by 
The electronic chemicals market encompasses a wide range of chemical products used for manufacturing electronic components and devices. These include basic chemicals, specialty gases, precious metals, wet chemicals, and CMP slurries. They are essential for processes like doping, cleaning, etching, polishing, and thin-film deposition involved in making integrated circuits, printed circuit boards, semiconductors, and other electronic components. The growing complexity and miniaturization of electronic devices have increased the demand for customized solutions with high purity levels.
The Global electronic chemicals market is estimated to be valued at US$ 67.92 Bn in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030.
With the diversification of applications into new areas like 5G, IoT, electric vehicles, and renewable energy, the scope for developing application-specific formulations has widened. This is drawing higher R&D investments by leading chemical manufacturers.
Key Takeaways
Key players operating in the electronic chemicals market are BASF SE, Air Products and Chemicals Inc., The Dow Chemical Company, Merck KGaA (known as EMD Performance, Materials in North America), SUMCO Corporation, JSR Corporation, Shin-Etsu Chemical Co., Ltd., Cabot, Microelectronics Corporation, Tokyo Ohka Kogyo Co., Ltd., Honeywell International Inc.
The growing demand for consumer electronics and proliferation of smart gadgets are propelling the electronic chemicals market. Miniaturization trends have increased the complexity of fabrication processes, necessitating high-purity chemical formulations with excellent selectivity and functionability.
Geographic expansion into emerging regions has also intensified as key players aim to establish production hubs closer to fast-growing end-use markets in Asia Pacific and Latin America. This helps reduce transportation costs and caters to the need for localized manufacturing and technical services.
Market Key Trends
The transition to renewable energy systems and electric mobility presents significant opportunities for electronic chemicals manufacturers. Formulations supporting crystalline silicon solar cell fabrication, lithium-ion batteries, and electric vehicle electronics are witnessing strong demand growth. Promising applications include high-k and low-k dielectric films for next-gen semiconductor devices. Nanochemical formulations that enable atomic-level control in fabrication are another area of ongoing R&D focus.
Porter’s Analysis
Threat of new entrants: The electronic chemicals market requires huge capital investments for R&D activities and maintaining strict quality standards. This poses high entry barriers for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of a variety of electronic chemical manufacturers. However, prominent buyers can negotiate prices downwards.
Bargaining power of suppliers: A few large multinational corporations control the supply of key electronic chemicals. This enhances the bargaining power of suppliers.
Threat of new substitutes: There exist few product substitutes for materials like silicon wafers and photoresists used in the semiconductor industry. The threat from substitutes is low.
Competitive rivalry: The electronic chemicals market has the presence of several global and regional players. Intense competition exists among key players to strengthen their market position through innovations.
Geographical Regions
Asia Pacific holds the largest share of the global electronic chemicals market, both in terms of value and volume. This is attributed to the vast semiconductor fabrication facilities and manufacturing units located in major economies like China, South Korea, Taiwan, and Japan.
North America is projected to be the fastest growing regional market between 2023 and 2030. Significant investments by companies in the region to develop advanced semiconductors and electronic gadgets are driving the demand for high-performance electronic chemicals.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
