Acrylic Adhesives In Electronics Market - Forecast(2023 - 2028)

Acrylic Adhesives in Electronics Market is forecast to reach $5.1 billion by 2026, after growing at a CAGR of 6.8% during 2021-2026. For bonding to bare metals, composites and a vast range of thermoplastic materials, acrylic-based structural adhesives offer world-class performance. Acrylic adhesives are the best alternative for electronics due to the combination of excellent cure kinetics at room temperature and reduced need for surface preparation. Cyanoacrylate glue are used for wire tacking with epoxies and light-curable acrylics. Modifiers that improve flexibility and act as strengthening agents are used in the formulation of methacrylate adhesives. The overall tensile strength of the MMA adhesive, as well as its resistance to peeling and impact damage, are considerably improved by these modifiers. The largest formulation technology segment, in terms of both value and volume, is water-based adhesives. In mature markets including North America and Europe, the growing need for VOC-free adhesives has given rise to the use of water-based acrylic adhesives.

Before the COVID-19 pandemic, a modest growth rate in the electronics market was witnessed globally. After the pandemic, the global electronics industry has faced a dual impact. The production facilities of the electronics parts have been halted owing to the logistics slowdown and unavailability of the workforce across the globe. Overall consumer technology sales has remained down in 2020 due to the broad economic impact on many customers. The impact on the electronics industry has impacted the acrylic adhesives growth due to downturn in production of electronics.

The report: “Acrylic Adhesives in Electronics Market- Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Acrylic Adhesives in Electronics industry.

By Type: Anaerobic Adhesives, UV Curable Adhesives, Thermally Conductive Adhesives, Electrically Conductive Adhesives and Others.

By Application: Printed Circuit Board, Electronic Circuits, Encapsulation, Potting and Others.

By Geography: By Geography: North America (U.S, Canada, and Mexico), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Europe (U.K., Germany, France, Italy, Netherland, Spain, Russia, Belgium, and Rest of Europe), APAC (China, Japan India, South Korea, Australia & New Zealand, Indonesia, Taiwan, Malaysia and Rest of Asia Pacific), and RoW (Middle East and Africa).

Electrically Conductive Adhesives held the largest share of 37% in the Acrylic Adhesives in Electronics market in 2020. Miniaturization of electronic circuits can lead to heat accumulation problems which, if their maximum operating temperature is exceeded, can cause premature failure of electronic components. Thermally conductive adhesive can be used to provide suitable heat sinks with a heat conductive path, clamping transistors, diodes or other power devices to ensure that such a heat buildup does not occur. To make high viscosity adhesives that are highly thermally conductive, metallic and non-metallic powders are blended into the adhesive formulation. Epoxy, silicone and acrylics are formulated into the most common thermally conductive systems.

Printed Circuit Board has been the primary market for Acrylic Adhesives in Electronics in 2020 growing at a CAGR 12.5% of during forecast period of 2021-2026. The continuing trend towards PCB (printed circuit board) miniaturization poses the challenge of ensuring that contacts and components continue to function reliably, despite their ever-decreasing scale. Therefore, many soldered joints on PCBs are being replaced with electrically conductive adhesives that are more flexible. As glob tops, coatings or underfills for chips, adhesives are added to PCBs to protect sensitive components. For these applications, Panacol provides a broad range of adhesives that meet the different requirements of the industry. According to Japan Electronics and Information Technology Industries Association (JEITA), global electronics and information technology industries is estimated to increase 7% year on year in 2021 to record $3,175.6 billion. On the basis of higher demand for solution services and electronic components and devices, positive growth is expected to continue as nations across the world are using remote information technology to improve remote and contactless connectivity in an attempt to stop the spread of COVID-19. The growth in the electronics industry will fuel the consumption and demand of PCB.

APAC dominated the Acrylic Adhesives in Electronics market with a share of more than 45% in 2020, followed by North America and Europe. Japan is one of the mature markets for electronics industry. Global production by Japanese electronics and IT companies is projected to decrease by 5% year-on-year to ¥35,200 billion ($329.89 billion) in 2020 due to decreased exports resulting from the decrease in car and smartphone sales induced by restrictions on mobility and leaving the home according to Japan Electronics and Information Technology Industries Association (JEITA). However, due to the higher demand associated with digital transformation (DX) as a new source of value creation, including automated and increasingly sophisticated data use, positive growth should return in 2021, up 3 percent to ¥ 36,300 billion ($340.20 billion). The optoelectronics and sensors segment should continue to benefit from growing semiconductor content across electronic systems used in automotive, electricity networks, building and factory automation, and others, but it is far from adequate to counter adverse trends in volumes and prices in other segments.

The longstanding movement toward miniaturization of electronic components has resulted in more use of adhesives for fastening. In the military, manufacturing, and commercial fields, miniaturized electronic devices have had a major effect. As miniaturized electronic components have been used, so have the PCBs used to attach them. In powerful processors, advances in advanced system-on-chip (SoC) modules, lower passives, and higher transistor density have made it possible to put more components in a smaller region. In addition, this has enabled higher functionality for newer devices that would previously require multiple boards in a single package or multiple devices linked together. There is no indication of the ending of this trend, which constantly forces designers to come up with new ways to cram more components into a smaller space.

In some advanced electronic assembly applications, continuing advances in adhesive technology have allowed adhesives to replace solder. With the growing laws, businesses are increasingly moving away from tin soldering to the use of electrically conductive adhesives. Overall, the demand for electrically conductive adhesives is expected to increase with the growing consumption of consumer electronics, thereby increasing the consumption of acrylic adhesives for electronics over the forecast period.

The bottlenecks in the market's upward climb are Methacrylate acid and acrylic acid prices volatility and stringent environmental and safety regulations. In addition, R&D costs are comparatively higher than in other sectors and strict certifications by OEMs and component manufacturers prevent the industry from realizing its optimum potential.

In recent times the Electronics industry has faced many serious challenges which has impacted its growth. Factors such as lack of innovation and delayed adoption, informal processes or insufficient rigor and consistency in process execution, weak project monitoring and little cross-functional cooperation have severely impacted. These factors has restrained the electronics industry growth.

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Acrylic Adhesives in Electronics market. Major players in the Acrylic Adhesives in Electronics market are Akzo Nobel NV, Allnex Netherlands B.V., BASF SE, Belami Fine Chemicals Pvt. Ltd., ALTANA, Henkel AG & Company, 3M Company, Dymax, Hitachi Chemical, Jowat SE and Others.