Electronic Chemicals and Materials Market Size, Share & Industry Analysis, By Application (Silicon Wafers, PCB Laminates, Specialty Gases, Wet Chemicals, Photoresist Chemicals and Others), By End-Use (Semiconductors {Integrated Circuits and Printed Circuit Boards} and Others) and Regional Forecast, 2024-2032

The global electronic chemicals and materials market size was USD 67.35 billion in 2023. The market is projected to grow from USD 71.33 billion in 2024 to USD 113.39 billion in 2032 at a CAGR of 6.0% during the 2024-2032 period. Asia Pacific dominated the electronic chemicals and materials market with a market share of 44.56% in 2023.

The rising demand for chemicals and materials from the electronic industry globally is driving the market growth. These electronic chemicals and materials are used for etching, cleaning, and servicing of semiconductors in order to improvise their performance. Besides, technological progression in the electronics industry is expected to surge the market growth. Rising preference for nanotechnology in MEMS and NEMS devices across the world have created huge market opportunities. Moreover, rising inclination for connected devices and smart technologies have fueled the demand for IoT driven devices and AI for better and secure functionality. This demand will further expand the electronic chemicals and materials market share.

Furthermore, establishment and development of corporate companies is increasing the consumption of electronic devices such as computers, smartphones, laptops, and air conditioners that highly rely on electronic chips and circuits. Additionally, the growth of IT hardware sector is providing growth opportunities for electronic chemicals and materials. However complex regulations and high cost of operations will hamper the market.

The global impact of COVID-19 has been unprecedented and staggering, with electronic chemicals and materials witnessing a positive demand shock across all regions amid the pandemic. Most of the countries including India, China, Germany, and the U.S. imposed lockdown restrictions, which resulted in disruptions of supply chain for electronic chemicals and materials manufacturers.

Electronic Chemicals and Materials Market Trends

Increasing Demand of Silicon Wafers to Boost Market Growth

Silicon based nano-chips are widely adopted in various equipment such as implantable electronics, wearables, bendable displays, and other modern day devices. Silicon wafers are high quality materials utilized in the manufacturing of semiconductors are essential components for all electronic goods. Additionally, increasing usage of wireless computing devices is one of the significant factors contributing to the growth of silicon wafers market. Besides, increasing use of these wafers to diagnose the process condition and check status of the equipment used in the semiconductor manufacturing process is estimated to fuel the electronic chemicals & materials market growth.

Moreover, the demand for small-sized gadgets owing to the availability of more functionalities in a single device is anticipated to boost the consumption of silicon wafers across the globe. Furthermore, the miniaturization of semiconductor devices and rising use of silicon wafers in consumer electronics is expected to drive the growth rate of electronic chemicals and materials market during the forecast period.

Electronic Chemicals and Materials Market Growth Factors

Increasing Demand from Semiconductor Industry to Impetus Market

In the semiconductor industry, the electronic chemicals and materials are primarily used in the production and servicing of printed circuit boards (PCBs) and integrated circuits (ICs). The electronic chemicals and materials are used for various functions such as etching, polishing, cleaning, doping, and servicing of semiconductors. The production of semiconductors is highly influenced by various technological advancements in the electronic industry and is likely to drive the market during the forecast period. For instance, upcoming technologies like artificial intelligence and IoT will boost the consumption of semiconductors and different chemicals and materials.

Furthermore, nano-devices are favored globally as they offer excellent characteristics such as lighter weight, smaller size, lower power consumption, and cheaper fabrication costs. The huge utilization of nanotechnology is shifting the market towards NEMS and MEMS devices. The rising production of tablets, electronic appliances, computers, and smartphones have boosted the consumption of semiconductors. Therefore, a higher demand from the semiconductor industry is driving market growth.

Increasing Demand for OLED and LED Display Films to Fuel Market Growth

The electronic chemicals and materials market is witnessing a significant growth trajectory, primarily driven by the increasing demand for OLED and LED displays. OLED and LED displays have been gaining popularity in the electronics industry due to their high efficiency, low power consumption, and superior image quality. These displays are widely used in smartphones, TVs, and other consumer electronics, leading to a surge in demand for organic semiconductors, conductive polymers, and phosphorescent materials. Conductive polymers are another material gaining traction in the electronics chemicals and materials market.

Phosphorescent materials are also witnessing a surge in demand due to their ability to produce high-efficiency OLED displays. These materials offer high brightness and excellent color purity, enabling the production of displays with superior image quality. These polymers are widely used to produce transparent electrodes for OLED and LED displays. They offer high transparency, flexibility, and conductivity, making them a preferred choice for display manufacturers.

RESTRAINING FACTORS

Complex Regulations and High Cost of Operations to Hinder Growth

Several hazardous chemicals and materials are being used for manufacturing of electronic products which has led the industries to face strict regulations impacting the profitability of businesses. For instance, silica, a toxic chemical compound which is used in the manufacturing process of semiconductors has become a significant concern for the health of the workers. In the U.S., the Occupational Safety and Hazard Administration developed a regulation for employers to protect their workers from breathable crystalline silica that can lead to lung cancer, silicosis, and other pulmonary diseases. Besides, electronic products contain a number of hazardous substances such as mercury, lead, phthalates and flame retardants. During their application, these toxic compounds tends to release from the electronics and get exposed to the environment, causing damage to human life.

Furthermore, these poisonous chemicals are released from e-waste at the time of recycling and disposal which contaminates air, water, and soil. Hence, the government has imposed several regulations against these chemicals and companies have to follow certain guidelines during the production of electronics, which increases their operational cost. Additionally, these regulations are added up in the supply chain and heavy expenses are incurred by raw material procurement, packaging, and distribution.

Electronic Chemicals and Materials Market Segmentation Analysis

By Application Analysis

Silicon Wafers to Remain Leading Segment due its High Demand from Electronic Industry

Based on the application, the market is segmented into silicon wafers, PCB laminates, specialty gases, wet chemicals, photoresist chemicals, and others.

The silicon wafers segment is estimated to hold the largest share in this market in 2023. The growth of this segment is associated with a rise in demand for electronic devices such as PCs, laptops, mobiles, and air conditioners, globally. Silicon wafers are widely used in the microelectronic devices as an under layer and acts as the key component in the fabrication of integrated circuits. Thus, a higher use of silicon wafers in making such electronic devices will boost the growth of the segment.

The PCB laminates form a key component of electronic circuitry in ensuring functionality and integrity of a wide range of electronics such as computers, communication and other consumer electronics. Moreover, increasing preference for types of PCBs such as miniaturized, multi-layered, and halogen free, has increased the consumption of electronic chemicals and materials.

The growth of the specialty gases segment is associated with its wide use of electronic devices and components such as semiconductors, solar cells, liquid crystal panels, and LEDs. Additionally, they are used in several electrical equipment such as circuit breakers and transformers. The latest product developments includes wearable and technological advancements such as control systems, connected homes, and connected industrial systems in the electronic industry, are estimated to boost the demand for specialty gases. This will further positively impact the electronic chemicals & materials market.

The wet chemicals segment is in a growing phase due to its rising use in semiconductors, integrated circuit manufacturing, display panels, televisions, LCDs, and LEDs. The growing adoption of these devices across the globe has contributed a high consumption of wet chemicals thereby boosting the electronic chemicals and materials demand.

Photoresist chemicals are primarily used in processes such as photoengraving and photolithography to create a pattern on the semiconductor material. Additionally, growing demand for LED displays and miniaturization of electronic goods is enhancing the use of photoresist chemicals thus leading to electronic chemicals and materials market growth. Others segment includes CMP slurries, Low K Dielectrics and conductive polymers. The growth of these segment is characterized by increasing demand for electronic products globally.

By End-Use Analysis

Semiconductor Segment Held the Dominant Share Owing to Varied Product Benefits

Based on the end-use, the market is segmented into semiconductors and others.

The semiconductor segment held the dominant market share in 2023. This segment is bifurcated into integrated circuits and printed circuit boards. Electronic chemicals and materials are mainly used for etching of semiconductors for appropriate maintenance and improving functioning. Moreover, rising demand of semiconductors from electric & hybrid vehicles, and industrial machines will provide growth opportunities for the market.

The growth of integrated circuit segment is attributed to the increasing adoption of IoT devices. In this, the integrated circuits sense and transmit intelligent data. Furthermore, the benefits associated with analog ICs across a vast range of real-time connected applications and devices will surge the chemicals and materials consumption.

The consumption of electronic chemicals and materials in the printed circuit boards is rising owing to rising demand for digitalization from both developing and developed countries in the industrial and consumer sector. Further, the development of PCB designs, to maximize utilization and minimize cost, including replacement of base materials to BT-epoxy and polyamides, will drive the growth of the segment.

REGIONAL INSIGHTS

The market size in Asia Pacific stood at USD 30.01 billion in 2023. The region is projected to hold leading position throughout the forecast period. The dominance is primarily attributed to the huge demand for printed circuit boards owing to the developments in various industries such as electronic gaming, consumer goods, telecommunications, and IT. China, India and Japan are the major contributors for the growth of this market in the region mainly due to the presence of large electronics manufacturers. China is the leading producer of electrical and electronic devices. The usage of electronic chemicals and materials in China is surging due to the continuous advancement and research & development of new devices in the electronic industry.

The market in North America is growing at a significant rate owing to rapidly growing demand for electronic devices. The consumption of CMP slurries, Low-K dielectrics, and photoresist chemicals for making electronic devices has increased in the region. Besides, technological advancements and R&D of semiconductors is fueling the market.

The growth of the market in Europe is characterized by a wider use of electronic devices with advanced technologies such as smart workplace and homes. Additionally, the presence of large manufacturers and suppliers for electronic equipment and materials in the region supports the consumption of electronic chemicals and materials. Moreover, Germany being the largest supplier of electronic appliances, electronic medical systems, and household appliances is expected to drive the market in the region.

The Rest of World is projected to have significant growth during the review period. This growth is associated with the rising demand for smart-gadgets and tiny electronic devices. Moreover, preference of consumers towards automation is anticipated to surge the market growth.

List of Key Companies in Electronic Chemicals and Materials Market

Adoption of Business Expansion Strategy Will Increase the Presence of Key Players

The competitive landscape of the market is fragmented. Key players are adopting strategies such as business expansion, acquisition, and partnership to increase their presence in the market. Companies are expanding their capacities to meet customer needs mainly from the electronics industry. For instance, Air Products started new air separation unit in Arizona to produce nitrogen and oxygen for electronics application. Moreover, Linde started new ASU to serve the needs for industrial gases by the Samsung electronics in South Korea.

LIST OF KEY COMPANIES PROFILED

• Linde plc (Ireland)


• Air Products (U.S.)


• Cabot Microelectronics (U.S.)


• BASF AG (Germany)


• Showa Denko Materials Co., Ltd. (Japan)


• Air Liquide (France)


• Solvay A.G. (Belgium)


• Shin-Etsu (Japan)


• Covestro (France)


• Songwon (South Korea)


• Wafer World, Inc. (U.S.)


• Sumco (Japan)


• Global Wafers (U.S.)


• Siltronic AG (Germany)

KEY INDUSTRY DEVELOPMENTS

• April 2023: Resonac Corporation announced the plan to increase the production of "Dicing Die Bonding Film" at its Goi Plant in Kamisu City, Japan, by 60% to cater to the growing demand for the two-in-one adhesive, which serves as both dicing tape and die bonding film in semiconductor packaging. The expanded production facilities are set to commence operation by 2026.


• January 2023: Linde acquired nexAir, LLC, an independent packaged gas distributor in the U.S. The strategic move will expand Linde's existing business and enhance its presence in the Southeast. NexAir had sales of around USD 400 million in 2022. Linde previously held a minority interest in nexAir since 2012 and has now acquired the remaining 77.2%.


• December 2022: FUJIFILM Corporation announced the construction of a new semiconductor materials manufacturing facility in South Korea. The new facility, which will produce color filter materials for image sensors, is set to become operational in spring 2024. The focus is on high-quality and high-performance products, utilizing cutting-edge manufacturing capabilities and state-of-the-art evaluation equipment.


• April 2021: Cabot Microelectronics acquired International Test Solutions to expand its electronic materials business segment. This will help company to solve challenges faced by its customers from semiconductor industry.


• July 2020: Linde started new air separation unit (ASU) and first nitrogen generator to provide industrial gases with ultra-high purity to its electronics customers located in Taiwan. The project will support the expansion of wafer fabrication in Tainan Science Park of Taiwan. The ASU, the nitrogen generator along with two more upcoming generators will have a total gas capacity of 173,000 Nm³/hr.

REPORT COVERAGE

The global electronic chemicals and materials market research report provides a comprehensive analysis of the market and emphases on key aspects, such as profiles of leading companies, and leading applications and end-use of the product. Additionally, it provides insights into the emerging market trends, dynamics, and highlights industry developments. Furthermore, the report includes several factors that have contributed to the progression of the market over recent years.

Report Scope & Segmentation