Global Electronic Chemicals and Materials Market - 2023-2030

Market Overview

The global electronic chemicals and materials market reached US$ XX million in 2022 and is expected to record significant growth by reaching up to US$ XX million by 2030, growing at a CAGR of 6.20% during the forecast period (2023-2030).

Electronic chemicals are highly complex chemicals utilized in numerous processing processes to manufacture electronic components and products, such as silicon wafers and integrated circuits for packaging and printed circuit boards. Electronic chemicals are used in various industries, including automotive, food & cosmetics, manufacturing, agriculture, textiles and aerospace. Electronic materials are investigated and used primarily for their electrical properties. The electric response of materials is largely determined by electron movements and their interactions with atoms and molecules.

The reaction of a material to an external electric field determines whether it is a conductor, semiconductor or insulator. These chemicals are used in producing electronic products and components, integrated circuits and silicon wafers, printed circuit boards and packaging, optoelectronics and compound semiconductors, several flat panel display products and various other application areas in the electronic industry. These electronic compounds are available in solid, liquid and gas forms.

Market Dynamics

One of the main reasons driving market expansion is rising demand from the microelectronics and semiconductor sectors. Furthermore, technical advancements in the semiconductor industry are expected to have a favorable effect on the market during the forecast period.

The improvement in IT infrastructure and upcoming technologies

With new technologies such as IoT (Internet of Things) and AI (Artificial Intelligence), a new product subcategory of intelligent home gadgets has emerged. As per the Wall Street Journal, IoT is predicted to grow at a breakneck pace, particularly in the industrial sector, with a 65 percent increase. The overall market value would be US$ 662 billion. AI-related technology has created a plethora of options for electronic producers.

The growing popularity of electric vehicles has created a new revenue stream for the electronics materials sector. The digital display sector is likewise striving for higher standards by launching high-end LED and LCD television sets, which necessitate the use of high-quality electronic materials in their manufacture. As a result, the participants can explore new money streams.

Technological advances in the electronics sector

The widespread adoption of nanotechnology has aided the market transition toward MEMS and NEMS devices. Nano-devices are becoming more popular because they are smaller, lightweight, consume less power and lower fabrication costs. With different technical breakthroughs, the recent commercialization of nano-based technologies has increased the market potential for photoresists and ancillaries.

For example, Intel is rapidly transitioning from 28nm to 20nm technology, increasing demand for nanomaterials and resulting in electronic chemicals and materials in the semiconductor sector.

Stringent regulations regarding health & environment

The use of dangerous chemicals and materials in the production process of electronic items has forced corporations to comply with several regulations and legislation that may indirectly or directly influence the business's profitability. The usage of silica in semiconductor production has been a major source of worry for employees' health.

Employers in U.S. must safeguard workers from respirable crystalline silica, according to the OSHA (Occupational Safety and Hazard Administration). Silica can go deep into the lungs and cause silicosis, lung cancer and other pulmonary disorders. Other potential risks include hydrogen chloride gas, combustible gases and different toxic solvents to the environment and humans.

COVID-19 Impact Analysis

Before the COVID-19 pandemic, the global electronics market had modest growth. Following the epidemic, the worldwide electronics sector saw a dual impact. The production of electronic parts has been halted due to a logistical bottleneck and a lack of workforce availability around the world. On the other side, several e-commerce companies worldwide have stopped shipping non-essential items (including most gadgets), harming the electronics industry. The temporary closure of major brand retail outlets and showrooms, supermarkets and hypermarkets is also expected to impact the sales of numerous technology products.

Aside from that, COVID-19 has wreaked havoc on the global supply chains of key electrical brands. China is the world's top manufacturer and exporter of various electronics input supplies, mostly employed in producing completed electronic goods. The continuous production standstill in China has pushed other electronic manufacturers in U.S. and Europe to temporarily suspend manufacturing of finished items, resulting in a gap between the demand and supply of electronic products.

Segment Analysis

By application, the electronic chemicals and materials market is segmented into semiconductors and others.

The growing technological advances in semiconductor

A semiconductor is a solid chemical substance or element that can conduct electricity under certain conditions depending on the dopants added during the production process. Technological improvements in the electronics industry have impacted the semiconductor industry. Aside from the rising demand for circuit boards and memory chips, emerging technologies such as artificial intelligence (AI) are predicted to propel the semiconductor sector forward.

Semiconductors require regular maintenance to perform properly; thus, specific electronic chemicals and materials are used to clean, etch, polish, dope and service semiconductors. The rising demand for semiconductors used in the production of computers and other consumer electronics is likely to be a major driver of industry growth. Consumer lifestyle changes and rising disposable income are expected to enhance demand for consumer appliances, boosting market expansion.

Geographical Analysis

The rapid growth of various technologies in Asia-Pacific

Asia-Pacific is expected to account for a major portion of the worldwide market. The electronics sector has grown significantly over the last two decades, creating a great need for printed circuit boards. The tremendous growth of the global electronics industry has fueled demand for printed circuit boards in the region. Advances in communication and information technology, smart cards, electronic games and consumer goods applications have all contributed to the growth of the printed circuit board sector.

Consumers' rising spending income and changing lifestyles further drive the electronic chemicals and materials market. Rapid industrialization and several electronic device manufacturers in nations such as China, India, Japan and Australia are predicted to boost the economy.

Competitive Landscape

The vast number of manufacturers and suppliers makes the electronic materials and chemicals market highly competitive. The global electronic materials and chemicals market is quickly expanding, prompting many significant players to pursue a mergers and acquisitions strategy to extend their presence and market dominance.

Air Products and Chemicals (US) announced the establishment of a second liquid hydrogen manufacturing facility in California. The manufacturing facility will assist the company in meeting the demand for hydrogen fuel cell automobiles (FCV). The corporation has also invested in China's six industrial gas facilities and a pipeline network. These plants will provide bulk nitrogen, oxygen and other gases. The expansion will help China's thriving electronics manufacturing industry.

BASF (Germany) has opened a new functionalizing foils plant in Munster. These foils are used to shield thin-film photovoltaics from damaging environmental stress. OLED screens and thin-film batteries are two further uses for foil.

Major global electronic chemicals and materials market companies include The Dow Chemical Company, Albemarle Corporation, Merck KGaA, Huntsman International LLC, BASF SE, Honeywell International, Inc., Air Products and Chemicals, Inc., KMG Chemicals, Inc., FUJIFILM Holdings Corporation and JSR Corporation.

KMG Chemicals

• Overview: KMG, headquartered in Fort Worth, Texas, develops, formulates and distributes specialized chemicals for the Semiconductor, Industrial Wood Preservation and Pipeline & Energy markets worldwide. KMG is a global leader in high-purity process chemicals, supplying major semiconductor manufacturers in U.S., Europe and Asia. The company's key products are high-purity acids, solvents and other wet chemicals used to etch and clean silicon wafers in the semiconductor manufacturing process. Its manufacturing plants in U.S. are ideally placed in Pueblo, Colorado and Hollister, California. The corporation has facilities in UK, France and Italy. It has three facilities in Singapore.

• Product Portfolio: Acids and bases, solvents and solvent blends and performance compounds are all part of the high-purity electronic chemical range. KMG Electronic Chemicals use innovative chemical purification processes such as distillation, ion exchange, gas adsorption and filtering to maintain consistently low contamination levels in a wide range of high-purity process chemicals.

• Key Development: Cabot Microelectronics Corporation and KMG Chemicals, Inc. have reached an agreement in which Cabot Microelectronics will acquire KMG in a cash and equity transaction valued at about US$1.6 billion. According to the terms of the agreement, KMG shareholders will receive US$55.65 in cash and 0.2000 of one share of Cabot Microelectronics common stock per KMG share, representing an implied per-share value of US$79.50 depending on the volume-weighted average closing price of Cabot Microelectronics stock over the 20-day trading duration ended on August 13, 2018. The acquisition has been passed unanimously by both businesses' boards of directors and is expected to finalize near the end of 2018.

Why Purchase the Report?

• Visualize the composition of the electronic chemicals and materials market segmentation by type, application and region, highlighting the critical commercial assets and players.
• Identify commercial opportunities in the electronic chemicals and materials market by analyzing trends and co-development deals.
• Excel data sheet with thousands of electronic chemicals and materials market-level 4/5 segmentation points.
• Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global electronic chemicals and materials market report would provide access to an approx. 53 market data table, 46 figures and 201 pages.

Target Audience 2022

• Electronic Chemicals and Materials Service Providers/ Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Emerging Companies
• Electronic Chemicals and Materials Manufacturers