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Electronic chemicals are specialty chemicals used in the manufacturing of semiconductors, integrated circuits (ICs), and printed circuit boards (PCBs). These chemicals help in doping, etching, cleaning, and deposition processes required for manufacturing electronic components. The rising demand for electronic gadgets along with technological advancements in consumer electronics is driving the need for electronic-grade chemicals.
The global Electronic Chemicals Market is estimated to be valued at US$ 67.92 billion in 2024and is expected to exhibit a CAGR of 6.4% over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growing Semiconductor Industry
The key trend propelling the growth of the electronic chemicals market is the expanding semiconductor industry. Semiconductors are fundamental components used in the manufacturing of electronic goods such as smartphones, laptops, automobiles, and others. According to the Semiconductor Industry Association (SIA), the global semiconductor industry experienced record-high annual sales surpassing half a trillion dollars in 2021. The flourishing semiconductor sales are prompting semiconductor manufacturers to increase their production which in turn is elevating the demand for electronic-grade chemicals used in various semiconductor manufacturing processes such as cleaning, etching, and deposition. This is positively impacting the growth of the electronic chemicals market.
Key players operating in the electronic chemicals market are BASF SE, Huntsman Corporation, The Dow Chemical Company, Hitachi Chemical Company, Ltd., Honeywell International Inc., JSR Corporation, Cabot Microelectronics Corporation, PPG Industries, Fujifilm Electronic Materials, Kanto Chemical Co. Inc. Technological advancements in semiconductor devices requiring higher integration and miniaturization have pushed the requirements for purer, greener and nano-sized electronic chemicals. Companies are focusing on developing application specific high-performance chemicals through extensive R&D while ensuring environmental sustainability.
SWOT Analysis
Strength: Electronic chemicals have wide range of applications in semiconductor, LCD, and other electronics manufacturing which drives their demand. They provide etching, cleaning and deposition functions critical for electronics production.
Weakness: Strict environmental regulations around the use of electronic chemicals can increase compliance costs. Many electronic chemicals are hazardous in nature which needs safe production and disposal practices.
Opportunity: Growth of electronics devices and components market especially in automotive, communications and renewable energy sectors opens up opportunities for electronic chemicals manufacturers. Technological advancements in electronics manufacturing techniques will fuel innovations in electronic chemicals.
Threats: Volatility in raw material prices can squeeze margins for electronic chemical companies. Substitution threat from greener alternative chemicals also looms large. Trade conflicts and economic slowdowns impact the demand trajectory of electronic chemicals.
Key Takeaways
The global Electronic Chemicals Market is expected to witness high growth over the forecast period supported by the exponential rise in smartphones, laptops, vehicles and other smart devices. The global Electronic Chemicals Market is estimated to be valued at US$ 67.92 billion in 2024and is expected to exhibit a CAGR of 6.4% over the forecast period 2023-2031.
Asia Pacific currently dominates the electronic chemicals market with China, Taiwan, South Korea and Japan being the major electronics manufacturing hubs. The thriving semiconductor industry in the region drives significant demand for electronic chemicals for wafer cleaning, etching and other critical process applications.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
