Electronic Circuit Board Level Underfill Material Market - Forecast(2024 - 2030)

Electronic Circuit Board Level Underfill Material Market Overview

The electronic circuit board level underfill material market size is forecast to reach US$ 445 million by 2027 after growing at a CAGR of 5.1% during 2022-2027. Electronic circuit board level underfills are utilized usually in flip-chip applications to lower thermal stresses solder bumps experience owing to the coefficient of thermal expansion mismatch between two dies or a die and the substrate. These underfill are made of several materials such as epoxy polymer, silicon, alumina, among others. Owing to high ductility and excellent impact resistance, electronic circuit board level underfills are considered suitable for large-scale integration packages and solid-state drives in various consumer electronic products such as smartphones, tablets, mobile phones, digital cameras, laptops, and many more. The demand for smartphones is booming globally and this is expected to be one of the factors that will contribute to the growth of the market during the forecast period. For instance, as per the data by Ericsson, smartphone subscriptions are on the rise and this is projected to reach US$ 7 billion in 2027. Furthermore, the demand for laptops is increasing globally owing to the work from home and online education culture and this is projected to drive the market’s growth during the forecast period. For instance, as per the September 2020 data by the American Customer Satisfaction Index, demand for laptops increased in 2020 as Americans spent more time at home. Flip chips will witness the highest demand in the forecast period. Ball grid array will have significant demand during the forecast period. The formation of voids in flip-chip process might affect the growth of the market during the forecast period.

COVID-19 Impact

The electronic circuit board level underfill material market was influenced due to the COVID-19 pandemic. The market slowed down due to the challenges of supply chain scarcity and raw material procurement. The market players had to amplify their work patterns to maintain a standard business operation amid the pandemic. Due to the massive demand for smartphones and laptops during the pandemic, the market witnessed significant growth. Going forward, the electronic circuit board level underfill material market will witness robust demand as demand for consumer electronics such as smartphones, laptops, and tablets will have a progressive track in the forecast period.

Electronic Circuit Board Level Underfill Material Market Report Coverage

The report: “Electronic Circuit Board Level Underfill Material Market Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Electronic Circuit Board Level Underfill Material Industry. 

By Material: Epoxy Polymer, Silicon, Urethane, Acrylic, Alumina, Others
By Application: Chip Scale Packages (CSP), Ball Grid Arrays (BGA), Package-on-Package (PoP), Wafer Level Chip Scale Packages (WLCSPs), Land Grid Array (LGA), Flip Chips, Others
By Geography: North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of Asia Pacific), South America (Brazil, Argentina, Colombia and Rest of South America), and RoW (Middle East and Africa).

Key Takeaways:

• Epoxy polymer dominated the electronic circuit board level underfill material market in 2021. This type of material improves reliability and offers excellent adhesion to several substrates, making it a suitable choice in the market
• Smartphone demand is expected to drive the growth of the market during the forecast period. For instance, as per the data by India Brand Equity Foundation, in 2020,5G smartphone shipments crossed 4 million units owing to higher consumer demand post-lockdown.
• The Asia Pacific region is projected to witness the highest demand for electronic circuit board level underfill material owing to the expanding demand for the consumer electronics market in the region. For instance, as per the July 2021 stats by China.org.cn, consumer electronic exports maintained a growth trajectory for 12 months in a row.

Electronic Circuit Board Level Underfill Material Market - By Material

Epoxy polymer dominated the electronic circuit board level underfill material market in 2021. Epoxy polymer-based underfills enhance the product’s reliability and provide superior adhesion to a wide variety of substrates. Moreover, these underfill offer excellent resistance to different mechanical and thermal shocks, allowing electronic products to operate normally under severe changes in environmental temperature. Owing to such diverse properties, the use of epoxy polymer-based electronic circuit board level underfill is increasing in the market. For instance, as per the April 2019 journal by the Journal of Welding and Joining (JWJ), epoxy polymer underfills are widely utilized in microelectronic packaging as heat dissipators and for joining die. The journal also states demand for epoxy polymer underfill is high in printed circuit boards (PCBs). Such high use of epoxy polymer underfill is expected to increase its demand in the forecast period.

Electronic Circuit Board Level Underfill Material Market - By Application

Flip-chip application dominated the electronic circuit board level underfill material market in 2021 and is growing at a CAGR of 5.6% during the forecast period. Electronic circuit board level underfills find their massive uses in the flip-chip application where the underfills enhance the durability of the flip-chip assembly, making both the electrical interconnections and physical contact more reliable. The flip-chip application is increasing due to the growing demand for the miniaturization of electronic devices and this is expected to drive the growth of the market during the forecast period. For instance, as per the August 2021 journal by The American Society of Mechanical Engineers (ASME), the flip-chip application is witnessing multiple uses in microelectronic packages and devices owing to the rapid advancement of micro-electronic industries. Such high demand for flip-chip applications is expected to augment the higher uses of electronic circuit board level underfills, driving the growth of the market in the forecast period.

Electronic Circuit Board Level Underfill Material Market - By Geography

The Asia-Pacific region held the largest market share in the electronic circuit board level underfill material market in 2021, up to 32%. The high demand for electronic circuit board level underfill material market is attributed to the expanding consumer electronics sector in the region. The increasing demand for the consumer electronics is amplifying the higher requirement of printed circuit boards and this is expected to increase the demand for underfills materials in the forecast period. According to the May 2021 stats by China.org.cn, in 2020, Huawei became the second-largest manufacturer in the notebook segment in China with a market share of 16.9%. Similarly, according to the stats by India Brand Equity Foundation, the consumer electronics and appliance sector will grow twice the current market size and is projected to become a market value of USD 21.18 billion by 2025. Such massive expansion in the consumer electronics sector in the region is expected to stimulate the higher use of electronic circuit board level underfill materials.

Electronic Circuit Board Level Underfill Material Market Drivers

Increasing demand for smartphones will drive the market’s growth

Electronic circuit board level underfill materials are an integral part of the smartphones where they help in connecting the circuit board with wires and provide impact resistance against falls or drastic changes of temperature. The demand for smartphones is surging globally with increasing production to cater to the consumer’s demand for new and innovative models. This increasing demand for smartphones will augment the market’s growth in the forecast period. For instance, as per the October 2020 data by Consumer Technology Association (CTA), the sales of smartphones will increase in 2022 where 76% of all smartphones will have 5G capabilities in 2022. Similarly, as per the data by India Brand Equity Foundation, the smartphones sector will witness high growth in 2022, and shipment of smartphones is projected between 190-200 million units by 2022. Such high growth in the smartphones segment globally is expected to augment the higher use of electronic circuit board level underfill materials, driving the market’s growth during the forecast period.

Rising demand for laptops will augment the drive the market’s growth

Electronic circuit board level underfill materials find their massive use in laptops. They are used in laptops for large-scale integration packages and solid-state drives. The demand for laptops is surging globally with increasing production and sales and this is projected to drive the market’s growth during the forecast period. For instance, according to the 2021 data by India Brand Equity Foundation, Lenovo is expanding its local manufacturing capabilities in India across different product categories that include laptops. Similarly, as per Apple’s third-quarter 2021 financial report, net sales of Macbooks accounted for US$ 8235 million in June 2021 which was US$ 7079 in June 2020. Such increasing demand for laptops is expected to stimulate the higher use of electronic circuit board level underfill material, ultimately driving the growth of the market during the forecast period.

Electronic Circuit Board Level Underfill Material Market Challenges

Formation of voids in the flip-chip process might affect the market’s growth

The formation of voids in the flip-chip process has been a major area of concern and this might affect the growth of the market during the forecast period. The underfill application in the manufacturing assembly of flip-chip devices is performed to showcase the reliability of the package. During the underfill process, the formation of void takes place which slows down the filling time. As per the December 2019 journal by SAGE journals, void formation in flip-chip slows down the overall process. Such challenges of the formation of voids in the flip-chip process might slow down the market’s growth in the forecast period.

Electronic Circuit Board Level Underfill Material Industry Outlook

Investment in R&D activities, acquisitions, product and technology launches are key strategies adopted by players in the electronic circuit board level underfill material market. Major players in the electronic circuit board level underfill material market are:

1. Protavic America
2. Henkel
3. Namics
4. AI Technology, Inc
5. H.B. Fuller
6. Showa Denko Materials Co., Ltd.
7. Zymet
8. MacDermid Alpha
9. Epoxy Technology Inc
10. Lord Corporation
11. Sanyu Rec Co., Ltd
12. Others

Recent Developments

• In December 2021, MacDermid Alpha announced that the company will display its ALPHA HiTech portfolio of underfill solutions at the IPC APEX EXPO in California. Such developments will allow MacDermid Alpha to expand its underfill solutions portfolio in the market.

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