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The electronic chemicals market involves a wide range of chemicals that play a vital role in manufacturing electronic devices. Key electronic chemicals include solvents, specialty gases, CMP slurries, wet chemicals, photoresists and electron beams. these chemicals find applications in various electronic manufacturing processes including etching, deposition, cleaning and planarization. The growing demand for advanced semiconductors from industries such as consumer electronics, automotive and telecommunications is driving the consumption of electronic chemicals. Additionally, rapid advancements in semiconductor manufacturing technologies such as FinFET and GAAFET have increased the demand for high purity electronic-grade chemicals with improved qualities.
The Global electronic chemicals market is estimated to be valued at US$ 67.92 Bn in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the electronic chemicals market are BASF SE, Air Products and Chemicals Inc., The Dow Chemical Company, Merck KGaA (known as EMD Performance, Materials in North America), SUMCO Corporation, JSR Corporation, Shin-Etsu Chemical Co., Ltd., Cabot, Microelectronics Corporation, Tokyo Ohka Kogyo Co., Ltd., Honeywell International Inc.
The market presents significant opportunities due to the rising demand for miniaturized electronic components from smartphones, wearables and IoT devices. Manufacturers are investing heavily in R&D to develop innovative chemicals with higher purity levels, improved conductive properties and durability.
Technological advancements like FinFET and GAAFET architectures have compelled chemical suppliers to deliver solutions compatible with immersion lithography, multi-patterning and EUV lithography processes. Moreover, the rapid expansion of semiconductor fabs and increasing adoption of advanced packaging technologies like 2.5D and 3D stacking present growth prospects.
Market drivers
The dominant market driver is the proliferation of consumer electronics products globally, especially in Asian economies like China, India and South Korea. The electronic chemicals market largely depends on manufacturing activities of semiconductors and electronic components catering to smartphones, laptops and other personal computing devices. According to estimates, smartphone sales are projected to surpass 1.5 billion units by 2023. This exponential rise in consumption of electronics will propel the demand for electronic chemicals across the value chain.
Additionally, increasing integration of AI, IoT, autonomous driving technologies in automobiles and industrial automation is another key factor accelerating the market growth. The automotive electronics industry consumes a wide variety of electronic-grade chemicals for manufacturing navigation systems, infotainment units, advanced driver assistance systems and telematics control units.
Current challenges in Electronic Chemicals Market
The electronic chemicals market is facing various challenges which are restraining its growth. Volatility in crude oil and raw material prices is a major challenge as it increases production costs for manufacturers. Stringent environmental regulations regarding the disposal of hazardous chemicals are increasing compliance costs. Additionally, the COVID-19 pandemic has disrupted the supply chain and demand for electronic products, thereby impacting the market. Sustaining research and development activities to develop innovative solutions is also challenging due to high costs involved.
SWOT Analysis
Strength: Wide applications in semiconductor, flat panel display and others; growing demand for electronic devices provides opportunities
Weakness: Stringent environmental regulations increase compliance costs; raw material price volatility increases production costs
Opportunity: Growing adoption of renewable energy and digital technologies worldwide; increasing demand for 5G infrastructure and smartphones
Threats: Trade wars and geopolitical tensions can disrupt supply chains; Shift towards development of new environment-friendly products poses competition
Geographical Regions
North America holds the largest share in the electronic chemicals market in terms of value owing to presence of major electronics manufacturers. Asia Pacific is expected to register the fastest growth over the forecast period due to growing electronics industry, especially in China, South Korea, Taiwan and India. The rising standard of living and huge demand for consumer electronics provide impetus to the market growth in the region.
Fastest Growing Region
Asia Pacific is anticipated to be the fastest growing region for the electronic chemicals market between 2023 to 2030. This is attributed to increasing disposable income, rapid urbanization and growing middle class population in emerging countries such as India, Indonesia and Vietnam. Manufacturers are expanding their production facilities in these countries to capitalize on benefits such as low costs and taxes, and proximity to large customer base. This in turn will substantially contribute to the market revenues in Asia Pacific.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
