Organic Substrate Packaging Material Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 14.64 Billion |
| Market Size (2029) | USD 19.19 Billion |
| CAGR (2024 - 2029) | 5.56 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Organic Substrate Packaging Material Market Analysis
The Organic Substrate Packaging Material Market size is estimated at USD 14.64 billion in 2024, and is expected to reach USD 19.19 billion by 2029, growing at a CAGR of 5.56% during the forecast period (2024-2029).
- The increasing demand for advanced driver assistance systems (ADAS) would drive the demand for organic substrate packaging material in the forecasted period. According to Intel, international car sales are predicted to reach around 101.4 million units in 2030, and autonomous motorcars are expected to account for about 12% of car registrations by 2030.
- An organic substrate allows the printed circuit board manufacturer to employ an additive screen process instead of an edge-removal, etched method, and the end result is a PCB design that is nearly entirely organic.
- The Internet of Technology (IoT) technologies are being used across various industries. Because of their rapid growth, printed circuit board (PCB) manufacturers have introduced various changes and innovations to meet their clients' demands. From smartphones and fitness trackers to innovative factory equipment, managing space on mobile devices is highly important. With businesses trying to establish their digital footprint and people relying on IoT to drive their routine life functions, this demand is expected to grow in the studied market.
- Moreover, electronics for automotive applications require effective packaging solutions that can withstand high temperatures. For these extreme conditions, a new attempt is necessary based on detailed knowledge about the thermo-mechanical behavior of the utilized organic substrate materials. In addition, with the increasing reliance on electronic components in modern automobiles, incorporating substrate PCBs into specific novel applications is becoming more common.
- Further, electric and hybrid modes of transport are gaining traction in the Gulf region, especially in Israel, Oman, Saudi Arabia, Jordan, and the United Arab Emirates. For example, through the Dubai Taxi Corporation's Strategic Plan 2021-2023, the Roads and Transport Authority (RTA) of Dubai has declared the signing of a contract to procure 2,219 new vehicles to supplement the fleet of the Dubai Taxi Corporation. The latest batch includes 1,775 hybrid vehicles, bringing the fleet's total number to 4,105. Such expansion in electric vehicles may further drive the studied market demand.
- Various government has significantly invested in boosting the penetration of advanced technologies, bolstering the demand for organic substrate packaging semiconductor packaging. According to WSTS, in October 2022, semiconductor sales in the Americas amounted to USD 12.29 billion, an increase from the USD 12.03 billion recorded for the previous month.
- Furthermore, the players in the market are developing new products to cater to customers' wide range of needs. For instance, in June 2022, PCB Technologies introduced iNPACK, an advanced heterogeneous integration provider of system-in-package (SiP) solutions. iNPACK focuses on high-end technology that improves signal integrity and reduces unwanted inductance effects. This is accomplished through powerful components that increase functionality and utilize embedded coins for heat dissipation. iNPACK provides SiP, semiconductor packaging, organic substrates (25-micron lines and 25-micron spacing), and 3D, 2.5D, and 2D packaging solutions to many of the most demanding industries, including aerospace, defense, medical, consumer electronics, automotive, energy and communications.
Organic Substrate Packaging Material Market Trends
Consumer Electronics holds Significant Share in the Market
- Organic packaging substrates such as small, thin outline packages in consumer electronics have grown significantly in recent years due to their ability to improve devices' performance and functionality while reducing their size and weight. Additionally, with a 5G network, the amount of data processed by the system is propitiating, resulting in a need for more battery space in a smartphone. This leads to a need for other components to be of compressed size with higher density. Substrate PCBs are high-density printed circuit boards (PCBs) that require a maximum of 30X30 μmtrace spacing.
- Further, Smartphone original equipment manufacturers (OEMs) increasingly use this organic substrate technology with a shift toward 5G, which is the primary driver for the market's growth. According to Ericsson, as of 2022, there were a reported 1.05 billion active 5G subscriptions worldwide, almost twice as many as the previous year. Rapid growth is expected over the coming years, with subscriptions forecasted to reach nearly 5 billion by 2028. Such a massive rise in the 5g subscriptions would propel the demand for the studied market.
- According to the US Census Bureau, in January 2022, a USD 1.7 billion increase in the sales value of mobile phones sold in the United States, for a count of USD 74.7 billion in sales. In addition, as per 5G Americas, as of 2023, there are an evaluated 1.9 billion fifth-generation (5G) subscriptions worldwide. This figure is forecast to increase to 2.8 billion by 2024 and 5.9 billion by 2027.
- Moreover, the studied segment significantly invests in the organic substrate packaging material market. Growth of the smartphone, rising wearable and smart device adoption, and increasing consumer Internet of Things (IoT) device penetration in applications like smart homes are a few of the influential factors influencing the segment's growth. According to Ericsson, smartphone mobile network subscriptions worldwide reached nearly 6.6 billion in 2022 and are predicted to exceed 7.8 billion by 2028.
- For instance, in March 2023, Huawei plans to launch its foldable smartphone with a significant battery upgrade in the coming years. The device will feature an upgrade to its battery, and it is rumored to be named the Mate X3. Further, Huawei will use the high-silicon anode material to enhance the smartphone's battery capacity, which is expected to be 5060mAh.
- Intel Corporation and the University College London (UCL) collaborated in June 2022 to introduce a new touchless computer that can be operated and controlled by gesturing the hands, head, face, and entire body. Higher power dissipation, faster speeds, higher pin counts, smaller footprints, and lower profiles are all constant demands in the electronics market. Semiconductor miniaturization and integration have resulted in lighter, smaller, and more portable appliances such as smartphones, tablets, and emerging Internet of Things (IoT) devices.
- The consumer electronics industry is constantly growing and is projected to expand significantly in the coming years, considering the recent critical developments in the industry. Such maturation in consumer electronics may further propel the demand in the studied market.
Asia Pacific is Expected to Hold the Significant Market Share
- The primary factors bolstering the growth of the studied market in the Asia-Pacific region contain the increasing adoption of smartphones, the rising number of Internet users, and the introduction of new features and technologies that can attract new customers and expand footprints in emerging markets. Additionally, the region's dominance in the global printed circuit board market contributes to the growth of the organic substrate PCBs.
- The major global packaging substrate manufacturers are concentrated in Taiwan, South Korea, and Japan. In the "emergent stage" of the development of organic packaging substrates, Japan is at the forefront of developing and applying integrated circuit (IC) packaging substrates worldwide.
- The rising demand for automobiles in Asia-Pacific prompted regional governments to legislate a few active and passive vehicle safety measures, boosting the region's automotive printed circuit boards (PCBs) market growth. Governments are providing subsidies to customers to encourage the purchase of electric vehicles in the area. For instance, Japan's government has set a goal of stopping the use of internal combustion engine automobiles in the country by 2050, and to help achieve this goal. The country has started granting one-time subsidies to buyers of electric cars.
- According to the India Brand Equity Foundation (IBEF), the FAME-II scheme was launched in India a few years ago with a budget outlay of USD 1.3 billion to support 1 million e-two-wheelers, 0.5 million e-three-wheelers, 55,000 e-passenger vehicles, and 7,000 e-buses. The government extended the scheme until 2024, as announced in the Union Budget 2022-23.
- In addition, it is anticipated that China will surpass the United States as the world's significant semiconductor industry powerhouse due to its growing domestic chip demand. According to the Semiconductor Industry Association (SIA), the semiconductor market will double in size to reach more than USD 1 trillion by 2030, with China accounting for more than 60% of that growth. Such exponential growth is anticipated to increase demand for organic substrate semiconductors.
- The players in the market are commissioning new factories to cater to the rising demand of the PCB. For instance, in February 2023, LG Innotek introduced a 2-metal chip on film (COF), an essential product for XR devices. At LG Innotek's metaverse zone, the product piqued visitors' interest. A semiconductor package substrate, COF, connects flexible PCBs and displays. It helps reduce the form factor of modules and reduces the display bezels on devices like smartphones, notebook computers, televisions, and monitors.
Organic Substrate Packaging Material Industry Overview
The organic substrate packaging material market is highly competitive and is dominated by major players, including Amkor Technology Inc, Compass Technology Co. Ltd., Kyocera Corporation, among others, who hold a significant market share while actively expanding their customer base globally. These companies employ strategic collaborative initiatives to enhance their market share and profitability. Nevertheless, due to technological advancements and product innovations, smaller and mid-sized companies are making inroads into new markets by securing unique contracts.
In June 2023, US chipmaker Micron Technology is set to launch its semiconductor assembly and test facility in Gujarat, with plans to commence production as early as 2024. This development will significantly bolster India's chip-making aspirations. The primary focus of the plant will be packaging chips, where it will convert wafers into ball grid array integrated circuit packages, memory modules, and solid-state drives.
In January 2022, Simmtech, a South Korean manufacturer of PCBs and semiconductor packaging substrates, announced the near completion of its first large-scale PCB manufacturing facility located on an 18-acre site in Penang, Malaysia. This facility complements Simmtech's existing PCB operations in Southeast Asia, particularly in South Korea, Japan, and China. It specializes in producing packaging substrates for dynamic random-access memory (DRAM) / NAND memory chips, as well as high-density interconnect (HDI) PCBs for memory modules and solid-state drive (SSD) devices.
Organic Substrate Packaging Material Market Leaders
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Amkor Technology Inc
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Kyocera Corporation
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Microchip Technology Inc.
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Texas Instruments Incorporated
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ASE Kaohsiung
*Disclaimer: Major Players sorted in no particular order
Organic Substrate Packaging Material Market News
- July 2023: Samsung Electronics initiated mass production of flip-chip ball grid array (FC-BGA) in its factory located in Thai Nguyen province, in northern Vietnam.
- February 2023: LG Innotek announced its intention to commence production of flip-chip ball grid array (FC-BGA) components in October of the same year. LG Innotek is projected to achieve a monthly FC-BGA production capacity of 7.3 million units in 2023, with plans to expand it to 15 million units by 2026. Furthermore, LG Innotek disclosed its commitment to invest 413 billion won (approximately USD 311.58 million) to kickstart FC-BGA production.
- September 2022: Onsemi introduced a series of silicon carbide (SiC) based power modules utilizing transfer molded technology, designed for use in onboard charging and high voltage (HV) DCDC conversion in electric vehicles (EVs). The APM32 series represents a pioneering development as it incorporates SiC technology into a transfer molded package, enhancing efficiency and reducing the charging time of xEVs. These modules are specifically engineered for high-power 11-22kW onboard chargers (OBC) in EVs.
Organic Substrate Packaging Material Market Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of Macroeconomic Trends on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Adoption of Self-Driving Vehicles
5.1.2 Increasing Use of Portable Devices
5.2 Market Challenges
5.2.1 Higher Setup Cost Associated with Substrate like PCBs
6. MARKET SEGMENTATION
6.1 By Technology
6.1.1 Small Thin Outline Packages
6.1.2 Pin Grid Array (PGA) Packages
6.1.3 Flat no-leads Packages
6.1.4 Quad Flat Package (QFP)
6.1.5 Dual inline Package (DIP)
6.1.6 Other Technologies
6.2 By Application
6.2.1 Consumer Electronics
6.2.2 Automotive
6.2.3 Manufacturing
6.2.4 Industrial
6.2.5 Healthcare
6.2.6 Other Applications
6.3 By Geography***
6.3.1 North America
6.3.2 Europe
6.3.3 Asia
6.3.4 Australia and New Zealand
6.3.5 Latin America
6.3.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Amkor Technology Inc
7.1.2 Kyocera Corporation
7.1.3 Microchip Technology Inc.
7.1.4 Texas Instruments Incorporated
7.1.5 ASE Kaohsiung
7.1.6 Simmtech Co., Ltd
7.1.7 Shinko Electric Industries Co. Ltd
7.1.8 LG Innotek Co.Ltd
7.1.9 AT&S
7.1.10 Daeduck Electronics Co.,Ltd
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Organic Substrate Packaging Material Industry Segmentation
The organic substrate is made of organic materials such as organic resin and epoxy resin. It has a low dielectric constant and is easy to process. It is suitable for high-frequency signal transmission with low thermal conductivity.
The studied market is segmented by various technology such as small thin outline packages, pin grid array (PGA) packages, flat no-leads packages, quad flat package (QFP), and dual inline package (GIP), among various applications such as consumer electronics, automotive, manufacturing, industrial, and healthcare in multiple geographies such as North America, Latin America, Europe, Asia-Pacific, Middle East and Africa)
The market sizes and predictions are provided in terms of value USD for all the above segments.
| By Technology | |
| Small Thin Outline Packages | |
| Pin Grid Array (PGA) Packages | |
| Flat no-leads Packages | |
| Quad Flat Package (QFP) | |
| Dual inline Package (DIP) | |
| Other Technologies |
| By Application | |
| Consumer Electronics | |
| Automotive | |
| Manufacturing | |
| Industrial | |
| Healthcare | |
| Other Applications |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Organic Substrate Packaging Material Market Market Research Faqs
How big is the Organic Substrate Packaging Material Market?
The Organic Substrate Packaging Material Market size is expected to reach USD 14.64 billion in 2024 and grow at a CAGR of 5.56% to reach USD 19.19 billion by 2029.
What is the current Organic Substrate Packaging Material Market size?
In 2024, the Organic Substrate Packaging Material Market size is expected to reach USD 14.64 billion.
Who are the key players in Organic Substrate Packaging Material Market?
Amkor Technology Inc, Kyocera Corporation, Microchip Technology Inc., Texas Instruments Incorporated and ASE Kaohsiung are the major companies operating in the Organic Substrate Packaging Material Market.
Which is the fastest growing region in Organic Substrate Packaging Material Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Organic Substrate Packaging Material Market?
In 2024, the Asia Pacific accounts for the largest market share in Organic Substrate Packaging Material Market.
What years does this Organic Substrate Packaging Material Market cover, and what was the market size in 2023?
In 2023, the Organic Substrate Packaging Material Market size was estimated at USD 13.83 billion. The report covers the Organic Substrate Packaging Material Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Organic Substrate Packaging Material Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Organic Substrate Packaging Material Market Industry Report
Statistics for the 2024 Organic Substrate Packaging Material market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Organic Substrate Packaging Material analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Organic Substrate Packaging Material Market Report Snapshots
