Market Trends of Hermetic Packaging Industry
This section covers the major market trends shaping the Hermetic Packaging Market according to our research experts:
Reed Glass is Expected to Hold Significant Share
- Reed Glasses provide Highly reliable encapsulation of reed switches over millions of switching cycles.
- The numerous electronic applications involve using Glass tubes where some discrete electronic components demand protection, isolation, or being sealed. However, the function of this glass many a time is to insulate passive components electrically, or it functions as a hermetic seal.
- Reed glass has found its applications in the centralized locking systems of automobiles, as switches in hot water boilers or as belt sensors. The reed switches, without any mechanical influence from the outside, opens and closes the electrical circuits.
- Contact is established when a weak magnetic field presses two metal contact blades together inside a thin glass tube. A reed switch, when in resting-state, does not require power which makes this important for the devices consuming very little power.
- As they possess no mechanical control, reed switches can handle millions of make-and-break cycles without any wear.
- The metal blades should be free of dust and hermetically sealed inside the glass tubes with inert gas with high tolerances to ensure functionality.
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North America is Expected to Hold the Largest Share
- The increased government spending on the aerospace and defense sector by the government in the region is expected to boost the hermetic packaging market over the forecast period. Also, the aviation industry fuels the demand for hermetic packaging owing to its reliance on new aircraft, thereby strengthening the hermetic packaging industry. In 2020, the US military expenditure reached an estimated USD 778 billion, representing an increase of 4.4 % over 2019. (source: SIPRI).
- The increased consumer spending in consumer electronics, coupled with the increased penetration of smart communication devices like smartphones, is expected to fuel the demand for hermetic packaging over the forecast period. Based on the projected retail sales for 2021, consumer electronics retail sales in the United States reached USD 442 billion. Smartphones were the products accounting for the largest retail revenue within the consumer electronics sector, comprising USD 79 billion in 2020. (source: Consumer Technology Association).
- Apart from this, the United States is home to some of the world's major automotive players, investing in electric vehicles and in the self-driving potential of cars, which demand high-performance ICs. Approximately 17.5 million advanced driver assistance systems (ADAS) were manufactured in the United States alone during 2016. By 2021, that number is expected to increase by about 1.5 million units. (source: AMETEK). The automotive industry uses hermetic to ensure sensor functionality in rollover devices and airbag equipment. Hence, with the increasing airbag equipment, the market would potentially demand hermetic packaging.
- This is one of the major factors to drive the demand for the semiconductor silicon wafers market. For instance, in December 2020, Group14 Technologies, a global provider of silicon-carbon composite materials for lithium-ion applications, secured USD 17 million in Series B funding led by SK materials.
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