New Release: Encapsulants Market Growth Factors, Opportunities, Ongoing Trends and Key Players- Exclusive Report by MarketsandMarkets™


The encapsulants market is estimated to be USD 1.26 billion in 2017 and is projected to reach USD 1.64 billion by 2022, at a CAGR of 5.5% from 2017 to 2022. Encapsulants are one of the most widely used electronic protective materials. Encapsulation is carried out to provide electrical insulation for high voltage and to protect circuits and interconnections from thermal and mechanical stresses. It also isolates circuits from the harmful effects of moisture and other contaminants. Encapsulants are used in different end-use industries, such as automotive, medical, aerospace, telecommunications, energy & power, and industrial electronics.

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The growth of advanced electronic packaging techniques and growing demand for miniaturization of electronic devices are expected to increase the demand of encapsulants across the globe. However, volatility in raw material prices and stringent government regulations to reduce VOC emissions may hamper the growth of the encapsulants market.

Encapsulants Market

Based on chemistry, the silicone segment of the encapsulants market is projected to register the highest growth rate during the forecast period. Silicone encapsulants are known for their wide operating temperature range (-115 ºC to 300 ºC), excellent electrical properties, flexibility, UV resistance, and good chemical resistance. These make them useful in power modules of LED lighting & displays, high-voltage electrical components, sealing of cable joints, industrial equipment, transportation electronics, and under bonnet electronics.

Based on curing type, the room temperature curing segment of the encapsulants market is projected to grow at the highest CAGR during the forecast period. Room temperature curing systems offer easy processing, high reliability, and are low cost.

The growth of consumer electronics and transportation end-use industries has increased demand for encapsulants in the Asia Pacific region. Increasing number of manufacturing units, availability of low-cost labor, and less stringent environmental regulations are expected to drive the encapsulants market in this region.

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Asia Pacific is a highly attractive market and presents huge opportunities for market players due to the increasing purchasing power of consumers in the region. The electronics market in Asia Pacific is driven by innovation and growing household incomes of the region’s emerging economies. The evolution of the electronics supply chain coupled with the trend of shifting low-margin electronic manufacturing to the developing ASEAN countries is driving the encapsulants market. Major market players, such as Dow Corning, Shin-Etsu Chemicals, and LORD Corporation have established large-scale encapsulants manufacturing plants in the Asia Pacific region, with further expansions already being undertaken. Local and regional players are also expanding their production capacities to cater to the rapidly increasing demand of encapsulants.

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