Electronic Grade Hydrogen Peroxide Market

Electronic Grade Hydrogen Peroxide Market Outlook

The global electronic-grade hydrogen peroxide market (EGHP) is set to enjoy a valuation of US$ 1.4 billion in 2022 and further expand at a CAGR of 4.6% to reach US$ 2.2 billion by the end of 2032.

Wet chemicals find enormous opportunities across numerous processes including cleaning, etching, and others. Hydrogen peroxide proves to be the most promising cleaning agent among all wet chemicals.

Report Attributes	Details
Electronic Grade Hydrogen Peroxide Size (2021A)	US$ 1.2 Billion
Estimated Market Value (2022E)	US$ 1.4 Billion
Forecasted Market Value (2032F)	US$ 2.2 Billion
Global Market Growth Rate (2022-2032)	4.6% CAGR
North America Market Share (2022)	~9.6% CAGR
North America Market Value (2022)	US$ 133.6 Million
China Market Share (2022)	~31.8%
Market Share of Top 3 Countries	~40.0%
Key Companies Profiled	Arkema S.A. Changchun Group Evonik Industries Grasim Industries Mitsubishi Gas Chemical Company, Inc. Santoku Chemical Industries Co., Ltd Solvay SA Taekwang Industrial Co., Ltd.

Comprehensive Analysis of Sales and Consumption Pattern

In the electronics sector, hydrogen peroxide is a chemical that is frequently used for cleaning and etching purposes. Other notable uses include the production of flat panel displays and semiconductor wafer cleaning.

The consistent need for efficient and high-speed processing with reduced size has increased the number of process steps in the chemical mechanical planarization process to offer high polished semiconductor wafer surface. Due to its impressive cleaning properties offered by hydrogen peroxide has emerged as a choice of cleaning agent among semiconductor manufacturers.

The Internet of Things (IoT) revolution has increased the number of semiconductor chips and equipment. The introduction of IoT in semiconductors goes hand in hand with an exponential increase in the number of chips, giving the spotlight to novel chip manufacturing materials. Thus, the demand for hydrogen peroxide is also expected to gain momentum for cleaning purposes.

• Short Term (2022 Q2 to 2025): Expanding utilization and integration of the market in the semiconductor industry will positively impact the market’s growth.
• Medium Term (2025-2028): China and Taiwan are anticipated to witness high market demand on the back of the growing semiconductor Industry.
• Long Term (2028-2032): With the trend of miniaturization and various government initiatives to increase semiconductor production, demand for the EG hydrogen peroxide goes up exponentially in the long run.

According to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at a 4.6% CAGR between 2022 and 2032.

Market share analysis of electronic grade hydrogen peroxide based on application and region is provided in a nutshell in the above image. Under the application segment, the etching sub-segment dominates with a 62.1% market share in 2022.

“Economies of Scale in Electronic Production Driving EGHP Market”

Manufacturers are concentrating on increasing their market share and presence in the highly competitive electronics industry by providing cutting-edge products in a shorter time frame, at a lower cost, with better product quality and higher performance.

Electronic manufacturers, especially those from European nations, are investing in Eastern production clusters to meet the market's growing need for smaller, thinner, and cost-effective electronic gadgets. Nowadays, wireless communications are evolving as the driving force behind convergence. Digital convergence has been posing significant design challenges to system manufacturers.

Moreover, the growing demand for the miniaturization of electronic components into a printed circuit board at low cost develops the relocation of their labor-intensive manufacturing facilities to the Asia Pacific. Thus, East Asia has become a strategic location for global electronics devices vis-à-vis consumption of electronic-grade chemicals including hydrogen peroxide.

“Need for Clean and Etch ICs Are Set to Propel the Demand for EGHP”

The need for IC (integrated circuit) process chemicals has been driven by growing silicon wafer surface area and fab capacity, and new developing technologies are expected to keep this trend going. The number of steps in the manufacturing process and the demand for etching and cleaning solutions have increased as a result of the complexity of semiconductors.

Wet processing is necessary for the semiconductor manufacturing process for the effective cleaning of small geometries and tools. EGHP, hydrogen fluoride, sulphuric acid, nitric acid, ultrapure water, and other wet chemicals are the main chemicals that match the purity level required by semiconductor makers. Additionally, as devices and systems become more connected, demand for sensors, actuators, microcontrollers, and other semiconductor devices is expected to rise.

The desire for high levels of product purity from improved and future technologies will increase the use of wet process chemicals over the forecast period.

“Noxious Effect of Hydrogen Peroxide Products to Obstruct the Growth”

The main drawback to using hydrogen peroxide products is that they can be highly dangerous to handle if they contain hydrogen peroxide more than 3%. Concentrated hydrogen peroxide products should only be utilized in industrial or research settings, and even then, under close supervision.

Asphyxiation in poorly ventilated regions can be caused by inhaling concentrated hydrogen peroxide in the form of vapors, mists, or aerosols. Additionally, for the majority of fundamental materials, such as copper alloys or heavy metals, it speeds up thermal breakdown on its own. It should therefore be handled and maintained correctly to avoid any possible health hazards.

The chemical can be damaging to the skin, eyes, and respiratory system due to its potent oxidizing properties. Long-term exposure might cause hair whitening and skin and eye discomfort. To prevent health risks, they should be handled and stored carefully.

Country-wise Insights

Why does China stand out as one of the Prominent Destinations for EGHP manufacturers?

Due to the presence of numerous manufacturers and the high production capacity of electronic devices, China is the world's largest producer of electronic devices and components. China leads the consumption of the global market because it accounts for over 1/3rd of the global semiconductor manufacturing capacity.

• Continuous fabrication capacity expansions in China are poised to drive the regional and global market requirements during the forecast period. Owing to this, the production of ICs in China is poised to expand at a high annual growth rate of over 10% till the midterm forecast creating additional demand for the market.

China still tops the ladder in terms of its consumption and is poised to have a market share of 31.8% in 2022.

What is the Current Scenario of the Market in the US?

The US has been identified as promising consumers of hydrogen peroxide. This is mainly attributed to the multibillion-dollar integrated chip and semiconductor industry that exist in the country. The US is anticipated to increase its share of the fabrication capacity of semiconductors owing to the support of the country’s government funding under the CHIPS for America Act.

Growing demand for semiconductor wafer cleaning, printed circuit board etching, photovoltaic manufacturing, and flat panel display is the reason behind the increasing requirement for the market in the US.

In response to increasing fab capacity, regional market players have been investing in the United States to increase their production capacity which will drive the regional market during the forecast period.

Category-wise Insights

Which Application is Triggering the EGHP Requirement?

It is extensively used in the etching of printed circuit boards as it acts as a strong oxidizer allowing the acid to eat away the copper. The growth of new energy vehicles directly boosts demand for automotive printed circuit boards (PCB), owing to consumers demanding safer, more comfortable, intelligent automobiles, resulting in vehicles being modified to be electrified and digitalized.

Advanced driver-assistance systems need many PCB-based components such as sensors, controllers, and safety systems, thus spurring the demand for the market.

Globally, the Printed Circuit Boards (PCB) industry is the primary consumer of the market. Growing electrical and electronics demand has been identified as the major driver for chemical consumption in the application.

How is EGHP as an Etching Agent Increasing the Sales?

Its consumption as an etchant (etching agent) is projected to account for a major share of the market. This is mainly attributed to the effectiveness of chemicals being mainly used as semiconductor silicon wafer cleaning agents.

Additionally, hydrogen peroxide as an etching agent has been extensively used for the treatment of copper alloys, gallium, and germanium in the electronic industry, which has infused its use case over the years.

The continuous evolution of electronic components across a wide umbrella of industries creates a likely atmosphere for PCB manufacturing. This creates wide opportunities for hydrogen peroxide to be used for etching purposes.

Attributed to these mentioned factors electronic-grade hydrogen peroxide as an etching agent will grow significantly.

Competitive Landscape

Prominent market players are Arkema S.A., Changchun Group, Evonik Industries, Grasim Industries, Mitsubishi Gas Chemical Company, Inc., Santoku Chemical Industries Co., Ltd, Solvay SA, and Taekwang Industrial Co., Ltd, others.

Market players are targeting higher purity levels of hydrogen peroxide along with investments in novel technologies and capacity expansions. Setting up facilities across the major semiconductor markets remains the top strategy for market leaders in the market. Burgeoning demand for the market has pushed manufacturers to increase their production capacities.

• In March 2021, Solvay announced that it has built a new production line for high-grade hydrogen peroxide for the electronic industry. Capacity expansion is aimed at providing high-grade chemicals to the semiconductor industry. Also, expansion is poised to enhance Solvay’s market position over the coming years.

Fact.MR has provided detailed information about the price points of key manufacturers of electronic-grade hydrogen peroxide positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Electronic Grade Hydrogen Peroxide Industry Research

• By Primary Function :

  • Etchant (Etching Agent)
  • Oxidizing & Cleaning Agent

• By Concentration :

  • 30% -32%
  • Above 32%

• By Contamination Level :

  • <100 ppb
  • <10 ppb
  • <1 ppb
  • <0.1 ppb
  • <0.01 ppb

• By Application :

  • Printed Circuit Board Etching
  • Semiconductor Wafer Cleaning
  • Flat Panel Display Manufacturing
  • Photovoltaic Manufacturing
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA