Growing Production Facilities and Rising Electronics Manufacturing are Transforming the Asia Pacific Conductive Adhesive Market

June, 2018

The conductive adhesive is a low cost, flip-chip, surface mount technology mostly used for electronic devices. It is widely used for joining surfaces where thermal or electrical energy flow is needed. The conductive adhesive is not a modern technology. This technology has been in the market since a long time in the form of electrically conductive adhesive and thermal conductive adhesive. The hybrid conductive adhesive is the recent technology, which possesses both the properties of electrical & thermal conductivity.

Conductive adhesives are made from embedding the fillers, such as silver or nickel, into diverse types of polymer resins such as silicone, epoxy, acrylic etc. Each conductive adhesive in this range has its own advantages, such as cost-effectiveness, high coercive power etc., which defines its suitability for specific applications. The ease of use coupled with their physical properties enables them to be utilized even in complex shapes. This combination enables them to be utilized in various specific applications including electronic devices and transportation among many others, which suits the diverse needs of the fast-changing consumer preferences, thus enabling their market growth. Based on the materials, they have mainly categorized into polymer types such as silicon based conductive adhesive, epoxy based conductive adhesive, polyurethane based conductive adhesive, and acrylic based conductive adhesive.

The conductive adhesive is creating their market by low-level pricing, easy processing, and more importantly they help in miniaturization of products so that they can fit in any kind of shape. The implementation of government regulations across the countries is increasing the usage of conductive adhesive as well. The conductive adhesive market is largely dominated by developing countries owing to the higher demand coming from electrical & electronics segment. Large manufacturing bases with cheap labor cost of manufacturing in developing countries coupled with the growing domestic demand are driving the market in developing countries such as China and India. Transportation is the next major sector that consumes more conductive adhesives after electrical & electronics sector.

North America is another major region that has a high demand for conductive adhesives. However, unlike developing regions, North America largely contributes toward premium products with its usages in highly priced product ranges, such as medical devices, where efficiency and suitability have more control over market dynamics and cost.

Moreover, conductive adhesives are also facing a tough competition from the traditional soldering methods among the end-users as it is a well-matured market in the bonding segment. However, it is expected that conductive adhesive has ushered some new areas in the bonding technology, some of which are currently in an innovation phase. The improvisation in technology is expected to fuel the market growth of conductive adhesives in the coming years.

The conductive adhesive market has key players such as Henkel, BASF S.E, H.B. Fuller, and Dow Corning. Large employee base companies are covering most of the production for conductive adhesives have the presence across all the globe. However, some smaller and key players are marking their footprint in the market with their expertise in niche segments, which can affect their market share. These new entrants are expected to expand their business and increase the overall competition.

The study produced by Infoholic Research provides drivers, restraints, opportunities with current and emerging market trends. Further, it covers an in-depth analysis of each type and application along with forecast and trends analysis in the global conductive adhesive market.

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