Isotropic Conductive Adhesive Market Size (2023 – 2030)

The Global Isotropic Conductive Adhesive Market was valued at USD 1.6 billion and is projected to reach a market size of USD 2.75 billion by the end of 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 7%. 

Over the years, the market for isotropic conductive adhesives has grown significantly. In the past, it was mainly used in the electronics industry as an alternative for soldering materials. It is now employed in a variety of industries including medical, aerospace, automotive, and others. Because of its exceptional properties, it finds applications in a wide range of industries, increasing its demand. Recent trends and inclement towards sustainability, R&D efforts, rising demand, industry advancements, and developing economies are expected to support the sector's continued development, resulting in new job opportunities over the next decade. This market is expected to grow tremendously throughout the projected period.

Key Market Insights:

• As per Statistics, the number of mobile devices is expected to reach 18.22 billion by 2025, an increase of 4.2 billion devices compared to 2020 levels. This will further boost the growth of isotropic conductive adhesives.

• Environmental compliance regarding isotropic conductive adhesive increased by 15-20% in the past few years.

• Employment opportunities in the R&D sector accounted for 15-20% in the past 3 years.

• Sales and marketing activities for isotropic conductive adhesive increased by 20% in recent years.

• Automotive and electronic industries are facing issues regarding miniaturization. R&D activities are being carried out to address this issue by developing advanced materials that have more consistent performance and efficient connections.

Isotropic Conductive Adhesive Market Drivers:

The increasing need for miniaturization in electronic devices is the main driver driving the market expansion.

The growing trend of miniaturization in electronic devices is likely to fuel the electrically conductive adhesive market growth rate.  Isotropic conductive adhesives offer benefits like quicker, smaller, lighter, thinner, more powerful, reliable, and energy-efficient consumer and industrial electronic devices. Implementing this strategy reduces the unnecessary expenses that might occur during manufacturing. During the forecast period, with more focus on research and developmental activities more prominent miniaturized devices coupled with creativity as well as innovations are expected to aid the market development.

Extensive use in various end-user industries because of their advantages is fueling the growth.

Isotropic conductive adhesives are associated with a lot of beneficial properties. Because of the presence of filler components, electrically conductive adhesives have unique properties such as moisture resistance, minimal shrinkage, and strong bonding. Moreover, it can prevent electromagnetic radiation released by electrical gadgets. With the use of computer technology like the Internet of Things (IoT), Data analytics, simulation modeling, and many more the market is projected for further advancement. This has increased their use in various like automotive, electronics, consumer goods, telecommunication, military & and defense. Furthermore, economic development and rising investments are paving the way for more technological advancements and smart technologies thereby increasing the market enlargement.

Isotropic Conductive Adhesive Market Restraints and Challenges:

Environmental problems, costs, miniaturization, Governmental policies, and thermal management are the main restraints the market is currently facing.

Tackling environmental issues is one of the major concerns the market is currently facing. The disposal of electronic waste results in a lot of land pollution and waste generation. Secondly, handling the costs associated with manufacturing and processing can cause hindrances to growth. Thirdly, the miniaturization of equipment is challenging in terms of maintaining consistency, efficiency, and accuracy. Moreover, Governmental restrictions and adherence to all the rules as well as regulations can be neglected by many industries and units. Furthermore, managing thermal properties can be difficult demotivating the manufacturers.

Isotropic Conductive Adhesive Market Opportunities:

Isotropic conductive adhesives are used in various applications. They are used in the renewable energy sector for solar and wind turbines. Secondly, with the rising prominence of electric vehicles, the market scope for isotropic conductive adhesives is expected to show a drastic increase. According to a report, electric car registration has seen a spike of more than 40% year-on-year in 2020. The advent of 5G and IoT is presenting this sector with an ample number of opportunities. The healthcare industry has been an aid with the shift towards remote monitoring of various implants, wearable devices, and monitoring equipment. Extensive research activities are being conducted especially in the computer, electric, and electronics industries to find sustainable and environment-friendly options.

ISOTROPIC CONDUCTIVE ADHESIVE MARKET REPORT COVERAGE:

Isotropic Conductive Adhesive Market Segmentation: By Resin Type

• Thermoset Composites

• Thermoplastic Composites

Based on chemistry, the epoxy segment is the largest growing segment. As per a report, it is expected to grow at a CAGR of 8.8%. The dominance of this segment is due to factors like cost effectiveness, demand especially in the automotive industry, short processing time, extended shelf life, room temperature storage, electrical continuity, electrical conductivity, thermal stability, compatibility, and chemical resistance. Their share is likely to be around 33% in the market. Silicone-based segment was the fastest growing holding a share of around 25% in the market. Silicone is associated with properties like flexibility, electric insulation, biocompatibility, high resistance to temperature, and reliability making it a popular choice. In the forecast period, this segment is predicted to witness notable growth.

Isotropic Conductive Adhesive Market Segmentation: By End-Use Industry

• Building & Construction

• Automotive

• Electrical & Electronics

• Aerospace & Defense

• Sporting goods

• Wind Energy

• Others

Based on filler material, the silver segment was the largest growing in the market. As per a report, it is projected to grow at the highest CAGR of 9.46% during the forecast period. Silver as a filler material is a popular choice because of its high conductivity, thermal resistance, compatibility, lower contact resistance, and miniaturization. They hold a share of around 50%. Carbon is the fastest growing filler material having a share exceeding 25%. The cost-effectiveness and electrical conductivity make this an apt choice for manufacturers. Additionally, properties like flexibility, lesser environmental impact, and availability of various forms help in expansion.

Based on application, automotive is the largest growing application projected to grow at a CAGR of 8.90% during the forecast period. Their total share exceeds 30%. Isotropic conductive adhesives are extensively used in the automobile industry as a connecting connector for advanced driver assistance systems (ADAS) cameras and radars, as well as light detection and ranging. Properties like miniaturization, shock and vibration resistance, robust connection, temperature, and safety play a crucial role. Consumer electronics is the fastest-growing segment. Isotropic conductive adhesives are lightweight and provide flexibility and advanced functionalities. They occupy a share of about 20-30%.

Isotropic Conductive Adhesive Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

Based on region, Asia Pacific is the largest and fastest-growing region. It has a share of around 50% and is projected to grow at the highest CAGR of 9.83% during the forecast period. China, Japan, and India are the leading countries. Rising investments in research and development are making a difference. In addition, expanding demand, new company establishments, technological advancements, higher production, industrialization, urbanization, rising incomes, and government efforts and plans are moving the economy ahead. End-use industries such as automotive, consumer electronics, and healthcare also contribute to greater income creation.

COVID-19 Impact Analysis on the Global Isotropic Conductive Adhesive Market:

The COVID-19 launch hurt the market. It resulted in tighter restrictions in almost all locations to prevent the virus from spreading. Lockdowns, social isolation, and movement limitations became the new normal. The supply chain, manufacturing schedules, logistics, and import-export trade were all interrupted, resulting in an economic downturn. According to a survey, approximately 85% of enterprises had supply chain disruptions. The shutdown of factories and industries was a major setback. In addition, a lack of personnel delayed the execution of various initiatives. Following the pandemic, the industry is gradually gaining up, with regulatory relaxations and lockdowns being eased.

Latest Trends/ Developments:

The companies in this market are motivated to achieve a higher market share by implementing different strategies, such as acquisitions, partnerships, and investments. Companies are also spending heftily on the development of improved products and sustainable alternatives alongside maintaining competitive pricing. This has further resulted in increased government engagement and further enlargement.

Potential future applications of isotropic conductive adhesives include usage in biomedical, energy storage, robotics, artificial intelligence, virtual & and augmented reality, IoT, textile, and many more industries. The desire for creating environmentally friendly alternatives and improving the existing ones is projected to broaden the applications. Furthermore, R&D projects to enhance human knowledge are being prioritized.

Key Players:

1. Henkel AG & Co. KGaA

2. 3M Company

3. Hitachi Chemical Co., Ltd.

4. Panacol-Elosol GmbH

5. Creative Materials Inc

6. AI Technology, Inc.

7. AIM Solder

8. The Dow Chemical Company

9. NAMICS Corporation

10. Parker Chomerics

In May 2023, Bodo Möller Chemie Group expanded its cooperative partnership with manufacturer Henkel Adhesive Technologies. The special chemicals company would also distribute to Belgium, Luxembourg, and the Netherlands with a focus on products for electrical and electronic applications as well as for e-mobility, sensors, lighting, rail, and aerospace, which included the complete Bergquist product range of thermally conductive materials.

In February 2022, reports suggested that Arkema announced the acquisition of Shanghai Zhiguan Polymer Materials (PMP), a company that specializes in hot-melt adhesives for the consumer electronics market. This project was in line with Bostik’s strategy to build a strong position in the attractive engineering adhesives market and to accelerate its development in the fast-growing electronics market, especially in Asia.