|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD3.15
billion
|
|
CAGR
(2023-2028)
|
3.78%
|
|
Fastest
Growing Segment
|
Specialty
Electronic Gases
|
|
Largest
Market
|
China
|
Market Overview
Asia Pacific Electronic Gases Market has valued at USD3.15
billion in 2022 and is anticipated to project robust growth in the forecast
period with a CAGR of 3.78% through 2028. Electronic gases encompass a broad
spectrum of specialty and bulk gases utilized in the manufacturing and
processing of electronics, including semiconductors. They play an integral role
in crucial processes such as deposition, etching, doping, and lithography,
ensuring the precise fabrication and functionality of electronic components.
Several key factors are propelling the significant
growth of the electronic gases market in the Asia-Pacific region. Firstly, the
region's burgeoning electronics industry acts as a primary driver, with
countries like China, South Korea, and Japan leading the global electronics
production landscape. The increasing demand for consumer electronics,
telecommunications devices, and automotive electronics has resulted in a surge
in the demand for electronic gases, as these gases are essential for the
production of high-quality electronic devices.
Secondly, rapid industrialization across the
Asia-Pacific region, coupled with advancements in technology, has led to a
notable increase in the manufacture of semiconductors. As industries embrace
automation, Internet of Things (IoT) technologies, and artificial intelligence
(AI), the demand for semiconductors has skyrocketed. Electronic gases, with
their critical role in semiconductor manufacturing, are thus expected to
experience robust growth.
Thirdly, the ongoing trend towards digitalization
and smart manufacturing is further boosting the electronic gases market.
Industries across various sectors are increasingly adopting automation, data analytics,
and advanced robotics to improve operational efficiency and productivity. This
digital transformation requires the use of electronic gases at various stages
of the manufacturing process to ensure the production of reliable and
high-performance electronic devices.
Additionally, specialty gases, which include high
purity gases, noble gases, carbon gases, halogen gases, and others, are gaining
traction in the Asia-Pacific region. These gases find extensive application in
the manufacturing of electronics and semiconductors, where precise control of
gas purity and composition is critical for optimal performance.
In conclusion, the Asia-Pacific electronic gases
market is on a strong growth trajectory, driven by the region's booming
electronics industry, rapid industrialization, technological advancements, and
the increasing adoption of digitalization and smart manufacturing. The demand
for electronic gases, including specialty gases, is expected to rise as the
region continues to lead in electronics production and embraces innovative
technologies for a digitally connected future.
Key Market Drivers
Growth in Semiconductor Industry
The semiconductor industry in the Asia-Pacific
region has been experiencing a remarkable growth trajectory in recent years.
This growth can be attributed to several factors, including the increasing
demand for electronic devices and the advancements in technology driving the
development of the semiconductor industry.
Electronic gases play a vital role in various
processes involved in semiconductor production, such as deposition, etching,
doping, and lithography. These gases are indispensable for ensuring the high
quality and efficiency of semiconductor manufacturing. With the thriving
semiconductor industry, the demand for electronic gases has been steadily
increasing, contributing to the overall growth of the market.
The use of semiconductors has become pervasive
across different sectors, including consumer electronics, automotive, and
industrial applications. This widespread adoption of semiconductors fuels the
need for high-quality electronic gases to support their production. As a
result, the market for electronic gases in the semiconductor industry is
expected to maintain a steady growth rate in the coming years, with a positive
outlook for future expansion.
The relationship between the semiconductor industry
and the electronic gases market is symbiotic. The flourishing semiconductor
industry drives the demand for electronic gases, while the availability and
quality of these gases directly impact the efficiency and effectiveness of
semiconductor production processes. Therefore, efforts to improve the quality
and develop more environmentally friendly options for electronic gases can
further enhance the growth of the semiconductor industry.
The Asia-Pacific region has emerged as a
significant player in the global electronics and semiconductor market. With its
robust growth in the semiconductor industry, this region has also become a
stronghold for the electronic gases market. The increasing demand for
electronic gases in the Asia-Pacific region is primarily driven by the
flourishing semiconductor industry. As the semiconductor industry continues to
flourish, the electronic gases market is expected to ride on its coattails, ensuring
sustained growth and opportunities in the coming years.
In conclusion, the semiconductor industry in the
Asia-Pacific region is witnessing remarkable growth, driven by the increasing
demand for electronic devices and advancements in technology. The symbiotic
relationship between the semiconductor industry and the electronic gases market
further amplifies this growth, with efforts to improve quality and develop
environmentally friendly options paving the way for future expansion. The
Asia-Pacific region, with its strong presence in the global electronics and
semiconductor market, is poised to continue driving the demand for electronic
gases, ensuring sustained growth and opportunities in the coming years.
Surge in Technological Advancements
The escalating demand for electronic gases is
primarily driven by the robust growth of the semiconductor industry in the
Asia-Pacific region. This industry's expansion is fueled by the increasing
demand for electronic devices, including smart devices and automobiles. As the
reliance on electronic devices continues to grow, so does the need for
semiconductors, which are at the heart of modern electronics. The production of
these semiconductors heavily relies on electronic gases, making their demand
intrinsically linked to the thriving semiconductor industry.
Technological advancements have played a pivotal
role in catalyzing the growth of the electronic gases market. Innovative
manufacturing processes and the development of more efficient and
environmentally friendly gases are just a few examples of these advancements.
These technological breakthroughs not only contribute to the miniaturization of
electronic components but also improve energy efficiency and enhance the
performance of semiconductors. As a result, they not only increase the demand
for semiconductors but also stimulate the need for high-quality electronic
gases used in their production.
Moreover, in addition to the burgeoning
semiconductor industry, the rising demand for natural gas in Southeast Asian
countries is expected to drive the electronic gases market further. As these
countries emerge as major demand drivers for the liquefied natural gas (LNG)
market, the need for electronic gases, particularly those used in gas
processing and purification, is projected to increase. This presents new
opportunities for the electronic gases industry to expand its market presence
and cater to the evolving needs of the Southeast Asian region.
In summary, the demand for electronic gases is
propelled by the growth of the semiconductor industry, technological
advancements in manufacturing processes, and the rising demand for natural gas
in Southeast Asian countries. These factors collectively contribute to the
increasing importance of electronic gases in various industries, making them a
critical component in the production of electronic devices and the overall
advancement of modern technology.
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Key Market Challenges
Volatility in Price of Raw Materials
While the energy crisis is primarily focused on
Europe, Asia is not immune to its effects. This crisis has resulted in
extraordinary volatility in energy prices, affecting the cost of production for
many industries, including the electronic gases market. Increased energy costs
directly impact the price of raw materials, leading to inflated production
costs for electronic gases.
The volatility of energy commodity prices, such as
crude oil, natural gas, and CO2, also impacts the electronic gases market. As
these commodities are essential in the production process of electronic gases,
fluctuations in their prices can significantly affect the cost of production.
In 2022, natural gas prices reached all-time high levels in Asian markets,
exacerbating the challenge.
Moreover, the scarcity of energy resources further
amplifies the impact on the electronic gases market in the Asia-Pacific region.
With limited access to affordable and sustainable energy sources, manufacturers
face additional hurdles in maintaining cost-effective production processes.
This scarcity not only drives up the prices of energy commodities but also
raises concerns about the long-term sustainability of the electronic gases
market.
The volatility in raw material prices poses a
significant challenge for the electronic gases market by making cost
predictions difficult and potentially squeezing profit margins. Manufacturers
may be forced to absorb these additional costs, which can impact their
profitability. Alternatively, these increased costs may be passed on to
consumers, potentially affecting demand.
In conclusion, while the Asia-Pacific electronic
gases market is set for significant growth, the volatility in raw material
prices presents a formidable challenge. Manufacturers in this sector will need
to navigate these fluctuations carefully, considering factors such as energy
scarcity and long-term sustainability, to maintain profitability and ensure
sustainable growth. By implementing robust strategies and exploring alternative
energy sources, the industry can mitigate the adverse effects of the energy
crisis and secure a prosperous future.
Key Market Trends
Expansion of Memory and Storage Markets
Electronic gases play a vital role in the
production and processing of semiconductors, which serve as the backbone of
memory and storage devices. These gases are indispensable in various critical
processes such as deposition, etching, doping, and lithography, ensuring the
high-quality performance of these devices. As the demand for memory and storage
devices continues to surge, the need for electronic gases is expected to
witness a significant upswing, driving the growth of the electronic gases
market.
Manufacturers of memory and storage devices rely on
the availability of top-notch electronic gases to meet the stringent requirements
of their production processes. The precise control and application of these
gases enable the creation of intricate circuit patterns and the development of
advanced semiconductor technologies. Consequently, the expansion of memory and
storage markets in the Asia-Pacific region has become a noteworthy trend,
fueling the demand for electronic gases and propelling the growth of the
market.
Looking ahead, the future of the electronic gases
sector appears promising, as the continuous growth of memory and storage
markets in the Asia-Pacific region indicates a sustained demand for electronic
gases. This growing demand not only reflects the increasing reliance on memory
and storage devices but also underscores the crucial role that electronic gases
play in enabling technological advancements. With advancements such as
artificial intelligence, the Internet of Things, and 5G driving the need for
more advanced and efficient memory and storage solutions, the demand for
electronic gases is poised to experience sustained growth in the coming years.
Segmental Insights
Type Insights
Based on the category of type, the specialty electronic
gases segment emerged as the dominant player in the Asia Pacific market for electronic
gases in 2022. The Asia-Pacific region, encompassing key electronics
manufacturing hubs, plays a crucial role in the global electronics industry.
With countries like China, South Korea, and Taiwan at the forefront of global
electronics production, the demand for specialty electronic gases is on the
rise. These gases, irreplaceable in the production of semiconductors, are vital
components that form the backbone of modern electronics.
Driven by rapid technological advancements, the
Asia-Pacific region is experiencing a significant surge in electronic
technology. As a result, there is an increasing need for high-quality specialty
electronic gases. These gases are utilized in various critical processes such
as deposition, etching, doping, and lithography, which are fundamental to the
production of advanced electronic devices.
Application Process Insights
The deposition segment is projected to experience
rapid growth during the forecast period. The Asia-Pacific region is widely
recognized as a key hub for electronics manufacturing, with numerous
manufacturing centers driving the demand for specialty electronic gases. These
gases play a crucial role in deposition processes, which are fundamental in the
production of semiconductors and electronic devices. Consequently, the
robustness and growth of the electronics manufacturing sector in the
Asia-Pacific region directly impact the demand for deposition processes and the
associated electronic gases.
In recent years, the use of deposition processes
has become increasingly prevalent in semiconductor production. With the ongoing
global semiconductor boom, the Asia-Pacific region has emerged as a significant
player in this market, further fueling the demand for deposition processes and
electronic gases. This surge in demand is driven by the growing need for
high-quality electronic devices that offer superior performance, longevity, and
efficiency. Deposition processes, facilitated by electronic gases, enable
manufacturers to produce components that meet these ever-increasing consumer
expectations.
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Regional Insights
China emerged as the dominant player in the Asia
Pacific Electronic Gases Market in 2022, holding the largest market share in
terms of value. China's manufacturing sector heavily relies on imports from the
economies of East Asia to power its factories and export-oriented industries.
Among these imports are gases specialty electronic gases, which play an
indispensable role in the production of semiconductors and a wide range of
electronic devices.
While China's semiconductor sector is experiencing
rapid growth, it does not currently contribute a significant portion to the
country's GDP. This is mainly due to the large base of China's GDP. However,
the semiconductor manufacturing process necessitates a diverse array of
specialty gases, driving the demand for electronic gases in the region.
This demand is further fueled by the continuous
advancements in technology and the ever-increasing consumer demand for
electronic devices. As China strives to solidify its position as a global
manufacturing leader, the need for high-quality electronic gases becomes even
more critical in order to ensure the efficient and reliable production of
semiconductors.
Recent Developments
- In 2023, Tokyo Electron, a renowned Japanese multinational
corporation specializing in semiconductor equipment and materials, made a
significant announcement. The company revealed its ambitious plan to invest a
whopping 100 billion yen (equivalent to USD 720 million) in expanding its
manufacturing capacity specifically for electronic gases within Japan. This
strategic move aims to cater to the ever-increasing demand for electronic gases
in the Asia Pacific region, which is experiencing rapid growth in various
technological sectors. The expansion project is projected to be completed by
2025, bolstering Tokyo Electron's position as a leading player in the
semiconductor industry while further solidifying its commitment to meeting the
evolving needs of its customers and the market.
Key Market Players
- Taiyo Nippon Sanso Corporation
(TNSC)
- Praxair
India Pvt Ltd
- Air
Products PLC
- Air
Liquide International SA
- Linde PLC
- Yingde
Gases Group Company
- Sumitomo
Seika Chemicals Co., Ltd.
- Hangzhou
Hangyang Co., Ltd.
- Suzhou
Jinhong Gas Co., Ltd.
- Showa
Denko Electronics KK
|
By Type
|
By
Application Process
|
By Region
|
- Specialty
Electronic Gases
- Bulk
Electronic Gases
|
- Deposition
- Etching
- Doping &
Lithography
- Others
|
- China
- Japan
- South Korea
- Australia
- India
- Rest of Asia
Pacific
|
Report Scope:In this report, the Asia Pacific Electronic Gases
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- Asia Pacific Electronic Gases Market, By Type:
o Specialty Electronic Gases
o Bulk Electronic Gases
- Asia Pacific Electronic Gases Market, By Application Process:
o Deposition
o Etching
o Doping & Lithography
o Others
- Asia Pacific Electronic Gases Market, By
Region:
o China
o Japan
o South Korea
o Australia
o India
o Rest of Asia Pacific
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Asia
Pacific Electronic Gases Market.
Available Customizations:
Asia Pacific Electronic Gases Market report with
the given market data, TechSci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Asia Pacific Electronic Gases Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
want to confirm the date of release, please contact us at [email protected]