Electrically Conductive Adhesives Market is Expected to Witness...

Electrically Conductive Adhesives Market is Expected to Witness High Growth Owing to Rising Adoption in Automotive Industry

Posted 2024-01-25 10:12:43

Electrically conductive adhesives are epoxy or silicone-based glues that contain conductive fillers such as silver, copper or graphene. They are used in circuit boards, automotive EV components, consumer electronics and various industrial applications to bond interconnects. They provide high conductivity between components while acting as an adhesive. Electrically conductive adhesives offer advantages over traditional soldering as they are non-corrosive, enable robust bonding even in difficult spaces and help absorb stresses from thermal expansions.

The global electrically conductive adhesives market is estimated to be valued at US$ 2.3 Bn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
The rising adoption of electrically conductive adhesives in the automotive industry is one of the major drivers for market growth. With the rapid rise of electric vehicles, conductive adhesives are increasingly being used in safety components, battery modules, on-board chargers and other vehicle electronics. They help provide robust, vibration resistant and thermally stable connections. Adhesives also minimize installation space and assembly time compared to traditional wire harnesses. The need for lightweight vehicles has further spurred their use. Another driver is the growth of wearable devices, mobile phones and other consumer electronics which employ miniaturized components and components that require flexible interconnects where electrically conductive adhesives have distinct advantages.

SWOT Analysis
Strength: Electrically conductive adhesives provide excellent electrical and thermal conductivity properties. They can replace other traditional attachment methods like soldering as they are corrosion resistant and enable miniaturization and multiple bonding sites. Adhesives also help fill air voids ensuring uniform bonding.
Weakness: The conductivity properties of adhesives degrade over time due to environmental stressors like heat, moisture and variation in temperatures. Adhesives also have low tolerance for mechanical stresses.
Opportunity: The growth of wearables, consumer electronics and electric vehicles provides lucrative opportunities for electrically conductive adhesives. They help provide design flexibility and enable mounting of components in complex configurations. Miniaturization trends also boost the use of adhesives.
Threats: Fluctuations in raw material prices impact the overall costs. Strict environmental regulations around volatile organic compound emissions during adhesive production may also constrain growth.

Key Takeaways
Global Electrically Conductive Adhesives Market Size is expected to witness high growth over the forecast period due to rising demand from various end-use industries.

Regionally, Asia Pacific dominates the market and is expected to maintain its lead position during the forecast years. Growing electronics and automotive industries in China, India, Japan, and South Korea are major drivers for conductive adhesives consumption in the region.

Key players operating in the electrically conductive adhesives market are Henkel, H.B. Fuller, 3M, Dow, Panacol-Elosol, DELO, and Aremco. These companies offer a wide range of electrically conductive and thermally conductive adhesives for diverse applications. They focus on developing innovative product formulations with enhanced conductivity and environmental compliance.

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