Electrically conductive adhesives market is anticipated to expand over 2021-2027 on account of the increasing utility in electronic assemblies across the medical, telecom, and aerospace sectors. The large emphasis on vehicular emissions through favorable regulations has made way for public charging infrastructures. Higher preference for miniaturization in electronic devices along with the mount in R&D activities will contribute significantly towards the industry growth.
Electrically conductive adhesive is a glue that is used in various electronic appliances to electronic components in place. The rising need for technically advanced electronic devices in power electronics and electromagnetic shielding is driving the market dynamics.
Based on chemistry, the industry size from epoxy-based electrically conductive adhesives will see expansion driven by growing penetration in biosciences, and the military & commercial aircraft sectors. Apart from exhibiting quicker production throughput and lower processing time, the adhesives offer extended shelf life, and room & temperature storage in touch panels, as well as for bonding RFID chips and mounting LEDs. Increasing adoption to link components in vehicle radar systems and for filling in seams between metal plates will stimulate the market progression.
In terms of filler, the electrically conductive adhesives market is segmented into copper fillers, silver fillers, carbon fillers, and others. Out of these, the industry demand for silver fillers will grow through 2027 driven by its growing popularity to provide enhanced adhesion, moisture resistance, as well as low shrinkage attributes. Ease of availability in an assortment of controllable sizes and shapes coupled with the increasing adoption in the production of high-performance conductive adhesives will add positive impetus to the segment growth.
With respect to application, the demand for electrically conductive adhesives in the automotive sector is expected to rise with the higher need for complex electronic materials susceptible to electromagnetic radiations. On account of their high mechanical flexibility and excellent conductivity, the product is found to be apt for EMI/RFI shielding. Increasing usage in automotive as a connective interconnect for ADAS cameras, radars, as well as LiDARs, will additionally drive the market application outlook.
Geographically, the Asia Pacific electrically conductive adhesives market is set to gain traction. This is mainly owing to the rising progressions in the hardware business and the presence of an optimum number of electronics companies in China, Taiwan, Korea, and Japan. The growing focus on increased connectivity and the influx of various cutting-edge technologies have triggered the adoption of printed circuit boards. The higher production rate and the stirring government support coupled with the surging usage of computing devices, smartphones, and audio & video gaming products will favor the regional industry growth.
H.B. Fuller Company, 3M Company, Aremco Products, Inc., Panacol-Elosol GmbH, Dow Corning (Dow, Dow Global Technologies Inc, Dow Holdings LLC), Henkel AG & Co. KGaA, and Master Bond Inc. are some renowned manufacturers of electrically conductive adhesives across the globe.
These bigwigs are actively turning to targeted business strategies, like partnerships, acquisitions, and mergers to reinforce their competitive value. They are also working on novel product launches to proliferate their offering base and global presence.
For instance, in May 2019, Dow launched DOWSIL™ EC-6601, its next-generation electrically conductive adhesive that offers reliable performance as well as EMC (electromagnetic compatibility). The product caters to demanding electrical and electronics applications across the transportation, communications, and consumer sectors.
In July 2019, Dow also introduced silicone-based conductive adhesives to provide optical bonding in automotive, communications, and consumer electronics.
Effect of the COVID-19 crisis on electrically conductive adhesives industry outlook
The COVID-19 pandemic drew a terrific impact on the global economy and carved the niche for numerous setbacks to most industries worldwide. It also posed unprecedented challenges on the demand and production of electrically conductive adhesives considering the stalled activities across the automotive, and electronics sectors. This is on account of the advent of unfavorable conditions, including the scarcity of raw materials and labor caused by the imposition of the lockdown and social distancing norms.