Potting compound Market Expected to Reach $4.1 Billion by 2027

According to a new report published by Allied Market Research titled, “Potting compound Market by Resin Type, Curing Technology, Application, and End User: Opportunity Analysis and Industry Forecast, 2020–2027,” 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. The global potting compound market is expected to be heading toward the expansion phase during the forecast period. This is due to shift in trends in the electrical and electronics industry and consistent rise in the electronic production. Factors such as rise in single residence families and increase in urbanization, boost the electronic production. Rise in disposable income of the middle-class population leads to purchase of advanced electronics products, thereby fueling the growth of this industry. It altogether has created the need to produce more electronics products and parallel need for the protection of these devices. Potting compounds are significantly used in the assembly of these products to ensure the safety by driving its adoption.

Since the overall scope of potting compounds is covered in the electronics and electrical applications, shift in trends and technological impact on the electronics and electrical industry are expected to offer extensive growth opportunities during the forecast period. Microelectronics is one of the trends observed in the electronics industry that is driven by consumer preference for smaller as well as portable devices from mobile phones and LCD to air conditioners. Potting compounds are significantly used in the assembly of these products to ensure optimum safety. Some of the potting resins are application specific, hence, improper selection of resin can damage the overall electric assembly and component as well. This factor can hamper the growth of the overall potting compound market over the assessment period.

Depending on the resin type, the silicone resin segment held the highest 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.

On the basis of 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.

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.

On the basis of end user, 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.

On the basis of the region, the market is analyzed across four major regions such as North America, Europe, Asia-Pacific, and LAMEA. 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. The global potting compound market analysis covers in-depth information of the major industry participants. 

The key players operating and profiled in the report include 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 value chain of the global potting compound market are Epic Resins, Intertronics, Electrolube, ACC Silicones Ltd., EFI Polymers, and others.

COVID-19 Impact on the Market

The outbreak of COVID-19 has negatively impacted various industries and countries across the globe. Owing to the lockdown imposed, globally, decrease has been witnessed in the growth rate of the industries such as construction & building, electronics, oil & gas, and energy sectors. 

This has further declined the need for electronic component in the building and construction sector, which, in turn, has hampered the growth of the potting compound market in the next one or two years. In the Europe region, economies such as Germany, France, Spain and Italy are following stringent measures such as attaining social distance and limiting movements to prevent the spread of coronavirus.

Key Findings Of The Study

• By resin type, the silicone resin segment accounted for majority of the share of the global potting compound market in 2019 and is expected to maintain its lead throughout the forecast period. 
• By curing technology, the UV curing segment accounted for about 56.1% of the share in the global potting compound market in 2019 and is expected to maintain its dominance till the end of the forecast period.
• By application, the electrical segment accounted for 53.2% of global potting compound market share in 2019 and is anticipated to grow at a rate of 3.4% in terms of revenue, thereby increasing its share in the global potting compound market.
• By end user, the automotive segment is witnessing rapid growth in the global potting compound market and is expected to grow at a CAGR of 4.5% during 2020–2027.
• Asia-Pacific region is expected to grow at the fastest rate, registering a CAGR of 4.8%, throughout the forecast period.
• By region, Asia-Pacific dominated the global potting compound market in 2019, with more than 45.0% of the share, in terms of revenue.