Encapsulants are resin-based materials used to enclose something, mostly electronic circuits, and sensitive electronic components. They are designed to minimize the impact of shock, vibration, heat, conductivity, moisture, and chemicals on the performance of electronic products. Encapsulants increase the performance reliability and long-term durability of the electronic products.

The encapsulants market is estimated to be USD 1.26 Billion in 2017 and is projected to reach USD 1.64 Billion by 2022, at a CAGR of 5.5% from 2017 to 2022 The increasing complexity & functionality of electronics devices and the trend of miniaturization in devices are among the major reasons for the growing importance of encapsulants in the semiconductor & electronics industry. Electronics devices are usually made of small components and structures, which have to be arranged properly and accurately. Any flaw in the connection can result in the faulty functioning of the devices. Encapsulants play a vital role in maintaining the accuracy of the arrangement by creating a layer on the structure of the device and ensuring that all components are in place.

Based on chemistry, the silicone segment of the encapsulants market is projected to grow at the highest CAGR during the forecast period. The growth of this segment can be attributed to the increasing demand for electric vehicles and consumer electronic devices.

Based on curing type, the room temperature curing segment of the encapsulants market is projected to grow at the highest CAGR during the forecast period. Room temperature curing systems offer easy processing and high reliability.

Asia Pacific accounted for the largest share of the encapsulants market in 2016, followed by the North American region. Increased demand for encapsulants from the Asia Pacific region can be attributed to the rapidly growing end-use industries, such as consumer electronics and transportation. The availability of skilled labor at lower wages in this region also attracts manufacturers.

Volatility in raw material prices could restrain the global encapsulants market. Raw materials required for the manufacturing of encapsulants are derived from petroleum-based resins. Therefore, fluctuation in crude oil prices could act as a major restraint for the encapsulants market.

Companies operating in the encapsulants market have adopted strategies such as new product launches, expansions, and mergers & acquisitions to enhance their market shares and expand their distribution networks across the globe. These companies engage in R&D activities to innovate and develop products that can open avenues for new end-use industries. For instance, in February 2017, Dow Corning added five new optical encapsulants to its fast-growing portfolio of advanced LED Solutions. These new products will help the company increase its competitiveness in addressing different industry problems. In June 2016, Henkel also developed a thermally conductive techno melt solution. This development helped enhance the company’s product portfolio.

The visionary leaders are the market leaders with established brands. In the encapsulants market, Dow Corning Corporation (U.S.), Henkel AG & CO., KGaA (Germany), Lord Corporation (U.S.) and Shin-Etsu Chemicals (Japan) are considered as the visionary leaders. These companies possess the largest market shares, wide geographical presence, and product portfolios catering to a large number of applications.

Innovators are the leaders in adopting innovative strategies and product development. They introduced new products, processes, and technologies to improve the quality of products and increase customer satisfaction. The products or techniques are designed to meet the gaps or unmet needs of end-use industries. Innovators also invested significantly in research & development activities. The companies considered as innovators are Sumitomo Bakelite Co., Ltd. (Japan), Panasonic Corporation (Japan), and Kyocera Corporation (Japan).

These companies are in the introduction phase of their business in the encapsulants market or have not made significant development in terms of product portfolio. Companies such as ACC Silicones (U.S.), Master Bond Inc. (U.S.), Epic Resins (U.S.), Engineered Material Systems, (U.S.), Resin Technical Systems (U.K.), Sanyu Rec Co., Ltd. (Japan), John C Dolph (U.S.), GS Polymers (U.S.), Nagase & Co., Ltd. (Japan), Epoxies, ETC (U.S.), Creative Materials Incorporated (U.S.), and Aptek Laboratories, Inc. (U.S.) are considered as emerging players in the market.

Encapsulants Market (GLOBAL) competitive leadership mapping, 2017

Source: Secondary Research and MarketsandMarkets Analysis