Potting Compound Market Outlook - 2027
The global potting compound market size was valued at $3.1 billion in 2019, and is projected to reach $4.1 billion by 2027, growing at a CAGR of 3.9% from 2020 to 2027.
Potting is a process of filling or introducing solid compounds in complete electronic assembly for shock and vibration resistance, and protection from moisture and corrosive agnates. In electronic silicon and epoxy resins are frequently used, which are known as potting compounds or potting material. Besides these two resins, few other types of resins are also used that includes polyurethane, polyester, polyamide, polyolefin, and acrylic.
These potting compounds are extensively used in the electrical and electronics industry for protecting the products from moisture, and shock. Some of the associated advantages with these compounds are low viscosity, semi-rigid, and flexible compositions & are ideal for large volume production applications.
For the purpose of analysis, the global potting compound market is segmented into resin type, curing technology, application, end user and region. Based on the resin type, the market is bifurcated into polyurethane, silicone, epoxy, polyester, polyolefin, polyamide, and others. On the basis of curing technology, it is classified into UV curing, thermal curing, room temperature curing.
Furthermore, it focusses on various applications of potting compounds, which include electrical and electronics applications. The key end users of potting compounds are electronics, aerospace, automotive, industrial, others. The report covers the revenue generated by potting compounds across various regions such as North America, Europe, Asia-Pacific, and LAMEA.
Key players operating in the global potting compound market are Altana AG, Aremco Products, Inc., Dow, Inc., Dymax Corporation, Henkel AG & Co. KGaA, Hitachi Chemical Co., Ltd., Huntsman International LLC, Lord Corporation, Master Bond, Inc., MG Chemicals, RBC Industries, Inc., Shanghai SEPNA Chemical Technology Co., Ltd., Wacker Chemie AG, Wevo-Chemie GmbH, and 3M.
Other players operating in the potting compound market are Epic Resins, Intertronics, Electrolube, ACC Silicones Ltd., EFI Polymers, and others.
The key players are adopting numerous strategies such as product launch and acquisition to stay competitive in the potting compound market.
For instance, Master Bond, Inc. (an adhesive & epoxy production company) launched new product named Master Bond Supreme 112. It is a two-port epoxy for bonding, sealing, potting and impregnation applications. This strategy has enhanced the product portfolio of the company.
By Resin Type
Silicone is projected as the most lucrative segment.
Potting compound Market, by Resin Type
By resin type, the silicone resin segment held the highest global potting compound market share of about 29.8% in 2019 and is expected to maintain its dominance during the forecast period. This is owing to the increase in demand from the automotive, electronics, photo voltaic & solar power, and aerospace & transport systems sectors.
By Curing Technology
UV Curing Technology is projected as the most lucrative segment.
Potting compound Market, by Curing Technology
By curing technology, the UV curing technology segment accounted for the largest share of about 56.1% in 2019 in terms of revenue and is expected to maintain its dominance during the forecast period. This growth for UV curing technology is attributed to increase in demand from semiconductor devices and rise in sales of mobile and consumer electronic devices in bonding and assembling application.
Electronic is projected as the most lucrative segment.
Potting compound Market, by Application
On the basis of application, the electrical segment accounted for the largest share in terms of revenue and is expected to grow at a CAGR of 3.4%. This is owing to the increase in demand from the electrical applications such as surface mount packages and beam bonded components.
By End User
Electronics is projected as the most lucrative segment.
Potting compound Market, by End User
By end user, in 2019, the electronics segment held the largest share of about 43.6%, in terms of revenue, and is expected to grow at a CAGR of 4.2%. This is attributed to increase in demand for potting encapsulants and adhesives from the electronics industry assembly processing. In addition, increase in demand for electronics components from the developing economies such as China, India, Japan and other developing nations, is projected to drive the growth of the market during the forecast period.
Asia-Pacific holds a dominant position in 2019 and would continue to maintain the lead over the forecast period.
Potting compound Market, by Region
Asia-Pacific garnered the dominant share in 2019 and is anticipated to maintain this trend during the forecast period. This is attributed to numerous factors such as presence of huge consumer base and the existence of key players in the region. Moreover, presence of developing countries such as China, Japan, Australia, and India are anticipated to contribute toward the growth of the potting compound market in Asia-Pacific.
COVID-19 Impact on the Market
The outbreak of COVID-19 has negatively impacted various industries and countries across the globe. Adoption of lockdown across the globe has halted the production of electronics parts, which restrains the growth of the potting compound market. In addition, there has been delay in the supply of raw materials required in the manufacturing of electronics components.
This disruption to supply chains may increase if the spread of virus continues to increase globally. Due to this pandemic, uneven effects are seen on the electronic industry, as there is an increase in demand for medical electronic devices and other essential electronic components to cope with the COVID-19 effect. Thus, all these factors collectively are antedated to result in sluggish growth of the global potting compound market in 2020 and is expected to increase by the end of the first quarter of 2021.
Key Benefits For Stakeholders
- The report includes in-depth global potting compound market analysis of different segments and provides market estimations between 2020 and 2027.
- A comprehensive analysis of the factors that drive and restrict the growth of the global potting compound market is provided.
- Porter’s five forces model illustrates the potency of buyers & sellers, which is estimated to assist the market players to adopt effective strategies.
- Estimations and potting compound market forecast are based on factors impacting the global potting compound market growth, in terms of value.
- The key market players are profiled to gain an understanding of the strategies adopted by them.
- This report provides a detailed analysis of the current global potting compound market trends and future estimations from 2020 to 2027, which helps identify the prevailing market opportunities.
Potting Compound Market Report Highlights
By Resin Type
By Curing Technology
By End User
Key Market Players
HENKEL AG & CO. KGaA, WACKER CHEMIE AG, AREMCO PRODUCTS, INC., LORD CORPORATION, HITACHI CHEMICAL CO., LTD., SHANGHAI SEPNA CHEMICAL TECHNOLOGY CO., LTD., WEVO-CHEMIE GmbH, MG CHEMICALS, HUNTSMAN INTERNATIONAL LLC, RBC INDUSTRIES, INC., ALTANA AG, 3M, MASTER BOND INC., DOW, INC., DYMAX CORPORATION
According to the perspectives of CXOs of various companies in the potting compound market, growth is entirely dependent on the rise in the electronics and electrical industry. In addition to this, technological advancements can fuel the product innovation in the same industry, thereby offering scope for further usage of potting compounds. Preferable properties of potting material in the electronics application is the major factor that drives the market. Asia-Pacific is the largest regional market, both in terms of value and volume for potting compound, due to presence of an established electronics and electrical industry in China, Japan and high sale of consumer electronics across the region.
The perfectly suitable properties of potting compound for electronic applications and increased consumer electronic industry output and trend for miniaturization is driving the growth of the potting compound market globally. However, improper selection of potting resins for various applications is expected to hamper the market growth during the analyzed timeframe. Gradual adoption of two component polyurethane potting compounds by the end users across the globe is expected to create numerous opportunities for the key players in the global potting compound market in the upcoming years.
Renowned global market leaders such as Master Bond, Inc., Huntsman International LLC, Altana AG, Henkel AG & Co. KGaA and 3M are adopting various key growth strategies to strengthen their market position. Furthermore, these companies are focused on product launch and acquisition to cater to the increasing demand for potting compounds.
Among the analyzed regions, Asia-Pacific is projected to account for the highest revenue in the market throughout the forecast period, followed by North America, Europe, and LAMEA.