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The electronic chemicals market comprises of a wide range of chemicals that are extensively used in the manufacturing of electronics components such as semiconductors, printed circuit boards (PCBs), integrated circuits (ICs), and other electronic applications. Electronic-grade chemicals are high-purity chemicals that are critical for manufacturing processes that demand consistent and reliable performance for their intended functions. Rapid advancement in technologies such as artificial intelligence (AI), robotics, internet of things (IoT), 5G communications, and autonomous vehicles has significantly boosted the demand for semiconductor devices, thereby propelling the growth of the electronic chemicals market.
The Global electronic chemicals market is estimated to be valued at US$ 67.92 Bn in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the electronic chemicals market are BASF SE, Air Products and Chemicals Inc., The Dow Chemical Company, Merck KGaA (known as EMD Performance, Materials in North America), SUMCO Corporation, JSR Corporation, Shin-Etsu Chemical Co., Ltd., Cabot, Microelectronics Corporation, Tokyo Ohka Kogyo Co., Ltd., Honeywell International Inc.
The key opportunities in the market include increasing investment in semiconductor fabrication, growing demand from developing economies of Asia Pacific and Latin America, and technological advancements in electronics such as miniaturization and automation.
The global expansion of the electronic chemicals market is growing owing to increasing electronics production facilities across regions such as Asia Pacific, Americas, and Europe. Countries such as China, South Korea, Taiwan, Japan and the U.S are major electronics manufacturing hubs contributing to the global market expansion.
Market drivers
The rising demand for semiconductors from various end-use industries such as consumer electronics, automotive, aerospace & defense is one of the major market drivers. Rapid industrialization and growing demand for electronic gadgets are fueling the demand for electronic-grade chemicals significantly. In addition, increasing government investments in wafer fabrication facilities to enhance local semiconductor manufacturing is anticipated to propel the demand for electronic chemicals over the forecast period.
PEST Analysis
Political: Changes in government regulations regarding the use of certain chemicals and toxicity levels can impact the demand for electronic chemicals. Regulations around the use of hazardous substances are becoming more stringent.
Economic: Global economic conditions and growth directly impact the demand from end-use industries like electronics and semiconductors that drive the demand for electronic chemicals. Recessions can negatively impact the market.
Social: Increasing consumer demand for electronic products fuels the growth of applications that require electronic chemicals. Rising environmental awareness is increasing the pressure to develop greener and more sustainable electronic chemicals.
Technological: Advancements in electronics technologies and miniaturization are driving the demand for advanced materials with higher purity levels and better performances. New materials are introduced to keep pace with technological innovations.
The electronic chemicals market is concentrated in regions with strong electronics manufacturing industries. Asia Pacific accounts for over 50% of the global market value led by countries like China, South Korea, Taiwan, and Japan that are major electronics hubs. China has emerged as the largest market globally owing to the large domestic demand for electronics and presence of semiconductor fabrication units.
North America is currently the second largest regional market and is expected to witness steady growth during the forecast period. The availability of advanced research infrastructure and investment in nanotechnology drive the demand for high-purity electronic chemicals. The United States accounts for the largest share of the North American market. Fast growth of the semiconductor industry in countries like Vietnam, Malaysia, Philippines is fueling the electronic chemicals market across Southeast Asia.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
