Electronic Chemicals And Materials Market, Industry Size Forecast ...

Global Electronic Chemicals And Materials Market Dynamics

Driver: Growth in the semiconductor industry will augment the demand of electronic chemical and material

In today's rapidly evolving technological landscape, the growth of the semiconductor industry stands out as a key driving force. Semiconductors, often referred to as the "brains" of electronic devices, power everything from smartphones to advanced medical equipment. As this industry continues to expand, the demand for innovative manufacturing processes also intensifies.The semiconductor industry is expected to grow in the medium-to-long term largely due to the continuous technological innovations amid an accelerating transition to a data-driven society backed by the spread of technologies such as the Internet of Things (IoT), artificial intelligence (AI), and 5G. With technological advancements through R&D, companies from different industries are embedding ICs into their products to make them efficient and smart. With the ongoing trend of lightweight, fast, dense, and miniature electronic devices, a surge in demand for compact and complex ICs has been observed. As per the data provided by the Semiconductor Industry Association, the global sales of semiconductors exhibited a substantial rise, climbing from USD 139.0 billion in to reach USD 557.4 billion by the year . This growth represents a compounded annual growth rate of approximately 6.67% over this period. Furthermore, the World Semiconductor Trade Statistics (WSTS) Fall Semiconductor Industry Forecast projects a minor decline in worldwide semiconductor industry sales, with an anticipated value of USD 555.6 billion for , followed by a subsequent increase to an estimated USD 602 billion in .Consumer electronics, a significant end-user segment for semiconductors, illustrates the relentless demand for chips. Data from International Data Corporation (IDC) shows that smartphone shipments alone exceeded 1.4 billion units in . Given that each of these devices incorporates numerous semiconductor chips, the ripple effect on the demand for electronic chemicals and materials is profound, necessitating a wide array of high-purity materials for their production.To meet the soaring demand, significant investments are being made in semiconductor manufacturing capacity. For instance, leading semiconductor companies and governments worldwide are investing billions of dollars in new fabs and expanding existing ones. These investments not only increase the demand for semiconductors but also for the electronic chemicals and materials essential for their production.The semiconductor industry is a major driver of the electronic chemicals and materials market. As the backbone of all electronic devices, the demand for semiconductors is soaring, fueled by increasing needs for chips in consumer electronics, data centers, and automotive electronics. The industry's push towards smaller, faster, and more efficient chips also necessitates advanced materials and chemicals, driving the growth of this market.

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Restraint: Stringent health and environmental regulations regarding certain chemicals and materials

The utilization of hazardous chemicals and materials in the production of electronic goods has necessitated companies to adhere to various regulations, directly impacting their profitability. Silica, commonly used in semiconductor manufacturing, poses significant health risks to workers, as highlighted by OSHA regulations in the US. Exposure to respirable crystalline silica can lead to debilitating conditions like silicosis and lung cancer. Additionally, there are numerous other potential hazards such as hydrogen chloride gas, flammable gases, and solvents, posing threats to both the environment and human health. The electronics industry relies on a diverse array of materials and chemicals in its production processes, subjecting it to a complex web of regulations. In Europe alone, there are nearly 500 laws governing the electronics sector, covering aspects like energy efficiency, product recycling, and the use of hazardous substances. Ensuring compliance with these regulations is paramount to avoid environmental disasters and health crises. However, this compliance comes at a considerable cost, affecting every stage of the supply chain from raw material procurement to product disposal. This imposes significant financial burdens on electronics manufacturers, impacting their operational costs significantly.

Opportunities: Improved IT infrastructure and upcoming technologies such as AI and IoT.

The emergence of cutting-edge technologies like IoT (Internet of Things) and AI (Artificial Intelligence) has given rise to a burgeoning product niche: intelligent home devices. As per insights from the Wall Street Journal, IoT is poised for rapid expansion, particularly within the industrial sector, with a projected growth rate of 65%. By , the overall market is anticipated to soar to USD 662 billion. The integration of AI-driven solutions has unlocked a plethora of opportunities for electronics manufacturers. Furthermore, the surging demand for electric vehicles has created fresh revenue avenues in the electronic wet chemicals market. Additionally, advancements in the digital display industry, exemplified by the introduction of premium LED and LCD television sets, are expected to drive the need for high-quality electronic chemicals for cleaning and etching purposes. Consequently, there exists ample opportunity for players in the electronic wet chemicals market to explore new revenue streams.

Challenges: A rapid decline in the use of old technologies

The demand for technologies such as memory chips and data centers is rapidly declining due to the emergence of cloud-based storage solutions. With the decreased need for physical data storage, there's a noticeable downturn in memory chip production. Smaller players in the electronic chemicals and materials industry are struggling to keep pace with these changes. Adapting to new technologies takes time, which could result in profit losses for these smaller companies. As mobile device usage continues to rise, the trend towards smaller integrated chips and semiconductors intensifies. This necessitates precise and high-quality chemicals for semiconductor manufacturing to achieve optimal outcomes. Introducing new products often requires significant investments in constructing new facilities or upgrading existing setups, leading to substantial capital expenses that ultimately factor into the product's overall cost.

The study involved four major activities for estimating the current size of the global electronic chemicals and materials market. Exhaustive secondary research was carried out to collect information on the market, the peer product market, and the parent product group market. The next step was to validate these findings, assumptions, and sizes with the industry experts across the value chain of electronic chemicals and materials through primary research. Both the top-down and bottom-up approaches were employed to estimate the overall size of the electronic chemicals and materials market. After that, market breakdown and data triangulation procedures were used to determine the size of different segments and sub-segments of the market.

Secondary Research

In the secondary research process, various secondary sources such as Hoovers, Factiva, Bloomberg BusinessWeek, and Dun & Bradstreet were referred to, to identify and collect information for this study on the electronic chemicals and materials market. These secondary sources included annual reports, press releases & investor presentations of companies; white papers; certified publications; articles by recognized authors; regulatory bodies, trade directories, and databases.

Primary Research

The electronic chemicals and materials market comprises several stakeholders in the supply chain, which include raw material suppliers, processors, end-product manufacturers, buyers, and regulatory organizations. Various primary sources from the supply and demand sides of the markets have been interviewed to obtain qualitative and quantitative information. The primary participants from the demand side include key opinion leaders, executives, vice presidents, and CEOs of companies in the electronic chemicals and materials market. Primary sources from the supply side include associations and institutions involved in the electronic chemicals and materials industry, key opinion leaders, and processing players.

Following is the breakdown of primary respondents

Notes: Other designations include product, sales, and marketing managers.

Tiers of the companies are classified based on their annual revenues as of : Tier 1 = >USD 5 Billion, Tier 2 = USD 1 Billion to USD 5 Billion, and Tier 3=

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Market Size Estimation

Both the top-down and bottom-up approaches were used to estimate and validate the size of the global electronic chemicals and materials market. These approaches were also used extensively to estimate the size of various segments of the market. The research methodology used to estimate the market size included the following details:

• The key players in the industry were identified through extensive secondary research.
• The supply chain of the industry and market size, in terms of value, were determined through primary and secondary research.
• All percentage share splits and breakdowns were determined using secondary sources and verified through primary sources.
• All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
• The research includes the study of reports, reviews, and newsletters of key industry players, along with extensive interviews with key officials, such as directors and marketing executives.

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Data Triangulation

After arriving at the overall market size from the estimation process explained above, the total market was split into several segments and sub-segments. The data triangulation and market breakdown procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments of the electronic chemicals and materials market. The data was triangulated by studying various factors and trends from both the demand- and supply-side.

In addition, the market size was validated by using both the top-down and bottom-up approaches. Then, it was verified through primary interviews. Hence, for every data segment, there are three sources—top-down approach, bottom-up approach, and expert interviews. The data were assumed to be correct when the values arrived at from the three sources matched.

Market Definition

The electronic chemicals and materials market refers to the industry involved in the production, distribution, and sale of chemicals and materials specifically designed for use in the manufacturing of electronic components and devices. These chemicals and materials play crucial roles in various stages of electronics production, including semiconductor fabrication, printed circuit board (PCB) assembly, and display manufacturing. Key segments within this market typically include materials such as Specialty Gases, CMP Slurries, Conductive Polymers, Photoresist Chemicals, Low K Dielectrics, Wet Chemicals, Silicon Wafers, and PCB Laminates. The market encompasses a wide range of products tailored to meet the specific needs of electronic manufacturers, ensuring the performance, reliability, and longevity of electronic devices. As technology advances and electronic devices become more sophisticated, the demand for advanced electronic chemicals and materials continues to grow, driving innovation and expansion within the industry.

Key Stakeholders

• Electronics chemicals and materials manufacturers
• Electronics chemicals and materials traders, distributors, and suppliers
• End-use industry participants of different segments of electronics chemicals and materials
• Government and research organizations
• Associations and industrial bodies
• Research and consulting firms
• R&D institutions
• Environment support agencies
• Investment banks and private equity firms

Report Objectives

• To define, analyze, and project the size of the electronic chemicals and materials market in terms of value based on type, application, and region.
• To project the size of the market and its segments with respect to the five main regions, namely, North America, Europe, Asia Pacific, Middle East & Africa, and South America
• To provide detailed information about the key factors, such as drivers, restraints, opportunities, and challenges, influencing the growth of the market
• To analyze the opportunities in the market for stakeholders and provide a detailed competitive landscape of the market leaders.
• To analyze the competitive developments, such as new product launches, expansions, and acquisitions, in the electronic chemicals and materials market
• To strategically profile the key players operating in the market and comprehensively analyze their market shares and core competencies.

Available Customizations

Along with the given market data, MarketsandMarkets offers customizations as per the specific needs of the companies. The following customization options are available for the report:

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Product Analysis:

• Product Matrix which gives a detailed comparison of the product portfolio of each company

Regional Analysis:

• Further breakdown of the Rest of APAC market
• Further breakdown of Rest of Europe market

Company Information:

• Detailed analysis and profiling of additional market players (up to 5)

Market Dynamics

Introduction

Electronic chemicals and materials are specialized substances used in the manufacture and production of electronic devices and components. These include chemicals used in the fabrication of semiconductors, such as photoresists, etchants, and doping agents, as well as materials like silicon wafers and substrates that form the basis of electronic circuits.

The electronics industry employs a broad range of highly sophisticated specialty chemicals in the production of electronic components and equipment. These chemicals are used in several processing steps in integrated circuits, silicon wafers, printed circuit boards (PCBs), and for packaging and also, in the manufacturing of optoelectronics and compound semiconductor, and others.

Electronic chemicals are available in different forms - solid, liquid, and gaseous. Silicon, fluorine, and bisphenol are some of the key raw materials used in the production of electronic chemicals.

Market Drivers

Increasing demand from the microelectronics and semiconductor industries is one of the key factors propelling the growth of the market. Also, rise in demand for memory chips in the semiconductor industry is likely to create a positive impact on the market during the forecast period

Segments Analysis

By Type

“The silicon wafers segment captured the largest market share in and is projected to continue leading the market during the forecast period”.

The market is segmented as specialty gases, CMP slurries, photoresist chemicals, conductive polymers, low k dielectrics, wet chemicals, silicon wafers, and PCB laminates. The silicon wafers segment held the largest share of the market in and is expected to remain dominant during the forecast period.

Silicon wafers serve as a substrate for microelectronic devices and as a key component in the fabrication of integrated circuits. Integrated circuits, the constituents of computers, smartphones, and all other electronic devices are one of the most dominant application areas of silicon wafers.

Other applications are tire pressure systems and solar cells. Rapidly increasing demand for silicon from various end-use industries such as solar photovoltaic is expected to fuel the growth of the segment. Rising tension and trade disputes between China, the U.S., and the European Union are likely to result in price volatility of silica during the forecast period.

By Application Type

“The semiconductor segment held the largest market share in and is anticipated to retain its dominant position throughout the forecast period”.

The market is segmented into semiconductors and others. The semiconductor segment held the largest share of the market in and is expected to remain dominant during the forecast period. The semiconductor segment is further divided into integrated circuits and printed circuit boards. Electronic chemicals and materials are used for cleaning, etching, polishing, doping, and servicing of semiconductor in order to achieve better functionality along with proper maintenance.

Technological advancements in the electronics industry impact the semiconductor industry. For instance, upcoming technologies such as artificial intelligence or AI are likely to drive the segment’s market over the forecast period.

Regional Analysis

“Asia-Pacific is expected to be the fastest-growing market throughout the forecast period”.

The market is broken down geographically into areas, namely North America, Europe, Asia-Pacific, and the Rest of the World (RoW). In terms of regions, Asia-Pacific is estimated to be the fastest-growing market for electronic chemicals and materials during the forecast period, with China, Japan, and India being the major countries with lucrative growth opportunities.

Over the past two decades, the electronics industry has witnessed significant growth worldwide, thus generating a huge demand for printed circuit boards. Asia-Pacific is the largest producer of PCBs. Developments in various industries such as telecommunications and IT, smart cards, electronic gaming, and consumer goods contribute towards the growth of the PCB market, which in turn, is driving the electronic chemicals and materials market in the region. North America and Europe are also expected to offer substantial growth opportunities during the forecast period. 

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