Market Trends of Electronic Packaging Industry
Aerospace and Defense Segment Expected to Increasingly Adopt Electronics Packaging
- Defense budgets are on the rise in both developed nations, including the United States, France, and the United Kingdom, and in developing nations like Russia, India, and China. Many of these countries are also keen on weapon exports. Consequently, there has been a sustained push for R&D investments in the aerospace and defense market.
- In today's dynamic geopolitical climate, the significance of collective defense cannot be overstated. Military and defense forces, encompassing everything from weapons and guidance systems to armed vehicles and their power sources, play a pivotal role in safeguarding a nation from external threats. To uphold a robust military system, both surveillance and armed forces must function with utmost efficiency and effectiveness.
- As reported by the Department of Defence Production (India), defense production in the Financial Year (FY) 2022-23 achieved a historic milestone, surpassing INR 1 lakh crore (~USD 12.05 billion) for the first time, up from INR 95,000 crore (~USD 11.45 billion) in FY 2021-22. Additionally, India's demand for defense batteries is projected to double, rising from 4 gigawatt hours in 2022 to 10 gigawatt hours by 2030. This consistent uptick in defense production, alongside the growing adoption of defense batteries, is poised to drive market growth over the coming years.
- Naval warships, onboard satellite communication channels, weapon control systems, and coastguards all rely on advanced electronic products. These components necessitate military-grade packaging, especially given the challenges posed by humidity and harsh environments. Such demands not only underscore the need for high-quality products but also fuel investments in R&D.
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Asia-Pacific to Experience Significant Market Growth
- During the forecast period, Asia-Pacific is poised to dominate the market, driven by expanding automotive infrastructure and a surge in electric vehicle sales. With rising incomes among the middle-income group and a substantial youth demographic, demand in the automotive industry is set to escalate. The Society of Indian Automobile Manufacturers (SIAM) reported that in 2023, India produced 4.54 million passenger vehicles, a notable rise from 3.65 million units in 2022, signaling robust future market growth.
- China, recognized globally as the electronics hub, excels in mass-producing electrical components and electronic products, adhering to top-notch quality, performance, and delivery benchmarks. This prowess underscores the vast growth potential of the electronics packaging market.
- China's industry growth is fueled by surging domestic demand, technological innovations, and a commitment to producing premium products. Such extensive production of paper and paperboard in China fosters a thriving environment for electronics packaging sales.
- The Indian electronic manufacturing industry, buoyed by strong policy backing, substantial investments, and a rising demand for electronic products, is projected to hit USD 220 billion by 2025, as reported by the National Investment Promotion & Facilitation Agency (NIPFA).
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