Market Trends of Electronic Packaging Industry
This section covers the major market trends shaping the Electronic Packaging Market according to our research experts:
Aerospace and Defense Industry to Increasingly Adopt Electronic Packaging
- The defense budgets of developed nations, such as the United States, France, the United Kingdom, and many developing nations, such as Russia, India, China, etc., have been increasing regularly. Many of these nations are also into the export of weapons. It results in continued investment in R&D in the aerospace and defense market.
- Further, Russia recently increased its military spending by 2.9%, to USD 65.9 billion, as it supported its forces along the Ukrainian border. This was Russia's third consecutive year of growth, with military spending was reached 4.1% of GDP recently.
- Moreover, several types of military and aerospace equipment, such as data processing units, data display systems, computers, and aircraft guidance-control assemblies, are loaded with semiconductor devices. For instance, according to the Semiconductor Industry Association, global semiconductor industry sales were USD 47.4 billion during August 2022, a slight increase of 0.1% over August 2021.
- Naval warships, satellite communication channels on board, weapon control systems, coastguards, etc., are the users of many sophisticated electronic products and require military-grade packaging of the electronic and semiconductor components. Humidity and harsh environment make it necessary for the requirement of high-quality products and facilitate the investment in R&D.
- Owing to these factors, electronic packaging is anticipated to witness significant growth over the forecast period.
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Asia-Pacific to Experience Significant Market Growth
- The Asia-Pacific region is estimated to hold the largest market share during the forecast period owing to growing automotive infrastructure and increased sales of electric vehicles. Rising middle-class income and a large youth population may drive up demand in the automotive industry. According to IBEF, in June 2022, the total production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles was 2,081,148 units, which will drive the studied market growth in the future.
- Further, China is considered the electronic hub worldwide because of the mass manufacturing and production of electrical components and electronic products to meet the highest quality, performance, and delivery standards. This gives significant growth potential to the electronic packaging market.
- Regional companies are also investing in installing machinery that enables productive electronic and semiconductor packaging. Further, in August 2022, Polymatech, a semiconductor manufacturing company based in Tamil Nadu, India, invested USD 1 billion in the state to expand its chipset manufacturing and packaging facility.
- According to National Investment Promotion & Facilitation Agency (NIPFA), India has seen a significant increase in demand for electronic products. The electronic manufacturing sector is anticipated to reach USS 220 billion by 2025 due to strong policy support, massive investments by multiple stakeholders, and a surge in demand for electronic products.
- Massive increases in domestic demand, technological advancements, and the production of high-quality products have been China's primary drivers of industry growth. Such large-scale production of paper and paperboard in China is creating a healthy environment for the sales of electronic packaging.
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