The global liquid encapsulation materials market is expected to grow at a CAGR of 6.7% between 2015 and 2020, from USD 1,011.97 million in 2015 to USD 1,397.46 million by 2020. APAC is estimated to account for more than 65% of the total market till 2020. It is also expected to be the fastest-growing region between 2015 and 2020 for the global liquid encapsulation materials market owing to growing demand from the sensors devices, wireless technologies, and optoelectronics segment. Moreover, countries such as Taiwan, Japan, China, and South Korea are likely to have a huge opportunity for liquid encapsulation materials owing to the growing electronics and telecommunication sector in these countries.
Liquid Encapsulation Materials Market
The key materials used in the liquid encapsulation process are epoxy resins, epoxy-modified resins, and other materials (hardeners, catalysts, and colorants). Hardeners, catalysts, and colorants help the materials to be directly applied onto the chip and interconnect typically by wire bonding instead of molding. Epoxy resins are expected to hold the major share of the market as compared to all other materials. The electronics application is expected to hold the major market share as compared to other applications during the forecast period.
As the liquid encapsulation technique is largely used by integrated circuits, liquid encapsulation is estimated to account for a share of ~77% of the integrated circuits in 2015. Sensors and optoelectronics product segments are expected to grow at a high CAGR of 7.6% and 7.4%, respectively, between 2015 and 2020. This is because most applications currently use sensors as an integral part of devices including smartphones or any industrial automation application. There is a growing demand for sensor-based applications in the semiconductor industry, and consequently, the demand for encapsulation is also increasing. Optoelectronic devices such as LEDs are majorly used in the display applications, while majority of the displays in the market today are based on LED technology. Besides, the market for LED-based lighting is also growing exponentially, which is ultimately driving the encapsulation materials market. Integrated circuits are expected to dominate the global liquid encapsulation materials market segmented on the basis of product.
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The global liquid encapsulation materials market has been segmented into four major geographic regions, namely, the Americas, Europe, APAC, and RoW. Among all the regions considered, APAC is expected to lead the global liquid encapsulation materials market till 2020. It is estimated to be worth USD 684.09 million in 2015 and is expected to reach USD 984.51 million by 2020, at a CAGR of 7.6% between 2015 and 2020. The Americas market is estimated to account for ~20% of the global liquid encapsulation materials market in 2015. Some of the factors driving the growth of the American market are the widespread globalization of end-user devices, the entry of the global players into the market, and the increasing demand for electronics.
The major players in the global liquid encapsulation materials market are Shin-Etsu Chemical Co., Ltd. (Japan), Sumitomo Bakelite Co., Ltd. (Japan), Hitachi Chemical Co. Ltd. (Japan), Henkel AG and Co. KGaA (Germany), Kyocera Corporation (Japan), Nagase & Co., Ltd. (Japan), Nitto Denko Corporation (Japan), Panasonic Corporation (Japan), BASF Se (Germany), Sanyu Rec Co. Ltd. (Japan), Resin Technical Systems (U.K.), and Epic Resins (U.S.) among others.
