Molded Interconnect Devices Market worth over $1bn by 2027
Published Date: July 12, 2021 Authors: Preeti Wadhwani, Shubhangi Yadav
Molded Interconnect Devices (MID) Market size is set to surpass USD 1 billion by 2027, according to a new research report by Global Market Insights Inc.
The rising demand for technically advanced and miniaturized diagnostic devices across the medical & healthcare industry is anticipated to support the market growth. Various diagnostic devices, such as blood pressure monitors, pulse oximeters, heart rate monitors, and blood glucose monitors, are fabricated over molded interconnect devices technology. The molded interconnect devices technology helps to achieve low power consumption, high accuracy, and compact footprint in these diagnostics devices. According to March 2021 press release by European Patent Office (EPO), around 14,295 new medical technology patent applications were received in 2020 with a y-o-y growth rate of 2.6% compared to 2019. Increasing innovations and R&D across the medical technology sector will support the deployment of new medical devices in the coming years. This is expected to add new growth opportunities to MID manufacturers over the forecast timeline.
High costs associated with raw materials used in molded interconnect device fabrication processes is one of the major factors restraining the market expansion. Raw materials, such as high-performance thermoplastics (HPTPs), polycarbonates, and resins, are used in the manufacturing of MID devices. These thermoplastics incur high pricing compared to thermosetting and plastic materials, thus increasing the overall production costs in the market. Adding to this, precious metals, such as platinum, aluminum, silver, and gold, are also required for plating applications in MID. Price fluctuations in these high-cost metals further decreases the profitability of market players, thus restraining the industry growth.
Rising adoption of Laser Direct Structuring (LDS) technology in 5G electronics will positively impact molded interconnect devices market progression
The laser direct structuring segment held 30% of the market share in 2020 and is projected to grow at around 16% growth rate through 2027 driven by several high-end characteristics offered by the technology such as high miniaturization, shorter assembly time, 3D-prototyping, and design freedom compared to traditional molded interconnect devices processes such as hot stamping and two-shot molding. The LDS technology offers interconnects and lines with ultra-precision <250-micron width as compared to 1,000 microns for hot stamping and 400 microns for two-shot molding. The high-precision interconnect is extensively required for fabrication of 5G-antenna in electronics devices, such as smartphones, laptops, tablets, and wearable electronics, which is slated to support the industry expansion over the forecast period.
According to March 2021 press release by China Mobile, a telecom service provider, in FY2020, the company added over 162.5 million new 5G subscribers in China. The rising number of 5G subscribers across China is poised to increase the penetration of new 5G-based devices. Advancements in LDS process technologies by major market leaders, such as LPKF Laser & Electronics, Amphenol, Tongda Group, and Molex, will further contribute to the industry progression.
Browse key industry insights spread across 250 pages with 339 market data tables and 32 figures & charts from the report, “Molded Interconnect Devices (MID) Market Size, By Process (Laser Direct Structuring (LDS), Two-Shot Molding), By Application (Automotive, Consumer Products, Healthcare, Industrial, Military & Aerospace, Telecommunication & Computing), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2021 - 2027” in detail along with the table of contents:
Rising demand for automotive electronics will spur the market value
Get more details on this report - Request Free Sample PDF
The automotive segment accounted for 15% of revenue share in 2020 and will grow at a CAGR of around 17% through 2027 led by the increasing acceptance of MID in various automotive systems such as head-up displays, instrument clusters, in-vehicle infotainment systems, steering-well hubs, and advanced telematics. The incorporation of MID in these systems helps to reduce the number of wirings, couplers, and connectors, enabling automotive OEM to achieve a compact footprint.
The post-COVID-19 pandemic has led major automotive OEMs across developed and emerging economies to increase their vehicle production capacities to cater to high demand in the market.
Proliferation of unmanned aerial vehicles (UAVs) in the U.S. will accelerate the growth opportunities North America region
North America molded interconnect devices market is estimated to attain a CAGR of 12% during 2021 to 2027 impelled by the increasing penetration of unmanned aerial vehicles in the U.S. According to the U.S. Department of Transportation (DoT), Federal Aviation Administration (FAA), as of April 2021, there were around 1.1 million units of operational drones and UAVs present in U.S. Out of 1.1 million units of UAVs and drones, around 367 thousand units were commercial drones as of April 2021. The growing demand for optimizing weight of components in unmanned aerial vehicles has pushed the development and penetration of MID technology across the aerospace sector. Adding to this, the major e-commerce participants in the U.S., such as Walmart and Amazon, are predicted to start drone-based logistics and delivery services in coming years, further rising the usage of commercial drones. This will further add opportunities to molded interconnect device vendors in the region.
Key players operating in the market are HARTING Technology Group, Teprosa AG, TE Connectivity, Avient Corporation, RTP Company, SelectConnect Technologies, LPKF Laser & Electronics AG, Molex, among others. These companies are continuously involved in new product development and innovations to gain a competitive advantage over other participants in the industry.
Explore More on Related Topics: