PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1618943
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1618943
The electronic chemicals CDMO and CRO market is projected to reach USD 0.66 billion by 2029, at a CAGR of 6.8% from USD 0.48 billion in 2024.
Scope of the Report | |
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Years Considered for the Study | 2020-2029 |
Base Year | 2023 |
Forecast Period | 2024-2029 |
Units Considered | Value (USD Million/USD Billion), Volume (Kilotons) |
Segments | Type, Scale, Application, End-use, and Region |
Regions covered | North America, Europe, Asia Pacific, Middle East & Africa, South America |
"Growing trend of miniaturization has resulted into increased investment in electronics industry "
Electronics miniaturization has dramatically altered the face of electronic chemicals, particularly for companies that are interested in CDMOs and CROs. Such a trend demands not only advanced chemical formulations but also ultra-high purity standards for the tiny, intricate components that make up today's electronics. Because semiconductors and other electronic components are being scaled down in size, minor impurities can cause failure in performance, affecting the quality and functionality of the final product. CDMOs and CROs invest heavily in research and development to create materials that are up to these challenging standards, keeping pace with industry trends of reducing component size while improving functionality.
This sector also has important R&D investment requirements since developing high-performance ultra-pure materials involves intricate processes with heavy cost inputs. It has been estimated, for example, that according to industry reports, electronic chemical market worldwide will exhibit healthy growth, given increased demands on miniaturization for electronics and semiconductors. This demand calls for improvement among CDMOs and CROs on how they offer high-purity chemicals necessary for stages in the electronic manufacturing processes such as etching, cleaning, and deposition that require lithography. The smallest nodes involve extreme precision and stability that demands to operate at their targeted levels of consumer electronics applications, automotive electronics applications, and much more.
This miniaturization trend has motivated CDMOs and CROs to invest in special facilities and equipment that would help them achieve the desired levels of purity and consistency expected by their clients.
"Gases, by type, accounts for the largest market share in terms of volume in 2023."
The fastest-growing type is the gases segment in terms of volume of the electronics chemicals CDMO and CRO market because these are considered essential in the semiconductor manufacturing and advanced electronics production processes. Gases such as nitrogen, hydrogen, argon, and specialty gases, such as silane, ammonia, and fluorinated compounds, are absolutely needed in each stage of semiconductor fabrication, namely deposition, etching, doping, and cleaning processes. The demand for semiconductors is increasing in applications, such as artificial intelligence, 5G technologies, electric vehicles, and renewable energy systems. This led to a need for higher purity electronic gases, especially for high-precision efficiency in the fabrication of the wafer, which ensures smaller, more efficient, and complex chips. Overall, expansion within the global semiconductor industry coupled with a continued pace in electronic device technologies represents vital factors responsible for the exponential increase of gases in this market.
"Large have the largest market share in terms of volume in 2023."
Large-scale production is going to be the major market segment for electronics chemicals CDMO and CRO because of high demand for cost efficiency, quality output, and scaling in meeting the increasing requirements of the electronics and semiconductor industry. The rapid growth in adoption of advanced technologies, including 5G, artificial intelligence, electric vehicles, and renewable energy systems, has increased the demand for the mass production of microelectronic components such as semiconductors, chips, and display panels. Large-scale facilities enable the manufacturers to face this increasing demand effectively.
Large-scale operations are of prime importance to achieve economy of scale, which reduces the cost of production while maintaining consistency and quality. These facilities cater to large-scale production for etchants, photoresists, and deposition material for high-volume electronics. This ensures that supply chains on a global level do not experience any disruption and will meet the needs of most industries that rely on the just-in-time production system.
"Cleaning Agents have the largest market share in terms of volume in 2023."
Cleaning agents should be the largest segment within the electronics chemicals CDMO and CRO market owing to their indispensable role in preserving the stringent purity and quality standards required in the microelectronics and semiconductor manufacturing sectors. These agents are therefore critical for removing contaminants, particulate matter, and residues from wafers, components, and surfaces at various steps in semiconductor manufacturing. As semiconductor technology advances toward smaller node sizes, cleaning agents are essential to achieving defect-free surfaces and ensuring the optimal performance of microelectronics. Applications such as wafer cleaning, photomask cleaning, and tool maintenance rely on these specialized chemicals, which must meet ultra-high purity standards to prevent adverse impacts on device performance.
"Optoelectronics have the largest market share in terms of volume in 2023."
Optoelectronics will be the biggest application segment for the electronics chemicals CDMO and CRO market, in view of its high pace of adoption across diverse applications and due to its role at the very heart of modern technology. It encompasses light-emitting diodes, laser diodes, photovoltaic cells, and optical sensors; these products are an essential part of industries ranging from telecommunication and consumer electronics to automobile. Global demand for advanced display technologies, including OLEDs and micro-LEDs in smartphones, TVs, and wearable devices, has significantly increased the consumption of optoelectronic materials. Furthermore, increasing the use of optical sensors in autonomous vehicles and smart devices increases the demand even further. These devices need very specialized electronic chemicals, including deposition materials and photoresists, to provide precision and performance in optoelectronic components. With its ability to support diverse, high-growth industries combined with technological advancements, optoelectronics is a leading segment in the electronics chemicals CDMO and CRO market. Its growth mirrors the increased dependence on advanced technologies in daily life and industrial processes.
"Based on region, North America was the second largest market in 2023."
North America, in particular, is expected to be the second largest of the CDMO and CRO markets for electronics chemicals by virtue of its robust high-technology industry base, leading edge semiconductor manufacturing, and highly strong R&D ecosystems. North America is also home to among the world's largest electronics and semiconductor manufacturers. Among Silicon Valley and other major technology complexes, this region provides important demand for specialty electronic chemicals. Growing adoption of cutting-edge technologies such as 5G, artificial intelligence, autonomous vehicles, and renewable energy would drive the consumption of chemicals like photoresists, etchants, and high-purity cleaning agents. Moreover, North America's leadership in optoelectronics, especially applications in telecommunications and automotive, reinforces the demand for electronic chemicals in the region. Further, the presence of leading CDMO and CRO players and advanced chemical manufacturing facilities adds to the growth of this market.
The key players in this market are Sajjan India Ltd. (India), Cohance Lifesciences (India), noctiluca (Poland), Actylis (US), AGC Inc. (Japan), Navin Fluorine International limited (India), CABB Group GmbH (Germany), Adesis Inc. (US), Inventys Research Company (India), LinkChem Technology Co.,Ltd.(China), among others.
Research Coverage
This report segments the market for the electronic chemicals CDMO and CRO market on the basis of type, scale, end-use, application and region. It provides estimations for the overall value of the market across various regions. A detailed analysis of key industry players has been conducted to provide insights into their business overviews, products & services, key strategies, new product launches, expansions, and partnerships associated with the market for the electronic chemicals CDMO and CRO market.
Key benefits of buying this report
This research report is focused on various levels of analysis - industry analysis (industry trends), market ranking analysis of top players, and company profiles, which together provide an overall view of the competitive landscape, emerging and high-growth segments of the electronic chemicals CDMO and CRO market; high-growth regions; and market drivers, restraints, opportunities, and challenges.