According to a new report published by Allied Market Research, titled, "Polyimide Film Market by Application and End Use: Global Opportunity Analysis and Industry Forecast, 2021–2030,"the global polyimide film market was valued at $1.7 billion in 2020, and is projected to reach $3.0 billion by 2030, growing at a CAGR of 5.6% from 2021 to 2030.
Polyimide film exhibit superior chemical, thermal, and physical properties over a wide range of temperature range, making it suitable for electrical insulation applications. In addition, polyimide films are used as a heat-resistance film material in motors of electric vehicles.
The aerospace sector is witnessing significant growth majorly due to the presence of resources, and intense R&D activities. Moreover, increase in foreign direct investment (FDI) inflow has created huge opportunities in the aerospace sector. For instance, according to a report published by the India Brands Equity Foundation, the FDI inflow of over $463.55 million has been registered in the defense and aerospace sector as of June 2020. Polyimide films are widely used in aerospace components such as principle wire and cable insulation, semiconductor, and circuit boards in commercial aircraft, missiles, and space vehicles. This may act as one of the key drivers of the polyimide film market. In addition, both developed and developing economies such as the U.S., China, and India are consistently engaged in expanding their aerospace & defense power by upgrading their fighter jets and missiles where polyimide films are widely used in wire and cable insulation to maintain the functionality even at cryogenic temperatures. Thus, escalating demand from the aerospace sector is predicted to notably contribute toward the global market.
However, the manufacturing process of polyimide films involves several stages such as preparation of resin mixture, synthesizing, polymerization, and imine treatment. In addition, these processes require skilled professionals and highly sophisticated machines to impart several significant properties such as high tensile strength, electrical insulation, high thermal stability, and excellent dielectric properties. These all factors adds to high production cost of polyimide films, thereby hampering the market growth.
Polyimide films are used for making labels along with other materials such as silicon release material and printable topcoat. Polyimide film-based labels are used in electronic industry, owing to their stability and enhanced heat- and chemical-resistant properties. Surge in demand for a wide range of consumer goods has propelled the growth of logistics and packaging sector, wherein polyimide films are widely used in dispensing, printing, or applying labels in packages. In addition, rapid technological advancements have led the electronic industry to witness a significant increase in demand. Polyimide films are being used for producing labels in a wide range of electronic products, which is anticipated to create remunerative opportunities for the expansion of the global market in the coming future.
The global polyimide films market is segmented on the basis of application, end use, and region.
Depending on the application, the market is segregated into flexible printed circuit, pressure sensitive tape, wire & cable, specialty fabricated product, and others. The flexible printed circuit segment dominated the global market in terms of revenue in 2020, with over one-third of the total share. The proliferating demand for consumer electronic devices such as smartphones and laptops, wherein polyimide films are widely used in manufacturing flexible printed circuits boosts the market growth. Furthermore, factors such as lightweight, economical nature, design freedom, simple structuring, and flexibility have made the key electronic products manufacturers to use polyimide film-based flexible printed circuits.
On the basis of end-use, the market is fragmented into electronics, automotive, aerospace, labelling, and others. The electronic segment dominated the global market, with over one-third of the total share in 2020. The proliferating demand for electronic consumer products such as smartphones and laptops, where polyimide films are widely used for manufacturing flexible electric circuits fosters the market growth. Moreover, increase in investments for upgrading of power transmission and distribution systems in both developed and developing economies where polyimide films are widely used as a prime insulating material is expected to notably contribute toward the market growth.
Region wise, the polyimide film market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific polyimide film market is projected to grow at the highest CAGR during the forecast period. India is witnessing a rapid increase in automotive sectors, where polyimide films are widely used as a prime insulation material in motors of both light and heavy-duty vehicles. In addition, consumer electronic sector in Japan is growing rapidly due to rise in foreign direct investment (FDI) inflow. This is expected to propel the demand for polyimide film in the Japan’s consumer electronics sector for insulation and winding applications.
The key players operating in the global polyimide films market include Arakawa Chemical Industries Ltd., DuPont, FLEXcon Company Inc., Kaneka Corporation, KOLON Industries, Saint Gobain, SHINMAX Technology Ltd., Taimide Tech. Inc., Toray Industries Inc., and UBE Industries Ltd.
The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The major end users of polyimide films such as electronics, aerospace, automotive, labeling, and solar have been negatively impacted due to the pandemic outbreak. The ongoing health crisis has further increased the supply–demand gap, thus hampering the global polyimide film supply chain. According to an article published by the Economic Times, the exports of electronic products such as wires and cables, and semiconductors have declined due to supply chain issues. Moreover, several electronics companies have either shut down or shrank their operations due to the risk of infections among the workforce. Moreover, more than 100 countries have sealed their international borders for transportation and halted nonessential trade activities, which, in turn, have reduced the consumption of polyimide films among several end-use sectors. In addition, the falling income of customers and international travel restrictions have led to a contraction of the demand for polyimide films among the aerospace sector. For instance, according to a report published by the Airlines for America, the commercial airline passenger volume in September 2020 was 68% less than in September 2019, affecting long-term existential threats to manufacturers, the supply chain, and the entire air travel industry. Moreover, COVID-19 has put a temporary brake on various aircraft manufacturing projects, which, in turn, has shrunk the demand for polyimide films among the aerospace sectors.
In 2020, polyimide film prices are expected to be higher in Asia. The price rise is majorly attributed to continued regional demand trends and tight product availability. Firm downstream polyimide film demand and stronger upstream costs are expected to sustain the price gain.
However, the polyimide film market is expected to recover rapidly post-COVID-19 situation due to its increased dependency on the electronics sector. Moreover, the sales of electronic products such as wires and cables, televisions, and laptops have increased where polyimide films are widely used for insulation purposes. For instance, according to data released by the International Data Corporation (IDC), the shipment of notebooks surged by the impressive growth of 17.6% during April–June 2020. This is expected to enhance the performance of the polyimide film market post COVID-19.
Key Findings Of The Study
- The flexible printed circuits application segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 6.0% from 2021 to 2030.
- The electronics segment is anticipated to register the highest CAGR of 5.9% during the forecast period.
- Asia-Pacific garnered the highest share of 43.4% in 2020, in terms of revenue, growing at a CAGR of 6.2%.