Electronic Chemicals Market Trends

Global Electronic Chemicals Market Overview

The electronic chemicals market size was valued at USD 14.75 billion in 2023. The electronic chemicals industry is projected to grow from USD 15.65 Billion in 2024 to USD 23.68 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.31% during the forecast period (2024-2032). Increasing electronic chemicals demand for manufacturing semiconductors, flat panel displays, and photolithographic printing and technological developments in the electronics industry are the key market drivers enhancing the market growth.Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Electronic Chemicals Market Trends

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  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.

Electronic Chemicals Market Segment Insights

Electronic Chemicals Product Type Insights

The electronic chemicals market segmentation, based on product type, includes atmospheric & specialty gases, photoresist chemicals, wet chemicals and solvents, and others. The wet chemicals and solvents segment dominated the market, accounting for major market revenue. This is due to its rising use in semiconductors, integrated circuit manufacturing, display panels, televisions, LCDs, and LEDs. The growing adoption of these devices across the globe has contributed to the high consumption of wet chemicals, thereby boosting the electronic chemicals demand.

Figure 1: Electronic Chemicals Market, by Product Type, 2022 & 2032 (USD billion)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Electronic Chemicals Applications Insights

The electronic chemicals market segmentation, based on applications, includes integrated circuits & semiconductors, flat panel displays & light emitting diodes, photovoltaic, printed circuit boards, and others. The integrated circuits & semiconductor category generated the most income over the forecast period. The growth is attributed to the rising adoption of loT devices. In this, the integrated circuits sense and transmit intelligent data. Furthermore, the benefits associated with analog ICs across a vast range of real-time connected applications and devices will surge the electronic chemicals consumption.

Electronic Chemicals Regional Insights

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, MRFR 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.

Electronic Chemicals Key Market Players & Competitive Insights

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.

Key Companies in the Electronic Chemicals market include

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  Air Products & Chemicals Inc.

  
  


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  Bayer AG

  
  


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  Albemarle Corporation

  
  


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  Ashland Inc.

  
  


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  BASF Electronic Chemicals

  
  


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  Air Liquide Holdings Inc.

  
  


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  AZ Electronic Materials Plc

  
  


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  Honeywell International Inc.

  
  


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  Cabot Microelectronics Corporation

  
  


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  Linde Group

  
  


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  Dow Chemical Company

  
  


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  KMG Chemicals Inc.

  
  


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  Hitachi Chemical Company

  
  


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  Sumitomo Chemical

  
  


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  Monsanto Electronic Materials Co.

  
  


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  Brewer Science

  
  


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  Drex-Chem Technologies

  
  


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  EMD Performance Materials Corp.

  
  


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  EKC Technology

  
  


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  Fujifilm Electronic Materials

  
  


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  HD Microsystems

  
  


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  High Purity Products

  
  

Electronic Chemicals Industry Developments

July 2022: Entegris acquisition of CMC Materials, the leader in electronic chemicals and materials. With the acquisition of CMC Materials, Entegris offers the industry's most comprehensive portfolio and enhanced operating capabilities for applications in the fab environment and across the semiconductor ecosystem. This expanded portfolio increases Entegris content per wafer opportunity and its unit-driven revenue from 70% to approximately 80%.

July 2020: Linde started a new air separation unit (ASU) and the first nitrogen generator to provide industrial gases with ultra-high purity to its electronics customers in Taiwan. The project will support the expansion of wafer fabrication at Tainan Science Park in Taiwan. The ASU, the nitrogen generator, and two more upcoming generators will have a total gas capacity of 173,000 Nm3/hr.

Electronic Chemicals Market Segmentation

Electronic Chemicals Product Type Outlook

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  Atmospheric & Specialty Gases

  
  


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  Photoresist Chemicals

  
  


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  Wet Chemicals and Solvents

  
  


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  Others

  
  

Electronic Chemicals Applications Outlook

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  Integrated Circuits And Semiconductors

  
  


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  Flat Panel Displays & Light Emitting Diodes

  
  


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  Photovoltaic

  
  


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  Printed Circuit Boards

  
  


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  Others

  
  

Electronic Chemicals Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America