Photoresist Market - Forecast(2023 - 2028)

Photoresist Market Overview

Photoresist market size is forecast to reach US$8.7 billion by 2026, after growing at a CAGR of 5.5% during 2021-2026. A photoresist is a light-sensitive material used in several processes, such as photoengraving and photolithography. The chemical structure of photoresist includes photopolymeric photoresist, photodecomposing photoresist, and photocrosslinking photoresist. Looking at the global level scenario there has been a surge in demand for semiconductors as a result, the demand for the photoresist is also substantially increasing. In addition, there has been an increased demand for LCDs and OLED, due to which there is a sudden upsurge in the demand for photoresists in the electrical and electronics industry. Furthermore, the flourishing automobile industry is also expected to drive the photoresist market, because it is used in the in-vehicle application.

COVID-19 Impact

The photoresist market was affected by the COVID-19 pandemic in 2020 due to lockdown and government restrictions, which resulted in declined market demand, production, supplies, distribution, and customers. The production of electronic and electrical goods was adversely affected by it. According to Japan Electronics and Information Technology Industries Association (JEIT), in 2020 the total production of the electronic industry record negative growth of 1% compared with the year 2019 to US$1,967.4 billion. In the first few months of 2021, the second wave of Covid-19 impacted the photoresist industry too, which resulted in losses, but the market was not as adversely affected as it was affected in 2020. However, it is anticipated by mid-2022 the effect of COVID-19 will be curbed out and this would lead the market situation back to normalcy as it was before the COVID-19 pandemic. In addition to this, it will also result in an increase in production related to the Photoresist market.

Photoresist Market Report Coverage

The report: “Photoresist Market–Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the PhotoresistMarket.

By Chemical Structure: Photopolymeric Photoresist, Photodecomposing Photoresist, and Photocrosslinking Photoresist
By Type: Positive Photoresist (DNQ Novolac Photoresist, Chemical Amplified Photoresist (CAP), Single Component Positive Photoresist and Others), and Negative Photoresist (Epoxy-based Polymer, and Off-stoichiometry Thiol-enes (OSTE) Polymer.
By Product Type: ARF Immersion Photoresist, ARF Dry Photoresist, G-line Photoresist, R-linePhotoresist, KRF Photoresist, Photoresist Ancillaries, and Others.
By Application: Liquid-crystal Displays (LCDs), Organic Light-emitting Diodes (OLED), Semiconductors, Integrated Circuits, Microcontact Printing, Microelectronics, Printed Circuit Boards, and Others.
By End-Use Industry: Electricals and Electronics (Computers, Laptops, Smartphones, AR/VR/Wearable’s, and Others), Automobiles (Passenger Cars, Light Commercial Vehicles (LCV), and Heavy Commercial Vehicles (HCV)), Packaging, and Others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and the Rest of South America),(Middle East (Saudi Arabia, UAE, Rest of Middle East, and Israel), and Africa (South Africa, Nigeria, and the Rest of Africa)).

Key Takeaways

• Asia-Pacific dominates the photoresist market, owing to the increasing electrical & electronics industry in the region. For instance, according to Invest India, electronic manufacturing has increased rapidly in India with a CAGR of about 23%, with a domestic production touching US$76 Billion in 2019-20.
• Photoresist technology is been widely used in the flat panel display of LCDs and OLED, and helps in making the picture quality better, as a result there has been a growth in the demand for photoresists.
• The advanced semiconductor production nodes use an ARF immersion light source as it provides superior resolution, low defects, and excellent cutting. Thus due to its advantage, the application of photoresists is growing.
• The growing demand for photoresists in the semiconductors industry would lead to its further growth in the projected future period.

Figure: Asia-Pacific Photoresist Market Revenue, 2020-2026 (US$ Billion)

Photoresist Market Segment Analysis – By Chemical Structure

The photodecomposing photoresist segment held the largest share in the photoresist market in 2020. The photodecomposing photoresist is used for positive photoresist. A photodecomposing photoresist generates hydrophilic products under light. They are used in the manufacturing of semiconductors. As the demand for semiconductors is growing, there is an increase in the demand for photodecomposing photoresists. All these factors are leading to the growth of photodecomposing photoresists in the future projected period.

Photoresist Market Segment Analysis – By Type

The positive photoresist segment held the largest share in the photoresist market in 2020. A positive photoresist is a type of photoresist, a portion of the Photoresist that is exposed to light becomes soluble to the photoresist developer. However, the unexposed portion of the photoresist remains insoluble to the photoresist developer. Many of the semiconductor manufacturers go with the positive Photoresist, because of their higher resolution capabilities. They can maintain the size and pattern as the photoresist developer solvent doesn't permeate the areas that have not been exposed to UV light. But this doesn't mean that the negative photoresist is not relevant, they are used in other electrical industries. Due to positive photoresist advantages, the growth of the market is expected to increase. 

Photoresist Market Segment Analysis – By Product Type

The ARF immersion type segment held the largest share in the photoresist market in 2020. ARF immersion photoresist is extensively used in semiconductors. Large Scale Integration (LSI) commonly uses ARF immersion photoresist in circuits. The narrow wavelength of the ARF light source and higher refraction index due to immersion assist photoresist users in meeting their needs of miniaturizing products with improved performance. Moreover, the demand for ARF dry photoresists is also growing.

Photoresist Market Segment Analysis – By Application

The semiconductor segment held the largest share in the photoresist market in 2020 and is growing at a CAGR of 5.9% during 2021-2026. The photoresist is used to create a pattern on the semiconductors. A photoresist is used to create a pattern on the semiconductors. A photoresist is used to make a mask on the surface of a silicon wafer and then silicon wafers are used as a base for the semiconductor. Moreover, Spin coating is extensively used to make the photoresist thin by 1 micrometer; it is used to deposit uniform thin films on the semiconductor. Both silicon wafer and spin coating is widely used in the manufacturing of semiconductors. According to the Semiconductor Industry Association, in the year 2020, global semiconductor sales increased to 6.5%, with an increase in revenue of US$439 billion. Increasing demand for semiconductors is leading towards the growth of the photoresist market.

Photoresist Market Segment Analysis – By End-Use Industry

The electronics and electrical segment held the largest share in the Photoresist market in 2020 and is growing at a CAGR of 6.2% during 2021-2026. The photoresist is used in maximum electronic and electrical items such as computers, laptops, semiconductors, integrated circuits, smartphones, LCDs, OLED, and also in other such products. As the disposable income of people across the world is increasing, the sale of electronic and electrical-related products would also see growth. Moreover, the demand for electronics and electrical would also lead to higher production of such goods. Overall this will drive the growth of the Photoresist industry.

Photoresist Market Segment Analysis – By Geography

Asia-Pacific region held the largest share in the photoresist market in 2020 up to 62%, owing to the accelerating electronic and electrical industries in the region. There has been rapid growth in the electronics industry in countries like China, South Korea, India, and Japan. The reason behind this is that the per capita income of the people is increasing, and as a result of this the disposable income is also increasing. China is the global leader in the electronic manufacturing of products such as smartphones, OLEDs, and tablets, as a result of this the demand for Photoresist used in such products is high. As per the report of the Japan Electronics and Information Technology Industries Association (JEITA), the production of the display is increasing on year on year basis at a steady pace. According to Invest India, the domestic electronic market of India is expected to be US$500 billion. The technological advancement particularly in the electronic industry in the Asia-Pacific region will drive the photoresist market in the projected period.

Photoresist Market Drivers

Rapid Growth of The Semiconductor Industry

The photoresist market will be driven by the electronic and electrical industry. The reason behind this is that the disposable income at the global level is increasing for products that are been manufactured by such industries. Various sectors such as telecommunication devices, automobiles, industrial manufacturing, and healthcare are using compact electronic devices. As a result of this, there has been an increase in technological development and increased research and development in the field of semiconductors. According to Japan Electronics and Information Technology Industrial Association (JEITA), there was an increase in the production of discrete semiconductors with 1.1% in 2020 compared to 2019. According to the European Semiconductor Industry Association (ESIA), the European semiconductor industry saw an increase of 31.2% in May 2021 when compared with May 2020 with revenue of US$3.8 billion. As there is an increase in the production of the semiconductor, this is driving the growth of the photoresist market. Thus, it is anticipated that the growth of the semiconductor industry, will subsequently drive the photoresist market growth during the forecast period. 

Growing Demand for Automobiles

The automobile sector will drive the photoresist market because it uses photoresist materials for in-vehicle applications such as display panels. According to OICA, in South Africa, the production of passenger cars was 3,21,097 units in 2018 and it increased to 3,42,665 units in 2019, with a growth of 8.6% compared to 2018. Moreover, according to OICA, in Malaysia, the production of the passenger car was 5,20,526 units in 2018 which increased to 5,34,115 units in 2019, with a growth of 2.6% compared by 2018. Thus, growing automobile production will require more in-vehicle applications, which will act as a driver for the photoresist market during the forecast period.

Photoresist Market Challenges

Higher Manufacturing Cost

The major challenge associated with photoresist market growth is its higher material cost. The cost varies as per the layout and its edge placement error. Also, there are a lot of technologies and complexity of operation associated with photoresist which leads to its higher cost. Also, in some of the countries, the higher tax rate policy adds to the cost of photoresist. According to the Ministry of Electronics and Information Technology, the electric products include photoresist falls under the slab of GST at 18%.

Photoresist Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Photoresist market. Major players of the Photoresist market include:

1. Honsou Chemical Industry
2. TOK America
3. Shin-Etsu Chemical
4. LG Chem
5. JSR Corporation
6. Mitsui Chemicals America Inc.
7. E. I DuPont
8. Tokyo Ohka Kogyo Co. LTD.
9. Fujifilm Electronic Materials Co. Ltd.
10. The Dow Chemical Factory.

Acquisitions/Technology Launches

In July 2021, DuPont acquired Laird Performance Material, and it became part of DuPont’s electronics and industrial interconnection interconnect solution business. Laird Performance Materials' offerings complement ICS' portfolio in flexible laminates, dry-film photoresists, specialty films, and more.

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