Liquid Encapsulation Market Size, Share, Opportunities, And Trends By Material Type (Epoxy Resins, Epoxy-Modified Resins, Others), By Product (Integrated Circuit, Optoelectronics, Sensors, Others), By Application (Automotive, Communication And Technology, Consumer Electronics, Manufacturing), And By Geography - Forecasts From 2025 To 2030
- Published : May 2025
- Report Code : KSI061610206
- Pages : 143
Liquid Encapsulation Market Size:
The liquid encapsulation market is expected to grow from USD 1.940 billion in 2025 to USD 2.444 billion in 2030, at a CAGR of 4.73%.
Liquid encapsulation is a method that entails the application of substances such as polymers, metals, and ceramics to solid or liquid devices to shield them from shocks and moisture. This protective layer is employed to maintain device functionality and prevent disconnections among electrical components. Epoxy resin and epoxy-modified substances are commonly employed for this encapsulation process.
The dynamic growth of the liquid encapsulation market can be attributed to several key factors. Firstly, the increasing complexity and operability of electronic devices, coupled with the trend toward miniaturized electrical components, are driving market expansion. Additionally, the rapid growth of the telecommunications and electronics industries, alongside the rising demand for sensor devices, wireless technologies, and optoelectronics, has led to greater utilization of encapsulation methods. For example, in June 2023, the University of Waterloo introduced a novel encapsulation technology developed by its research department known as the liquid-liquid encapsulation system. This innovation boasts significantly lower energy consumption, being at least 5000 times less intensive, and it eliminates the use of microplastics during encapsulation.
Liquid Encapsulation Market Drivers:
- The growing application of semiconductors across various industries is propelling the market growth.
The surging trend towards miniaturized semiconductor devices is fueling the demand for liquid encapsulation technology. This method is vital in the production of semiconductor devices, used for tasks like under-filling, cavity filling, advanced packaging, and glob-top encapsulation. It enhances the efficiency of smaller, more intricate electronic devices without compromising quality. As electronics and semiconductors consist of delicate components requiring precise placement, this factor is expected to boost market growth. Liquid encapsulation is also crucial for device operation, preventing component malfunctions in electronic devices, thus accelerating its growth.
According to The Semiconductor Industry Association (SIA) global semiconductor industry sales by region, data shows that in 2022, the global semiconductor industry sales were led by China, with sales figures reaching $15.67 billion, closely followed by the Americas, which recorded sales of $11.84 billion. Subsequently, the Asia-Pacific/all other regions also showed substantial sales, totalling $12.91 billion, reflecting a dynamic and competitive global market. Increased sales of semiconductor plays a pivotal role in bolstering the liquid encapsulation market as they create demand for miniaturized semiconductor devices resulting in a surge in its market growth.
- It is projected that the Taiwan liquid encapsulation market will grow steadily.
Liquid encapsulation refers to the technology of developing MEMS devices and in comparison, to epoxy molded compounds liquid encapsulant's high flexibility enables them to be used in semiconductor, chip-on-board, ICs, and transistors applications. Taiwan is one of the leading semiconductor manufacturing countries and with booming end-user demand for ICs in electrical & electronics and automotive, the country is witnessing a significant increase in its ICs production which is expected to provide a positive scope for the usage of liquid encapsulation technology for boosting the mechanical strength of wire-bonded devices. For instance, according to the Taiwan Semiconductor Industry Association, in 2022, Taiwan’s IC revenue stood at NT$4,837 billion which represented an 18.5% increase over 2021’s revenue figure of NT$4,082 billion.
Moreover, the favorable initiatives undertaken by the National Science and Technology Council, Taiwan to bolster the country’s presence in IC manufacturing on a global scale has further augmented the market growth. Furthermore, the well-established presence of major liquid encapsulant providers such as Nitto Denko Corporation and Taiwan PU Corporation is acting as an additional driving factor. Also, the growing applicability of MEMS in automotive for inertia, gas, optical, and pressure sensors coupled with the bolstering growth in such end-users is anticipated to simultaneously increase the demand for liquid encapsulation for safeguarding MEMS from external environment factors. According to the International Organization of Motor Vehicle Manufacturers, in 2022, Taiwan’s automotive production stood at 2,65,320 units which signified a 6% increase over 2020’s production volume of 2,45,615.
Segmentation:
- By Materials
- Epoxy Resins
- Epoxy-Modified Resins
- Others
- By Product
- Integrated circuit
- Optoelectronics
- Sensors
- Others
- By Application
- Automotive
- Communication and Technology
- Consumer Electronics
- Manufacturing
- By Geography
Frequently Asked Questions (FAQs)
The liquid encapsulation market is expected to reach a total market size of US$2.444 billion by 2030.
Liquid Encapsulation Market is valued at US$1.940 billion in 2025.
The liquid encapsulation market is expected to grow at a CAGR of 4.73% during the forecast period.
The Asia Pacific region is anticipated to hold a significant share of the liquid encapsulation market.
The growing application of semiconductors across various industries is propelling the liquid encapsulation market growth.
1. INTRODUCTION
1.1. Market Overview
1.2. Market Definition
1.3. Scope of the Study
1.4. Market Segmentation
1.5. Currency
1.6. Assumptions
1.7. Base, and Forecast Years Timeline
2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Force Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. LIQUID ENCAPSULATION MARKET BY MATERIALS
5.1. Introduction
5.2. Epoxy Resins
5.3. Epoxy-Modified Resins
5.4. Others
6. LIQUID ENCAPSULATION MARKET BY PRODUCT
6.1. Introduction
6.2. Integrated circuit
6.3. Optoelectronics
6.4. Sensors
6.5. Others
7. LIQUID ENCAPSULATION MARKET BY APPLICATION
7.1. Introduction
7.2. Automotive
7.3. Communication and Technology
7.4. Consumer Electronics
7.5. Manufacturing
8. LIQUID ENCAPSULATION MARKET BY GEOGRAPHY
8.1. Introduction
8.2. Americas
8.2.1. USA
8.2.2. Others
8.3. Europe, Middle East and Africa
8.3.1. Germany
8.3.2. UK
8.3.3. France
8.3.4. Others
8.4. Asia Pacific
8.4.1. China
8.4.2. Japan
8.4.3. Taiwan
8.4.4. South Korea
8.4.5. Others
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
9.1. Major Players and Strategy Analysis
9.2. Market Share Analysis
9.3. Mergers, Acquisitions, Agreements, and Collaborations
10. COMPANY PROFILES
10.1. BASF
10.2. Epic Resins
10.3. Panasonic Corporation
10.4. Sumitomo Bakelite
10.5. KYOCERA Chemical Corporation
10.6. Shin-Etsu Chemical
10.7. Nagase & Co.
10.8. Nitto Denko Corporation
10.9. Resin Technical systems
10.10. CAPLINQ Corporation BAE Systems
BASF
Epic Resins
Panasonic Corporation
Sumitomo Bakelite
KYOCERA Chemical Corporation
Shin-Etsu Chemical
Nagase & Co.
Resin Technical systems
CAPLINQ Corporation BAE Systems
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