Market Trends of Hexagonal Boron Nitride (HBN) Industry
The Electrical Insulation Segment is Expected to Drive the Market Growth
- The 2D HBN is perfect for several electronic applications, including 2D hBN-based substrates, gate dielectrics for graphene transistors and interconnects, and electronic packaging insulators. It is also the material of choice for emerging applications, including deep UV (DUV) optoelectronics, electron emitters, and neutron detectors.
- The consumer electronics industry is growing rapidly worldwide due to the consistently increasing demand for cellular phones, portable computing devices, gaming systems, and other personal devices.
- Major Government initiatives such as 'Digital India,' 'Make in India,' and supportive policies, including a favorable FDI Policy for electronics manufacturing, simplified the process of setting up manufacturing units in India. It is expected to create demand for the hexagonal boron nitride (HBN) market.
- Moreover, according to India Brand Equity Foundation (IBEF), the Indian electronics market is expected to reach USD 400 billion by 2025. India is expected to become the world's fifth-largest consumer electronics and appliances industry by 2025. In India, technology transitions, such as the rollout of 4G/LTE networks and IoT (Internet of Things), are driving the adoption of electronic products.
- In North America, especially in the United States, the electronics industry is expected to grow moderately. An increase in demand for new technological products is expected to help the market expansion in the future.
- The ASEAN region includes the fastest-growing consumer electronics segment in Asia-Pacific. Electrical and electronics manufacturing is one of the most prominent sectors in the ASEAN region. The sector accounts for about 30%-35% of the total exports from the region. Most global consumer electronic products, such as radios, computers, and cellular phones, are manufactured and assembled in ASEAN countries.
- As a result, the above factors are anticipated to substantially influence the hexagonal boron nitride market in the future.
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The Asia-Pacific Region is Expected to Dominate the Market
- The Asia-Pacific region is expected to dominate the market due to the presence of India and China, which boosts a high consumption volume of HBN due to the growing demand from various applications.
- Also, China is the largest consumer of lubricants and greases in the current scenario. The vast manufacturing activities in different sectors and the rapid growth in the industrial and automotive sectors pushed the country to stand among the major lubricant consumers and producers in the global landscape. For instance, according to OICA, in 2022, automobile production in China amounted to 2,70,20,615 units, which showed an increase of 3.3% compared to 2021.
- Moreover, Japan is among the major electronics consumers in the world as the rapid urbanization and growth in the disposable income of its citizens gave impetus to the growth in the consumption of consumer electronics products in the region. For instance, according to Japan Electronics and Information Technology Industries Association (JEITA), in 2022, the total production value of the electronics industry in Japan reached close to USD 84546 million. It is an increase of 10.3% compared with 2020. Therefore, increasing the production of electronics in the country is expected to create an upside demand for the hexagonal boron nitride market in the country.
- The Government of India took several steps to promote the domestic electronics manufacturing industry and exports. For instance, the Modified Special Incentive Package Scheme (M-SIPS) provides a 20-25% subsidy for capital expenditure investments to set up an electronics manufacturing facility.
- All the factors above, in turn, are expected to drive the market for hexagonal boron nitride (HBN) in Asia-Pacific during the forecast period.
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