Potting Compound Market Size, Share and Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI4462
Potting Compound Market size is projected to grow at a notable CAGR between 2021 and 2027. Heightened demand from the electronics sector, increasing miniaturization of electronic components, and continuous innovations in electronics are among the key factors augmenting the consumption of potting compounds. These specialty formulations help protect printed circuit boards, integrated circuits, and other components.
The fast-growing trend of electric vehicles is generating promising new opportunities for the potting compound industry. EV production is gathering pace across the globe owing to supportive regulatory mandates and large-scale electrification programs. The increased integration of electronics systems in vehicles such as navigation, infotainment, ADAS, and others will amplify the product demand across the automotive sector.
The potting compound market will witness steady growth in demand through 2027 owing to the superior physical characteristics of these materials. Potting compounds are used in electronics assembly to deliver efficient protection, mechanical strength, electric insulation, chemical resistance, moisture protection, and vibration resistance in challenging environmental conditions. Potting materials are preferred over other types of sealants to protect electronics assemblies as they provide concealment to the intellectual property of the circuitry.
Potting compounds are used in consumer electronics, automotive & aerospace, power electronics, solar, and industrial applications. Among these, solar applications will capture a substantial share of the potting compound industry in the future. The global solar capacity is growing rapidly due to favorable government initiatives and a positive outlook towards renewable energy. According to the International Renewable Energy Agency (IRENA), over 127 GW of new solar capacity was added during 2020, despite COVID-19 disruptions. In solar deployments, potting materials are applied on PV junction box assemblies to offer long-term durability and reliability.
Europe potting compound industry will experience fast growth during the project period 2021-2027, led by the growing popularity and adoption of electric vehicles. The regional automakers are focusing on ramping up EV production to meet the growing demand. For example, in July 2021, luxury car maker Mercedes-Benz disclosed plans to invest more than USD 47 billion in EV production by 2030 to compete against rivals such as Tesla. The automaker also said that starting 2025 all new vehicle platforms will only manufacturer electric vehicles. The surging EV trend will certainly benefit the regional product suppliers.
Companies like 3M, DuPont, Henkel Corporation, Solvay, Engineered Materials Systems, Inc., ACC Silicones, Dymax Corporation, Lord Corporation, RS Components, Electrolube, Altana, and MG Chemicals are among the notable players in the potting compound industry. Manufacturers are laying emphasis on developing new improved products to meet the specific requirements of different industries.
Highlighting an instance, in August 2021, Electrolube had unveiled ER2223, an epoxy potting compound with high chemical resistance specifically designed to meet the extreme operating conditions of under-hood automotive applications. According to the company, the ER2223 black epoxy resin could be a successful solution to completely optimize stator performance in next-generation electric cars.
How has COVID-19 impacted potting compound market trends?
The potting compound industry has witnessed a decline in demand, especially during the initial phase of the COVID-19 pandemic, due to reduced manufacturing activities across automotive, electronics, and other sectors. In March 2020, for instance, Samsung Electronics had suspended production at its Slovakia facility in response to the coronavirus spread. During the same month, Nissan had also halted EV production at its flagship factory in Sunderland, U.K. Besides the weakened product demand, factors such as supply chain disruptions and restrictions on movement have also impacted potting compound market forecast to some extent.
What Information does this report contain?
Customize this Report
Our Market Research Reports Include:
- Market snapshot
- Market Segmentation
- Value Chain Analysis
- Growth Dynamics
- Potential Market Opportunities
- Regulatory Overview
- Technology Evolution
- Innovation & Sustainability