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Electrically Conductive Adhesives Market size is projected to experience a healthy growth during 2023 to 2032, credited to the increasing utility in electronic assemblies across the medical, telecom, and aerospace sectors. An increased emphasis on reducing vehicular emissions through favorable regulations has made way for public charging infrastructures. A higher preference for miniaturization in electronic devices and a noticeable surge in R&D activities will contribute significantly towards the industry growth.
Electrically conductive adhesive is a glue used in various electronic appliances and components in place. The rising need for technically advanced electronic devices in power electronics and electromagnetic shielding will transform electrically conductive adhesives market dynamics.
The Russia-Ukraine conflict and the subsequent international sanctions against Russia have severely disrupted the chipmaking raw material supply chains. For months now, manufacturers have been struggling with extreme cost volatility and shortages for several noble gases, nickel, palladium, aluminum, and platinum, which has impeded operations across the electronics industry worldwide. In some cases, OEMs have been shifting toward alternate suppliers outside of Eastern Europe. But establishing new supply relationships in a short while is a challenging and expensive endeavor, impacting the growth of the demand for electrically conductive adhesives.
Furthermore, global inflation is also impacting numerous sectors, including the electronic components industry. Prices of linear, logic, discrete, passive, and advanced analog components are climbing and are expected to continue following a similar trend until macroeconomic conditions improve, further hampering industry performance.
Based on chemistry, the electrically conductive adhesives market size from epoxy-based electrically conductive adhesives is set to grow substantially through 2032, aided by the 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 witness remarkable growth between 2023 and 2032, driven by their proven benefits in providing enhanced adhesion, moisture resistance, and 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's growth.
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 radiation. Driven by their high mechanical flexibility and excellent conductivity, these adhesives are considered apt for EMI/RFI shielding. Increasing usage in automotive as a connective interconnect for ADAS cameras, radars, and LiDARs will additionally drive the market application outlook.
Geographically, the Asia Pacific electrically conductive adhesives market is set to attain a sizeable valuation by 2032. 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 increasing government support, coupled with the surging usage of computing devices, smartphones, and audio & video gaming products, will favor the regional industry growth.
Some of the key players profiled in the electrically conductive adhesives market are 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. 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 expand their offering base and global presence.