The semiconductor packaging material market is expected to grow at a compound annual growth rate of 5.82% over the forecast period to reach a market size of US$36.183 billion in 2027, from US$24.349 billion in 2020.
The Semiconductor Packaging is used to protect the ICs and semiconductors from corrosion and other environmental conditions and therefore ensures a stable connection of the chip. These semiconductor chips are therefore used in various industrial segments including automotive, aerospace, electronics, manufacturing, healthcare, etc., and constitute an important material used in the production process.
Semiconductor Packaging Material Industry is directly related to the semiconductor industry of the globe. The rapid Industrialization powered by a high scale of investment in manufacturing, automotive, and other sectors is the major driving factor behind the growth of the Semiconductor Packaging Material Market. Growing penetration of IoT, Machine Learning, etc. is expected to play an integral role in the development of the semiconductor packaging material market. Also, the growing demand for electronic gadgets is directly proportional to the semiconductors market growth, therefore positively impacting the Semiconductor Packaging Material Market. Asia-Pacific is expected to have the highest market share in the market in this market owing to the presence of key industries in this region. Besides that, the low cost of labor, increasing demand for electronic gadgets, and technological advancement in the region are expected to play a vital role in the market development.
The global shortage of semiconductor chips is one of the major restraints that is projected to hamper market growth in the coming years. Besides that, high labor costs, and increasing cost of raw materials can also serve as severe obstacles in the market growth.
The rising industrial investment in the economies around the globe powered by high scale adoption of IoT, automation, technical advancement, Artificial Intelligence, Cloud-based Software, etc. together is expected to contribute significantly towards the Semiconductor Packaging Material market. This is because semiconductor chip is a vital tool that is always in high demand across various industries like automotive, aerospace, electronics, etc. High industrial growth is therefore linked with high demand for semiconductor chips and to ensure their durability and performance, the packaging material market can experience vital growth.
One of the prime examples for that is the increasing Robot Density (the proportion of the total number of operational robots in industries relative to the number of industrial workers) around the globe that is used to track the automation adoption in a region. Robots require semiconductors in their processing units to gather external information and data. According to the International Federation of Robotics average robot density in the manufacturing industry hit a new global record of 126 units per 10,000 employees. With the rising technological advancement, these statistics hold a positive future for the semiconductor packaging material market due to its wide-scale adoption in robot manufacturing and handling.
The economic development around the nations has positively impacted the disposable income of the people. This has significantly contributed towards the change in living standards and has positively impacted the electronic gadgets market by the rising adoption of smartphones, laptops, etc. Electronic companies use semiconductor chips in high numbers and with the projected increase in their adoption in the coming years, the need for semiconductor material packaging is also expected to witness significant growth.
One of the prime examples under this is the increasing use of electric and hybrid vehicles which is a significant highlight for this market. Electric Vehicles are the future of the globe and their vehicle battery and software systems require semiconductors to access various functions. This requires corrosion-free and undamaged semiconductors which are provided by its packaging and material market. Therefore, with the growing adoption of EVs, the semiconductor chips packaging material market stands in a significant position.
Currently, the world is going through a major problem of semiconductor shortage. The pandemic has put enormous pressure on this industry with the imbalance between high demand and low supply. This has severely impacted the electronics and automation industries. With the fall in the production of semiconductor chips, the semiconductor material packaging market also took a hit. The production of the chips has still not revived and this holds the possibility for major restraints for the Semiconductor Packaging Material Market.
Another major restraint for the Semiconductor Packaging Material Market is the high cost of raw materials. Several factors like the increasing price of copper, shipping charges, shortage of semiconductors are responsible for this surge in cost which can hold various restraints for the growth of the Semiconductors Packaging Material Market.
Impact of COVID-19 Pandemic:
With the outburst of the Covid pandemic across the globe, the primary motive of the institutions shifted towards handling and curbing the disease pandemic for which governments across the nations announced lockdown, curfew, social distancing, etc. Industries and operations were asked to temporarily shut down which hampered their growth to a large extent. Due to the negative growth in automotive, electronics, aerospace, IT, and other industrial segments, the semiconductor packaging material market experienced a hit.
|Market size value in 2020||US$24.349 billion|
|Market size value in 2027||US$36.183 billion|
|Growth Rate||CAGR of 5.82% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Industry Vertical, Technology, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Amkor Technology Inc., ASE Group, Taiwan Semiconductor Manufacturing Company, Limited, Toray Industries, Inc., Samsung Electronics Co. Ltd., Intel Corporation, Powertech Technology Inc. (PTI), ChipMOS Technologies Inc., Henkel AG & Co. KGaA, Kyocera Corporation|
|Customization scope||Free report customization with purchase|
Die Attach Material
By Industry Vertical
IT & Telecommunication
Aerospace and Defense
Small Outline Package
Quad Flat Package
Single In-Line Package
Dual In-Line Package
Middle East and Africa
Frequently Asked Questions (FAQs)
Q1. What are the growth prospects for the semiconductor packaging material market?
A1. The global semiconductor packaging material market is expected to grow at a CAGR of 5.82% over the forecast period.
Q2. What will be the semiconductor packaging material market size by 2027?
A2. The self-cleaning filters market is expected to reach a market size of US$36.183 billion by 2027.
Q3. What is the size of the global semiconductor packaging material market?
A3. Semiconductor Packaging Material Market was valued at US$24.349 billion in 2020.
Q4. What factors are anticipated to drive the semiconductor packaging material market growth?
A4. The rapid Industrialization powered by a high scale of investment in manufacturing, automotive, and other sectors is the major driving factor behind the semiconductor packaging material market growth.
Q5. How is the semiconductor packaging material market segmented?
A5. The semiconductor packaging material market has been segmented by type, industry vertical, technology, and geography.
Amkor Technology Inc.
Taiwan Semiconductor Manufacturing Company, Limited
Toray Industries, Inc.
Samsung Electronics Co. Ltd.
Powertech Technology Inc. (PTI)
ChipMOS Technologies Inc.
Henkel AG & Co. KGaA
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