Electronic Chemicals Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (CMP Slurry, Wet Deposition, Gases, and Ancillary Chemicals), By Application (Semiconductor & IC and PCB), By Region and Competition 2018-2028

Global electronic chemicals market is anticipated to grow appreciably in the forecast period of 2028 due to the growing demand for semiconductors from various industries, rising demand for silicon wafers, focus on sustainable energy sources like wind and solar energy, growing adoption of new technologies, such as 5G and artificial intelligence, increasing investment for research and development, favorable government policy for end-user industries.

The global electronic chemicals market refers to the market for chemicals used in the production and manufacturing of electronic components and devices. These chemicals play a crucial role in various stages of electronic manufacturing, including cleaning, etching, deposition, and surface preparation. They are used to enhance the performance, reliability, and functionality of electronic devices. The total production of electronic equipment and devices by the electronics and IT industries is expected to be USD 3,436.8 billion and increase at a significant rate in 2023 to reach USD 3,526.6 billion.

Electronic chemicals are extensively used in semiconductor manufacturing processes. They are employed in the production of integrated circuits (ICs), which are the building blocks of electronic devices. These chemicals are used for cleaning wafers, removing impurities, etching patterns, and depositing thin films on silicon wafers. PCBs are essential components of electronic devices that provide mechanical support and electrical connections between various electronic components. Electronic chemicals are used in PCB manufacturing for processes such as cleaning, etching, plating, and solder mask application. These chemicals ensure proper circuitry and connectivity on the board.

During the assembly of electronic components onto PCBs, electronic chemicals are used for processes like soldering, flux application, and surface mount technology. These chemicals help in ensuring reliable connections and proper functioning of the assembled components. Apart from these, electronic chemicals are also used in various other electronic manufacturing processes, including wire bonding, die-attach, encapsulation, and thermal interface materials. These chemicals facilitate the bonding, protection, and heat management of electronic components. Hence, the market is expected to continue expanding as the electronics industry evolves and new technologies emerge.

Growing Demand for Semiconductors from Various Industries is a Propelling Factor for Electronic Chemicals Market Growth

The growing demand for semiconductors from various industries is indeed a significant driver for the electronic chemicals market. Semiconductors are fundamental components used in a wide range of applications, including consumer electronics, automotive, industrial automation, telecommunications, healthcare devices, and many others. As the demand for electronic devices and technological advancements continues to rise, the need for semiconductors increases, thereby driving the demand for electronic chemicals. According to the Japan Electronics and Information Technology Industries Association report, it is stated that the production of semiconductors has estimated to increase from USD 291.6 billion in 2012 to USD 580.1 billion in 2022 worldwide.

The consumer electronics industry is a major consumer of semiconductors. The increasing popularity of smartphones, tablets, wearable devices, gaming consoles, and other consumer electronics drives the demand for semiconductors. These devices require advanced semiconductors, and electronic chemicals are vital in their manufacturing processes. The automotive industry is experiencing a significant transformation with the advent of electric vehicles (EVs), autonomous driving technologies, and connected cars. These advanced automotive systems heavily rely on semiconductors for functionalities such as powertrain control, infotainment systems, advanced driver-assistance systems (ADAS), and more. As the automotive industry embraces these technological advancements, the demand for semiconductors and electronic chemicals used in their production increases.

The industrial automation sector, including robotics, factory automation, and smart manufacturing, relies on semiconductors for process control, sensor technologies, and communication systems. As industries increasingly adopt automation to improve productivity and efficiency, the demand for semiconductors and the electronic chemicals required in their fabrication rises. The telecommunications industry is experiencing rapid growth driven by the expansion of 5G networks, increased data consumption, and the Internet of Things (IoT). These advancements rely on semiconductor technologies for network infrastructure, wireless communication, and data processing. The demand for semiconductors in the telecommunications sector leads to a corresponding demand for electronic chemicals.

Furthermore, the healthcare industry relies on semiconductors for medical imaging devices, diagnostic equipment, monitoring systems, and implantable devices. With the increasing demand for advanced healthcare technologies, the demand for semiconductors and electronic chemicals used in their production grows. The exponential growth of data centers and cloud computing services requires a substantial number of semiconductors to handle data processing, storage, and networking. The demand for semiconductors in this sector drives the need for electronic chemicals used in semiconductor manufacturing. Therefore, the growing demand for semiconductors from these industries, coupled with technological advancements and the need for innovative electronic devices, contributes to the expansion of the electronic chemicals market.

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Rising Focus on Sustainable Energy is the Key Factor that Drives the Electronic Chemicals Market Growth

The rising focus on sustainable energy is a significant driver for the growth of the electronic chemicals market. As the world increasingly recognizes the need to transition to cleaner and more sustainable energy sources, such as solar power, wind energy, and energy storage systems, the demand for electronic chemicals used in these sectors expands. According to the “Renewable 2022” report, the global renewable power capacity production is expected to expand by 2,400 gigawatts (GW) by 2027 in which wind and solar will be together responsible for over 90% of the renewable power capacity that is going to include in the next five years.

The solar PV industry is one of the fastest-growing sectors in sustainable energy. Solar panels contain semiconductors, and electronic chemicals play a crucial role in their manufacturing processes. These chemicals are used in the deposition of thin films, anti-reflective coatings, and passivation layers, ensuring the efficiency and performance of solar cells. The increasing adoption of solar energy and the expanding solar PV industry directly drives the demand for electronic chemicals.

Energy storage systems, including batteries and capacitors, are essential for storing renewable energy generated from sources like solar and wind power. Electronic chemicals are employed in the production of energy storage devices, contributing to their performance and stability. The development of advanced battery technologies, such as lithium-ion batteries, requires specialized electronic chemicals in electrode fabrication, electrolyte formulation, and other manufacturing processes.

The growing market for electric vehicles is driven by the need to reduce carbon emissions and dependence on fossil fuels. EVs rely on advanced semiconductor technologies and energy storage systems. Electronic chemicals are crucial in the manufacturing of semiconductors used in EV components like power electronics, motor control systems, and battery management systems. The increasing adoption of electric vehicles leads to a higher demand for electronic chemicals.

The drive for sustainable energy is also closely linked to energy efficiency and power management in various industries. Electronic devices and systems that promote energy efficiency and optimize power consumption require specialized electronic components and semiconductors. Electronic chemicals play a role in the manufacturing of these components, supporting the growth of energy-efficient technologies and systems.

Governments and organizations worldwide are implementing stricter environmental regulations and promoting sustainability initiatives such as the US Inflation Reduction Act. These regulations aim to reduce the environmental impact of manufacturing processes and encourage the use of eco-friendly alternatives. Adapting to these regulations and developing greener energy alternatives that are sustainable and less harmful to the environment will help electronic chemical manufacturers. Hence, the focus on sustainable practices to extract energy drives the growth of the global electronic chemicals market.

The rising focus on sustainable energy motivates research and development efforts in the electronics industry. Ongoing R&D initiatives aim to improve the efficiency, durability, and performance of electronic devices and components used in sustainable energy applications. These advancements often require the development of new electronic chemicals and materials, fostering innovation and market growth. Therefore, the increasing focus on sustainable energy sources and the shift towards cleaner technologies create a favorable environment for the electronic chemicals market.

Recent Developments

• In 2021, BASF SE acquired Solvay SA electronic materials business in a deal worth USD 3.6 billion. This deal expanded BASF's portfolio of electronic chemicals and gave it a stronger position in the semiconductor industry.
• In 2020, Showa Denko Carbon Inc acquired Hitachi Chemical Industries Co Ltd in a deal worth USD 8.8 billion. This deal created a global leader in electronic chemicals for the semiconductor and display industries.
• In 2019, Entegris Inc. acquired Versum Materials Inc. in a deal worth USD 9 billion. This deal created a leading provider of electronic materials and equipment for the semiconductor industry.

Market Segmentation

Global electronic chemicals market is segmented based on type, application, and region. Based on type, the market is segmented into CMP slurry, wet deposition, gases, and ancillary chemicals. Based on application, the market is fermentation semiconductors & IC, and PCB. Based on region, the market is divided into North America, Europe, Asia Pacific, South America, and Middle East & Africa.

Company Profiles

Cabot Microelectronics Corporation, Air Products and Chemicals Inc, JSR Corporation, BASF SE, Huntsman International LLC, DIC Corporation, Dongjin Semichem Co. Ltd., Solvay S. A., Albemarle Corporation, Wacker Chemie AG, Honeywell International, Inc., DuPont de Nemours Inc, and Sumitomo Chemical Co. Ltd are some of the key players of global electronic chemicals market.

Report Scope:

In this report, global electronic chemicals market has been segmented into the following categories, in addition to the industry trends, which have also been detailed below:

•  Electronic Chemicals Market, By Type:
• CMP Slurry
• Wet Deposition
• Gases
• Ancillary Chemicals
•  Electronic Chemicals Market, By Application:
• Semiconductor & IC
• PCB
• Electronic Chemicals Market, By Region:
• North America
• United States
• Mexico
• Canada
• Europe
• Germany
• Spain
• United Kingdom
• France
• Italy
• Asia-Pacific
• China
• Japan
• India
• South Korea
• Australia
• South America
• Brazil
• Colombia
• Argentina
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE

Competitive landscape

Company Profiles: Detailed analysis of the major companies present in the global  electronic chemicals market.

Available Customizations:

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).

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