July 25, 2024
Electrically Conductive Adhesives Market

The Rapidly Increasing Demand For Consumer Electronics Is Anticipated To Open Up The New Avenue For Electrically Conductive Adhesives Market

Electrically conductive adhesives are adhesive materials that conduct electricity between two surfaces. They help bond electrical connections in electronic devices such as mobile phones, tablets, wearable devices and more. These adhesives contain electrically conductive fillers such as silver, copper or carbon which provide conductivity. They offer benefits like moisture and vibration resistance, ease of application and reduce manufacturing costs.

The global Electrically Conductive Adhesives Market is estimated to be valued at US$ 2403.21 Mn or Million in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
The growing demand from the consumer electronics industry is a major factor driving the growth of the electrically conductive adhesives market. Consumer electronic devices such as smartphones, laptops and wearable devices require efficient conductive adhesives to bond electrical connections and contacts inside compact devices. According to Counterpoint Research, global smartphone sales crossed 1.5 billion units in 2021 indicating rising demand. Additionally, increasing application of conductive adhesives in automotive electronics, PV panel manufacturing and other industries is estimated to propel the market growth over the forecast period. However, availability of substitutes such as soldering can hamper the market growth.

Segment Analysis
The global electrically conductive adhesives market is dominated by anisotropic conductive adhesives segment due to its wide application scope across various end use industries such as electronics, automotive, consumer goods, among others. Anisotropic conductive adhesives are ideal for applications requiring electrical conductivity in only one direction and insulation in others. These adhesives are highly preferred in applications involving surface mount devices and chip on glass bonding for circuit protection.

PEST Analysis
Political: There are no significant political risks affecting the electrically conductive adhesives market globally. However, stringent environmental regulations regarding use of hazardous substances in adhesives pose challenges.

Economic: Growth of end-use industries such as consumer electronics and automotive is driving demand for electrically conductive adhesives. High R&D investments by key players to develop innovative product variants also acts as an opportunity.
Social: Rising demand for compact and lightweight electronics from consumers is a major social trend favoring market growth.
Technological: Developments in miniaturization and use of advanced interconnect technologies in electronics pushes the need for electrically conductive adhesive solutions with superior conductivity and bonding properties.

Key Takeaways
The Global Electrically Conductive Adhesives Market Growth is expected to witness high growth, exhibiting CAGR of 5.6% over the forecast period of 2023 to 2030, due to increasing demand for miniaturized electronics. The market size is projected to reach US$ 3403.21 Mn by 2030 from US$ 2403.21 Mn in 2023.

Regional analysis: Asia Pacific dominates the global market and is expected to maintain its lead over the forecast period. This can be attributed to rapidly growing electronics manufacturing hubs and automotive industries in China, Taiwan, South Korea and other Asian countries.

Key players operating in the electrically conductive adhesives are 3M, Aremco, Creative Materials Inc., Dow, H.B. Fuller Company, Henkel AG & Co. KGaA, HITEK Electronic Materials Ltd, Master Bond Inc., MG Chemicals, Panacol-Elosol GmbH, Parker Hannifin Corp., Permabond LLC, and Bostik. Key players are focusing on new product launches catering to miniaturization trends and use of advanced interconnect technologies.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it