The global market for Electronic Board Level Underfill and Encapsulation was estimated at US$333.0 Million in 2024 and is projected to reach US$404.3 Million by 2030, growing at a CAGR of 3.3% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Electronic Board Level Underfill and Encapsulation market.
Underfill materials are typically epoxy-based formulations applied between the chip and substrate to reinforce solder joints, mitigate coefficient of thermal expansion (CTE) mismatch, and absorb mechanical shock. Encapsulation compounds used for overmolding or potting offer protection from moisture, chemicals, and particulate contamination. These materials extend the operational life of electronics exposed to automotive, aerospace, industrial, or consumer-grade environments.
In devices subject to thermal cycling, vibration, or drop impact such as smartphones, automotive ECUs, and wearable electronics underfill and encapsulants serve as a physical buffer and a thermal path. In advanced packaging architectures like 2.5D/3D ICs and system-in-package (SiP), underfill solutions help manage internal stress loads across multiple dies and interposer layers, making them indispensable in semiconductor packaging.
Thermally conductive underfills with filler materials like alumina, boron nitride, and silver flakes are increasingly used in high-power devices and RF modules. These formulations combine low viscosity with high heat dissipation, allowing for rapid curing and minimal void formation. UV-curable and snap-cure systems are being adopted for high-throughput manufacturing environments where cycle time is a key performance metric.
Encapsulation materials are transitioning toward hybrid resin systems combining epoxy, silicone, and polyurethane characteristics for better flexibility and adhesion on challenging substrates. For MEMS devices and optical sensors, low-stress, optically clear encapsulants with low outgassing profiles are becoming mainstream. Jet-dispensing and stencil printing techniques are now common for volume production in mobile and consumer electronics.
Consumer electronics is the second-largest end-use segment, encompassing smartphones, wearables, tablets, and gaming devices. As devices become thinner and more densely packed, thermal and mechanical reliability become central to user experience and warranty cycles. Advanced encapsulants are used to safeguard against water ingress and thermal degradation especially in IP-rated devices.
Automotive electronics is a rapidly growing segment, driven by the increasing number of ECUs, sensors, and power modules. Underfill materials are essential for ensuring vibration resistance and thermal cycling endurance in harsh automotive environments. Key applications include ADAS processors, infotainment systems, and battery control units in EVs. Industrial automation, medical electronics, and aerospace applications further diversify demand.
First, the push toward smaller, lighter, and multifunctional electronic devices necessitates more robust protective materials. As solder joint pitch narrows and component stacking increases, mechanical reinforcement via underfill becomes critical to avoid premature failures, especially during drop tests and thermal cycles.
Second, power semiconductors and RF components used in 5G, automotive, and high-performance computing generate substantial heat. Underfill and encapsulants with enhanced thermal conductivity help dissipate this heat efficiently, preventing hot-spot failures and ensuring long-term reliability especially in confined PCB layouts.
Third, the automotive and aerospace sectors are increasing reliability thresholds. Devices in these environments must endure wide temperature swings, vibrations, and exposure to corrosive agents. High-temperature stable, chemically inert encapsulants and reworkable underfills are being demanded to meet industry-specific standards such as AEC-Q100 and MIL-STD-883.
Lastly, the emergence of fan-out wafer-level packaging (FOWLP), system-in-package (SiP), and chiplet architectures is pushing material engineers to develop highly customizable, low-CTE, and void-free underfills. These architectures, which blend logic, memory, and analog blocks on a single module, rely heavily on precision material deposition to ensure signal fidelity and physical integrity.
Global Electronic Board Level Underfill and Encapsulation Market - Key Trends & Drivers Summarized
Why Are Underfill and Encapsulation Solutions Crucial in PCB and Microelectronics Assembly?
Electronic board-level underfill and encapsulation materials are critical to ensuring the mechanical integrity, thermal stability, and long-term reliability of semiconductor packages and printed circuit boards (PCBs). As electronic devices become more compact and powerful, the stresses exerted on solder joints, interconnects, and die surfaces intensify, particularly in ball grid arrays (BGAs), chip-scale packages (CSPs), and flip-chip configurations.Underfill materials are typically epoxy-based formulations applied between the chip and substrate to reinforce solder joints, mitigate coefficient of thermal expansion (CTE) mismatch, and absorb mechanical shock. Encapsulation compounds used for overmolding or potting offer protection from moisture, chemicals, and particulate contamination. These materials extend the operational life of electronics exposed to automotive, aerospace, industrial, or consumer-grade environments.
In devices subject to thermal cycling, vibration, or drop impact such as smartphones, automotive ECUs, and wearable electronics underfill and encapsulants serve as a physical buffer and a thermal path. In advanced packaging architectures like 2.5D/3D ICs and system-in-package (SiP), underfill solutions help manage internal stress loads across multiple dies and interposer layers, making them indispensable in semiconductor packaging.
What Material Innovations and Application Techniques Are Reshaping the Segment?
Material innovations in underfill and encapsulation are focused on improving thermal conductivity, lowering curing temperatures, enhancing flow characteristics, and enabling faster dispense cycles. Conventional capillary underfill systems have evolved into no-flow underfills, pre-applied underfills (PAUF), and reworkable variants to suit diverse process flows and assembly line constraints.Thermally conductive underfills with filler materials like alumina, boron nitride, and silver flakes are increasingly used in high-power devices and RF modules. These formulations combine low viscosity with high heat dissipation, allowing for rapid curing and minimal void formation. UV-curable and snap-cure systems are being adopted for high-throughput manufacturing environments where cycle time is a key performance metric.
Encapsulation materials are transitioning toward hybrid resin systems combining epoxy, silicone, and polyurethane characteristics for better flexibility and adhesion on challenging substrates. For MEMS devices and optical sensors, low-stress, optically clear encapsulants with low outgassing profiles are becoming mainstream. Jet-dispensing and stencil printing techniques are now common for volume production in mobile and consumer electronics.
Which End-Use Segments and Packaging Trends Are Driving Demand?
The semiconductor industry remains the largest consumer of underfill and encapsulation solutions. Foundries and OSATs (Outsourced Semiconductor Assembly and Test providers) use these materials in flip-chip packaging, wafer-level CSPs, and emerging 3D-stacked architectures. Leading players like TSMC, ASE, and Amkor are specifying custom underfills for AI chips, RF front-end modules, and logic-memory integration.Consumer electronics is the second-largest end-use segment, encompassing smartphones, wearables, tablets, and gaming devices. As devices become thinner and more densely packed, thermal and mechanical reliability become central to user experience and warranty cycles. Advanced encapsulants are used to safeguard against water ingress and thermal degradation especially in IP-rated devices.
Automotive electronics is a rapidly growing segment, driven by the increasing number of ECUs, sensors, and power modules. Underfill materials are essential for ensuring vibration resistance and thermal cycling endurance in harsh automotive environments. Key applications include ADAS processors, infotainment systems, and battery control units in EVs. Industrial automation, medical electronics, and aerospace applications further diversify demand.
What Factors Are Accelerating Growth in the Underfill and Encapsulation Market?
The growth in the electronic board level underfill and encapsulation market is driven by several factors including miniaturization of electronics, increasing power density in semiconductors, reliability requirements in harsh environments, and the rise of heterogeneous integration in packaging technologies.First, the push toward smaller, lighter, and multifunctional electronic devices necessitates more robust protective materials. As solder joint pitch narrows and component stacking increases, mechanical reinforcement via underfill becomes critical to avoid premature failures, especially during drop tests and thermal cycles.
Second, power semiconductors and RF components used in 5G, automotive, and high-performance computing generate substantial heat. Underfill and encapsulants with enhanced thermal conductivity help dissipate this heat efficiently, preventing hot-spot failures and ensuring long-term reliability especially in confined PCB layouts.
Third, the automotive and aerospace sectors are increasing reliability thresholds. Devices in these environments must endure wide temperature swings, vibrations, and exposure to corrosive agents. High-temperature stable, chemically inert encapsulants and reworkable underfills are being demanded to meet industry-specific standards such as AEC-Q100 and MIL-STD-883.
Lastly, the emergence of fan-out wafer-level packaging (FOWLP), system-in-package (SiP), and chiplet architectures is pushing material engineers to develop highly customizable, low-CTE, and void-free underfills. These architectures, which blend logic, memory, and analog blocks on a single module, rely heavily on precision material deposition to ensure signal fidelity and physical integrity.
Key Insights:
- Market Growth: Understand the significant growth trajectory of the Underfills Type segment, which is expected to reach US$258.1 Million by 2030 with a CAGR of a 2.7%. The Gob Top Encapsulations Type segment is also set to grow at 4.5% CAGR over the analysis period.
- Regional Analysis: Gain insights into the U.S. market, valued at $90.7 Million in 2024, and China, forecasted to grow at an impressive 6.0% CAGR to reach $79.5 Million by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.
Why You Should Buy This Report:
- Detailed Market Analysis: Access a thorough analysis of the Global Electronic Board Level Underfill and Encapsulation Market, covering all major geographic regions and market segments.
- Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
- Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Electronic Board Level Underfill and Encapsulation Market.
- Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.
Key Questions Answered:
- How is the Global Electronic Board Level Underfill and Encapsulation Market expected to evolve by 2030?
- What are the main drivers and restraints affecting the market?
- Which market segments will grow the most over the forecast period?
- How will market shares for different regions and segments change by 2030?
- Who are the leading players in the market, and what are their prospects?
Report Features:
- Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
- In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
- Company Profiles: Coverage of players such as Ablestik Laboratories, AI Technology Inc., Advanced Technology & Materials Co., Ltd., Dow Inc., and more.
- Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.
Some of the 41 companies featured in this Electronic Board Level Underfill and Encapsulation market report include:
- Ablestik Laboratories
- AI Technology Inc.
- Advanced Technology & Materials Co., Ltd.
- Dow Inc.
- Dupont Electronics & Imaging
- Henkel AG & Co. KGaA
- Hitachi Chemical Co., Ltd.
- JSR Corporation
- Kyocera Corporation
- LORD Corporation
- Nagase ChemteX Corporation
- Namics Corporation
- NuSil Technology LLC
- Panacol-Elosol GmbH
- Sika AG
- Shin-Etsu Chemical Co., Ltd.
- Sumitomo Bakelite Company, Limited
- Techsil Ltd
- Trelleborg AB
- UMC Electronics Co., Ltd.
This edition integrates the latest global trade and economic shifts as of June 2025 into comprehensive market analysis. Key updates include:
- Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
- Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes segmentation by product, technology, type, material, distribution channel, application, and end-use, with historical analysis since 2015.
- Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
- Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
- Competitive Intelligence: Updated global market share estimates for 2025, competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
- Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.
- Complimentary Update: Buyers receive a free July 2025 update with finalized tariff impacts, new trade agreement effects, revised projections, and expanded country-level coverage.
Table of Contents
I. METHODOLOGYII. EXECUTIVE SUMMARY2. FOCUS ON SELECT PLAYERSIII. MARKET ANALYSISCANADAITALYSPAINRUSSIAREST OF EUROPESOUTH KOREAREST OF ASIA-PACIFICARGENTINABRAZILMEXICOREST OF LATIN AMERICAIRANISRAELSAUDI ARABIAUNITED ARAB EMIRATESREST OF MIDDLE EAST
1. MARKET OVERVIEW
3. MARKET TRENDS & DRIVERS
4. GLOBAL MARKET PERSPECTIVE
UNITED STATES
JAPAN
CHINA
EUROPE
FRANCE
GERMANY
UNITED KINGDOM
ASIA-PACIFIC
AUSTRALIA
INDIA
LATIN AMERICA
MIDDLE EAST
AFRICA
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Ablestik Laboratories
- AI Technology Inc.
- Advanced Technology & Materials Co., Ltd.
- Dow Inc.
- Dupont Electronics & Imaging
- Henkel AG & Co. KGaA
- Hitachi Chemical Co., Ltd.
- JSR Corporation
- Kyocera Corporation
- LORD Corporation
- Nagase ChemteX Corporation
- Namics Corporation
- NuSil Technology LLC
- Panacol-Elosol GmbH
- Sika AG
- Shin-Etsu Chemical Co., Ltd.
- Sumitomo Bakelite Company, Limited
- Techsil Ltd
- Trelleborg AB
- UMC Electronics Co., Ltd.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 380 |
| Published | June 2025 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value ( USD | $ 333 Million |
| Forecasted Market Value ( USD | $ 404.3 Million |
| Compound Annual Growth Rate | 3.3% |
| Regions Covered | Global |
