|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD2.97
billion
|
|
CAGR
(2023-2028)
|
6.89%
|
|
Fastest
Growing Segment
|
Epoxy
|
|
Largest
Market
|
Asia
Pacific
|
Market Overview
Global
Electrically Conductive Adhesives Market has valued at USD 2.97 billion in 2022
and is anticipated to project robust growth in the forecast period with a CAGR of 6.89% through 2028. Electrically conductive adhesives are commonly used in
electronics applications where components need to be securely held in place
while allowing electrical current to flow between them. Unlike general
adhesives such as anaerobic, cyanoacrylates, epoxies, and acrylic-based
adhesives, which act as electrical insulators depending on the space between
components, electrically conductive adhesives provide conductivity. They not
only ensure proper electrical connection but also offer better thermal
conductivity, effectively managing heat by directing it away from sensitive
components and towards heat sinks.
In
situations where soldering is not feasible due to the sensitivity of electronic
components to heat, electrically conductive adhesives come to the rescue. These
adhesives are particularly useful for PCBs with components mounted on both
sides, making the assembly process easier and preventing components from
sliding off when parts are soldered on the top. Using electrically conductive
adhesive eliminates the need for solder re-flow, streamlining the electrical
assembly process.
As
the demand for technologically advanced electronic devices continues to rise,
the demand for electrically conductive adhesives in the electronics industry is
expected to expand substantially. These adhesives play a crucial role in
maintaining conductivity when linked to electronic components, ensuring
reliable and efficient performance.
Furthermore,
the growth of electric vehicles, which are powered by electric generators,
solar panels, or batteries, is another significant factor driving the market.
With increasing concerns about vehicular emissions and strict regulations in
several countries, electric vehicles are becoming a preferred alternative to
fuel-based vehicles. The growth of public charging infrastructure in countries
like China, Norway, France, and other developed nations further supports the
market's expansion. Technological advancements in electric vehicles and
proactive government initiatives present numerous opportunities for market
growth.
However,
it is important to note that the fluctuating costs of raw materials pose
challenges to the growth of the Global Electrically Conductive Adhesives
Market. Despite this hurdle, the market's potential for growth remains
promising due to its indispensable role in the ever-evolving electronics
industry.
Key Market Drivers
Growing
Demand of Electrically Conductive Adhesives from Automotive Industry
Electrically
conductive adhesives are remarkable substances that serve a dual purpose:
bonding materials together and conducting electricity. These adhesives, often
formulated with epoxy resins filled with metallic particles, exhibit
exceptional conductivity and robust adhesion. Their widespread application in
electronic devices stems from their unique ability to establish electrical
connections while providing mechanical strength.
With
the surge in electric and hybrid vehicles, the automotive industry has
witnessed a substantial increase in the number of electronic components
integrated into automobiles. Electrically conductive adhesives play a crucial
role in securing these components, ensuring reliable electrical connections
that are vital for the seamless operation of various systems.
Moreover,
the automotive industry is incessantly exploring avenues to reduce vehicle
weight and enhance fuel efficiency. By substituting traditional fasteners such
as screws and rivets, electrically conductive adhesives significantly
contribute to lightweight construction. This not only promotes fuel efficiency
but also enables manufacturers to meet stringent regulatory standards without
compromising on safety or performance.
In
addition to their electrical conductivity and bonding capabilities, these
adhesives also exhibit efficient heat dissipation properties. This attribute is
of utmost importance, as it helps prevent overheating of electronic components,
thereby ensuring their longevity and optimal functionality.
The
surging demand for electrically conductive adhesives in the automotive industry
has had a profound impact on the global market. As automobile manufacturers
increasingly recognize and embrace the advantages of these adhesives, the
market is projected to witness remarkable growth in the forthcoming years.
Furthermore,
the paradigm shift towards electric vehicles (EVs) and autonomous vehicles is
expected to further propel the demand for electrically conductive adhesives.
Given the heavy reliance of these vehicles on advanced electronics, the need
for efficient and reliable adhesives becomes paramount, making electrically
conductive adhesives an indispensable component of their construction.
To
conclude, the escalating demand for electrically conductive adhesives in the
automotive industry serves as a significant driving factor for the global
market. With ongoing advancements in the automotive sector, particularly in the
realm of electric and autonomous vehicles, the demand for these adhesives is
poised to witness substantial growth in the coming years. As such, the global
electrically conductive adhesives market is expected to experience robust
expansion, owing to its indispensable role in the ever-evolving automotive
industry.
Growing
Demand of Electrically Conductive Adhesives from Electronic Industry
Electrically
conductive adhesives (ECAs) are compounds that offer both adhesive bonding and
electrical conductivity. These adhesives, typically formulated from epoxy
resins filled with metallic particles, provide excellent adhesion and
conductivity. They have become an essential component in electronic devices,
enabling reliable electrical connections while also providing mechanical
strength.
ECAs
are used in the assembly of circuits in electronic devices. They enable
miniaturization by allowing for smaller, more compact designs. This
miniaturization trend is driven by the increasing demand for portable and
wearable electronics, where size and weight are critical factors. ECAs play a
crucial role in ensuring the integrity and performance of these compact
electronic devices.
ECAs
are used to mount components on printed circuit boards (PCBs). They are
particularly useful in surface mount technology, where they help secure
components and form electrical connections. The ability of ECAs to provide both
mechanical and electrical properties makes them ideal for this application.
Additionally, ECAs offer advantages over other traditional methods, such as
soldering, as they eliminate the need for high-temperature processes and reduce
the risk of thermal damage to sensitive components.
ECAs
are used for electromagnetic interference (EMI) and radio frequency
interference (RFI) shielding. They provide a conductive path for grounding or
shielding electronic assemblies. With the increasing prevalence of wireless
communication and the growing complexity of electronic systems, EMI/RFI
shielding has become crucial to ensure optimal performance and reliability.
ECAs offer an effective solution for mitigating interference and maintaining
signal integrity.
Furthermore,
the advancement of technology and the trend toward miniaturization in
electronics are projected to drive this demand even further. As electronic
devices become smaller and more complex, the need for efficient and reliable
adhesives like ECAs becomes increasingly critical. Moreover, the demand for
ECAs is expected to be fueled by emerging applications in industries such as
automotive, aerospace, and healthcare, where reliable electrical connections
are vital.
In
summary, the escalating demand for electrically conductive adhesives in the
electronics industry is a major driver of the global market. With the ongoing
technological advancements and trends in the electronics sector, this demand is
expected to continue rising. Therefore, the global electrically conductive
adhesives market is set for robust growth, propelled by its vital role in the
electronics industry.
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Key Market
Challenges
Complexities
Related with Long-Term Reliability and Pricing
Electrically
conductive adhesives (ECAs) are materials that offer both adhesive bonding and
electrical conductivity. These adhesives have become essential components in
various industries, including electronics, automotive, and aerospace. They
provide a reliable and efficient solution for joining electrical components,
ensuring optimal performance and functionality.
Despite
their increasing demand, concerns over their long-term reliability and high
cost may hinder their wider adoption. One of the main challenges faced by the
ECAs market is the question of long-term reliability. Factors such as thermal
aging, moisture exposure, and mechanical stress can affect the total electrical
conductivity of adhesives, leading to potential performance degradation over
time. Moreover, non-linear behavior under varying conditions can also impact
the mechanical properties of adhesive joints, compromising the overall
structural integrity.
Additionally,
certain applications like RFID tags often have a shorter lifetime than their
etched counterparts, which can limit their use in long-term applications like
passports. The need for long-term reliability and durability in industries such
as aerospace and automotive further emphasizes the importance of addressing
these challenges.
These
reliability issues pose a significant challenge for the ECAs market. Ensuring
the long-term reliability of these adhesives is crucial for their wider
acceptance, especially in industries where durability and longevity are
paramount. Extensive research and development efforts are underway to enhance
the reliability and performance of ECAs, focusing on improving their resistance
to environmental factors and optimizing their electrical and mechanical
properties.
Another
major challenge in the ECAs market is the high cost of these adhesives. While
they offer numerous benefits, their price can be a barrier to adoption in some
applications. The cost factor becomes even more critical when considering the
competitive landscape of the adhesives market, where cheaper alternatives are
readily available. To address this challenge, manufacturers are exploring
cost-effective production methods, optimizing the formulation of ECAs, and
seeking alternative raw materials without compromising their performance.
Moreover,
the cost of ECAs can be influenced by various factors, including the price of
raw materials and production costs. Any fluctuations in these factors can
further increase the price of ECAs, making them less attractive to potential
end-users. Collaborative efforts between manufacturers, suppliers, and
end-users are necessary to streamline the supply chain, reduce costs, and make
ECAs more accessible to a wider range of applications.
In
conclusion, while the global electrically conductive adhesives market is poised
for significant growth, it must overcome the challenges related to long-term
reliability and pricing. Addressing these issues is crucial for ensuring the
wider adoption of ECAs across various industries. As research and development
continue in this field, solutions to these challenges are likely to emerge,
further propelling the growth of the ECAs market. By improving their
reliability, durability, and cost-effectiveness, ECAs can continue to
revolutionize the way electrical components are assembled, enabling advanced
technologies and innovations to thrive.
Key Market Trends
Growth
in Flexible Electronics
Flexible
electronics, also known as flex circuits, are revolutionizing the electronic
industry with their unique characteristics. These electronic devices are built
on flexible plastic substrates, allowing them to bend and conform to various
shapes and surfaces. This flexibility opens up a world of possibilities, making
them ideal for applications such as wearable devices, smartphones, and IoT
devices.
The
increasing popularity of flexible electronics has fueled the demand for
Electrically Conductive Adhesives (ECAs), which play a crucial role in their
manufacture. ECAs, including film adhesives, are widely used in flexible
electronics due to their exceptional bonding properties. These adhesives
provide strong and reliable connections, ensuring the durability and
performance of the devices, even under harsh operating conditions.
The
growth of flexible electronics is driving significant changes in the global
ECAs market. As the demand for flexible electronics continues to rise, the need
for ECAs is expected to grow in parallel. Moreover, the trend towards
miniaturization in electronics further fuels this demand. As electronic devices
become smaller and more complex, the role of efficient and reliable adhesives
like ECAs becomes increasingly critical.
In
conclusion, the growth of flexible electronics represents a pivotal trend in
the global electrically conductive adhesives market. With continuous
advancements in the electronics sector and the surging popularity of flexible
and wearable electronics, this trend is poised to persist. As a result, the
global electrically conductive adhesives market is projected to experience
robust growth, driven by its indispensable role in the flourishing field of
flexible electronics.
Segmental Insights
Chemistry
Insights
Based
on the category of chemistry, the epoxy segment emerged as the dominant player
in the global market for Electrically Conductive Adhesives in 2022. Electrically
conductive epoxy polymers are highly suitable for use in electrically conductive
adhesives, particularly in processes where mechanical and thermal cracking pose
significant challenges. These polymers offer a viable solution for joining
heat-sensitive components that are unsuitable for soldering, making epoxy
resins a popular choice.
In
comparison to alternative options such as polyurethane or silicone, the
utilization of electrically conductive epoxy polymers as a solder substitute
brings several advantages. Not only does it result in reduced costs, but it
also delivers superior performance and shorter production times. These factors
are anticipated to drive the demand for epoxy polymers even further during the
projected forecast period.
By
incorporating electrically conductive epoxy polymers into adhesive
applications, industries can benefit from enhanced reliability, improved
efficiency, and increased versatility. This, in turn, opens up new
possibilities for a wide range of electronic and electrical manufacturing
applications. As technology advances and the need for reliable bonding
solutions continues to grow, the importance of electrically conductive epoxy
polymers becomes increasingly evident.
Application
Insights
The
automotive segment is projected to experience rapid growth during the forecast period.
In the automotive sector, electrically conductive adhesives are widely utilized
as a connecting interconnect for advanced driver assistance systems (ADAS)
cameras and radars, as well as light detection and ranging (LiDARs). These
adhesives offer the advantage of lower processing temperatures and a robust
connection with non-noble metallization, making them superior to solder pastes.
With the increasing production of passenger light-duty electronic vehicles, the
market for electrically conductive adhesives in the automobile sector is
experiencing significant growth.
According
to the International Energy Agency (IEA), the total production of passenger
light-duty electronic vehicles reached 2 million units in 2019 and rose to 3.1
million units in 2020, marking a remarkable increase of 55%. This substantial
growth can be attributed to the expanding automotive industry, which continues
to propel the demand for these adhesives.
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Regional Insights
Asia
Pacific emerged as the dominant player in the Global Electrically Conductive
Adhesives Market in 2022, holding the largest market share in terms of value. The
increasing demand for electrically conductive adhesives can be attributed to
their widespread use across various industries, including automotive and
aerospace. For example, in the Asia-Pacific region, the total vehicle
production witnessed a significant growth from 17,818,598 units in September
2020 to 22,685,914 units in September 2021, indicating a remarkable increase of
27%. This surge in vehicle production further contributes to the demand for
electrically conductive adhesives.
Moreover,
the aerospace industry in Asia-Pacific is also experiencing rapid growth, with
projections indicating that the aerospace and defense sector in India will
reach a value of US$70 billion by 2030. This growth is primarily driven by
increased government initiatives and infrastructure upgrades, which require the
use of electrically conductive adhesives for various applications.
Considering
the expanding automotive, aerospace, and other industries in the Asia-Pacific
region, the electrically conductive adhesives market is expected to witness
substantial growth during the projected period. The demand for these adhesives
is poised to increase as more industries recognize the benefits and
applications of this advanced technology.
Recent Developments
- In
order to meet the growing demand for Sodium Formate-based Pergrip Run NF, 3M
has made a significant investment by constructing a new plant. This
state-of-the-art facility, developed in collaboration with Dalshult, is
specifically designed to granulate solid Sodium Formate Deicer, enhancing the
availability and security of supply for Pergrip Run NF. This strategic move by
3M not only boosts their production capacity but also reinforces their
commitment to delivering high-quality products to their customers.
- Ulbrich
Group, a renowned industry player, recently introduced Vitralit 1605, a
cutting-edge UV-curable epoxy resin that possesses unique thermal initiation
properties. This innovative product launch is poised to have a positive impact
on the market growth, offering enhanced performance and versatility to various
industries that rely on thermal initiators. With Vitralit 1605, customers can
expect increased efficiency and reliability in their applications, further
driving the demand for UV-curable epoxy resins.
- Dow,
a global leader in the chemical industry, made waves in May 2019 with the
launch of their latest product, DOWSIL EC-6601. Designed specifically for the
automotive industry, this electrically conductive adhesive offers exceptional
performance and reliability. By providing an ideal solution for electrical
applications in vehicles, DOWSIL EC-6601 opens up new opportunities for the
Electrically Conductive Adhesives Market. With this innovative product, Dow
continues to drive advancements in automotive technology, catering to the
evolving needs of the industry.
Key Market Players
- 3M Company
- Aremco LLC
- Creative Materials Inc.
- The Dow Chemical Company
- HB Fuller Company
- Henkel AG & Co. KGaA
- HITEK Electronic Materials Ltd
- Master Bond Inc.
- Panacol-Elosol GmbH
- Parker Hannifin Corp.
|
By Chemistry
|
By Application
|
By Region
|
- Epoxy
- Silicone
- Acrylic
- Polyurethane
- Others
|
- Automotive
- Consumer Electronics
- Aerospace
- Biosciences
- Others
|
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
|
Report
Scope:In
this report, the Global Electrically Conductive Adhesives Market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
- Electrically Conductive Adhesives Market, By Chemistry:
o Epoxy
o Silicone
o Acrylic
o Polyurethane
o Others
- Electrically Conductive Adhesives Market, By Application:
o Automotive
o Consumer Electronics
o Aerospace
o Biosciences
o Others
- Electrically Conductive Adhesives Market,
By Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
§ Kuwait
§ Turkey
§ Egypt
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in the Global Electrically Conductive
Adhesives Market.
Available
Customizations:
Global
Electrically Conductive Adhesives 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).
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Electrically Conductive Adhesives Market is an upcoming report to be released
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of release, please contact us at [email protected]