Encapsulant Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global market for encapsulant is expected to grow at a CAGR of more than 4% during the forecast period. The major factor driving the market studied is the increasing demand for electrical and electronic appliances. On the flip side, unfavorable conditions arising due to the COVID-19 outbreak is hindering the growth of the market.

Electronics & Electricals industry is expected to dominate the market studied during the forecast period.

Asia-Pacific region represents the largest market and is also expected to be the fastest-growing market over the forecast period owing to the increasing consumption from countries such as China, India, and Japan.

Key Market Trends

Electrical & Electronics Industry to Dominate the Market

• Encapsulants are used for insulation purposes in electronic devices. In circuit boards, semiconductors, and other electronic components, they provide superior resistance to environmental hazards such as high temperatures, chemical exposure, etc.
• According to the German Electrical and Electronic Manufacturers’ Association (ZVEI), the global electronics & electric market is expected to rise from EUR 4.4 trillion to EUR 4.7 trillion in 2020.
• Asia is expected to register the fastest growth of 4% in 2020 in consumer electronics, with China leading the market with a growth rate of more than 5%. Countries in North America and Europe are expected to register a growth rate of around 2% during the same period.
• In countries such as India, government initiatives such as The National Policy on Electronics 2019 aims to promote domestic manufacturing and export in the entire value-chain of Electronics System Design and Manufacturing (ESDM) to achieve a turnover of USD 400 billion by 2025.
• Such positive factors are expected to drive the encapsulant market in the electronics industry through the forecast period.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific region represents the largest market and is also expected to be the fastest-growing market over the forecast period owing to the increasing consumption from countries such as China, India, and Japan.
• China has the world’s largest electronics production base. Electronic products, such as smartphones, OLED TVs, tablets, and so on, have the highest growth prospects in the electronics segment. With the increase in the demand for these, the market for encapsulant in China is projected to grow in the near future.
• Additionally, the Asia-Pacific semiconductor industry account for the largest share and is expected to be the fastest-growing region in semiconductors production, owing to innovations in microchip technologies, which are expected to boost demand for integrated circuits in the region, which, in turn, is likely to boost the demand for the market studied.
• According to India Electronics and Semiconductor Association, the semiconductor component market in the country is expected to be worth USD 32.35 billion by 2025, exhibiting a CAGR of 10.1% (2018 - 2025). Thus, the ongoing Make in India initiative by the government, is expected to result in investments in the semiconductor industry in the country.
• India Electronics and Semiconductor Association (IESA) signed a MoU with Singapore Semiconductor Industry Association (SSIA) to establish and develop trade and technical cooperation between the electronics and semiconductor industries of both the countries. This is expected to result in development of various break-through semiconductor manufacturing technologies that would further increase the scope for encapsulant usage in semiconductor manufacturing in India.
• Such factors are expected to further drive the demand for encapsulant market over the forecast period in the Asia-Pacific region.

Competitive Landscape

The global encapsulant market is partially fragmented with many healthy competitors in the market. The major companies are 3M, Lord Corporation, Dow, Sumitomo Bakelite Co., Ltd. and Shin-Etsu Chemical Co., Ltd. among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support