Encapsulation Resins Market Size Forecast To Reach US$4.10 Billion in 2021
Research Reports
Apr 08, 2022
Encapsulation Resins Market Overview
Encapsulation resins market size is valued at around US$4.10 billion in 2021 and it is forecasted to grow at a CAGR of 3.2% during 2022-2027. Encapsulation resins are mainly used to protect electronic components from external threats such as vibration, general contamination, moisture, and thermal or physical shock. In electronics application, it is majorly used in printed circuit boards. The encapsulation of entire electric device facilitates thorough barrier from external environmental factors with superior performance. The major resins used in encapsulation are epoxy, silicone, polyurethane, polyester, and phenolic. These resins offer superior mechanical protection in terms of superior performance in harsh environmental conditions and are thermally conductive, provide good adhesion, chemical resistance, and deliver superior performance at high temperature. These resins provide cost efficient solution for numerous applications.
COVID-19 Impact
Many of the industries across the global have faced several challenges due to the COVID-19 pandemic. The industries such as electrical and electronics, automotive, aerospace, and construction including many other has experienced pitfalls. Many projects in such industries have been halted due to an interrupted supply chain and employee shortages due to quarantines. Construction activities were banned in many places due to safety concerns and to curb the spread of infection. Also, the production and demand for electrical and electronics product have decreased sharply due to halted production activities. Thus, the global pause in industrial production and distribution, the demand and consumption of encapsulation resins has hampered to an extent.
Encapsulation Resins Market Segment Analysis – By Type
The epoxy segment held the largest share in the encapsulation resins market in 2021 and accounts for around 35% of share in the global market. Epoxy resins are extensively used range of application over the past many years owing to its properties such as low shrinkage on cure, toughness, superior chemical resistance, and hardness. These resins offer easy application, low coefficient of thermal expansion, and provide improved protection against harsh chemicals and humidity. Epoxy resin when used as an encapsulation material in electronic application provides excellent dielectric properties, thermal conductivity, mechanical strength, and electrical insulation strength. It is considered as the cost effective solution for encapsulation and offers superior adhesion to extensive range of substrate. Thus, aforementioned benefits of epoxy resin are expected to continue its dominance during the forecast period.
Encapsulation Resins Market Segment Analysis – By End-Use Industry
The electrical and electronics segment held the largest market share in the encapsulation resins market in 2021 and captures for nearly 30% share in the global market. Epoxy, polyurethane, and silicone resins are widely used in encapsulation and potting in range of electrical and electronics applications. These resins enable protection of electrical components and devices form harsh environmental conditions. It also protects electronic components from several security threats such as tampering. Encapsulation can be used on whole assembly and applied in range of electrical applications such as integrated circuits (ICs), capacitors, and diodes. The major benefits of encapsulation is low shrink on curing, flexibility, and strain relief system for wire leads which minimizes the risk of wire breakage. With the changing and developing electrical and electronics industry with the demand for emerging e-mobility and evolving small and powerful devices, the requirement for novel resins increased. Thus, evolving electrical and electronics market increasing the demand for encapsulation resins.
Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=510890
Report Price: $ 5900 (Single User License)
Encapsulation Resins Market Segment Analysis – By Geography
The Asia Pacific is the leading region accounts for the largest share in the encapsulation resins market in 2021 and held nearly 45% of market share. This growth is mainly attributed to the surge in demand for encapsulation resins in range of electronics applications such as components, devices, printed circuit boards, photonic integrated circuits, sensor assemblies, transformer, and cables including many others. The notable presence of electrical and electronics players in this region along with the remarkable growth of this industry over the years in this region is further boosting the market growth. Additionally, rise in adoption of encapsulation resins in several electronics devices and there employment in automotive, aerospace, and building and construction industry is further propelling the demand for encapsulation resins in Asia Pacific.
Encapsulation Resins Market Drivers
Increase in Adoption and Growth in Electric Vehicle (EV)
Encapsulation resins are primarily used to provide protection to electronic devices and components from harsh environmental conditions such as physical shock, corrosive atmosphere, chemicals, heat, and dust including many others. These resins can be used to encapsulate single component or the entire unit. With the rise technological advancements, there is an increased emergence of e-mobility. The designers of electric vehicle (EV) face challengers in terms of heat impacting on battery performance. In EV’s, protecting the electronic components plays a vital role to gain the reliability and long term performance. Encapsulation resin offers numerous benefits in electric vehicles such as improved thermal endurance, superior thermal conductivity to disperse heat away along with reducing costly repair and maintenance. According to The Electric vehicle World Sales Database, in 2021, the global sales of EVs reached 6.75 million units which are 108% more as compared to 2020. This sales volume includes light trucks and light commercial vehicle and passenger vehicle. There is an increased demand for these resins in the automotive industry owing to the regulations regarding the VOC emission and environmental awareness. These resins forms a protective layer around the batteries and facilitate the higher efficiency and prolonged battery life. Thus, the augmenting consumption of electric vehicle is boosting the demand for encapsulation resins.
Valuable Properties Associated With the Use of Encapsulation Resins
Encapsulation resin and potting components plays a significant role in the protection of electronic devices and components such as printed circuit board (PCBs), sensors, capacitors, transformers, electronic boards, coils, power controllers, and filters including many other electric devices. These resins not only provide the protection to electric components from harsh environment but also improve its performance. These resins offer wide range of benefits for instance deliver protection from salt water immersion in marine application, protect sensor from chemicals in automotive application, thermal recycling for aerospace application and long-term temperature exposure with domestic appliances. In recent years, these are also adopted in the production of LED domestic and commercial lighting units. According to The International Energy Agency (IEA), in 2021 there is a progress in LED deployment and light efficiency gains. LEDs cover around 50% of building sector lighting market. Furthermore, encapsulation resin is suitable for e-mobility section and meets with various performance criteria for vehicle components according to the recent developments. Thus, numerous benefits of encapsulation resin and suitability to use in wide range of application are driving the growth of global market.
Inquiry Before Buying @ https://www.industryarc.com/reports/request-quote?id=510890
Encapsulation Resins Market Challenges
Volatile Prices of Raw Material
Encapsulation resin is mainly manufactured using epoxy resin, polyurethane resin, silicone, polyester, and phenolic resins. These raw materials are petroleum based resins which are exposed to volatility of the commodity prices. These resins are commonly used in the production of wide range of chemicals and materials for instance paints and coating, plastic, packaging films, composites, adhesives and sealants, etc. According to U.S. Energy Information Administration, prices of crude oil in 2021 have increased up to $71/lb from $42/lb in 2020. Thus, any change in crude oil prices or change supply demand of the other application market may impact the prices and supply of resins for encapsulation resins market. Thus, volatile crude oil prices directly impacts the prices of raw material for encapsulation resin which is restraining the growth of global encapsulation resin market.
Encapsulation Resins Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Encapsulation Resins market. Encapsulation resins top 10 companies include
- BASF SE
- DowDuPont
- Electrolube
- Epic Resins
- H.B. Fuller Company
- Henkel AG & Co. KGaA
- Huntsman International LLC.
- Master Bond Inc.
- Shin-Etsu Chemical Co., Ltd.
- Sika AG
Recent Developments
In June 2021, the company Henkel AG & Co. KGaA’s low pressure molding technology meets the demand for encapsulation of medical and electronics components, power, industrial automation, HVAC, and lighting applications.
In October 2021, Huntsman International LLC., novel epoxy encapsulation and impregnation material which act as a reliable insulation of electric drives. This material will play an important role in facilitating a wide adoption of electric mobility.
In January 2020, Electrolube launched novel encapsulation resin developed mainly for Indian market. The company manufactured this new resin in its Bangalore facility.
Direct Purchase @ https://www.industryarc.com/purchasereport.php?id=510890
Key Takeaways
Europe is the fastest growing region in the global encapsulation resins market. This growth is mainly attributed to the presence and growth of key end use industries specifically in Germany, France, Italy, and UK.
Silicone is expected to be the fasted growing segment by type owing to its increased adoption in LED application.
Encapsulation resins possess several beneficial properties and widely adopted in electrical and electronics industry which is expected to provide significant growth opportunity for the global market.
Relevant Reports
A. Resins Market- Forecast (2022-2027)
https://www.industryarc.com/Report/18233/resins-market-research-report-analysis.html
B. Resin Capsules Market- Forecast (2022-2027)
https://www.industryarc.com/Research/Resin-Capsules-Market-Research-500244
For more Chemicals and Materials Market reports, please click here
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.
Contact Information:
Venkat Reddy Sales Director Email: venkat@industryarc.com Website: https://www.industryarc.com Phone: (+1) 970-236-3677
Tags:
Reportedtimes, PR-Wirein, Extended Distribution, Research Newswire, English