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Global Electrically Conductive Adhesives Market Overview

Global Electrically Conductive Adhesives Market Size Was Valued at USD 2.64 Billion In 2023 And Is Projected to Reach USD 10.20 Billion By 2032, Growing at A CAGR of 16.21% From 2024 To 2032.

Electrically conductive adhesives are generally employed in electronics applications where components must be held in place during electrical current can flow between them. Some common general such as anaerobic, cyanoacrylates, epoxies, and acrylic-based adhesives play as an electrical insulator depending on the space between components. Many supplies are good thermal conductivity to help in the thermal management of electronic components and heat sinks by directing heat away from sensitive components. As long as, there is no glue line control in some circumstances primarily when utilizing an anaerobic or cyanoacrylate adhesive and parts are effectively touching with adhesives filling in microscopic crevices, many electrical charges can still be changed due to there is adequate metal to metal contact.

Electronic components that are temperature-fragile cannot be cemented. This type of application necessitates the application of an electrically conductive adhesive alternative for solder. By the electrically conductive adhesive on a PCB with components mounted on both sides makes the assembly process easier and removes the possibility of components sliding off the underside when parts are soldered on the top. The usage of electrically conductive adhesive for a full electrical assembly removes the need for solder re-flow.

Electrically Conductive Adhesives Market 2024 - In-Depth Analysis By 2032

COVID-19 Impact on Electrically Conductive Adhesives Market

COVID-19 pandemic has affected the global economy by some factors such as by directly affecting production and demand, by creating supply chain and market disturbance, and by its financial impact on firms and financial markets. Covid-19 pandemic influence on the global market size, Electronic Adhesives industry share, consumer behavior, recovery, and forecast analysis.  Massive demand for Conductive Adhesive market noticed from huge producing economies, which are rapidly affected by the spread of coronavirus.

Market Dynamics And Factor

Drivers

Increasing Application In Power Electronics

Electrically conductive adhesives find a broad range of applications in various power electronics assembly. These adhesives are applied for electrical interconnection and are also appropriate for structural and thermal bonding applications, providing enhanced reliability in electronic systems. Electrically conductive adhesives are processes where heat curing or hot soldering can be altered, as they offer superior adhesion, excellent electrical conductivity, and good physical strength at a high temperature. During the manufacturing of precision electronic products, often, the heat generated by soldering causes problems and solder reflow temperatures can hinder temperature-sensitive componentry usage. Therefore, to overcome this challenge, manufacturers generally prefer electrically conductive adhesives and electrically conductive pastes as an alternative, as they do not need to be heated to the same high temperatures as solder. Owing to the growing demand from the electronics industry for high-efficient and compact semiconductors, the demand for semiconductors is expected to propel during the forecast period, owing to the growing demand for compact devices.

Restraints:

Due to fluctuating raw material costs, the global electrically conductive adhesive market's growth is being suppressed. This is the key factor that hindering the market growth over the forecast period.

Opportunities:

Growth in the application of electronic components in the aerospace, automotive, and various other sectors will further propel several new opportunities for the electrically conductive adhesive market to grow in the upcoming years. In addition, technological innovations in electric vehicles and proactive government initiatives are anticipated to create lucrative opportunities for the growth of the market.

Market Future Trends

Increasing Usage From Electric Vehicles

Electrically conductive adhesives are extensively used in the manufacturing of electric vehicles. They are used as an assembly and circuit adhesives in the PCB level electronics of the electric vehicle components. Electrically conductive adhesives additionally provide protection and thermal conductivity to the components. For electric vehicles, electrically conductive epoxy adhesives are utilized for electromagnetic interference (EMI) shielding applications. EMI shielding is required in several usages within an electric vehicle, including data transmission systems and shielding between components and functions. With the increase in the sales of electric vehicles and growing concerns about global warming and CO2 emissions, electric vehicles are likely to become a norm rather than a novelty shortly. The resilience in the sales of EVs is fuelled by the supportive CO2 regulatory frameworks, incentives for safeguarding in the European countries, and the fall in the costs of batteries, which is reducing the vehicle prices. Hence, the various usages and the importance of electrically conductive adhesives in EVs, fuelled by robust growth in the sales of electric vehicles, are likely to provide a significant growth opportunity for the electrically conductive adhesives market.

Market Segmentation

Segmentation Insights

Based on Chemistry Type, the epoxy segment accounted for the largest share, with about 33.43% of the total revenue of the global electrically conductive adhesives market, in 2020. However, the acrylic segment is expected to witness the fastest CAGR over the forecast period. Epoxy-based electrically conductive adhesives (ECAs) are lead-free solder alternatives for attaching components and printed circuit board (PCB) interconnections. Electrically conductive silicone adhesives are a thixotropic, non-corrosive silicone paste filled with electrically conductive particles such as graphite, nickel-graphite, silver-plated glass, silver-plated nickel, silver-plated aluminum, silver-plated copper, or even pure silver. Owing to varying applications and the increasing demand for silicone-based ECAs from various end-user sectors, such as aerospace, telecom, consume, and others. The demand for the electrically conductive adhesives market is anticipated to grow in the forecast period.

Based on Type, the anisotropic segment accounted for the largest share, with about 82.22% of the total revenue of the global electrically conductive adhesives market, in 2020. Moreover, the anisotropic segment is expected to witness the fastest CAGR over the forecast period. Isotropic electrically conductive adhesives are composites of adhesive resins with conductive fillers, such as silver flakes. Therefore, considering the increasing applications of Isotropic ECAs from various end-user sectors, the demand for the market studied is likely to rise in the coming years.

Based on Application, the printed circuit board segment accounted for the largest share, with about 34.82% of the total revenue of the global electrically conductive adhesives market, in 2020. However, the automotive electronics segment is expected to witness the fastest CAGR over the forecast period.

Regional Insights

By geography, Asia-Pacific accounted for the largest share, with about 50.33% of the total revenue of the global electrically conductive adhesives market, in 2020. Moreover, the Asia-Pacific region is expected to witness the fastest CAGR over the forecast period.

Germany is one of Europe's largest producers and consumers of electric vehicles. Even though general car sales in the country have been in decline, electric vehicle registrations have shown tremendous growth over the past few years. The German economy has been forecasted to take a high hit due to the ongoing COVID-19 impact.

Key Industry Developments

  • In May 2023, Henkel announced the opening of its Application Center in Santa Clara, CA, designed to support product development for the company's high-tech customers in the Silicon Valley region. Equipped as a state-of-the-art facility, the Application Center will help expedite proof-of-concept initiatives for electronics advances.
  • In January 2023, Parker Hannifin expanded its portfolio of products for electric vehicle manufacturers to include new Thermally Conductive (TC) adhesives and one-component (1K) low-density gap fillers to support their leading product offering of thermal management encapsulants, adhesives, and gap fillers.

Players Covered in Electrically Conductive Adhesives market are :

  • 3M
  • Aremco
  • Creative Materials Inc.
  • Dow
  • H.B. Fuller Company
  • Henkel AG & Co. KGaA
  • HITEK Electronic
  • Materials Ltd
  • Master Bond Inc.
  • MG Chemicals
  • Panadol-Elosol GmbH
  • Parker Hannifin Corp.
  • Permabond LLC
  • Bostik and others major players.

Global Electrically Conductive Adhesives Market

Base Year:

2023

Forecast Period:

2024-2032

Historical Data:

2017 to 2023

Market Size in 2023:

USD 2.64 Bn.

Forecast Period 2024-32 CAGR:

16.21%

Market Size in 2032:

USD 10.20 Bn.

Segments Covered:

By Type

  • Epoxy
  • Silicone
  • Polyurethane
  • Acrylic
  • Other

By Application

  • Automotive
  • Aerospace & Defence
  • Consumer Electronics
  • Bioscience
  • Other

By Region

  • North America (U.S., Canada, Mexico)
  • Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)
  • Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)
  • Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New-Zealand, Rest of APAC)
  • Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa)
  • South America (Brazil, Argentina, Rest of SA)

Key Market Drivers:

  • Increasing Application in Power Electronics

Key Market Restraints:

  • Fluctuating Raw Material Costs

Key Opportunities:

  • Technological Innovations in Electric Vehicles and Proactive Government Initiatives

Companies Covered in the report:

  • 3M, Aremco, Creative Materials Inc., Dow, H.B. Fuller Company, and other major players.
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Frequently Asked Questions :

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The forecast period in the Electrically Conductive Adhesives Market research report is 2024-2032.

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