Electronic Adhesives Market - By Resin Type (Epoxy, Acrylics, Polyurethane, Silicone), By Application (Conformal Coatings, Surface Mounting, Encapsulation, Wire Tacking), By End Use Industry & Forecast, 2023 – 2032

Electronic Adhesives Market Size

Electronic Adhesives Market was valued at around USD 4.35 billion in 2022 and is projected to grow at a CAGR of over 6% between 2023 and 2032. Electronic adhesives are specialized bonding agents used in the assembly and manufacturing of electronic components, facilitating the secure attachment of various elements such as semiconductors, printed circuit boards (PCBs), and other electronic devices.

The market for electronic adhesives is propelled by factors such as the continuous miniaturization of electronic components, the demand for conductive adhesives in flexible and wearable electronics, increasing complexity of electronic devices necessitating specialized adhesion properties, the shift towards environmentally friendly materials, technological advancements, and the expanding applications of electronic devices in industries like automotive, medical, and aerospace. These growth drivers collectively contribute to the dynamic and evolving landscape of the electronic adhesives industry.

The electronic adhesives industry faces a significant challenge in the form of rising raw material costs. The escalation in the prices of key raw materials used in electronic adhesives formulation can potentially impact the overall production costs for manufacturers. This, in turn, may lead to increased product prices, potentially affecting the competitiveness of electronic adhesives in the market. Manufacturers may need to strategize and explore cost-effective alternatives or efficient supply chain management practices to mitigate the impact of rising raw material costs and maintain market stability.
 

Electronic Adhesives Market Trends

The electronic adhesives industry is witnessing several notable trends. One prominent trend is the growing demand for environmentally friendly and sustainable adhesives, reflecting an industry-wide commitment to eco-conscious practices. The rise of miniaturization in electronic devices is driving the need for adhesives with superior bonding strength in compact spaces. Conductive adhesives are gaining traction with the increasing popularity of flexible and wearable electronics. Moreover, the market is experiencing a surge in research and development activities, focusing on advanced formulations to meet specific performance requirements such as thermal conductivity and resistance to harsh environmental conditions. The expansion of electronic applications in automotive electronics, medical devices, and the aerospace sector is also contributing to the evolving landscape of the market.

Electronic Adhesives Market Analysis

Based on resin type, the market is segmented as epoxy, acrylics, polyurethane, silicone, and other. Epoxy held a majority market value of USD 1.52 billion in 2022. Acrylic-based adhesives are gaining popularity due to their versatility, offering excellent adhesion properties and resistance to environmental factors. Polyurethane adhesives are experiencing increased demand, driven by their exceptional durability and flexibility, making them suitable for diverse electronic applications. Silicone adhesives, known for their high-temperature resistance and flexibility, are finding increased adoption, particularly in applications requiring thermal stability. The "other" category reflects ongoing innovations and the introduction of novel resin formulations to cater to specific industry needs, contributing to the overall dynamism and growth within the market.
 

Based on application, the electronic adhesives market is segmented as conformal coatings, surface mounting, encapsulation, wire tacking and other. Conformal coatings held a dominant market share of around 40% in 2022. Surface mounting, a key process in electronic manufacturing, is witnessing increased demand as electronic devices continue to undergo miniaturization, requiring precise and efficient adhesion of components onto PCBs. Encapsulation, which involves the protection and insulation of electronic components, is crucial for ensuring the longevity and reliability of devices, especially in harsh environmental conditions. Wire tacking, another essential application, involves securing and organizing wires within electronic assemblies, contributing to improved overall system performance. The "other" category encompasses evolving applications and emerging technologies, reflecting the dynamic nature of the electronic adhesives industry as it adapts to the changing needs of diverse industries.
 

Based on end use industry, the market segmented as consumer electronics, automotive, communications, medical, aerospace & defense. The market is experiencing robust growth across a spectrum of end-use industries. In the consumer electronics sector, the proliferation of smartphones, wearables, and smart home devices is driving the demand for adhesives that offer strong bonds in compact designs.
 

The automotive industry is witnessing an increasing adoption of electronic components for advanced safety and infotainment systems, fueling the need for reliable adhesives in vehicle assembly. The communications industry is leveraging electronic adhesives to produce high-performance devices, such as 5G equipment. In the medical field, electronic adhesives play a critical role in the assembly of medical devices and equipment, ensuring precision and reliability. Additionally, the aerospace and defense sector is incorporating electronic adhesives in the manufacturing of sophisticated electronic systems for aircraft and military applications, contributing to the overall growth and diversification of the electronic adhesives industry.

U.S. dominated the North American region with majority market share and a revenue of USD 1.12 billion in 2022. The continuous innovation and development in the electronics industry, coupled with the increasing demand for smart devices, are anticipated to propel the need for high-performance electronic adhesives. Moreover, the automotive sector's inclination towards electronic components for advanced features and the growing applications of electronic devices in various industries will contribute to the market's sustained growth. The U.S. market's ability to adapt to evolving technological trends and its focus on research and development are expected to play a pivotal role in maintaining its leadership position in the North American market throughout the forecast period.
 

Electronic Adhesives Market Share

3M Company and Henkel AG & Co. KGaA have attained significant market shares in the Asia-Pacific electronic adhesives industry, their success attributed to a confluence of factors. Both companies have demonstrated a commitment to innovation, offering a diverse range of electronic adhesives that cater to the region's dynamic and expanding electronics industry.
 

Leveraging advanced technologies and robust research and development capabilities, 3M and Henkel have been able to address the specific needs of the Asia-Pacific market, where electronic manufacturing plays a pivotal role. Additionally, their strategic partnerships and strong distribution networks have facilitated widespread market penetration. The ability to provide tailored solutions for diverse applications, from consumer electronics to industrial sectors, has further solidified their positions as key players in the rapidly evolving electronic adhesives landscape in the Asia-Pacific region.
 

Electronic Adhesives Market Companies

Major players operating in the market include:

• 3M
• Henkel AG & Co. KGaA
• Dow Chemical Company
• H.B. Fuller Company
• Hitachi Chemical Co., Ltd.
• Indium Corporation
• Kyocera Chemical Corporation
• Mitsui Chemicals, Inc.
• Nagase Chemtex Corporation
• Shin-Etsu Chemical Co., Ltd.
• Avery Dennison Corporation
• Ellsworth Adhesives, Inc.
• Master Bond, Inc.
• Dymax Corporation
• Evonik Industries AG
   

Electronic Adhesives Industry News

• In November 2023, Henkel AG & Co. KGaA, a leading global supplier of adhesives and sealants, has announced an investment of €100 million to expand its manufacturing capacity for electronic adhesives in Mexico. The new facility, located in San Luis Potosí, will be the company's first dedicated electronic adhesives manufacturing plant in North America. It is expected to begin operations in 2025 and will create approximately 150 new jobs.
   
• In October 2023, Dow Chemical Company has announced the launch of a new electronic adhesive designed for 5G applications. The new adhesive, called DOWSIL EA-3500, is a high-performance, thermally conductive adhesive that is ideal for bonding and sealing components in 5G base stations and other high-power electronic devices.
   

Electronic adhesives market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million & Kilo Tons from 2018 to 2032, for the following segments:

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Market, By Resin Type

• Epoxy
• Acrylics
• Polyurethane
• Silicone
• Other

Market, By Application

• Conformal Coatings
• Surface Mounting
• Encapsulation
• Wire Tacking
• Other

Market, By End Use Industry

• Consumer Electronics
• Automotive
• Communications
• Medical
• Aerospace & Defense

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Indonesia
  • Malaysia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • Saudi Arabia
  • UAE