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Electronics Adhesives Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Electronics Adhesives Market Overview & Suppliers and is segmented by Resin Type (Epoxy, Acrylics, Polyurethane, and Other Resin Types), Application (Conformal Coatings, Surface Mounting, Encapsulation, Wire Tacking, and Other Applications), End-user Industry (Consumer Hardware, IT Hardware, Automotive, and Other End-user Industries), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The market size and forecasts for the Electronics Adhesives Market are provided in value (USD million) for all the above segments.

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Electronics Adhesives Market Size

Electronics Adhesives Market Size
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR > 9.00 %
Fastest Growing Market Asia Pacific
Largest Market Asia Pacific
Market Concentration High

Major Players

Electronics Adhesives Market Key Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of Electronics Adhesives Market with other markets in Chemicals & Materials Industry

Plastics, Polymers, and Elastomers

Adhesives and Sealants

Commodity Chemicals

Water and Wastewater Treatment

Advanced Materials

Construction Chemicals and Materials

Electronics Adhesives Market Analysis

The Electronics Adhesives market is projected to register a CAGR of 9% during the forecast period (2021-2026).

COVID-19 has a positive impact on the electronics adhesives market. According to JEITA, the global electronics, and IT industries' production has seen an increase of 2% with a year-on-year growth to reach USD 2.9 trillion. The positive growth is due to the greater demand for electronic components and devices to boost contactless interaction and to use remote information technologies. Electronic adhesives are very important components in electronics as they are used in manufacturing and to protect high-performance electronic devices. This positive growth is expected to continue along with the rising demand for electronic products globally.

  • Over the medium term, the major factors driving the market are increasing demand for electronics in the Asia-Pacific region and the growing technological advancements in electronics adhesive manufacturing. Asia-Pacific is one of the leading manufacturers of electronics in the world and accounts for more than 70% of the global electronics production, with counties like South Korea, Japan, and China involved in manufacturing of various electrical components and supply to various industries worldwide.
  • However, volatility in raw material prices is hindering the growth of the market studied.
  • The growing adoption of electric vehicles is expected to provide a major growth opportunity for the market studied.
  • Among the application areas, surface mounting is expected to dominate the market studied during the forecast period.
  • Asia-Pacific accounted for the highest share of the market and is likely to continue dominating the market during the forecast period.

Electronics Adhesives Market Trends

This section covers the major market trends shaping the Electronics Adhesives Market according to our research experts:

Surface Mounting Application to Dominate the Market

  • Surface mounting, also known as chip bonding, is the major application of adhesives in the electronics industry.
  • Surface-mount technology extensively uses electronics adhesives in electronic assembly to mount electronic components to the surface of the printed circuit board (PCB).
  • Electronic adhesives are used for both wave soldering and reflow soldering processes. These compounds have excellent electrical conductivity and are easy to distribute. The process includes placing surface-mount-devices on beads or dots of UV curing adhesives and curing the adhesive to firmly, securely hold the device at the requisite place during further processing of the electronic equipment being manufactured.
  • Surface mounting adhesives act as a processing aid by holding the mount devices until permanent attachment by soldering and offer stress relief to soldering parts to prevent failure of electric connections.
  • The types of adhesives used in this application are mostly one-component systems, made from acrylics, epoxies, or urethane acrylates. The function of these adhesives also varies depending on the application, they can either be electrically conductive or electrically non-conductive and/or thermally conductive.
  • Furthermore, electronics adhesives act as alternatives to tin-soldering. With the increasing regulations, the companies are increasingly shifting away from tin-soldering to the usage of electrically conductive adhesives.
  • The properties of adhesives required for surface mounting are long shelf life, non-stringing, high wet weight, rapid curing, high strength and good flexibility, and good electrical properties after curing. Moreover, single component systems are preferred for these applications to avoid air entrapment, viscosity changes, and pot life.
  • The growing research in the development of high-performance adhesives for mounting miniaturized devices in the electronics industry is estimated to drive the market during the forecast period.
  • The global consumer electronics market revenue was around USD 1.02 trillion in 2020 compared to USD 1.03 trillion in 2019, witnessing a decline of 0.8%. The declining sales revenue was due to the COVID impact and United States-China trade war, which impacted the raw material supply, thus affecting the consumer electronics market and in turn electronic adhesives market.
  • The electronics revenue is forecasted to grow by 3.6% for the year 2021 and expected to reach around USD1.6 trillion. The market is expected to grow annually by a CAGR of 2.3%. The increase in demand for consumer electronics, in turn, will increase the demand for the electronics adhesives market.
  • Owing to the growing adoption of surface mount technology across the world for printed circuit board manufacturing, the surface mounting application is likely to dominate the electronics adhesives market during the forecast period.
Electronics Adhesives Market Share

Asia-Pacific Region to Dominate the Market

  • Asia-pacific accounts for the highest share of the global electronics adhesives market with the majority of the demand coming from China.
  • China is emerging as one of the biggest markets, both in terms of consumption and production of electronic adhesives, and accounts for slightly more than half of the total market in the Asia Pacific.
  • Factors, like increasing urbanization, growing connectivity, combined with the usage of advanced technology in the manufacturing of safety technologies and infotainment systems, are boosting the demand for printed circuit boards.
  • The Chinese consumer electronics is valued at around USD 248.7 billion USD 2020, with a fall in revenue by 0.2% compared to 2019. The Chinese consumer electronics is forecasted to grow by around 4% to reach USD 258.8 billion in 2021.
  • Apart from China, other countries, such as South Korea, Japan, and Singapore are also expected to witness significant growth in demand for electronics adhesives during the forecast period.
  • The Indian government initiative "Make in India" has been attracting foriegn direct investments to the electronics sector, this in turn has lead to a boost in the electronics manufacturing services industry in the country. The Atmanirbhar initiative also emphasises on making India into a global consumer electronics manufacturing hub. For instance, in February 2021, Amazon India announced to commence electronic devices manufacturing India, which is likley to boost the electronic adhesives demand in the country.
  • The Indian electronics market is expected to reach USD 400 billion by 2025. Additionally, India is expected to become the fifth-largest consumer electronics and appliances industry in the world by 2025. Additionally, in India, technology transitions, such as the rollout of 4G/LTE networks and IoT (Internet of Things), are driving the adoption of electronic products. 
  • The automotive industry produced a total of 4,516,017 vehicles (including passenger and commercial vehicles) in 2019, as compared to 5,174,645 vehicles in 2018, registering a negative growth of about 12.2%. At the same time, sales of new vehicles declined by about 13.26% during 2019 as compared to 2018. The declining demand and inventory piling up with the automotive producer led to a further decline in domestic automotive production.
  • According to OICA, the country produced a total of 3.39 million vehicles in 2020, which declined by 25% compared to 2019. The automotive industry is already facing a critical situation and is hard hit by the coronavirus's spread. 
  • Hence, owing to the above-mentioned factors, Asia-Pacific is likely to dominate the market studied during the forecast period.
Electronics Adhesives Market Analysis

Electronics Adhesives Industry Overview

The global electronics adhesives market is partially consolidated as the market share is significantly divided among a few players. Some of the key players in the market include Henkel AG & Co. KGaA, Dow, H.B. Fuller Company, 3M, and BASF SE, among others.

Electronics Adhesives Market Leaders

  1. Dow

  2. H.B. Fuller Company

  3. 3M

  4. BASF SE

  5. Henkel AG & Co. KGaA

*Disclaimer: Major Players sorted in no particular order

Henkel AG & Co. KGaA, Dow, H.B. Fuller Company, 3M, BASF SE
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Electronics Adhesives Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Growing Technological Advancements in Electronic Adhesives

      2. 4.1.2 Other Drivers

    2. 4.2 Restraints

      1. 4.2.1 Stringent Regulations Related to the VOCs

      2. 4.2.2 Other Restraints

    3. 4.3 Industry Value-chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Resin Type

      1. 5.1.1 Epoxy

      2. 5.1.2 Acrylics

      3. 5.1.3 Polyurethane

      4. 5.1.4 Other Resin Types

    2. 5.2 Application

      1. 5.2.1 Conformal Coatings

      2. 5.2.2 Surface Mounting

      3. 5.2.3 Encapsulation

      4. 5.2.4 Wire Tacking

      5. 5.2.5 Other Applications

    3. 5.3 End-user Industry

      1. 5.3.1 Consumer Hardware

      2. 5.3.2 IT Hardware

      3. 5.3.3 Automotive

      4. 5.3.4 Other End-user Industries

    4. 5.4 Geography

      1. 5.4.1 Asia-Pacific

        1. 5.4.1.1 China

        2. 5.4.1.2 India

        3. 5.4.1.3 Japan

        4. 5.4.1.4 South Korea

        5. 5.4.1.5 ASEAN Countries

        6. 5.4.1.6 Rest of Asia-Pacific

      2. 5.4.2 North America

        1. 5.4.2.1 United States

        2. 5.4.2.2 Canada

        3. 5.4.2.3 Mexico

      3. 5.4.3 Europe

        1. 5.4.3.1 Germany

        2. 5.4.3.2 United Kingdom

        3. 5.4.3.3 France

        4. 5.4.3.4 Italy

        5. 5.4.3.5 Rest of Europe

      4. 5.4.4 South America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Rest of South America

      5. 5.4.5 Middle-East and Africa

        1. 5.4.5.1 Saudi Arabia

        2. 5.4.5.2 South Africa

        3. 5.4.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share (%)**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 3M

      2. 6.4.2 Arkema

      3. 6.4.3 Ashland

      4. 6.4.4 AVERY DENNISON CORPORATION

      5. 6.4.5 BASF SE

      6. 6.4.6 Beardow Adams

      7. 6.4.7 CHEMENCE

      8. 6.4.8 Covestro AG

      9. 6.4.9 Dow

      10. 6.4.10 H.B. Fuller Company

      11. 6.4.11 Henkel AG & Co. KGaA

      12. 6.4.12 Huntsman International LLC

      13. 6.4.13 Illinois Tool Works Inc. (ITW)

      14. 6.4.14 MAPEI S.p.A.

      15. 6.4.15 Permabond LLC

      16. 6.4.16 Pidilite Industries Ltd.

      17. 6.4.17 Sika AG

    5. *List Not Exhaustive

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Increasing Demand for Electric Vehicles

**Subject to Availability
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Electronics Adhesives Industry Segmentation

Resins such as epoxy, acrylics are used as adhesives in the manufacturing of PCBs and surface mounting of motherboards. Electronics adhesives are widely used in the manufacturing and assembling of electronic circuits and products. They help in the miniaturization of electronic components, and the longstanding trend of reducing the size of electronics is driving the market. The market is segmented by resin type, application, end-user industry, and geography. By resin type, the market is segmented into Epoxy, Acrylics, Polyurethane, and Other Resin Types. By Application, the market is segmented into Conformal Coatings, Surface Mounting, Encapsulation, Wire Tacking, and Other Applications. By end-user industry, the market is segmented into Consumer Hardware, IT Hardware, Automotive, and Other End-user Industries. The report also covers the market size and forecasts for the Electronic Adhesives Market in 16 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of Revenue (USD million).

Resin Type
Epoxy
Acrylics
Polyurethane
Other Resin Types
Application
Conformal Coatings
Surface Mounting
Encapsulation
Wire Tacking
Other Applications
End-user Industry
Consumer Hardware
IT Hardware
Automotive
Other End-user Industries
Geography
Asia-Pacific
China
India
Japan
South Korea
ASEAN Countries
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa
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Electronics Adhesives Market Research FAQs

The Electronics Adhesives Market is projected to register a CAGR of greater than 9% during the forecast period (2024-2029)

Dow, H.B. Fuller Company, 3M, BASF SE and Henkel AG & Co. KGaA are the major companies operating in the Electronics Adhesives Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Asia Pacific accounts for the largest market share in Electronics Adhesives Market.

The report covers the Electronics Adhesives Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Electronics Adhesives Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Electronics Adhesives Industry Report

Statistics for the 2024 Electronics Adhesives market share, size and revenue growth rate, created by Mordor Intelligenceā„¢ Industry Reports. Electronics Adhesives analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

Electronics Adhesives Market Report Snapshots

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Electronics Adhesives Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)