Hermetic packages refer to those packaging solutions or techniques that are used to pack electronic products or compact electronic components to protect the components from environmental hazards such as moisture, air, and chemicals among others. These are airtight packaging solutions that prevent the entry of various substances that may further destroy or hamper the quality of the component packed inside. Also, these packages prevent the substances to disrupt the connections and electrical circuits inside the package. The wide applications of miniaturized components across various industries including aerospace and defense, automotive, consumer electronics, and medical electronics products among others. The growing demands for various products across these industries are resulting in increased production of various devices and components thereby positively impacting its demand over the next five years.
The hermetic packaging market has been segmented on the basis of configuration, type, application, end-user industry, and geography. On the basis of configuration, the segmentation has been done on the basis of multilayer ceramic packages, metal can packages, pressed ceramic packages. By type the segmentation is done into ceramic-metal sealing, glass-metal sealing, passivation glass, transponder glass, and reed glass. By application, the market has been classified on the basis of transistors, lasers, photodiodes, airbag ignitors, and others. On the basis of application the classification has been done into military and defense, aeronautics and space, automotive, energy and power, and others. Geographically, the market is segmented into North America, South America, Europe, Middle East and Africa, and Asia Pacific.
By type, the ceramic metal sealing segment is anticipated to hold a considerable share in the market owing to its burgeoning applications across various industries that operate at high temperatures, require special chemical resistance and high voltage withstanding. These also offer better insulation from electrical signals which is also positively impacting the market growth in the next five years. The reed glass segment is projected to show a decent growth during the next five years as the growing applications of reed switches across various industries is widening up the opportunities for this segment to grow during in the near future. These packages are considered as innovative solutions across the packaging industry, thereby instigating its adoption throughout various end-use industries.
By application, the airbag ignitors segment is anticipated to show a robust growth throughout the forecast period. The major factors supplementing the growth of this segment over the next five years include the inclination of governments towards the safety of passengers that has led to the formation of numerous regulations related to the installation of airbags in passenger vehicles. For instance, in Brazil, in 2013, new auto-safety regulations were made which mandated the requirement of frontal airbags for both the driver and the passenger and ABS for all new vehicles to be sold in the country after 2014. Also, vehicle safety has developed substantially over the last decade, primarily driven by developments in Europe, Japan, and the United States (US) with vehicles in these regions are now built to comply with and exceed minimum regulatory standards. This, in turn is also projected to positively impact the market growth during the next five years as the integration of new technologies such as ADAS, ABS, and EBS among others which will instigate the applications of various electronic components, thereby driving the demand during the coming years.
By the end-user industry, the automotive segment is projected to show decent growth during the next five years primarily on account of the healthy growth of the automotive sector. Furthermore, the various government initiatives towards the increased investments in electric and hybrid vehicles are anticipated to be a prime factor which is propelling the opportunities for the market to grow in the near future. Also, the growing focus of the automobile manufacturers and governments of numerous countries towards the safety of vehicles is also propelling the growth opportunities in the near future. The aeronautics and space industry is projected to hold a healthy market share throughout the forecast period on account of the increasing investments by major private and public players in the space exploration sector, which is supplementing its share in the market over the course of next five years.
Geographically, the North American region is projected to hold a noteworthy share in the hermetic packaging market on account of the availability of the state-of-art infrastructure and the presence of well-established industries in countries like the U.S and Canada among others. Furthermore, the presence of key market players in the region also supports the hermetic packaging market growth in the region throughout the forecast period.
The major factor that is considered to inhibit the market growth during the short run is the recent outbreak of the deadly coronavirus disease. The market is projected to experience downfall during the next eight to ten months as the manufacturing facilities are shut-down due to the pandemic crisis. This is due to the fact that many end-use industries are not in operation, in addition to the product manufacturing units, due to labor shortages. Also, the trend of social distancing, lockdown, and work-from-home measures are being taken to prevent the spread of this deadly disease. Furthermore, different regulatory standards for various industries is also considered to be a tough challenge for the manufacturers to develop the products and meet the requirements of different industries.
ABOUT THE AUTHOR:
Rachit Gulati is a Market Research Analyst at Knowledge Sourcing Intelligence, working on estimates and global/regional specific reports on multiple industries ranging from automation to food and beverages, with a special knack for automotive and healthcare. With the addition of his formal education in Economics, Commerce, and Finance, he is able to provide more light on the macro aspects of the story. To read more articles by him, and for more information regarding multiple global markets, visit https://www.knowledge-sourcing.com.