fuel-efficient aircraft. This will necessitate the delivery of nearly 39,000 new passenger and freighter aircraft over the next 20 years, with approximately 15,250 of them being replacements for older, less fuel-efficient versions. Thus, the increasing production of aircraft is anticipated to boost the demand for electrically conductive adhesives, further driving the market growth during the forecast period.
Electrically Conductive Adhesives Market Challenges
Government Guidelines and Measures are Restricting the Market Growth
The restraining element for the electrically conductive market is that various governments have circulated differing recommendations governing the usage of electrically conductive adhesives. The primary hurdles for the market are the electrical and electronic wastes that are generated during disposal, posing a pollution risk and causing environmental issues. For instance, the ISO 16525 measure makes the compulsory testing of the isotropic electrically conductive adhesives used in die-attach, surface assembly, and wiring. Government interference, as a result of rigorous worldwide trade regulations, acts as a stifling factor for the electrically conductive adhesive market's growth. Thus, the government guidelines and measures are posing a major challenge for the growth of the electrically conductive adhesives market.
Electrically Conductive Adhesives Industry Outlook
Technology launches, acquisitions, and increased R&D activities are key strategies adopted by players in the electrically conductive adhesives market. Major players of the electrically conductive adhesives market are:
- H.B. Fuller Company.
- Henkel AG & Co. KGaA
- Creative Materials Inc
- HITEK Electronic Materials Ltd
- MG Chemicals.
- Master Bond Inc
- Panacol-Elosol GmbH
- In May 2020, Ulbrich Group launched Vitralit 1605, a UV-curable epoxy resin having the properties of thermal initiators. Product launches like this will benefit the market growth.
- In May 2019, Dow launched its new product DOWSIL EC-6601, which is an electrically conductive adhesive ideal for the automotive industry, such product launches will further create an opportunity for the electrically conductive adhesives market.
Report Code: CMR 0056
Report Code: CMR 49265
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