According to the findings of a recent report by Transparency Market Research (TMR), the global underfill material market is highly consolidated in nature, with top two companies, Henkel AG & Co. KGaA and NAMICS Corporation, holding a lion share of 81% in 2015. In the near future, the TMR report expects these two players to maintain their stronghold over the underfill materials market, if not further strengthen it through expanding their geographical presence beyond developed countries to emerging economies.
The report projects global underfill material market to grow at a healthy CAGR of 8.3% during the forecast period of 2016 to 2024, reaching a valuation of US$448.3 mn by 2024, considerably up from its evaluated worth of US$236.5 mn in 2016. As for the new entrants, the report sees ample of opportunities too, provided they have financial might to make their presence felt. There is vast potential to develop new materials via innovative approaches and reduce production cost in order to maintain margins despite competitive pricing. The TMR report highlights a few new companies entering in underfill materials market with advanced 3D systems, micro mechanical devices, and power devices.
Asia Pacific Most Lucrative Region
Based on product, the report segments the global underfill materials market into molded underfill material (MUF), capillary underfill material (CUF), and no flow underfill material (NUF). Among these, CUF is projected to gain maximum demand during the forecast period, as these devices offer advantages such as lower stress, improved process-ability, and enhanced reliability. Application-wise, the report categorizes global underfill material market into flip chips, chip scale packaging (CSP), and ball grid array (BGA). In 2016, flip chips segment accounted for 52.6% shares of the market and is projected to remain most profitable application segment in the near future.
Geographically, the report takes stock of each of the important regions, but anticipates phenomenal growth of underfill material market in Asia Pacific, which has been assigned a CAGR of 9.7% during the forecast period of 2016 to 2024. China accounts for the maximum chunk of the demand for underfill materials from this region, which is a reflection of booming electronic sector and persistent manufacturing industry in the country. Underfill material markets in North America and Europe are also expected to showcase healthy growth.
Popularity of Lightweight Electronic Devices Driving Demand
Owing to their thermal stability and reworkability, underfill materials are primarily used for improving the thermo-mechanical performance of semiconductor packaging. The prosperity of the electronic devices market, which gaining strong traction from the ubiquity of smart phones and laptops, is expected to lift global underfill materials market in the near future. The escalating demand for smaller, lighter, and faster electronic products are augmenting the demand for underfill materials, which helps in achieving desired strength to the solder joints of PCB and adds to the resistance. Popularity of copper pillars and advancements in flip chip technology also bodes well for the future of the global underfill material market.
According to the author of the report, the entry of new players with financial strength and innovative technology will significantly reduce the product prices, which in turn will intensify the competition in the underfill materials market in the near future. This factor is expected to positively reflect on the overall scenario of the market, wherein there are enough new opportunities. In addition to that, growing applications of underfill materials in military and aerospace will open new opportunities for the vendors in this market.