|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
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The wet chemicals market is projected to register a CAGR of more than 6.5% during the forecast period (2022-2027).
The wet chemicals market for electronics and semiconductor applications was hampered by the COVID-19 pandemic. However, according to JEITA, the production of global electronics products is expected to reach USD 3,175 billion by the end of 2021, in turn positively impacting the demand for the wet chemicals market for electronics and semiconductor applications.
- Over the medium term, rising demand from modern technology industries and surging demand for hydrogen peroxide from the semiconductor industry are expected to drive the market's growth.
- However, on the flip side, waste management of semiconductors is anticipated to hinder the market's growth.
- Asia-Pacific dominated the global market. It is also expected to register the fastest CAGR over the forecast period.
Scope of the Report
Wet chemicals are extensively used in various stages during the fabrication of electronic products, such as used semiconductors, and various electronics applications, like integrated circuit (IC) manufacturing, printed circuit boards (PCB) manufacturing, LCDs, LEDs, display panels, monitors, television, and other electronics. These chemicals are used in semiconductors for cleaning and etching processes. The wet chemicals market for electronics and semiconductor applications is segmented by product type, application, and region. By product type, the market is segmented into acetic acid, isopropyl alcohol (IPA), hydrogen peroxide, hydrochloric acid, ammonium hydroxide, hydrofluoric acid, and other product types (nitric acid, phosphoric acid, and sulfuric acid). By application, the market is segmented into semiconductors (cleaning and etching) and other electronic applications (integrated circuit (IC) manufacturing and printed circuit boards (PCB) manufacturing). The report also covers the market size and forecasts for the wet chemicals market for electronics and semiconductor applications in 11 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).
|Isopropyl Alcohol (IPA)|
|Other Product Types (Nitric Acid, Phosphoric Acid, and Sulfuric Acid)|
|Rest of the World|
Key Market Trends
Increasing Demand from Semiconductor Application
- Wet chemicals are widely used in semiconductor production. They are used in both cleaning and etching applications.
- The production of semiconductors is growing at a staggering pace due to rapid growth from various advancements such as artificial intelligence (AI), quantum computing, and 5G networks, which is estimated to drive the market for wet chemicals during the forecast period.
- According to the Semiconductor Industry Association (SIA), the global semiconductor industry sales totaled USD 555.9 billion in 2021, the highest-ever annual total and an increase of 26.2% compared to the 2020 total of USD 440.4 billion. The industry shipped a record 1.15 trillion semiconductor units in 2021 as chip companies ramped up production to address high demand amid the global chip shortage.
- The growth of semiconductors is due to continued robust growth in consumer electronics, computing, 5G, and automotive semiconductors. Several semiconductor product segments stood out in 2021. Analog, a type of semiconductor that is commonly used in vehicles, consumer goods, and computers, had the highest annual growth rate of 33.1%, reaching USD 74 billion in 2021 sales.
- The growing demand for semiconductors is estimated to drive the demand for wet chemicals during the forecast period.
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Asia-Pacific Region Expected to Dominate the Market
- The Asia-Pacific region dominated the global market share. With the growing demand for electronics in countries such as China, India, and Japan, the usage of wet chemicals is increasing in the region.
- China is one of the leading producers of Printed Circuit Boards (PCBs) in the world. Moreover, PCB production is increasing rapidly through expansions in Asian countries, such as Vietnam and Thailand. China, Taiwan, Singapore, South Korea, and Japan are the leading PCB manufacturing countries in the world.
- According to JEITA (Japan Electronics and Information Technology Industries Association), production by Japanese electronics and IT companies (including offshore production) was estimated to rise by 8% Y-o-Y in 2021 to JPY 37,319.4 billion, within which electronics production is expected to grow by 9% Y-o-Y to JPY 29,790.39 billion. Thus, it is excepted to increase the demand for the wet chemicals market for electronic and semiconductor applications in Japan.
- Also, Japan currently has about 30 semiconductor fab industries involved in manufacturing various semiconductor chips. Japan’s semiconductor supply chain provides one-third of the world’s semiconductor manufacturing equipment and more than half of the industry’s materials.
- All the aforementioned factors are expected to boost the overall demand for wet chemicals in the Asia-Pacific region during the forecast period.
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The wet chemicals market for electronics and semiconductor applications is highly concentrated, with the top five players accounting for over 60% of the market share. Major players in the market (not in a particular order) include BASF SE, Avantor Inc., Honeywell International Inc., CMC Materials, and KANTO KAGAKU.
- In December 2021, Entegris Inc. and CMC Materials Inc. announced a definitive merger agreement under which Entegris will acquire CMC Materials in a cash and stock transaction with an enterprise value of approximately USD 6.5 billion. The acquisition is expected to close in the second half of 2022.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Rising Demand from Industries Driven by Modern Technologies
4.1.2 Surging Demand for Hydrogen Peroxide from the Semiconductor Industry
4.2.1 Waste Management for Semiconductors
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Acetic Acid
5.1.2 Isopropyl Alcohol (IPA)
5.1.3 Hydrogen Peroxide
5.1.4 Hydrochloric Acid
5.1.5 Ammonium Hydroxide
5.1.6 Hydrofluoric Acid
5.1.7 Other Product Types (Nitric Acid, Phosphoric Acid, and Sulfuric Acid)
5.2.2 Other Electronic Applications
188.8.131.52 Integrated Circuit (IC) Manufacturing
184.108.40.206 Printed Circuit Boards (PCB) Manufacturing
220.127.116.11 South Korea
18.104.22.168 Rest of Asia-Pacific
5.3.2 North America
22.214.171.124 United States
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
5.3.4 Rest of the World
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share **/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Avantor Inc.
6.4.2 Air Liquide
6.4.3 BASF SE
6.4.4 CABOT MICROELCTRONICS CORPORATION
6.4.5 CMC Materials
6.4.6 Eastman Chemical Company
6.4.7 FUJIFILM Corporation
6.4.8 Hitachi Chemical
6.4.9 Honeywell International Inc.
6.4.10 KANTO KAGAKU
6.4.11 Kredence Materials
6.4.12 Linde PLC
6.4.16 TNC INDUSTRIAL CO. LTD
6.4.18 Zhejiang Kaisn Fluorochemical Co. Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Recycling of Semiconductors
7.2 Favorable Growth Market for Semiconductors in Malaysia
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Frequently Asked Questions
What is the study period of this market?
The Wet Chemicals Market market is studied from 2017 - 2027.
What is the growth rate of Wet Chemicals Market?
The Wet Chemicals Market is growing at a CAGR of >6.5% over the next 5 years.
Which region has highest growth rate in Wet Chemicals Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Wet Chemicals Market?
Asia Pacific holds highest share in 2021.
Who are the key players in Wet Chemicals Market?
Avantor Inc., BASF SE, Honeywell International Inc., KANTO KAGAKU, CMC Materials are the major companies operating in Wet Chemicals Market.