Encapsulation Resins Market

• Growing adoption of electric vehicles (EV) is driving the market growth

Encapsulation resins are mainly used to protect electronic components and gadgets from harsh environmental factors as physical shock, corrosive air, chemicals, heat, and dust, among many others. These resins can be used to enclose a unit or only a single component completely. E-mobility is growing in popularity as a result of technical improvements. The performance of batteries is a difficulty for electric vehicle (EV) designers because heat can affect battery life. The electronic components must be protected to increase dependability and long-term performance in EVs.

Encapsulation resin has many advantages for electric vehicles, including increased thermal endurance, higher thermal conductivity to distribute heat, and a decrease in expensive repair and maintenance. The sales of EVs worldwide in 2021 reached 6.75 million units, a 108% increase over 2020, according to the electric vehicle world sales database. This volume of sales includes both passenger vehicles and light trucks. The restrictions governing VOC emission and environmental consciousness have increased the demand for these resins in the automotive industry. These resins help the batteries operate more efficiently and have longer battery life by forming a protective layer around them.

Encapsulation resin demand is therefore increasing as electric vehicle adoption grows.

Furthermore, the protection of electronic devices and components, including printed circuit boards (PCBs), electronic boards, sensors, capacitors, coils, transformers, power controllers, and filters, among many other electric devices, is greatly aided by encapsulation resin and potting components. These polymers help electrical components operate better while also shielding them from the hostile environment. These resins provide a wide range of advantages, such as protecting against saltwater immersion in maritime applications, chemical sensor protection in automotive applications, thermal recycling in aerospace applications, and long-term temperature exposure with household appliances.

These have also been included in recent years into creating LED lighting fixtures for homes and businesses. According to the international energy agency (IEA), light efficiency improvements and the implementation of LEDs are progressing in 2021. LEDs account for about 50% of sales in the building lighting market. In addition, encapsulating resin is appropriate for the e-mobility sector and complies with a number of performance standards for automotive parts, as of late. As a result, the market is expanding due to the many advantages of encapsulating resin and its appropriateness for usage in a variety of applications.

Thus, driving the encapsulation resins market revenue.

March 2024

Panacol introduces its first line of adhesives made of black epoxy resin that cures in the UV. Vitralit® BL UC 1101, Vitralit® BL UC 1102, and Vitralit® BL UC 1103 are “Black&Light” adhesives that can cure in larger layers with only UV light, doing away with the requirement for a second curing mechanism. The room temperature shipping and storage of the Black&Light adhesives is another significant advantage. Traditional black, one-component epoxy adhesives need to be kept frozen or delivered cold.

A traditional UV adhesive's black hue absorbs a large portion of the UV curing energy.  This indicates that just a few micrometers are penetrated by the UV light energy needed to completely polymerize an adhesive. A surface "skin" forms as a result of this process, but the adhesive underneath it does not cure. Panacol's new black Vitralit® BL UC adhesives may be alone cured using UV LED light to achieve a thickness of more than 1mm. Black adhesives cure at their best thanks to Dr.

Hönle's UV LED curing systems, which are precisely tuned to the absorption wavelengths of Black&Light technology.

The Global Global Encapsulation Resins Market Industry is projected to experience steady growth over the next decade. With a market value of 4.49 USD Billion in 2024, it is anticipated to reach 6.19 USD Billion by 2035, reflecting a CAGR of 2.97% from 2025 to 2035. This growth trajectory suggests a robust demand for encapsulation resins across various applications, driven by technological advancements and increasing consumer expectations. The market's expansion is indicative of the critical role encapsulation materials play in enhancing product performance and reliability across multiple industries.

The increasing demand for electronic devices is a primary driver of the Global Global Encapsulation Resins Market Industry. As technology advances, the need for reliable encapsulation solutions to protect sensitive components in devices such as smartphones, tablets, and wearables becomes paramount. In 2024, the market is projected to reach 4.49 USD Billion, reflecting the industry's response to this growing demand. Encapsulation resins provide essential protection against moisture, dust, and mechanical stress, thereby enhancing the longevity and performance of electronic products. This trend is expected to continue, with the market anticipated to grow at a CAGR of 2.97% from 2025 to 2035.

Advancements in material science are driving innovation within the Global Global Encapsulation Resins Market Industry. The development of new resin formulations and technologies enhances the performance characteristics of encapsulation materials, such as thermal stability and chemical resistance. These advancements enable manufacturers to meet the evolving needs of various industries, including automotive, aerospace, and healthcare. As a result, encapsulation resins are increasingly employed in applications requiring high-performance materials. This trend is likely to contribute to the market's growth, as companies invest in research and development to create superior encapsulation solutions that align with industry demands.

The rising consumer electronics market serves as a significant driver for the Global Global Encapsulation Resins Market Industry. With consumers increasingly seeking advanced electronic products, manufacturers are compelled to utilize encapsulation resins to ensure product reliability and performance. This trend is particularly evident in the production of compact and multifunctional devices, where space constraints necessitate effective encapsulation solutions. The market's value in 2024 is estimated at 4.49 USD Billion, highlighting the importance of encapsulation resins in meeting consumer expectations. As the consumer electronics sector continues to expand, the demand for high-quality encapsulation materials is expected to rise correspondingly.

The expansion of the renewable energy sector significantly influences the Global Global Encapsulation Resins Market Industry. As the world shifts towards sustainable energy solutions, encapsulation resins are increasingly utilized in solar panels and wind turbines. These materials protect critical components from environmental factors, ensuring optimal performance and durability. The market's growth is further supported by government initiatives promoting renewable energy adoption. With a projected market value of 6.19 USD Billion by 2035, the encapsulation resins sector is poised to benefit from this transition, as manufacturers seek reliable materials to enhance the efficiency and lifespan of renewable energy technologies.

Regulatory compliance and safety standards play a crucial role in shaping the Global Global Encapsulation Resins Market Industry. As industries face increasing scrutiny regarding product safety and environmental impact, manufacturers are compelled to adopt encapsulation solutions that meet stringent regulations. This is particularly relevant in sectors such as automotive and healthcare, where safety is paramount. Compliance with these standards not only ensures product safety but also enhances market competitiveness. As a result, the demand for encapsulation resins that adhere to regulatory requirements is likely to increase, further driving market growth in the coming years.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American encapsulation resins market area will dominate this market due to regional growth in the marine and construction industries, as well as regional growth in the market for electronic equipment. The prominent presence of electrical and electronics companies in this region and the industry's impressive expansion throughout the years in this region are fueling the market's expansion.

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

Figure 2:  ENCAPSULATION RESINS MARKET SHARE BY REGION 2022 (USD Billion)

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

Europe encapsulation resins market accounts for the second-largest market share because the region's automobile industry is experiencing moderate expansion. The need for encapsulating resins is also being driven by the increased use of these materials in a variety of electronics devices as well as their use in the building and construction, automotive, and aerospace industries. Further, the German encapsulation resins market held the largest market share, and the UK encapsulation resins market was the fastest growing market in the European region

The Asia-Pacific Encapsulation resins Market is expected to grow at the fastest CAGR from 2023 to 2032. This expansion is primarily related to the rise in demand for encapsulating resins in a variety of electronic applications, including transformers, cables, printed circuit boards, photonics integrated circuits, sensor assemblies, and many more. Moreover, China’s encapsulation resins market held the largest market share, and the Indian encapsulation resins market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the encapsulation resins market, grow even more. Market participants are also undertaking a variety of 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, encapsulation resins industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the encapsulation resins industry to benefit clients and increase the market sector. In recent years, the encapsulation resins industry has offered some of the most significant advantages to market. Major players in the encapsulation resins market attempting to increase market demand by investing in research and development operations include Aremco (US), Dow (US), Hitachi Chemical Co., Henkel AG & Co. KGaA (Germany), BASF SE (Germany), H.B.

Fuller Company (US), Huntsman International LLC (US), Master Bond Inc. (US), ELANTAS GmbH (Germany), Shin-Etsu Chemical Co., MG Chemicals (US), Dymax Corporation (US), Robnor ResinLab Ltd (UK), LORD Corporation (US) and RBC Industries.

Producer and distributor of both consumer and commercial goods is Henkel AG & Co KGaA. The company's product line consists of adhesives, sealants, functional coatings, hair cosmetics, hair salon supplies, oral care, skin care, and body care items, as well as laundry detergents and additives, hard surface cleaners, toilet care, air care, and insect control goods. In June 2021, low pressure moulding technology from the business Henkel AG & Co. KGaA satisfies the demand for encapsulating components for power, industrial automation, HVAC, and lighting applications, as well as for medical and electronic components.

Chemical production firm Shin-Etsu Chemical Co Ltd. Organic and inorganic chemicals, electronics components, and functional materials are all produced and sold by this company. In addition to polyvinyl chloride (PVC), silicones, cellulose derivatives, semiconductor silicon, LED packaging materials, epoxy moulding compounds, rare earth magnets, and synthetic quartz, the company's product line also includes silicones. The company's goods are used in infrastructural elements, digital household appliances, agricultural applications, electrical cables, medical devices, commonplace goods, and mobile phones.