Electronic Chemicals Market

• Technological advancements in the electronics industry are driving market growth.

Market CAGR for electronic chemicals is being driven by the rising number of technological advancements. The huge acceptance of nanotechnology has contributed to the market shift toward MEMS & NEMS devices. The smaller size, lighter weight, lower power consumption, and cheaper fabrication costs associated with nano-devices have made them acceptable ly. The recent commercialization of nano-based devices has boosted the market potential for photoresist and photoresist ancillaries with various technological advancements.

For instance, Intel is moving rapidly toward adopting new technology based on 20nm from 28nm, thus boosting the demand for nanomaterials and, in turn, electronic chemicals in the semiconductor industry.

Additionally, electronic chemicals are primarily used in producing and servicing printed circuit boards (PCBs) and integrated circuits (ICs). Electronic chemicals are used for etching, polishing, cleaning, doping, and servicing semiconductors. Various technological advancements highly influence the production of semiconductors in the electronic industry and are likely to drive the market during the forecast period. For instance, upcoming technologies like artificial intelligence and IoT will boost the consumption of semiconductors and electronic chemicals.

Furthermore, nano-devices are favored ly as they offer excellent characteristics such as lighter weight, smaller size, lower power consumption, and cheaper fabrication costs. The huge utilization of nanotechnology is shifting the market towards NEMS and MEMS devices. The rising production of tablets, electronic appliances, computers, and smartphones has boosted the consumption of semiconductors. Therefore, higher demand from the semiconductor industry is driving the electronic chemicals market revenue.

Furthermore, increasing demand for silicon from other end-user industries, including solar photovoltaics, will impact raw material availability over the forecast period. However, growing trade disputes between China, the U.S., and European Union is predicted to result in price volatility of silica over the projected period. In addition, other factors influencing silica prices are production cuts that cause the shortage. For instance, in October 2021, the shortage in silica metal, caused by a production cut in China, resulted in a 300% price surge in less than 2 months.

The ultrasonic flow and concentration meter for hydrogen, a new product intended for the Chinese market that can simultaneously measure hydrogen flow and concentration in high-humidity environments, was announced today by Panasonic Corporation. The Electric Works Company of the company will begin accepting orders for the device on February 14, 2024. The usage of hydrogen energy has been the focus of increased activities in the past several years as global efforts to attain carbon neutrality have accelerated.

Leading science and technology corporation Merck welcomed German Federal Minister for Economic Affairs and Climate Action Robert Habeck to the company's Darmstadt headquarters today in 2024. Habeck toured a modular, commercial production line for active components, such as pharmaceuticals, along with members of the Merck Executive Board. It is the world's first of its kind, built on a new automation standard, and was made possible by financing from the German Federal Ministry of Economic Affairs and Climate Action's Energy Research Program.

The top chemical business in the world, BASF, officially opened a new electronic materials production facility in Yeosu, South Jeolla Province, South Korea, in 2017. Electronic-grade ammonia water, or NH4OH, is produced in ultra-pure form at the new factory and is utilized in the semiconductor and display production processes. Additionally, the plant is currently increasing the amount of sophisticated cleaning and etching solution mixes it produces.

The Global Electronic Chemicals Market Industry is projected to experience substantial growth, with key metrics indicating a market size of 15.7 USD Billion in 2024 and an anticipated increase to 27.7 USD Billion by 2035. The compound annual growth rate (CAGR) is expected to be 5.31% from 2025 to 2035, reflecting the dynamic nature of the industry. Various factors, including advancements in technology, increasing demand for consumer electronics, and the integration of electronics in automotive applications, contribute to this growth trajectory. The market's evolution is indicative of broader trends in technology and sustainability.

The Global Electronic Chemicals Market Industry experiences a surge in demand driven by the proliferation of consumer electronics. As technology advances, the need for high-performance electronic components increases, leading to a robust market for electronic chemicals. In 2024, the market is projected to reach 15.7 USD Billion, reflecting the growing reliance on electronic devices in daily life. This trend is expected to continue, with the market projected to expand significantly as consumer preferences shift towards smart devices and wearables, which require specialized electronic chemicals for manufacturing. The Global Electronic Chemicals Market Industry is thus poised for sustained growth.

The Global Electronic Chemicals Market Industry is significantly influenced by the expansion of renewable energy technologies. As the world shifts towards sustainable energy solutions, the demand for electronic chemicals used in solar panels, wind turbines, and energy storage systems is on the rise. These technologies require specialized materials that enhance efficiency and durability. The market is expected to grow as investments in renewable energy increase, potentially reaching 27.7 USD Billion by 2035. This transition towards greener technologies underscores the importance of electronic chemicals in supporting the infrastructure of renewable energy, positioning the Global Electronic Chemicals Market Industry favorably for future growth.

Innovations in semiconductor technology are pivotal to the Global Electronic Chemicals Market Industry. The ongoing miniaturization of electronic components necessitates the use of advanced electronic chemicals, which enhance performance and efficiency. As semiconductor manufacturers seek to produce smaller, faster, and more efficient chips, the demand for high-purity chemicals increases. This trend is likely to drive the market's growth, with projections indicating a compound annual growth rate of 5.31% from 2025 to 2035. The Global Electronic Chemicals Market Industry is thus closely linked to the advancements in semiconductor technology, which continues to evolve rapidly.

The integration of electronics in the automotive sector is a significant driver for the Global Electronic Chemicals Market Industry. With the rise of electric vehicles and advanced driver-assistance systems, there is a growing need for specialized electronic chemicals that enhance the performance and safety of automotive components. This trend is likely to accelerate as manufacturers focus on developing smarter, more efficient vehicles. The demand for electronic chemicals in automotive applications is expected to contribute to the overall market growth, reflecting the industry's adaptation to technological advancements and consumer preferences for high-tech vehicles.

The Global Electronic Chemicals Market Industry is also shaped by stringent regulatory compliance and environmental standards. As governments worldwide implement regulations to reduce environmental impact, manufacturers are compelled to adopt eco-friendly electronic chemicals. This shift not only addresses environmental concerns but also opens new market opportunities for sustainable products. Companies that innovate to meet these standards may gain a competitive edge, driving growth in the Global Electronic Chemicals Market Industry. The focus on sustainability is likely to influence product development and market dynamics in the coming years.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific electronic chemicals market will dominate this market due to the huge demand for printed circuit boards and the developments in various industries such as electronic gaming, consumer goods, telecommunications, and IT. The continuous advancement and research & development by large electronics manufacturers in the electronic industry increases the usage of electronic chemicals in this region. Moreover, China electronic chemicals market held the largest market share, and the Indian electronic chemicals market was the fastest-growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: ELECTRONIC CHEMICALS MARKET SHARE BY REGION 2022 (%) 

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe electronic chemicals market accounts for the second-largest market share due to the presence of large manufacturers and suppliers of electronic equipment and materials that supports the consumption of electronic chemicals in the region. Further, the German electronic chemicals market held the largest market share, and the UK electronic chemicals market was the fastest-growing market in the European region.

The North America electronic chemicals market is expected to grow at the fastest CAGR from 2023 to 2032. This is owing to the rapidly growing demand for electronic devices. The consumption of CMP slurries, Low-K dielectrics, and photoresist chemicals for making electronic devices has increased in the region which drives the market for electronic chemicals. Moreover, the US electronic chemicals market held the largest market share, and the Canada electronic chemicals market was the fastest-growing market in North America.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the electronic chemicals market, grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the electronic chemicals industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the electronic chemicals industry to benefit clients and increase the market sector. Major players in the electronic chemicals market, including Air Liquide, Honeywell International Inc., Eastman Chemical Company, Transene Company, Inc., Heraeus Holding, Air Products Inc., BASF SE, and others, are attempting to increase market demand by investing in research and development operations.

LG Chem Ltd, a subsidiary of LG Corp, is a chemical manufacturer. The organization manufactures and markets petrochemicals, IT and electronic materials, and energy solutions. Its product portfolio comprises polyvinyl chloride (PVC), ethylene, propylene, butadiene, benzene, polarizer, glass substrate, semiconductor materials, and RO membranes, among others. It also offers growth hormones, vaccines, and anti-diabetic products and manufactures and supplies display and battery materials for LCD photoresists, OLED materials, and battery materials. In August 2021, LG Chem Ltd. expanded its business portfolio by acquiring Chemical Electronic Materials (CEM), an LG Electronics Business (Business Solutions) business sector, for USD 460 million.

CMC Materials Inc, formerly Cabot Microelectronics Corp, develops and manufactures chemical mechanical planarization (CMP) polishing slurries and CMP pads. The company's products find application in manufacturing advanced semiconductor devices and related components such as phones, tablets, microprocessors, application processors and memory chips, digital cameras, and gaming devices. The company serves various semiconductor manufacturers, pipeline companies, computing, transportation and communications, manufacturing, aerospace, biomedical, research and digital imaging, defense, and other organizations. It operates manufacturing and R&D facilities in the US, Japan, Singapore, Taiwan, and South Korea.

In April 2021, Cabot Microelectronics acquired International Test Solutions to expand its electronic materials business segment. This will help the company to solve challenges faced by its customers from the semiconductor industry.