Electronic Board Level Underfill and Encapsulation Material Market Outlook (2024 to 2034)
The global electronic board level underfill and encapsulation material market is valued at US$ 386.3 million in 2024 and is forecasted to expand at a CAGR of 6.9% to reach US$ 752.8 million by 2034.
In flip-chip applications, electronic circuit board level underfills are typically used to reduce the thermal pressures solder bumps encounter due to a mismatch in the coefficient of thermal expansion between two dies or a die and the substrate. These underfill are composed of a variety of components, including alumina, silicon, and epoxy polymer.
Electronic circuit board level underfills are considered appropriate for large-scale integration packages and solid-state drives in various consumer electronics products, including smartphones, tablets, mobile phones, digital cameras, laptops, and others, due to their high ductility and exceptional impact resistance.
In addition, the work-from-home and online education cultures are driving up demand for laptops globally, which will contribute to the market expansion in the coming years. For example, the American Customer Satisfaction Index data indicates that while several Americans spent more time at home, the demand for laptops climbed steadily.
Throughout the projected period, flip chips will be in the highest demand. Demand for ball grid arrays will also rise during the projected period. The development of gaps in the flip-chip process is showing an impact on the market's expansion, contributing to the increasing electronic board level underfill and encapsulation material market growth.
- The market is showing a considerable growth rate in the North American region due to the presence of established countries including the United States and Canada. These countries are showing profitable growth in technology, leading to more suppliers and manufacturers increasing their business activities in these countries.
- In the North American region, the market is estimated to increase from US$ 79.4 million back in 2019 to US$ 110.5 million in 2024
| Report Attribute |
Detail |
| Electronic Board Level Underfill and Encapsulation Material Market Size (2024E) |
US$ 386.3 Million |
| Forecasted Market Value (2034F) |
US$ 752.8 Million |
| Global Market Growth Rate (2024 to 2034) |
6.9% CAGR |
| East Asia Market Value (2034F) |
US$ 289.1 Million |
| North America Market Share (2034F) |
29.1% |
| Underfills Segment Value (2034F) |
US$ 346.2 Million |
| Mexico Market Value (2034F) |
US$ 18.8 Million |
| Key Companies Profiled |
Dymax Corporation; Panasonic Corporation; Protavic International; YINCAE Advanced Materials, LLC; AI Technology, Inc.; Indium Corporation; H.B. Fuller Company; The Dow Chemical Company; ELANTAS GmbH; Zymet; Sanyu Rec Co., Ltd.; Epoxy Technology, Inc.; Namics Corporation; ASE Group; MacDermid Alpha Electronic Solutions; Parker LORD Corporation; Henkel AG and Co. KGaA. |
Why is the Market Promising Big Profits for Manufacturers?
“Usage of Smartphones Generating Lucrative Opportunities for Market Players”
Materials for electronic circuit board level underfill are a crucial component of smartphones, serving to link the board with wires and offer impact resistance against drops and sharp temperature fluctuations. Worldwide demand for smartphones is rising, and production is keeping up to meet the growing desire from consumers for new and creative models. Throughout the projection period, the market's growth will be aided by the rising demand for smartphones.
According to estimates from the India Brand Equity Foundation, the smartphone market is estimated to rise rapidly in 2022, with 190-200 million devices projected to be shipped by that year. The increased usage of electrical circuit board level underfill materials is attributed to the tremendous rise in smartphone use globally, thereby propelling the market's expansion.
“Extensive Use of Electronic Boards in Laptops Profiting the Market”
Materials for electronic circuit board level underfill are widely used in laptops. Solid-state drives and extensive integration packages are utilized in laptops. With rising sales and production, the demand for laptops is rising dramatically on a worldwide scale, and this is estimated to fuel market expansion over the coming years. For example, as per the India Brand Equity Foundation's 2021 statistics, Lenovo is increasing its capacity for local manufacturers in India, including several product categories, such as laptops.
According to Apple's financial report for the third quarter of 2021, net sales of MacBook were US$ 8235 million in June 2021 compared to US$ 7079 in the same month the previous year. The growing need for laptops is evaluated to encourage the usage of more electronic circuit board level underfill material, which will eventually propel market expansion for the coming years. These factors are ultimately contributing to the expanding electronic board level underfill and encapsulation material market size.
“Rising Trend of Miniaturization of Electronic Devices Bringing New Opportunities”
There is an increase in the count of components present on printed circuit boards due to the miniaturization of electronic devices. Due to this expanding tendency, there is a greater need for printed circuit boards (PCBs) with flip-chip technologies that are more compact, thin, and highly integrated. Microelectromechanical systems (MEMS) and nanotechnology are widely accepted and used in several sectors, including consumer electronics. The rate at which electronic gadgets are becoming smaller will soon cause a spike in PCB demand.
Underfill materials are used in encapsulation and cavity filling as a result of the miniaturization of available electronic devices, including laptops, consumer electronics, smartphones, and others. This has created opportunities for market players.
What is Pushing the Global Market Backward?
“Voids in Flip-Chip Process Weighting Down the Market”
One of the key areas of concern has been the production of voids in the flip-chip process, which are adversely impacting market growth throughout the projection period. The underfill application of materials during flip-chip device manufacturing assembly leads to demonstrating the package's dependability. Filling time is slowed down by void creation that occurs during the underfill process.
Because premium materials are always pricey, producers looking for economical alternatives are finding it difficult to get them. It will be technically difficult to develop materials, which will fulfill strict specifications and standards. The selection of materials will be influenced by regulatory pressure to choose ecologically friendly materials.
Country-wise Insights
As technological advances increase and more people get addicted to technology, the use of the electronic board is increasing across countries including the United States, Japan, Canada, and South Korea. The United States is analyzed to hold a strong electronic board level underfill and encapsulation material market share in North America.
What is the Reason for Expansion of the United States Market?
“Presence of Strong Technology Sector Promising Prospects for Manufacturers”
| Attribute |
United States |
| Market Value (2024E) |
US$ 79.1 Million |
| Growth Rate (2024 to 2034) |
7.5% CAGR |
| Projected Value (2034F) |
US$ 163.5 Million |
The country has a strong presence of several technological companies including smartphones and laptops. As these laptops and smartphones have extensive use of the electronic board, suppliers in the market are showing great interest in establishing and increasing their business activities.
The widespread use of technology is leading to the increasing population of smartphone users, which is further creating a foundation for electronic board manufacturers to make profits. Added to this the government is bringing changes in laws in such a manner that exports become much easier and profitable and opening new gateways for manufacturers to increase their profit margins significantly.
How Manufacturers in China are Bringing New Sales Opportunities?
“Electronic Industry Proving to be Profitable for Electronic Board Manufacturers”
| Attribute |
China |
| Market Value (2024E) |
US$ 77.5 Million |
| Growth Rate (2024 to 2034) |
7.9% CAGR |
| Projected Value (2034F) |
US$ 166.5 Million |
The electronics industry is one of the most dynamic areas of the economy in China. There is increased expenditure in the electronic manufacturing sector, which is contributing to its noteworthy expansion. China is an important emerging market rather than a rival in the Asian electronics industry. China serves as a hub for product assembly, bringing in a wide range of parts and components from other Asian countries and exporting them all over the world, as a result, it is increasingly becoming a new electronic board level underfill and encapsulation material market trend.
Compared to other East Asian countries, which manufacture consumer electronics, China enjoys a competitive advantage in the electronics business. China's strong supply chain and supplier network enable it to complete big-volume orders with shorter lead times, thereby contributing to its industrial strength. These factors are generating the need for underfill and encapsulating materials in China as the electronics sector grows.
Category-wise Evaluation
Several products are introduced in the market including underfills and gob top encapsulations. Both categories are pacing forward and bringing new profits for the manufacturers in the market.
Which Electronic Board Level Underfill and Encapsulation Material Making More Profits?
“Gob Top Encapsulations Becoming More Profitable”
| Attribute |
Gob Top Encapsulations |
| Segment Value (2024E) |
US$ 204.8 Million |
| Growth Rate (2024 to 2034) |
7.1% CAGR |
| Projected Value (2034F) |
US$ 406.6 Million |
The material, which is gaining strength for manufacturers to generate profits, is gob top encapsulations. These encapsulations are proving to be more profitable due to their ability to provide enhanced protection for electronic components from external elements such as moisture, dust, and other environmental factors. This increased protection leads to improved durability and reliability of electronic devices, which are highly valued by consumers.
Additionally, gob-top encapsulations offer manufacturers a competitive edge by enabling them to meet stringent industry standards and regulations for product reliability and safety. As a result, manufacturers command premium pricing for electronic boards featuring gob-top encapsulations, thus contributing to higher profit margins.
Competition Landscape
Key players in the electronic board level underfill and encapsulation material industry are focusing on bringing new trends due to increasing competition. More manufacturers are trying to reach a larger customer base, as they will be spreading their worldwide footprints. Furthermore, continuous attempts are being made to improve the performance and cost parameters for several applications. Moreover, companies are also focusing on growing their production and distribution networks in the Asia Pacific region because of the presence of several producers of electronic materials.
Fact.MR provides detailed information about the price points of key manufacturers of electronic board level underfill and encapsulation material positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.
