Anisotropic Conductive Film Market Size, Share, Growth, and Industry Analysis, By Type (Chip on Glass, Chip on Flex, Chip on Board, Flex on Glass, Flex on Flex and Flex on Board), By Application (Displays, Automotive, Aerospace, Electronic Components and Others) and Regional Insights and Forecast to 2031

Updated On: 06 May 2024

ANISOTROPIC CONDUCTIVE FILM MARKET REPORT OVERVIEW

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The global anisotropic conductive film market size was USD 516.1 million in 2020 and will touch USD 727.4 million by 2027, exhibiting a CAGR of 5.0% during the forecast period.

One kind of adhesive film used to link electrically between electronic components is called anisotropic conductive film (ACF). It is frequently utilized in applications like LCD screens, touchscreens, and flexible electronics where a lot of tiny electrical connections must be established. The conductive particles in ACF are arranged so that they transmit electricity in one direction only—that is, in one orientation only. Because of its anisotropic conductivity, ACF may safely and reliably link electrically across closely separated components without creating short circuits.

In order to employ ACF, the components to be linked are usually placed between it, and then the components are heated and pressed together to form the electrical connections. To enable new functionalities in electronic gadgets, ACF is being merged with other cutting-edge technologies, including as artificial intelligence and 5G connection. This comprises ACF that can provide power delivery and high-speed data transmission.

COVID-19 Impact: Increased Demand for Electronic Devices to Boost Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The COVID-19 epidemic has affected the anisotropic conductive film market growth in a number of ways. One hand, this growth has been fueled by an increasing need for electronic devices specifically those required for remote work and communication purposes. Such items are made up of laptops, tablets or mobile phones which can be assembled using ACF. Still, the pandemic disrupted supply chains and production processes thus making it hard to get raw materials or make ACF. Lockdowns and travel restrictions on industrial applications meant that deployment of ACF was also affected.

As a result, although there have been chances due to the growth in demand for electronic gadgets despite challenges in the chains of supplies and production on account of the COVID-19 pandemic, this still left many problems facing the whole sector.

LATEST TRENDS

"High-Temperature Resistance to Drive Market Growth"

ACF that can establish dependable electrical connections in confined spaces is in greater demand as electronic gadgets get smaller and more compact. To satisfy these demands, producers are creating ACF with reduced particle sizes and enhanced conductivity. There is a growing need for ACF that can fuse components on flexible substrates because to the development of wearable and flexible electronics. Producers are creating ACF that can withstand bending and flexing while maintaining conductivity. Anisotropic conductive film with high temperature resistance is becoming more and more in demand, especially for industrial and automotive uses. To satisfy these demands, producers are creating ACF with increased thermal stability.

ANISOTROPIC CONDUCTIVE FILM MARKET SEGMENTATION

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By Type

Based on type the global market can be categorized into chip on glass, chip on flex, chip on board, flex on glass, flex on flex and flex on board.

• Chip-on-Glass (COG): A chip is placed directly on a glass substrate by using a conductive adhesive. High-resolution displays such as LCDs and OLEDs are among the applications where COG’s small size and low power consumption make it popular.

• Chip-on-Flex (COF): Here, polyimide or another flexible substrate is bonded to a silicon chip without any encapsulation. These provide flexibility which are required for wearable electronics and flexible screens.

• Chip-on-Board (COB): As space is scarce in LEDs and car electronics, chips are put directly onto circuit boards when cost is important.

• Flex on Glass (FOG): Flexible circuits attached to glass surfaces; *Combines rigidity and flexibility, making it appropriate for medical devices and car displays.

• Flex on Board (FOB): FOB stands for flex on board. They have some advantages over traditional rigid PCBs of this type that consist of flexible polymer materials.

By Application

Based on application the global market can be categorized into displays, automotive, aerospace, electronic components and others.

• Displays: Different display technologies including LCDs, OLEDs, LEDs etc. find application in displaying visual information. Cellphones, PCs, TVs, digital signage amongst other devices use screens.

• Automobiles: The development designing production selling cars trucks buses motorcycles falls within the automotive sector. Navigation systems safety systems entertainment would not be possible without automotive electronics in modern vehicles.

• Aerospace: Aircraft and spacecraft are designed manufactured used in this industry. Vehicle control systems navigation communication performance monitoring rely heavily on aerospace electronics.

• Electronic Components: Electronic components form the basic building blocks of electronic circuits and systems, which include integrated circuits resistors capacitors diodes transistors etc. In practically all electronic devices/systems their use is quite widespread.

DRIVING FACTORS

"Miniaturization of Electronics to Augment the Market"

For the creation of a number of gizmos, ACF is a must and its demand has been pushed up by the rise in technology devices such as computers, tablets, smartphones and other electronics. As electronic gadgets continue to become smaller and more compact, complex technologies like ACF are required to establish reliable electrical connections within tight spaces. On this account, there was a need for ACF that could bond components on flexible substrates when wearable and flexible electronics came into existence. The use of ACF in fabricating high-resolution displays like LCD and OLED displays is necessitated by customer demands.

"Growing Trend of Internet of Things (IoT) to Expand the Market"

The increasing usage of electronics in automotive applications, like advanced driver assistance systems (ADAS), electric vehicles (EVs), and in-car infotainment systems, is what is driving the ACF demand. Therefore, ACF material is needed to make sensors, control systems and communication devices which are used for different industrial applications including building. The rise of internet of things gadgets calling for small consistent electrical connections has also propelled the market demand for ACF. Owing to ongoing technological advancements such as development of smaller particle-sized, more conductive and high temperature resistant ACFs among others, this material has increasingly been employed within various areas.

RESTRAINING FACTOR

"Complex Manufacturing Process to Potentially Impede Market Growth"

Anisotropic conductive film may not be as popular especially where budgeting is a major concern because it is more costly than other bonding technologies available in the market. Consequently, production process for sometimes complex ACF require proper regulation over temperature pressures and so on. This complexity may prevent scalability and increase costs of production. However, many applications exist for this material; its use in the automotive and aerospace industries might be limited because it will not survive at high temperatures. Nevertheless, even though ACF has had an illustrious past its long-term efficacy might

ANISOTROPIC CONDUCTIVE FILM MARKET REGIONAL INSIGHTS

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"Asia Pacific to Dominate the Market due to Technological Advancements"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East &Africa

Asia Pacific is a prominent center for the production of electronics, and major players in the global anisotropic conductive film market share include China, Japan, South Korea, and Taiwan. The area makes a considerable number of electronic gadgets which result into the need for ACF. This region has also been known for its creative thinking and technological advancements that have resulted in the creation of new electronic devices that necessitate ACF assembly. The large consumer electronics market in Asia-Pacific comprising laptops, tablets, phones, among other things is another driver of ACF. The demand for ACF has been driven by the increased use of automotive electronics such as ADAS, EVs and in-car infotainment systems in the region.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of wardrobe options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• Showa Denko Materials (Japan)
• Dexerials (Japan)
• 3M (U.S.)
• H&SHighTech (South Korea)
• Btech Corp (ADA Technologies, Inc.) (U.S.)

INDUSTRIAL DEVELOPMENT

2021, January: Continuous improvements in ACF technology such as smaller particle sizes with greater conductivity as well as higher temperature resistance have fueled industrial expansion in the market. The growing need for electronic devices, such wearables, computers, tablets, and smartphones, is driving up the demand for ACF, which is used in the production of numerous gadgets. Because ACF is needed to attach components on flexible substrates, the industry is growing at an industrial rate as wearable and flexible electronics become more advanced.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.