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Electronic chemicals are specialty chemicals used in the semiconductor, electronics, and allied industries. Major electronic chemicals include specialty gases, CMP slurries, photoresists, wet chemicals, and electrochemicals. These chemicals find applications in various electronic manufacturing processes such as cleaning, deposition, and etching. Semiconductors form the backbone of modern electronics with applications across various industries including consumer electronics, telecommunications, healthcare, automotive, and others. The growing demand for electronic devices and miniaturization of components has been driving the semiconductor industry. With the advent of smaller and powerful chips, semiconductor manufacturing processes have become more complex requiring high purity electronic chemicals.
The global Electronic Chemicals Market is estimated to be valued at US$ 67.92 billion in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Growing Semiconductor Industry: As mentioned in the heading, growing semiconductor industry is one of the key drivers propelling the growth of the electronic chemicals market. Semiconductors are integral components of all modern electronics and miniaturization trends have increased complexity in semiconductor fabrication processes. This has fuelled the demand for high purity electronic chemicals across the semiconductor supply chain. Moreover, the rise of new technologies such as 5G networks, IoT, AI, and autonomous vehicles has strengthened semiconductor consumption worldwide thereby driving electronic chemicals market growth.
Advancement in Electronic Device Manufacturing: Constant innovation and advancement in electronics manufacturing is another factor accentuating the market growth. Technologies such as flexible electronics, printed electronics, and 3D integrated circuits have added new manufacturing dimensions necessitating specialized electronic chemicals. Miniaturization at the nanoscale level also requires high performance electronic chemicals in cleaning, etching and deposition steps. The evolution of electronics manufacturing processes is thus augmenting the consumption of electronic chemicals globally.
Segment Analysis
The electronic chemicals market is segmented by type, application, and region. By type, the caustic soda segment is dominating the electronic chemicals market. Caustic soda finds wide usage for production of alumina which is further used in production of integrated circuits by virtue of its inherent properties of being highly reactive and corroding metals. By application, it is widely used in semiconductors & IC substrate manufacturing segment wherein it is used for etching and cleaning purposes during wafer manufacturing. This segment accounts for over 35% share of the total electronic chemicals market.
Key players: Key players operating in the electronic chemicals market are BASF SE, The Linde Group, Air Products & Chemicals Inc., Huntsman International LLC., Cabot Microelectronics Corporation, Hitachi Chemical Company Ltd., JSR Corporation, Merck KGaA, The Dow Chemical Company, and TOKYO OHKA KOGYO CO., LTD. BASF SE is one of the largest producers and suppliers of electronic chemicals globally.
PEST Analysis
Political: The electronic chemicals market is dependent on policies related to electronics manufacturing. Supportive government policies towards electronics manufacturing sector boosts demand. Whereas, stringent environmental regulations may increase production costs.
Economic: Growth in the electronics sector drives demand for electronic chemicals. Rise in disposable incomes propels demand for electronic devices thereby benefiting electronic chemicals consumption. Whereas, high inflation and economic slowdowns impact manufacturing activity.
Social: Increasing electronics adoption accompanied by growing population and urbanization generates social need for electronic devices, benefitting electronic chemicals demand. Whereas, environmental concerns related to chemicals usage act as a restraint.
Technological: Advancements in electronics and semiconductor technology aids innovations requiring purer and customized electronic chemicals. Whereas, adoption of green chemicals presents challenges for traditional electronic chemical producers.
Regional analysis: Asia Pacific dominates the global electronic chemicals market currently, accounting for over 50% share, led by countries such as China, South Korea, Taiwan, and Japan. This is attributed to presence of large electronics manufacturing bases and semiconductor foundries in the region. The Asia Pacific electronic chemicals market is projected to witness highest growth during the forecast period as well.
Key Takeaways
The global Electronic Chemicals Market size is expected to grow from US$ 67.92 Bn in 2024 to US$ xx Bn by 2031, expanding at a CAGR of 6.4% during the forecast period. The market experienced high growth rates during the initial years of the forecast period attributed to rise in electronics demand globally along with expansion of semiconductor industry.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
