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    Liquid Encapsulation Market Size to Grow at a CAGR of 5.2% During the Forecast Period 2021-2026
    (I-BusinessNews.Com, August 08, 2021 ) Liquid Encapsulation Market size was valued at $1.3 billion in 2020, and it is estimated to grow at a CAGR of 5.2% during 2021-2026. The growth is mainly attributed to the growing consumer demand for increased mobility, wireless connectivity and advanced features which have paved the way for a variety of new products, including advanced consumer electronics applications and therefore created demand for liquid encapsulation market.

    The rising demand for epoxy resin and other high thermal conductivity materials in liquid encapsulation for advanced packaging particularly in semiconductor devices will drive the market growth. The rising need in telecom and semiconductor markets are key drivers of this market.

    Liquid Encapsulation Market Segment Analysis By Material

    Epoxy Resins held the major share of 35.9% in 2020. Adoption of epoxy resin material for liquid encapsulation is high as this material has properties such as resistance to thermal stress and resistance to degradation over time. So, this material is mostly used in industrial applications for liquid encapsulation as it acts against corrosion. Epoxy resins are also used to encapsulate integrated circuits. Increasing adoption of ICs in semiconductors and consumer electronics applications is set to drive the market.

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    Liquid Encapsulation Market Segment Analysis By Application

    Automotive is the fastest-growing segment in Liquid Encapsulation market and estimated to grow at a CAGR of 6.2% during forecast period 2021-2026. However, semiconductor devices and other advanced packaging applications dominate the market in 2020. With increasing trend for electric vehicles, there has been high investments in automotive sector. In 2020, Sumitomo Bakelite had opened a new manufacturing line to produce epoxy resin encapsulation materials for automotive applications in Belgium in order to meet increasing demands in the mobility field in Europe. This kind of investment provides opportunities for market growth.

    Liquid Encapsulation Market Segment Analysis By Geography

    Asia-Pacific (APAC) dominated the Liquid Encapsulation market in 2020 with a market share of 33.6%, followed by North America and Europe owing to the presence of large number of players and high adoption of consumer electronics and semiconductors in this region. Furthermore, increasing demand for sensor devices, wireless technologies, and optoelectronics has increased the adoption of encapsulation method and this is set to drive the market in this region. Additionally, APAC countries such as South Korea, Taiwan, China and Japan are expected to provide ample opportunities for the growth of the liquid encapsulation materials market in the region due to up surging telecommunication and electronics sector in these countries, which is likely to drive the growth of the global liquid encapsulation market.

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    Liquid Encapsulation Market Drivers

    Increasing trend for miniaturized devices in semiconductor

    With increasing trend of miniaturized devices, there has been increased the demand for liquid encapsulation market. This method is used in applications such as underfilling, cavity-filling, advanced packaging and glob top encapsulation in semiconductor device manufacturing. Liquid encapsulation enhances the miniaturized electronic devices where smaller and complex structures of devices can be managed without harming its performance. Electronics and semiconductor devices are made up of small components which need to be placed properly accurately and this is set to push the market growth. Furthermore, liquid encapsulation plays a crucial role in the functioning of a device and assists in prevention of malfunctioning of components in electronic devices. There has been high adoption of encapsulation method in semiconductor industry, as it is one of the advanced packaging processes of almost all semiconductor devices that offer low stress, low warpage and high thermal conductivity and this is set to drive the market.

    Increasing demand for sensors

    Adoption of liquid encapsulation method for sensors has been driving the market growth as liquid encapsulation is used to enhance sensor sensitivity while maintaining flexibility. Liquid encapsulation technology can be used to manufacture innovative MEMS (Microelectromechanical) devices, such as completely spherical micro lenses and hydraulic amplification mechanisms. Furthermore, packaging sensor microchips to be done in a liquid encapsulation and this set to drive the market.

    Liquid Encapsulation Market Challenges

    High cost

    Designing of miniaturized semiconductors and chips is the major challenge faced by Liquid Encapsulation OEMs. Engineers face problems in balancing the compact encapsulation with high level of accuracy. Liquid encapsulation of semiconductors without compromising with the offered robustness in the harsh environments is the major issue faced by the players in the market. Additionally, high cost is also one of the major challenges that hampers the market growth.

    Liquid Encapsulation Market Market Landscape

    Technology launches, Acquisitions, Collaboration, and R&D activities are key strategies adopted by players in the Liquid Encapsulation market. Liquid Encapsulation top 10 companies include Sumitomo Bakelite Co., Ltd, Shin-Etsu Chemical Co., Ltd, Kyocera Corporation, Hitachi Chemical Co., Ltd, Resin Technical Systems, BASF SE, Nitto Denko Corporation, EPIC Resins, Sanyu Rec Co., Ltd, Henkel AG & Co., KgaA, Kyocera Corporation, Nagese & Co., Ltd, and others.

    Acquisitions/Technology Launches

    In July 2020, Shin-Etsu Chemical Co., Ltd has developed a new improved type of silicone emulsions with a high level of purification technology. This type of advanced development is set to fuel the liquid encapsulation market.

    Key Takeaways

    APAC dominated the Liquid Encapsulation market in term of revenue in 2020 owing to the high adoption of liquid encapsulation in semiconductor device applications.

    Growing demand for advanced packaging sensors and adoption liquid encapsulation method for sensors and microchips is poised to propel the market growth.

    Increasing adoption of Liquid Encapsulation in automotive sector is poised to provide opportunities for market growth.

    High cost is the major challenge that hampers market growth.

    Related Reports :

    A. Optoelectronics Market

    B. Semiconductor Market

    For more Electronics Market reports, please click here

    About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to to discuss more about our consulting services.


    Venkat Reddy

    (+1) 970-236-3677

    Source: EmailWire.Com


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