Electronic chemicals and materials are used in the manufacture of electronic devices such as integrated circuits, transistors, and microchips. These materials play a critical role in the electronics industry, enabling the production of devices that are smaller, faster, and more energy-efficient. Chemicals such as silicon, gallium arsenide, phosphorous, and metal are extensively utilized in the electronic industries. Applications of electronic chemicals and materials are vast and varied. They are used in a wide range of electronic devices, from smartphones and computers to medical equipment and automobiles, which include microprocessors and integrated circuits, solar cells, displays, and LED lighting & batteries.
As consumers increasingly rely on electronic devices such as smartphones, laptops, and tablets, the demand for electronic chemicals and materials continues to grow. Further, the trend towards smaller, more compact electronic devices requires the use of advanced electronic materials and manufacturing processes. Thus, companies are investing heavily in research and development to develop innovative materials & technologies with a focus on regulations related to the usage of hazardous substances in electronic devices. In addition to that, the world is moving towards renewable energy sources such as solar power is driving demand for electronic materials such as silicon and gallium arsenide, which are used in the production of solar cells. Overall, all these demands and advancements continue to drive the market of electronic chemicals and materials in the coming years.
The Global Electronic Chemical and Material Market has reached a value of $64.91 billion in 2022. This market is expected to grow from $69.07 billion in 2023 to $106.63 billion in 2030 with a CAGR of 6.4% in the forecast period of 2023-2030. This market is estimated based on different key pointers that attribute to the growth which are types such as Specialty Gases, CMP Slurries, Conductive Polymers, Photoresist Chemicals, Low K Dielectrics, Wet chemicals, Silicon Wafers, PCB Laminates, and applications including Semiconductor (Integrated circuits, Printed Circuit Boards), Others. Leading companies such as Linde plc, Air Products, Cabot Microelectronics, BASF AG, Hitachi Chemical, Air Liquide, Solvay A.G, Shin-Etsu, Covestro, and Songwon are involved in the manufacturing of electronic chemicals and materials.
The rising demand for electronic devices, combined with the increasing complexity and miniaturization of electronic components, made the semiconductor segment hold a significant place in the electronic chemicals and materials market. Since they are a key component in electronic devices, and production requires a range of specialized electronic chemicals & materials. Further, these materials are widely used to create the necessary electrical and optical properties required for electronic devices to function leading to drive the market of electronic chemicals and materials market.
Asia Pacific region holds the largest market share in the electronic chemicals and materials market. Since there is an increase in investment in semiconductor manufacturing, focusing on developing sustainable electronic materials and processes, emerging markets such as India and Southeast Asia are experiencing rapid growth in the adoption of electronic devices. Further, the Asia Pacific region is a dynamic and rapidly evolving region that faces a constant evolution and development in the electronic chemicals and materials market continue to have a great presence in the upcoming years.
For Instance, in August 2021, the leading chemical company LG Chem acquired the separation membrane business segment of LG Electronic with an aim to expand its presence and gain the largest market in the world. BASF, Zhejiang Jiahua Energy Chemical Industry Co. Ltd., and Zhejiang Jiafu New Material Technology Co. Ltd got together to expand the facility to increase the production of electronic-grade sulfuric acid plants in China. Thus, the expansion of the manufacturing facility, an effective international partnership, and increasing the production of electronic materials enhance the growth of the electronic chemicals and materials market in the coming years as expected.
Increasing innovation and growth of the electronic chemicals and materials market around the world through various investments and development in different sectors. To stay ahead in the current market, it is recommended that the companies should keep their focus on bringing new innovations in materials and chemicals along with that have an idea of emerging markets that leverage them to expand their presence. Further, strengthening supply chain management, especially in the electronic chemicals and materials business sector ensures a reliable and efficient supply of these materials eventually driving the market of electronic chemicals and materials in the coming years as predicted in the forecast period.