1 Global Epoxy Molding Compounds Market Outlook
The global Epoxy Molding Compounds market is projected to exhibit substantial growth in the coming years, with a CAGR of 13.22% from 2024 to 2033, reaching a total market size of $2301.56 million USD in 2024. Epoxy Molding Compounds are specialized materials used to protect electronic components from environmental factors such as moisture, dust, and mechanical stress. These compounds are essential for ensuring the reliability and longevity of semiconductor devices, integrated circuits, and other electronic components. EMCs are formulated to provide high thermal stability, low stress, and excellent mechanical properties, making them indispensable in modern electronics manufacturing. The market’s growth is closely tied to the expansion of the global electronics industry, particularly in regions with significant manufacturing capabilities, such as Asia-Pacific, Europe, and North America.
Figure Global Epoxy Molding Compounds Market Size and Growth Rate (2024-2033)
2 Epoxy Molding Compounds Market Growth Drivers and Constraints
The growth of the Epoxy Molding Compounds market is influenced by several key factors. On the positive side, the increasing complexity and diversification of consumer electronics, coupled with the rapid adoption of 5G and Internet of Things (IoT) technologies, are driving demand for high-performance EMCs. Additionally, government policies supporting the development of the electronics industry, such as China’s “Basic Electronic Components Industry Development Action Plan (2021-2023),” are providing a stable demand environment for EMC manufacturers.
However, the market also faces several challenges. One significant limiting factor is the rising cost of raw materials, energy, and transportation, which can impact the profitability of EMC producers. Additionally, the industry is highly reliant on skilled technical personnel to manage key production processes, and a shortage of such talent can hinder production efficiency and innovation. Environmental regulations and sustainability requirements are also placing additional pressure on manufacturers to develop eco-friendly and high-performance products.
3 Epoxy Molding Compounds Market Innovations and M&A Activities
Technological innovation is a cornerstone of the Epoxy Molding Compounds market. Companies are continuously investing in R&D to develop new formulations that offer improved thermal conductivity, lower stress, and enhanced mechanical properties. For example, Shin-Etsu Chemical’s KMC series and Hitachi Chemical’s advanced epoxy compounds are designed to meet the stringent requirements of modern semiconductor packaging. These innovations are crucial for maintaining competitiveness and meeting the evolving needs of the electronics industry.
Corporate mergers and acquisitions are also shaping the market landscape. Strategic alliances and consolidations are enabling companies to expand their product portfolios, enhance their technological capabilities, and strengthen their market positions. For instance, Showa Denko’s acquisition of Hitachi Chemical in 2020 was a significant move aimed at consolidating their electronic materials businesses and enhancing their high-tech capabilities. Such activities are expected to continue as companies seek to leverage synergies and achieve economies of scale in a highly competitive market.
In conclusion, the global Epoxy Molding Compounds market is poised for significant growth driven by technological advancements, increasing demand from downstream industries, and strategic corporate activities. However, challenges related to raw material costs, technical talent, and regulatory pressures must be effectively managed to sustain this growth trajectory.
4 Global Epoxy Molding Compounds Market Analysis by Type
In 2024, the global Epoxy Molding Compounds (EMC) market is projected to see significant consumption across different types. Specifically, the market is expected to consume 31,769 tons of liquid EMC, which will account for 7.43% of the total market share by type. Granule EMC consumption is forecasted to reach 124,443 tons, representing 29.11% of the market share. Pellet EMC is anticipated to be the most consumed type, with a volume of 230,476 tons, capturing 53.91% of the market share. Lastly, film EMC is expected to see consumption of 40,820 tons, holding 9.55% of the market share.
Table Global Epoxy Molding Compounds Consumption and Share by Type in 2024
Type | Consumption in 2024 (Tons) | Market Share in 2024 (%) |
|---|---|---|
Liquid | 31769 | 7.43% |
Granule | 124443 | 29.11% |
Pellet | 230476 | 53.91% |
Film | 40820 | 9.55% |
5 Global Epoxy Molding Compounds Market Analysis by Application
In 2024, the global Epoxy Molding Compounds (EMC) market is forecasted to see significant consumption across various applications. Specifically, the OSAT (Outsourced Semiconductor and Test) application is expected to consume 185,018 tons, accounting for 43.28% of the total market share by application. The IDM (Integrated Device Manufacturer) application is projected to consume 122,576 tons, representing 28.67% of the market share. Lastly, the Electronic Device application is anticipated to consume 119,913 tons, holding 28.05% of the market share.
Table Global Epoxy Molding Compounds Consumption and Share by Application in 2024
Application | Consumption in 2024 (Tons) | Market Share in 2024 (%) |
|---|---|---|
OSAT | 185018 | 43.28% |
IDM | 122576 | 28.67% |
Electronic Device | 119913 | 28.05% |
6 Global Epoxy Molding Compounds Market Analysis by Region
In 2024, the global Epoxy Molding Compounds market is projected to reach a value of $2,301.56 million USD. Regionally, Asia-Pacific is expected to lead with a market value of $1,716.10 million USD, representing 74.56% of the global market share. Europe will follow with a value of $216.99 million USD, accounting for 9.43% of the market share. The Americas are forecasted to reach $323.57 million USD, capturing 14.06% of the market share. Lastly, the Middle East & Africa region is expected to contribute $44.89 million USD, holding 1.95% of the global market share.
Figure Global Epoxy Molding Compounds Market Share by Region in 2024
7 Top 3 Companies of Global Epoxy Molding Compounds Market
7.1 Sumitomo Bakelite
Company Introduction and Business Overview:
Sumitomo Bakelite, established in 1932, is a leading global manufacturer of synthetic resins and a member of the Sumitomo Chemical Group. The company is headquartered in Japan and operates manufacturing facilities primarily in Japan, with sales regions extending to North America, Asia, and Europe. Sumitomo Bakelite’s business focuses on the production of high-performance materials used in semiconductor devices, automotive components, and other industrial applications. The company’s products are renowned for their reliability and high quality, making them a preferred choice for electronics manufacturers worldwide.
Products Offered:
Sumitomo Bakelite offers a wide range of Epoxy Molding Compounds tailored to meet the diverse needs of the electronics industry. Their product portfolio includes liquid, granule, pellet, and film types of EMCs, each designed for specific applications such as semiconductor packaging, integrated circuits, and power devices. The company’s products are known for their excellent moldability, low stress, and high thermal conductivity, making them suitable for advanced electronic components.
Sales Revenue in the Latest Year:
Sumitomo Bakelite reported a revenue of $374.86 million USD from Epoxy Molding Compounds. This revenue reflects the company’s strong market position and its ability to capitalize on the growing demand for high-performance materials in the electronics industry. With a gross margin of 39.93%, Sumitomo Bakelite continues to focus on innovation and expanding its product offerings to maintain its competitive edge in the market.
7.2 Hitachi Chemical
Company Introduction and Business Overview:
Hitachi Chemical, founded in 1920, is a prominent player in the global Epoxy Molding Compounds market. The company is headquartered in Japan and has manufacturing bases primarily in the US and Asia. Hitachi Chemical operates worldwide, offering a diverse range of products, including electronic materials, plastic polymers, automotive products, and other chemical-related products. The company’s advanced components and systems segment, which includes Epoxy Molding Compounds, generates the majority of its revenue. Hitachi Chemical is known for its commitment to innovation and sustainability, driving the development of high-performance materials for the electronics industry.
Products Offered:
Hitachi Chemical’s Epoxy Molding Compounds are designed to meet the stringent requirements of modern semiconductor packaging. The company offers a variety of EMC types, including liquid, granule, pellet, and film, each with unique properties tailored for specific applications. Hitachi Chemical’s products are known for their high thermal conductivity, low warpage, and excellent reflow crack resistance, making them ideal for advanced electronic components such as power devices and integrated circuits.
Sales Revenue in the Latest Year:
Hitachi Chemical reported a revenue of $268.73 million USD from Epoxy Molding Compounds. This revenue underscores the company’s strong market presence and its ability to provide high-quality materials to the electronics industry. With a gross margin of 42.37%, Hitachi Chemical continues to invest in R&D and innovation to enhance its product offerings and maintain its competitive position in the market.
7.3 Chang Chun Group
Company Introduction and Business Overview:
Chang Chun Group, established in 1949, is a leading global manufacturer of synthetic resins and electronic materials. The company is headquartered in Taiwan and primarily operates in Asia. Chang Chun Group’s business focuses on the production of high-performance materials, including copper foil, PBT engineering plastics, polyvinyl alcohol (PVA), 1,4-butanediol (1,4-BDO), VAE emulsion, epoxy resins, EVOH, and allyl alcohol. The company’s products are used in a wide range of applications, from consumer electronics to automotive components, making it a key player in the global Epoxy Molding Compounds market.
Products Offered:
Chang Chun Group offers a comprehensive range of Epoxy Molding Compounds, including liquid, granule, pellet, and film types. The company’s products are designed to provide excellent moldability, good mechanical and electrical properties, and high reliability. Chang Chun Group’s EMCs are used in various applications, including semiconductor packaging, integrated circuits, diodes, transistors, photocouplers, and coils. The company’s commitment to innovation and quality has enabled it to develop products that meet the evolving needs of the electronics industry.
Sales Revenue in the Latest Year:
Chang Chun Group reported a revenue of $168.44 million USD from Epoxy Molding Compounds. This revenue highlights the company’s strong market position and its ability to provide high-quality materials to the electronics industry. With a gross margin of 23.97%, Chang Chun Group continues to focus on expanding its product portfolio and enhancing its manufacturing capabilities to maintain its competitive edge in the market.