The global underfill materials market is extremely consolidated as the top two players together accounted for a whopping share of 81.0% in 2015. Transparency Market Research (TMR) observes that these leading companies—NAMICS Corporation and Henkel AG & Co. KGaA—are increasingly shifting their focus from mature markets to emerging ones to consolidate their shares.
The underfill materials market is offering numerous unexplored opportunities to new entrants by presenting lucrative growth avenues in new areas of electronics packaging such as power devices, micro-mechanical devices, and 3D systems. With sufficient finances, several players are adopting unconventional techniques to engineer products with interactive designs. This reduces their overall production cost and helps them garner attractive margins.
The estimated global sales of underfill materials amounted to US$236.5 mn at the end of 2016. The market is projected to rise at a CAGR of 8.3% from 2016 to 2024. The valuation of the market stood at US$220.4 mn in 2015 and is expected to reach US$448.3 mn by the end of the forecast period.
Drive for Improved Flip Chip Packages to Bolster Uptake
Based on application, the underfill materials market is segmented into ball grid array, chip scale packaging, and flip chips. Of these, the chip scale packaging held the major market share of 52.6% in 2016 and the segment is expected to dominate the market throughout the forecast period. The demand for miniaturization in electronic devices and the push improving the reliability of flip chip packages are factors expected to provide robust impetus to the growth of the segment.
Regionally, the market is segmented into Europe, Asia Pacific, North America, the Middle East & Africa (MEA), and Latin America. Of these, the Asia Pacific market for underfill materials is anticipated to rise at a significant CAGR of 9.7% from 2016 to 2024, in terms of revenue.
Demand for Miniaturization in Electronics to Bolster Uptake
The demand for underfill materials is primarily driven by the need for miniaturization of electronic devices, better interconnect densities, enhanced electrical performance, and smaller product sizes. The need for improving the reliability of flip chip packages among semiconductor manufacturers is a key factor stimulating the demand for underfill materials across various end-use industries. The use of underfill materials has been documented to offer several benefits to electronics packaging such as superior chip footprint design, better thermal cycling resistance, stress on the solder bumps, thereby improving the reliability of various flip chip products. This is a key factor propelling the demand for underfill materials. In addition, the drive for smaller and more durable printed circuit boards to be used in advanced embedded systems consumer mobile devices has catalyzed the market. The soaring demand for tablets and smartphones in several developing and developed regions is expected to bode well for the growth of the underfill materials market.
However, the need for low-cost packaging solutions in some regions is affecting the profit margins of manufacturers. This is a crucial factor likely to impede the market to an extent. Nevertheless, the burgeoning demand for portable electronic devices with better functionality in the aerospace and military sectors is expected to create exciting opportunities for market players in the coming years. The rising defense budgets in several developing and developed nations is expected to corroborate this demand, thereby accentuating the underfill materials market over the forecast period. Furthermore, several vendors are increasingly consolidating their supply chains to sustain the development of innovative products in the underfill materials market.
The study presented here is based on a report by Transparency Market Research (TMR) titled “Underfill Material Market (Product - Capillary Underfill Material (CUF), No Flow Underfill Material (NUF), and Molded Underfill Material (MUF); Application - Flip Chips, Ball Grid Array (BGA), and Chip Scale Packaging (CSP)) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”
The global underfill materials market is segmented based on:
- Capillary Underfill Material (CUF)
- No Flow Underfill Material (NUF)
- Molded Underfill Material (MUF)
- Flip Chips
- Ball Grid Array (BGA)
- Chip Scale Packaging (CSP)
- North America
- Asia Pacific
- Latin America
- Middle East and Africa (MEA)
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