Clear Encapsulation Materials Market Introduction
- Clear encapsulation materials look similar to water, and are ideal for usage in various encapsulation and display applications. Clear encapsulation material is ideal for encapsulating artificial flower stems to create artificial water for floral displays.
- Clear encapsulation materials can be prepared by using silicone rubbers, urethane rubbers, urethane liquid plastics, and epoxy resins. Clear encapsulation materials possess various chemical and electrical properties such as optical clearness, electrical insulation, flexibility, shock resistance, water resistance, and chemical and temperature resistance. These properties make clear encapsulation materials suitable for encapsulation applications.
- In terms of application, the global clear encapsulation materials market can be segmented into electrical & electronics, automobiles, medical, energy & power, optics, and others. The electrical & electronics application segment is expected to expand at a significant pace during the forecast period owing to rise in consumption of electrical and electronics devices in various developing and developed countries.
Key Drivers of Clear Encapsulation Materials Market
- Growth in consumption of electrical and electronics appliances across the globe is expected to augment the global clear encapsulation materials market during the forecast period. Consumption of consumer electrical appliances has been increasing due to changing lifestyle and rise in purchasing power parity of consumers. This is anticipated to boost the consumption of clear encapsulation materials.
- Clear encapsulation material exhibit excellent electrical properties to prevent wear and tear of electrical devices. Electrical and electronics devices manufactured with clear encapsulation materials last longer and perform better.
- Increase in demand for alternative renewable energy sources and growth in the automotive sector are estimated to augment the market during the forecast period. The world is shifting toward renewable energy sources to reduce the emission of carbon dioxide. This is boosting the demand for solar energy, thereby propelling the consumption of clear encapsulation materials in applications of solar cells and photovoltaic cells. Clear encapsulation materials are resistant to temperature, moisture, water, and shock. Thus, they are ideal materials for automotive LEDs and displays.
Clear Encapsulation Materials Market Restraints
- Fluctuation in prices of raw materials is projected to hamper the global clear encapsulation materials market. Raw materials such as silicone rubbers, urethane rubbers, urethane liquid plastics, and epoxy resins are used in preparation of clear encapsulation materials. The raw materials are experiencing unstable prices, as the supply chain has been disrupted due to the COVID-19 pandemic. These raw materials experience periodic fluctuation in demand. This significantly affects their prices.
- Dearth of universal directives pertaining to applications of clear encapsulation materials is also likely to hamper the market in the near future. Every country has different directives and legislations pertaining to the use of clear encapsulation materials. Companies find it difficult to meet these country-wise directives and legislations. This can discourage investment in the clear encapsulation materials market, thereby adversely affecting the market.
Covid-19 Impact on Clear Encapsulation Materials Market
- Clear encapsulation plays an important role in various end-user industries such as automotive, medical, and electrical & electronics. Many production facilities of these end-user industries have been halted due to the COVID-19 pandemic. This has adversely affected the demand for clear encapsulation materials. However, demand for some health care devices has increased during the pandemic. This has created demand for clear encapsulation materials in the manufacture of such health care devices.
- Key players operating in the clear encapsulation materials market are primarily tier I and tier II manufacturers and suppliers. Manufacture and supply chain facilities of these manufacturers have spread across various countries in Asia Pacific, Europe, North America, Latin America, and Middle East & Africa. Many of these players have halted their production output over the last few months due to the COVID-19 pandemic. The pandemic has negatively impacted the demand and supply chain of these materials. Thus, demand for clear encapsulation materials market is expected to decline in 2020.
Asia Pacific to Hold Major Share of Global Clear Encapsulation Materials Market
- In terms of region, the global clear encapsulation material market can be split into North America, Asia Pacific, Europe, Middle East Asia& Africa and Latin America
- Asia Pacific is projected to hold significant share of the global clear encapsulation materials market in terms of consumption during the forecast period. End-user industries such as automotive, health care, and electrical & electronics are rapidly expanding in the region. Rise in disposable income and improvement in standard of living in many countries in Asia Pacific are boosting the demand for consumer electronics. This, in turn, is augmenting the demand for clear encapsulation materials. Additionally, rise in production and sale of passenger vehicles in China, India, Japan, and South Korea is expected to increase the consumption of clear encapsulation materials in automotive applications, thereby boosting the market in these countries.
- North America is expected to account for vital share of the global clear encapsulation material market during the forecast period owing to presence of major automotive players and flourishing electrical & electronics industry in the U.S. and Canada
Prominent Players in Global Clear Encapsulation Materials Market
Major players operating in the global clear encapsulation materials market are adopting various organic and inorganic growth strategies such as joint ventures, mergers & acquisitions, expansion, collaborations, new product launches, strategic alliances, and research and development to increase their regional presence and business operations. Key players operating in the market include:
- Wacker Chemie AG
- Dow Corning Corporation
- ACC Silicones Ltd
- Evonik Industries
- Shin-Etsu Chemicals
- Henkel AG
- Huntsman Corporation
- Sika AG
- H.B. Fuller
- EPIC RESINS
- Sol Epoxy
Global Clear Encapsulation Materials Market, by Type
Global Clear Encapsulation Materials Market, by Application
- Electrical & Electronics
- Energy & Power