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The electronic chemicals market comprises a wide range of chemicals that are used in various electronic and electrical applications such as printed circuit boards, semiconductors, flat panel displays, and others. Electronic chemicals play a vital role in semiconductor manufacturing processes such as cleaning, etching, deposition, and planarization. They help enhance conductivity and extend the lifespan of electronic components. With rapid growth in the semiconductor industry owing to proliferation of consumer electronics, smartphones, IoT devices, and increasing digitization across industries, demand for electronic-grade chemicals is surging.
The Global electronic chemicals market is estimated to be valued at US$ 67.92 Billion in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period of 2023 to 2030.
Key Takeaways
Key players operating in the electronic chemicals market are BASF SE, Air Products and Chemicals Inc., The Dow Chemical Company, Merck KGaA (known as EMD Performance, Materials in North America), SUMCO Corporation, JSR Corporation, Shin-Etsu Chemical Co., Ltd., Cabot, Microelectronics Corporation, Tokyo Ohka Kogyo Co., Ltd., Honeywell International Inc. The key players are focusing on expanding their production facilities and investments in R&D to develop newer products with enhanced properties.
The rapidly growing semiconductor industry owing to proliferation of smartphones, tablets, PCs, and other consumer electronics is expected to offer significant opportunities for players in the electronic chemicals market. The demand is estimated to further surge with increasing adoption of IoT devices and deployment of 5G networks globally.
With growing demand from various end-use sectors globally, major players in the electronic chemicals market are focusing on expanding their geographical reach through acquisitions and greenfield projects across Asia Pacific, North America, Europe and other regions. This is expected to drive the global expansion of the electronic chemicals market over the forecast period.
Market drivers: Rising consumption of electronic chemicals in semiconductor manufacturing is one of the key drivers of the market. Growth in the semiconductor industry driven by increasing digitization is augmenting the demand for electronic chemicals. Increasing consumption of electronic goods is also expected to propel the market growth over the forecast period.
Market restraints: Stringent environmental regulations regarding emissions from electronic chemical manufacturing plants may hamper market growth to some extent. Additionally, high costs associated with R&D for developing environment-friendly products may also restrain market expansion during the assessment period.
Segment Analysis
This market can be segmented based on type into basic chemicals, precursor chemicals and other electronic chemicals. Basic chemicals dominated the market as it accounted for over 30% share in 2024. This is because basic chemicals like hydrogen peroxide, sulfuric acid, nitric acid etc are used in large volumes in semiconductor wafer cleaning and etching processes.
The market can also be segmented based on end use industries into semiconductors & IC, print circuit board, and others. Semiconductors & IC dominated the market with over 60% share due to large-scale usage of electronic chemicals in manufacturing semiconductors and Integrated Circuits.
Global Analysis
The Asia Pacific region dominated the global electronic chemicals market with over 50% share in 2024 owing to high concentration of semiconductor fabrication facilities in countries like China, South Korea, Taiwan and Japan. This region is also expected to grow at the fastest pace during the forecast period driven by expansion of semiconductor industry in countries like China and government initiatives to develop local semiconductor supply chains.
Europe and North America are other major markets for electronic chemicals. However, their market share is declining due to shifting of semiconductor fabrication units to Asian countries. Both regions are expected to grow below global average during the forecast period.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
