Electronic Chemicals & Materials Market

Electronic Chemicals & Materials Market Outlook (2024 to 2034)

The global electronic chemicals & materials market size is estimated at a value of US$ 71.7 billion in 2024 and has been forecasted to expand at a CAGR of 5.9% to climb to US$ 127.1 billion by the end of 2034.

Companies in this market produce a wide range of materials that are utilized in semiconductors, displays, and other electronic components. The market is being pushed forward by the rising demand for electronic gadgets across the world, such as tablets, laptops, and smartphones.

A key end user is the semiconductor industry, with silicon wafers being an essential part of this aspect. In addition, the global market has a notable trade imbalance, whereby China and South Korea are the leading importers.

Need for products such as memory chips and data centers has increased with the surging popularity of cloud-based storage solutions. With the rise in the use of mobile devices comes an even faster trend toward smaller semiconductors and integrated chips. When introducing new products, companies are investing significantly in upgrading their existing spaces or constructing new infrastructure.

• Between 2024 and 2034, the application of electronic chemicals & materials in semiconductors & ICs is expected to produce an absolute dollar opportunity of US$ 37.9 billion.
• In 2024, silicon wafers account for 34.9% market share and are estimated to be worth US$ 25 billion.

Report Attribute	Detail
Electronic Chemicals & Materials Market Size (2023A)	US$ 67.4 Billion
Estimated Market Value (2024E)	US$ 71.7 Billion
Forecasted Market Value (2034F)	US$ 127.1 Billion
Global Market Growth Rate (2024 to 2034)	5.9% CAGR
North America Market Share (2024E)	34.5%
East Asia Market Growth Rate (2024 to 2034)	6.2% CAGR
U.S. Market Growth Rate (2024E)	6.6% CAGR
Key Companies Profiled	BASF Electronic Chemicals; Air Products & Chemicals Inc.; Albemarle Corporation; Bayer AG; Honeywell International Inc.; Linde plc; Resonac Holding Corporation; DuPont de Nemours, Inc.; Shin-Etsu Chemical Co. Ltd.; Cabot Microelectronics Corporation; Solvay S.A.; Covestro AG; Global Wafers; Fujifilm Corporation; Air Liquide; Other Prominent Players.

Sales Analysis of Electronic Chemicals & Materials (2019 to 2023) vs. Market Forecasts (2024 to 2034)

The market for electronic chemicals & materials expanded at a CAGR of 5.4% and reached a value of US$ 67.4 billion in 2023. Expanding demand for electronic chemicals and materials across a spectrum of smart devices in the electronics sector is set to drive a steady increase in the sales of these chemicals over the coming years.

Historical Report Attribute	Detail
Market Size (2019A)	US$ 53.8 Billion
Market Size (2023A)	US$ 67.4 Billion
Historical CAGR (2019-2023)	5.4%
Forecasted CAGR (2024-2034)	5.9%

• Short Term (2024 to 2027): In the near term, the market will grow steadily due to the rising demand for electronic gadgets, especially laptops and smartphones. The need for sophisticated materials such as copper, silver, and gold will rise as a result of the trend toward component integration and shrinking. Demand for lead-free soldering alloys and packaging materials that are safe for the environment will also increase.
• Medium Term (2027 to 2030): In the medium term, the adoption of artificial intelligence, self-driving cars, and high-speed Internet will lead to substantial market growth. Demand for battery materials, including lithium-ion batteries and electrolytes, is going up due to the growing electrification of cars. An increase in chip demand and semiconductors will lead to a rise in the revenue from the healthcare, hotel, transportation, infrastructure, social services, and education service sectors.
• Long Term (2030 to 2034): Over the long-term period, the market will exhibit immense transition due to a high focus on sustainability and eco-friendly products. As such, demand for recycled biodegradable packed materials as well as less waste products, which is in line with the Circular Economy Concept, will increase. The market will rely on novel products such as graphene or other nanomaterials such as metamaterials.

According to Fact.MR, the global electronic chemicals & materials size is estimated at US$ 71.7 billion in 2024. Demand is projected to rise at a CAGR of 5.9% to reach US$ 127.1 billion by the end of the forecast period (2024 to 2034).

Why Has Importance of Electronic Chemicals & Materials Increased in Recent Times?

“Rapid Advancements in Technology and Electronic Devices”

Electronic chemicals and materials are mainly used in semiconductors to produce and maintain printed circuit boards and integrated circuits. The electronics sector, which uses a range of materials and chemicals for processes, including cleaning, doping, polishing, etching, and servicing semiconductors, will drive the target market forward. These same processes play a crucial role in terms of technical advancements in the industry.

Demand for specialized electronic chemicals and materials is being driven by the growing need for cutting-edge electronic gadgets and technologies such as artificial intelligence (AI) and the Internet of Things (IoT). Demand for materials with enhanced performance, sustainability, and dependability has been rising with increasing device complexity. For instance, new materials with high-frequency characteristics, such as metals and ceramics, are needed for the development of 5G infra. Similarly, minerals with high-speed processing capabilities, including copper and silver, are needed for AI and IoT applications.

“Rise of Next Generation of Electronic Devices”

Performance and integrity of different types of electronics such as consumer electronics, computers, and communication electronics are dependent on laminates, an essential part of the electronic circuitry. Desire for printed circuit boards that are small, multilayered, and devoid of halogens has increased and is pushing the electronic materials & chemicals market share even higher.

Manufacturing of integrated circuits, LED lights, semiconductors, and LCDs all require extensive use of wet processing chemicals. The Semiconductor Industry Association found that the U.S. market has seen a high growth in semiconductor demand. Wet processing chemicals have become more popular as a result of the growing demand for electronic chemicals and materials brought on by the growing use of these devices worldwide.

What are the Issues Faced by Manufacturers of Electronic Chemicals & Materials?

“Environmental Sustainability Concerns”

The market for environment-friendly electronic chemicals and materials is being driven by regulatory restrictions and growing concerns about environmental sustainability. Sustainable materials and production methods are being used by manufacturers in response to rising consumer demand for products with less of an impact on the environment.

For instance, using biodegradable packaging materials and lead-free soldering alloys is becoming more common.

• Lead and a few other hazardous materials are prohibited from being used in electronics under the European Union's Restriction on Hazardous Substances (RoHS) directive.

Furthermore, the development of recycling systems for electronic trash is being aided by the growing popularity of circular economy programs.

• Regulations on the treatment of electronic trash are also enforced by the US Environmental Protection Agency (EPA).

Furthermore, countries such as South Korea and Japan have put in place their own electronic waste recycling schemes, encouraging the adoption of lead-free solder alloys and biodegradable packaging materials.

Country-wise Insights

Country	CAGR
U.S.	6.6%
China	6.2%
Japan	6.0%
South Korea	6.1%

How is the Market for Electronic Chemicals & Materials Evolving in the United States?

“Market Benefiting from High Volume of Integrated Chip Production"

From 2024 to 2034, the market for electronic chemicals & materials in the United States is projected to expand at a CAGR of 6.6%, mainly due to the expansion of chip manufacturing in the country. The market is valued at US$ 17.1 billion by 2024 and is expected to create an absolute dollar opportunity worth US$ 15.4 billion from 2024 to 2034.

The CHIPS for America Act, which went into force in 2021, allows for financial investments in domestic chip manufacturing initiatives that support chip manufacturing in the U.S., which has significantly increased the demand for electronic chemicals & materials.

The semiconductor industry in the country is the world leader in chip design and semiconductor R&D. Fabless companies and integrated device makers, which together account for about half of worldwide semiconductor sales, are two examples of U.S. enterprises that depend heavily on access to highly skilled engineering people and a robust innovation ecosystem, particularly from top colleges.

What is China’s Stance in This Highly Competitive Market?

“Key Market Trend of Change in Demand Models”

The China market is projected to expand at a CAGR of 6.2% during the projected period of 2024 to 2034. By 2034, the market is projected to reach a size of US$ 21.8 billion.

China is the world's top manufacturer and exporter of raw materials used in electrical devices. The country was forced to halt production during the COVID-19 outbreak. It compelled other electronic manufacturers, mostly from the U.S. and Europe, to temporarily suspend the production of their finished goods, creating a gap in the market for electronic goods. However, by the middle of 2023, there was high demand for a variety of electronic devices, including phones, tablets, laptops, and other gadgets. This was primarily due to the extensive use of teleworking systems.

Category-wise Insights

Which Application Will Account for High Revenue for Companies?

“Semiconductors & ICs Key End Use in This Market”

The semiconductors & ICs application segment is forecasted to expand at a CAGR of 5.9% through 2034. According to projections, the segment will reach a value of US$ 48.7 billion in 2024.

Expanding use of cutting-edge technologies such as 5G, artificial intelligence, and the Internet of Things (IoT) is set to cause a spike in the demand for semiconductors and integrated circuits (ICs). Need for semiconductors and ICs is projected to rise as more systems and gadgets depend on these parts.

A smartphone manufacturer will need a lot of memory chips, microprocessors, and sensors to make high-end handsets with sophisticated features such as fingerprint scanning, facial recognition, and excellent cameras. Leading semiconductor companies will spend on R&D to suit the growing demands of diverse industries, which will drive segment expansion over the coming years.

Why is Demand for Silicon Wafers So High?

“Silicon Wafer Demand Increasing in Tandem with Electronic Device Boom”

Silicon wafers are set to hold 34.9% market share in 2024, being valued at US$ 25 billion.

Demand for electronic devices such as laptops, mobile phones, personal computers, and air conditioners is increasing globally, which is driving up the price of silicon wafers. Silicon wafers are used in the production of integrated circuits and are commonly used as an underlayer in microelectronic devices.

It is projected that having more functions in one device will increase the demand for small devices, which will raise the global use of silicon wafers. Furthermore, it is expected that the growing use of silicon wafers in consumer electronics will also accelerate the growth of the market for electronic chemicals and materials.

Competitive Landscape

Leading companies in the electronic chemicals & materials market are BASF Electronic Chemicals, Air Products & Chemicals Inc., Albemarle Corporation, Bayer AG, Honeywell International Inc., Linde plc, Resonac Holding Corporation, DuPont de Nemours, Inc., Shin-Etsu Chemical Co. Ltd., Cabot Microelectronics Corporation, Solvay S.A., Covestro AG, Global Wafers, Fujifilm Corporation, and Air Liquide.

• In Sep 2023, Resonac Corporation signed a partnership with Matmerize Inc., a start-up that develops new materials based on artificial intelligence (AI). The goal of this collaboration is to revolutionize the process of creating new semiconductors to utilize them in 6G technology.
• In 2022, DuPont introduced a new range of rigid-flex and flexible printed circuit boards (FPCBs) with high-temperature-resistant polyimide sheets. These new films, known as Kapton HT, are appropriate for use in abrasive settings such as automotive and aerospace since they are made to endure temperatures of up to 300°C.

Fact.MR has provided detailed information about the price points of key manufacturers of electronic chemicals & materials positioned across regions, sales growth, production capacity, and speculative technological expansion, in this recently updated market report.

Segmentation of Electronic Chemicals & Materials Market Research

• By Product Type :

  • Silicon Wafers
  • Photoresists
  • Specialty Glass
  • Wet Processing Chemicals
  • PCB Laminates
  • Other Types

• By Application :

  • Semiconductors & ICs
  • PCBs

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa