Epoxy Molding Compounds Market Size, Share, Growth, and Industry Analysis, By Type (Liquid, Granule, Pellet and Film), By Application (Semiconductor Encapsulation and Electronic Components), and Regional Insights and Forecast To 2031

Updated On: 29 April 2024

epoxy molding compounds market REPORT OVERVIEW

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The global epoxy molding compounds market size was 2130.1 million in 2021 and is expected to reach USD 3483.61 million by 2027, exhibiting a CAGR of 8.54% during the forecast period. The COVID-19 pandemic has been unprecedented and staggering, with epoxy molding compounds experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Epoxy Molding Compounds (EMCs) are a type of composite material that is used extensively in the electronics industry for encapsulating and packaging semiconductor devices. They are thermosetting materials made by blending epoxy resin with various fillers, hardeners, and other additives. The resulting mixture is then molded into the desired shape and thermally cured to form a rigid, durable, and electrically insulating material. Manufacturers can customize the properties of Epoxy Molding Compounds by adjusting the type and quantity of fillers, hardeners, and other additives used in the formulation. This flexibility allows for tailoring the material's thermal conductivity, coefficient of thermal expansion, and other mechanical and electrical properties to meet the specific requirements of different electronic devices and components.

Some key properties of epoxy molding compounds include high thermal stability, excellent electrical insulation, and good mechanical strength. These characteristics make them particularly suitable for protecting delicate electronic components from environmental factors such as moisture, dust, and mechanical stress. Additionally, epoxy molding compounds offer excellent adhesion to various substrates, making them an ideal choice for bonding with different types of metals and plastics commonly used in electronic assemblies.

COVID-19 IMPACT: Supply Chain Disruptions to Hamper Demand Significantly

COVID-19 had a life changing impact globally. The epoxy molding compounds market growth was significantly affected. The virus had various impacts on different markets. Lockdowns were imposed in several nations. This erratic pandemic caused disruptions on all sorts of businesses. Restrictions tightened during the pandemic due to increasing number of cases. Numerous Industries were affected. However, the market for epoxy molding compounds share experienced a reduced demand.

The global lockdowns and restrictions on movement led to disruptions in supply chains, affecting the production and distribution of epoxy molding compounds. Manufacturing facilities faced challenges in sourcing raw materials and transporting finished products, leading to delays and supply shortages. The pandemic caused fluctuations in the demand for electronic products, which directly influenced the demand for epoxy molding compounds. While some segments like consumer electronics experienced a surge in demand, other sectors such as automotive and industrial electronics witnessed a decline. This volatility in demand had a direct impact on the sales of epoxy molding compounds.

The economic downturn caused by the pandemic led to reduced investments in various industries, affecting the overall demand for electronic components and, consequently, epoxy molding compounds. Many businesses deferred their expansion plans and capital expenditure, leading to a temporary reduction in the adoption of new technologies and products that would have otherwise driven demand for epoxy molding compounds. The market is anticipated to boost the market growth following the pandemic.

LATEST TRENDS

"Integration of Advanced Manufacturing Technologies to Broaden Market Growth"

The integration of advanced manufacturing technologies, such as 3D printing and automated production processes, has been influencing the epoxy molding compounds market. These technologies have enabled the production of complex and customized epoxy molding compounds, leading to improved production efficiency, reduced lead times, and greater flexibility in meeting customer-specific requirements.

The trend toward miniaturization and light weighting of electronic devices has been driving the demand for epoxy molding compounds with superior thermal management properties. Manufacturers have been focusing on developing epoxy molding compounds with high thermal conductivity and low coefficients of thermal expansion to meet the requirements of compact and lightweight electronic products. These latest developments are anticipated to boost the market share.

epoxy molding compounds market SEGMENTATION

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• By Type

Based on type, the market is divided into liquid, granule, pellet and film.

• By Application

Based on application, the market is bifurcated into semiconductor encapsulation and electronic components.

DRIVING FACTORS

"Growing Electronics Industry to Boost Market Share"

The expanding electronics industry, driven by the increasing demand for consumer electronics, automotive electronics, and industrial automation, is a significant driver for the market. As electronic devices become more prevalent in various sectors, the demand for high-performance encapsulation materials like epoxy molding compounds continues to rise. They find applications in the encapsulation and protection of industrial sensors, controls, and other electronic components used in manufacturing and process automation

"Demand from Automotive Sector to Boost Market Size"

The automotive sector, with its increasing integration of electronic components for safety, infotainment, and advanced driver assistance systems (ADAS), has emerged as a significant driver for the market. The need for high-performance, heat-resistant, and reliable encapsulation materials in the automotive electronics segment has led to a surge in the demand for epoxy molding compounds. These factors are anticipated to drive the epoxy molding compounds market share.

RESTRAINING FACTOR

"Competition from Alternative Materials to Hamper Market Share"

While epoxy molding compounds offer a wide range of properties and benefits, they may have certain limitations, particularly in terms of thermal conductivity, moisture resistance, and dimensional stability. These limitations can restrict the use of epoxy molding compounds in specific high-end applications, where alternative materials with superior properties may be preferred. Alternative materials, such as thermoplastic compounds and other advanced polymers, poses a significant challenge to the growth of the market. The increasing adoption of these alternative materials, which offer similar or enhanced properties, may limit the market growth potential for epoxy molding compounds in some applications and industries. The factors are anticipated to hinder the growth of the market growth.

epoxy molding compounds market REGIONAL INSIGHTS

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"Asia Pacific to Dominate the Market owing to Rising Electronics Production"

The Asia Pacific region, particularly countries such as China, Japan, South Korea, and Taiwan, has emerged as a global manufacturing hub for electronic devices and components. The presence of a robust manufacturing ecosystem, coupled with favorable government initiatives and investments in the electronics industry, has propelled the demand for epoxy molding compounds in the region. The increasing production of consumer electronics, automotive electronics, and industrial automation systems in the Asia Pacific region has significantly contributed to the growth of the market. The region's strong manufacturing base and the presence of a vast consumer market have led to a substantial demand for high-quality encapsulation materials, including epoxy molding compounds.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead in the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolio.

List of Market Players Profiled

• Tianjin Kaihua Insulating Material [China]
• Sumitomo Bakelite [Japan]
• Samsung SDI [South Korea]
• Chang Chun Group [Taiwan]
• Hitachi Chemical [Japan]

REPORT COVERAGE

This research profiles a report with extensive studies that take into description of the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics changes.