Liquid Flux Market

Liquid Flux Market Insights

The global liquid flux market revenue is slated to expand at a noteworthy CAGR of more than 7% over the 2021 to 2031 forecast period. Demand for alcohol-based liquid flux will remain high, capturing close to 80% market share over the assessment period. Liquid flux is primarily used to prepare semiconductor surfaces for soldering and to remove any foreign particles that can affect solder quality. Liquid flux finds application in a myriad of end-use industries such as automotive, aerospace & defence, and electronics & communication.

This comprehensive study by Fact.MR on the global liquid flux market is categorized on base, flux, application, and end-use, wherein, all possible elements have been taken into detailed consideration. The foremost objective of the report is to pitch insights on the market scenario, demand generators, and technological advancements in this space. Market trends have been tracked in 20+ high-growth countries, pointing towards countries in North America, Europe, East Asia, and South Asia & Oceania holding substantial market share.

Historical Vs. Future Market Projections

Over the past half-decade, 2016-2020, the global market propagated at a moderate CAGR of 1.8%, substantially stunted by the COVID-19 pandemic. However, digitalization across industries, enhancing productivity, and incorporation of industrial internet of things (IIoT) are projected to be the prime reasons for high growth during the forecast period.

Furthermore, internal supply chain optimization with the integration of electronics and sensors for remote monitoring is ensuring potential growth of the semiconductor market. This, in turn, is driving demand of liquid flux, which finds high application in SMT assembly operations of electronic chips. Moreover, IIoT implementation for increasing the productivity of numerous end-use industries is expected to provide impetus to market growth.

By virtue of the aforementioned factors, the global liquid solder flux market size is projected to increase at a healthy CAGR of over 7% throughout the forecast period (2021 to 2031), providing lucrative growth opportunities for manufacturers.

Manufacturers’ Say Regarding Liquid Flux

Liquid flux finds application in a myriad of large-scale industries, namely automotive, aerospace & defence, and electronics & communication. Larger electronics manufacturers tend to order in bulk and maintain long-term relations with their suppliers. This enables key liquid flux manufacturers to continuously receive orders from larger end-use industries, and occupy a majority market share.

Country wise Analysis

Why is Taiwan a Huge Market for Liquid Flux?

During the historical period, 2016-2020, the market for liquid flux in Taiwan expanded at a moderate pace of 4.6% CAGR. Taiwan has a history of early technological adoption and use, along with supply chain digitalization as well as mobilization of high-end technologies such as 5G and electric vehicle infrastructure.

Extensive use of liquid flux in automobile and electronics & communication equipment manufacturing and assembly has been the main driving force for explicit growth of the market in the country. Furthermore, Taiwan has a host of electronics manufacturers, ranging from Foxconn, Quanta Computers, Wistron, Sinbon, ASE Technologies, Delta Electronics, and TSMC, to name a few. These are primary chip manufacturers in the world.

Owing to these reasons, Taiwan is poised to remain a lucrative market for liquid flux, and expand at an impressive CAGR of 10.5% over the forecast period.

What Makes China an Attractive Market for Liquid Flux Manufacturers?

China, generally known as the manufacturing hub of the world, is poised to dominate the market over the coming years due to extensive manufacturing within the country, as it is being foreseen with optimism. The government’s initiative to electrify automobile infrastructure by the end of the decade also complements market growth.

Moreover, the country has started listing hydrogen as an energy source to promote FCVs and provide sizeable subsidies for developing new energy vehicles (NEVs). The Chinese Government is leaving no stones unturned regarding this. Besides, increasing penetration of electric vehicles in the country is poised to bolster demand for liquid flux in future.

Owing to above mentioned factors, the market for liquid flux in China is poised for higher growth at a CAGR of close to 9% over the forecast period.

Will Demand for Liquid Flux in the U.S. Increase in Coming Years?

During the historical period, the U.S. market did not show any growth potential, owing to the already mature market place. However, recently, the Biden administration signed an executive order in 2021 to conduct 100 days survey of supply chains of products, including computer chips and large capacity batteries.

This was done in order to address the semiconductor chip shortage, which is, in turn, hampering the production of automobiles, smartphones, and consumer electronics. This will result in the U.S. trying its best to make the country self-sufficient in semiconductor manufacturing and reduce its dependence on East Asia for its electronics components.

Category-wise Insights

How Big is Liquid Flux Demand for SMT Assembly Application?

A semiconductor mount assembly is an automated process of mounting semiconductors on a printed circuit board or respective electronics circuits. It generally includes various packaging steps, ranging from die preparation, die attachment, wire bonding, encapsulation, and lead trimming & finishing.

Selective soldering machines in semiconductor mount assembly operation, being the primary consumer of liquid flux, requires around 1 to 1.5 liters of liquid flux to be operational the entire day. As a majority of consumer electronic products involve sophisticated electronic components, continuous mounting of semiconductors requires smooth liquid flux supply. This ensures that semiconductor mounting is done properly and a solid connection is established between the PCBs and semiconductors without any corrosion or foreign particle in between.

What is the Opportunity in Electronics & Communication for the Liquid Flux Industry?

Majority of end-use industries are undergoing unprecedented changes and moving towards IoT and automation. Owing to the ongoing pandemic situation around the world, manufacturers are moving towards integrating electronics and remote monitoring to keep their workflows moving.

Additionally, with the advent of 5G infrastructure, network operators need to update their electronics equipment and replace existing transmitters and receivers to support this newer technology. This means that smartphone and electronics chip manufacturers need to update their existing devices. This, in turn, will increase demand from the electronics manufacturing industry and result in increased consumption of liquid flux in the long run.

Moreover, increased electrification of automobiles is causing a rise in demand for electronics from the automotive sector as well, ultimately providing impetus to market growth.

Will the Defense Sector Aid Demand Growth for Liquid Flux?

Budgets for defense, especially given the geopolitical tensions, are expected to continue to be largely stable in 2021. Global spending on defense is projected to hit the US$ 2 trillion mark, as a majority of nations around the world continue to expend their armed forces in the aftermath of global pandemic, which has triggered heightened diplomatic tensions.

This is either possible by integrating their existing military equipment and vehicles with latest technology and semiconductor electronics or completely purchasing newer technology from allied nations, both of which require liquid flux during assembly and packaging operations. Even during the repair of these electronics, embedded equipment will drive demand for liquid flux.

Is the Automotive Industry a Noteworthy End Use of Liquid Flux?

Consumption of electronic automotive components for protection, infotainment, navigation, and fuel efficiency will increase over the coming years because of the growing use of electronic components in advanced safety features in vehicles. Demand for ICs, MCUs, and sensors has increased, keeping in mind the need of the growing consumer base across the world. This, however, requires industrial flux for the mounting and assembly operations of semiconductors, thereby ultimately giving a push to the use of liquid flux during the forecast period of 2021-2031.

Competitive Landscape

The aforementioned market players are considered prominent players in manufacturing liquid flux. Further, key market players are focusing on gaining access to untapped regions. This strategy is helping them stay competitive and deliver products with higher profit margins. Targeted acquisitions, capacity expansions, and improved product offerings within the industry are key for sustaining in this industry.

• For instance, AIM Solder opened a 12,000 sq. ft. manufacturing facility in Malaysia in 2020. This will help it deliver locally manufactured flux to customers in nearby locations in lesser time.
• Further, Alpha Assembly Solution’s parent Element Solution completed the acquisition of Kester in 2019. Kester, being one of the leading market players in liquid flux, joined the Alpha Assembly division after the acquisition. This helped Alpha Assembly improve its overall product portfolio and align their strategic priorities, thereby enabling both companies to provide innovative products at the lowest possible cost.
• Alpha Assembly and Kester offer diversified products as per the customized needs of numerous end-use industries, making these companies the first preference for a majority of end-users. 

Report scope

Attribute	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value
Key Regions Covered	North America Europe East Asia South Asia & Oceania Rest of the World
Key Countries Covered	U.S. Canada Germany France U.K. China Japan Taiwan Vietnam
Key Segments Covered	Base Flux Application End-use Industry Region
Key Companies Profiled	AIM Solder Alpha Assembly Solutions Canfield technologies Henkel Adhesives Technologies Indium Corporation Kester MG Chemicals The Harris Product Group Warton Metals Ltd.

Key Questions Answered in Report

• How will the market expand until 2031?

  Fact.MR projects the global market to register a CAGR worth over 7% across the 2021-2031 assessment period. High demand for integrated electronics and emergence of newer electronics manufacturing clusters in addition to existing ones are driving the market forward.

• Which is the most prominent growth engine for this industry?

  As per Fact.MR’s projections, Taiwan is expected to pivot expansion, attributed to the already established electronics manufacturing cluster, which is looking boldly towards maintaining its dominance in the global electronics manufacturing market, in turn, furthering liquid flux demand growth.

• What technological breakthrough dominates the market?

  In recent years, there is growing consensus in the industry for the convergence of IT/OT. Companies are now moving towards AI and automating industries with the help of advanced electronics to provide consumers with advanced products.

• Who are the prominent liquid flux manufacturers?

  Prominent liquid flux providers include AIM Solder, Alpha Assembly Solutions, Canfield technologies, Henkel Adhesives Technologies, Indium Corporation, Kester, MG Chemicals, The Harris Product Group, Savolite, Stannol, and Warton Metals Ltd.

Key Segments Covered of Market

• By Base

  • Water-based Liquid Flux
  • Alcohol-based Liquid Flux
    • Rosin Containing
    • Rosin Free

• By Flux

  • No Clean Liquid Flux
  • Water Soluble Liquid Flux

• By Application

  • Liquid Flux for SMT Assemblies
    • Selective Soldering
    • Wave Soldering
  • Liquid Flux for Semiconductor Packaging
  • Liquid Flux for Rework
  • Others

• By End-use Industry

  • Automotive
  • Aerospace & Defense
  • Electronics & Communication
  • Recycling
  • Others

• By Region

  • North America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Rest of World