IoT backs growth in adhesives
TORONTO — The market for high-quality electronics is growing, and with that also comes a rising need for technology adhesives. This demand has been driven, in part, by miniaturization.
“As the market for high-quality electronics has increased in the past few years, the need for material to protect and bond electronic components has also increased," said Technavio Senior Industry Analyst Chandrakumar Badala Jaganathan, in an interview with EE Times.
The research firm's recent Global Electronic Adhesives Market 2017–2021 report is forecasting the market to grow at a compound annual growth rate (CAGR) of close to 10% between now and 2021, said Jaganathan. “The market in 2017 is expected to grow by 8.89% compared to 2016."
The electronics adhesive market caters to various industries, he said, including telecommunications, defense, computer, consumer goods, and automotive products, which are likely to boost the growth of the market. “The market has witnessed accelerating growth rate," he said.
In addition to the high growth that is anticipated in the coming years, said Jaganathan, as part of the electronic chemicals and materials industry, the market is moving toward consolidation as the major electronic chemicals and materials companies are acquiring other local and foreign players. He cited H.B. Fuller's recent acquisition of an electronic adhesives business unit from TONSAN Adhesive to serve its electronics customers in China and Asia.
H.B. Fuller offers capillary underfill products that feature fast dispensing at room temperature. Jaganathan said it is ideal for large-scale manufacturers of electronic portable devices as its usage will lead to equipment savings. “The electronic adhesives market is technology-driven and there will be investments for the development of new technology and products."
Increasing technological innovations and R&D have created the demand for reliable and compact electronic devices, while the need for decreased material costs and demand for smaller assemblies in specific applications has led to the miniaturization of electronic devices. Jaganathan said that the miniaturization of devices becomes crucial in the aerospace industry, owing to the development of semiconductor technology used for the integrated circuits. The miniaturization trend has also been seen in the medical sector and, of course, the consumer electronics market.
While he acknowledges that the smartphone market is slowing somewhat, technology adhesives will benefit from the market growth for Internet of Things (IoT) devices, which is expected to exhibit higher growth than the smartphones and tablets segment by 2020.
Continue reading on Embedded's sister site, EE Times: "Miniaturization, IoT fuel electronics adhesive growth."