Industrial Electronics Packaging Market - By Material Type (Plastics, Metals, Ceramics, Composites), By Packaging Type (Trays, Tubes, Bags and pouches, Boxes and Cases, Racks and Cabinets), By Protection Level, By Application & Forecast, 2023 – 2032

Industrial Electronics Packaging Market Size

Industrial Electronics Packaging Market size was valued at around USD 1.9 billion in 2022 and will grow at a CAGR of 4.1% from 2023 to 2032. The increasing adoption of industrial automation systems and technologies drives the demand for robust and protective packaging for sensitive electronic components used in automation equipment. The rapid growth of the Internet of Things (IoT) and connected devices fuels the demand for specialized packaging solutions that protect electronic components in IoT devices.
 

The automotive industry's increasing integration of electronics in vehicles demands secure and reliable packaging to protect sensitive electronic components from vibration, temperature fluctuations, and other environmental factors.

Electronics manufacturers face continuous cost pressures, including raw material costs, transportation, and packaging expenses. Balancing cost-effectiveness with quality and performance is a significant challenge. As electronics advance, packaging must keep pace with emerging technologies, such as 5G, IoT, and AI, to meet the requirements of the latest electronic devices. Disruptions in the supply chain can lead to delays in obtaining packaging materials and affect production schedules. Thus, the high-end pricing and risks associated with Industrial electronics packaging may drive down the acceptance rate, further hampering the business growth.
 

COVID-19 Impact

The pandemic caused fluctuations in demand for industrial electronics products, affecting the demand for packaging accordingly. Some industries, such as healthcare and telecommunications, experienced increased demand for electronic devices, while others, like automotive and aerospace, faced reduced demand due to lockdowns and economic uncertainties. Thus, the reduced number of COVID-19 cases and implementation of subsequent strategies by government and non-government organizations is anticipated to drive the business expansion in the upcoming years.
 

Industrial Electronics Packaging Market Trends

The trend of miniaturization in electronics components continues, leading to a demand for compact and space-efficient packaging solutions that can accommodate smaller and densely packed electronic parts while providing protection and thermal management. The industry is witnessing an increased use of advanced materials, such as conductive polymers, nanocomposites, and biodegradable materials, to improve performance, enhance thermal conductivity, and address environmental concerns.
 

Industrial Electronics Packaging Market Analysis

Based on product, the industrial electronics packaging market is segmented as plastics, metals, ceramics, composites, others. Plastics held a majority market value of USD 0.6 billion in 2022. Plastics and polymers offer a wide range of formulations, making them versatile and suitable for various packaging designs, including flexible and custom shapes. The lightweight nature of plastics and polymers is ideal for electronics components, especially in applications where weight reduction is essential. Moreover, an increasing usage will further accelerate the segmental growth.
 

Based on packaging type, the market is segmented as Trays, Tubes, Bags and pouches, Boxes and cases, Racks and cabinets, Others. Trays held a dominant market share of around 40% in 2022 and is expected to grow at a lucrative pace through 2032. Trays and carriers offer a secure and protective means of transporting and handling delicate electronic components, preventing damage during transit and assembly.
 

Based on protection level, the industrial electronics packaging market is segmented as Standard packaging, Electrostatic Discharge packaging, Electromagnetic Interference shielding, Hermetic packaging, Others. Standard Packaging held a dominant market share in 2022 and is anticipated to grow at 3.2% CAGR through 2032. Industrial electronics used in rugged environments, such as automotive, aerospace, and heavy machinery, require packaging that can withstand mechanical shocks and vibrations.
 

Based on application, the industrial electronics packaging market is segmented as semiconductor packaging, power electronics packaging, industrial control systems packaging, telecommunications equipment packaging, automation and robotics equipment packaging, others. Semiconductor held a dominant market share in 2022 and is anticipated to grow at 3.5% CAGR up to 2032. The semiconductor industry demands packaging solutions that can withstand harsh vibrations and mechanical stresses experienced.
 

U.S. dominated the North American region with majority market share and a revenue of USD 0.42 billion in 2022 and is anticipated to expand at a significant pace from 2023-2032. North America has robust electronics manufacturing sector, producing a wide range of electronic components, devices, and equipment. This manufacturing base drives the demand for packaging solutions to protect and transport these products. Thus, the above-mentioned variables would augment the Industrial electronics packaging business growth in the North America positively.
 

Industrial Electronics Packaging Industry Leaders

Some of the major players operating in the Industrial electronics packaging market are;

• DS Smith Plc
• Smurfit Kappa Group Plc
• UFP Technologies Inc
• Sealed Air Corporation
• Achilles Corporation
• Desco Industries Inc
• Botron Company Inc
• Kiva Container Corporation
• Orlando Products Inc
• Delphon Industries LLC
• Summit Container Corporation
• Protective Packaging Corporation
• Dou Yee Enterprises (S) Pte Ltd
• Dordan Manufacturing Company Inc
• GWP Group Limited

These players focus on strategic partnerships, new product launch & commercialization for market expansion. Furthermore, these players are heavily investing in research that allows them to introduce innovative products and garner maximum revenue in the market.
 

Industrial Electronics Packaging Industry News:

• In October 2021, Smurfit Kappa Group announced that it had completed the acquisition of Verzuolo, which is a recycled containerboard company based in Northern Italy, for a cost of US$ 382.53 million.
   
• In May 2020, KLA Corporation announced its new business group that is projected to be completely focused on its electronics, packaging, and components (EPC) businesses.
   

Industrial electronics packaging market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Billion & Units from 2018 to 2032, for the following segments:

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By Material Type

• Plastics
• Metals
• Ceramics
• Composites
• Others

By Packaging Type

• Trays
• Tubes
• Bags and pouches
• Boxes and cases
• Racks and cabinets
• Others

By Protection Level

• Standard packaging
• Electrostatic Discharge packaging
• Electromagnetic Interference shielding
• Hermetic packaging
• Others

By Application

• Semiconductor packaging
• Power electronics packaging
• Industrial control systems packaging
• Telecommunications equipment packaging
• Automation and robotics equipment packaging
• Others

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

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