Ultra-low Alpha Metal Market - Forecast(2024 - 2030)

Ultra-low Alpha Metal Market Overview

The Ultra-low Alpha Metal Market size is estimated to reach US$ 5.2 billion by 2027, growing at a CAGR of around 6.6% from 2022 to 2027. The ultra-low alpha metal is an alloy with changing compositions of the lead and tin. It has alpha emissions rate of 0.002 cph/cm² or even less. The tin alloys, lead alloys, lead-free-alloys, and tin are the product types having major use across various industries. The ultra-low alpha metals are used in the solder bumping applications. The increasing use of the ultra-low alpha metals in customer hardware items, electronic devices and clinical gadgets is creating a drive in the Ultra-low Alpha Metal Market. Furthermore, the high demand of ultra-low alpha metals in electronics, aerospace, automotive, and others will offer growth in the market during the forecast period.

COVID-19 Impact

The ultra-low alpha market was majorly hit by the covid-19 outbreak. The disruption in manufacturing activities, restricted logistic system, and fall in demand majorly affected the growth in the market. The ultra-low alpha market has application in the automotive and electronics sector. The automotive sector saw a major fall in growth in the pandemic. The vehicle production, assembling, and distribution chain was disturbed in the pandemic. Furthermore, the restrictions on travel and transportation led to fall in the demand for vehicle. According to the National Automotive Dealers Association (NADA), the new vehicle inventory saw a 65% decline in 3rd quarter 2021 in U.S. The decline in the demand of automotive sector led to fall in the application of ultra-low alpha metal in electric vehicle, commercial, and passenger sector. Thus, with major decline in growth and demand from various end-use sectors, the global Ultra-low Alpha Metal Market faced a major growth slowdown in the covid-19 pandemic.

Report Coverage

The “Ultra-low Alpha Metal Market Report – Forecast (2022-2027)” by IndustryARC covers an in-depth analysis of the following segments of the ultra-low alpha metal industry .

Key Takeaways

• The Ultra-low Alpha Metal Market size will grow due to rising demand of the non-hazardous metals in electronics devices, telecommunication, aerospace, automotive, and other sectors.
• The Asia Pacific region is the fastest growing region in the global ultra-low alpha metal industry due to growing production of ultra-low alpha metals for electronics, along with growing vehicle demand, developing 5G telecommunication technology, and others.
• The demand for the tin material type in Ultra-low Alpha Metal Market is high due to its preference for soldering and semiconductor chips as it offers high corrosion resistance, strong joint glue mechanism, and durability.

By product, the ULA lead-free alloy segment held the largest Ultra-low Alpha Metal Market share and is expected to grow by over 6.2% during the forecast period. The growth of lead-free alloy is influenced by the restrictions implemented on the usage of heavy or unsafe metals such as lead in electronics and medical sector, thereby boosting the demand for lead-free alloy type. The lead-free alloy product is used in medical sector in order to eliminate the usage of hazardous element. Furthermore, the growing demand of lead-free alloys such as tin-silver-copper, tin-copper, and others are used in solders for consumer electronics, circuits, home appliances, and other electronic devices is boosting the Ultra-low Alpha Metal Market. According to the National Investment Promotion & Facilitation Agency, the electronic devices sector in India was estimated to reach around USD .9 trillion in 2020. Thus, with growing applications of lead-free alloy product in various end-use industries, majorly in electronics for solder, flip chips, and other electric components, the ultra-low alpha market will grow rapidly in the coming years.

Ultra-low Alpha Metal Market Segment Analysis – By End-Use Industry

By end-use industry, the electronics segment holds the largest Ultra-low Alpha Metal Market share and will grow at a CAGR of over 6.9% during the forecast period. The ultra-low alpha metals has growing applications in the electronics industry such in printed circuit boards, solders, semiconductor chips, and other electronic devices. The increasing use of the ultra-low alpha metals in electronics owing to less usage of the hazardous metals is offering major demand in the market. Furthermore, the application of ultra-low alpha metals such as in flip chips for semiconductor, circuit boards, and other electronic wearable and appliances is boosting the growth of ultra-low alpha metals in electronics sector. According to the Semiconductor Industry Association, the U.S Senate passed the USICA competitive legislation in which includes around USD 52 billion in order to boost domestic chip manufacturing in the U.S for 2021. The increasing production of electronics and flip chip technology is offering major demand for the ultra-low alpha metals. Thus, with high demand of ultra-low alpha metals in electronics industry, the global Ultra-low Alpha Metal Market will grow during the forecast period.

Ultra-low Alpha Metal Market Segment Analysis – By Geography

By geography, the Asia Pacific segment is the fastest-growing region in the Ultra-low Alpha Metal Market and will grow by over 7.1% during the forecast period. The growing production of electronics, automotive sector growth, and established telecommunication sector in this region is influencing the growth of Ultra-low Alpha Metal Market. The rise in automotive production and high demand of the electric vehicle is boosting the application of ultra-low alpha metal in flip chips, semiconductors, solder, and others in automotive sector. According to the Japan Automobile Manufacturers Association (JAMA), production value of passenger cars and trucks accounted for 602,232 units and 710,070 units respectively in December 2021. Furthermore, increasing production of electronic devices and wearable which uses tin alloys, ultra-low alpha lead-free-alloys, and others is creating a drive in the market. The growing semiconductor and electronics industry in major countries such as China, India, and others is boosting the demand for the Ultra-low Alpha Metal Market. The restrictions on the usage of hazardous metal for electronic products are providing major growth in the applications of ultra-low alpha metal in electronic sector. Thus, with increasing demand of ultra-low alpha metals in various end-use industries such as automotive, electronics, telecommunication, and others, the global ultra-low alpha metal industry will grow rapidly during the forecast period.

Ultra-low Alpha Metal Market Drivers

High demand in electronics sector

The application of ultra-low alpha metal in the electronic sector is rising. The ultra-low alpha metal products such as lead-free alloy, tin alloy, and others are used in semiconductor chips, solder, circuits, and other electronic devices. Furthermore, the restrictions on harmful and heavy metals for application are electronics is creating a major drive in the Ultra-low Alpha Metal Market. For instance, the European Commission restricts the use of heavy metals through RoHS Directive such as PBB, DBP, DIBP, and others in electrical and electronic components. According to the Semiconductor Industry Association, the total semiconductors produced by the U.S firms accounted for 47% of the global market in 2019. Thus, the demand for ultra-low alpha metal is high in electronics for various applications in PCBs, chips, and consumer electronics. Moreover, the increasing production in electronic sector is offering major growth opportunities and boosting demand of the ultra-low alpha metal among various industrial players.

Increasing application in the automotive industry

The demand of the ultra-low alpha metal such as tin is high for applications in the automotive industry. It has applications in electric components in the vehicle, plating, chips, and others. The ultra-low alpha metal is also used in electric vehicles in chips, engine, batteries, and others. Moreover, the growing production for the electric vehicles is driving the Ultra-low Alpha Metal Market. The demand for miniaturization in automotive electronic such as flip chip is high, owing to it light weight, easy establishment, and cost reliability. Furthermore, with major growth in vehicle productions and electric vehicle demand, the global ultra-low alpha metal is experiencing high demand in the market. According to the India Brand Equity Foundation (IBEF), the electric vehicle sector in India is estimated to reach USD 7.09 billion by the year 2025. Thus, the increasing production and demand of miniaturized and safe metals in automotive electronics is offering major growth opportunities in the ultra-low alpha metal industry.

Ultra-low Alpha Metal Market Challenges

Volatility in prices of raw materials

The ultra-low alpha metals are used across various industries. The ultra-low alpha market faces major challenge due to fluctuations in the raw material prices. This is leading to major disruption for various manufacturers, supply disturbance, and others. The high prices of raw material such as tin and copper is offering fall in supply, increases production costs, and thereby shifts price rise on the final product. According to the World Bank, the commodities prices are surging, with around 5.2% estimated rise in tin prices in 2022. Furthermore, as per the CARE Ratings, the copper prices are estimated to fall by around 5% in 2022, after showing a rise of 51% in 2021. Thus, with volatility in the raw material prices for ultra-low alpha metal, the global ultra-low alpha metal faces challenge and slowdown.

Global Ultra-low Alpha Metal Industry Outlook

The global ultra-low alpha metal top 10 companies include:

1. Honeywell International Inc.
2. Tech Resources Limited
3. Alpha Assembly Solutions
4. Indium Corporation
5. STANNOL Gmbh
6. Teck Resources
7. AIM Metals & Alloys LP
8. Mitsubishi Materials Corporation
9. DUKSAN Hi-Metal Co
10. Blume Elektronik Distribution GmbH

Recent Developments

• In January 2022, Harima Chemicals announced to acquire solder business of the Henkel AG, a leading firm dealing in lead-free solder pastes and others, with the goal to achieve emerging opportunities in solder alloys and 5G telecommunications.
• In November 2019, the Kester Company was acquired by Element Solutions Inc. owner of the MacDermid Alpha, a leading producer of solders. This will expand the business and electronic material technologies for the MacDermid Alpha.
• In January 2019, Lincoln Electric Holding Inc. announced the acquisition soldering business of the Worthington Industries, a leading player in diversified metal. This will boost the business with premium solder addition in the product portfolio.

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