PUBLISHER: TechSci Research | PRODUCT CODE: 1935005
PUBLISHER: TechSci Research | PRODUCT CODE: 1935005
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The Global Electronic Adhesives Market is projected to expand from USD 5.27 Billion in 2025 to USD 8.23 Billion by 2031, registering a CAGR of 7.71%. These specialized adhesives are engineered to establish robust structural bonds within electronic assemblies while delivering essential capabilities such as electrical conductivity, thermal regulation, and environmental protection. Major factors propelling this growth include the continuous miniaturization of consumer electronics, the worldwide rollout of 5G infrastructure, and the electrification of the automotive industry, all of which demand high-performance bonding for densely packed circuits. SEMI reported that global sales of semiconductor packaging materials, which depend heavily on advanced adhesive technologies, increased by 4.7% to reach USD 24.6 billion in 2024, highlighting the strong industrial need for these critical materials.
| Market Overview | |
|---|---|
| Forecast Period | 2027-2031 |
| Market Size 2025 | USD 5.27 Billion |
| Market Size 2031 | USD 8.23 Billion |
| CAGR 2026-2031 | 7.71% |
| Fastest Growing Segment | Epoxy |
| Largest Market | North America |
Despite this upward trajectory, the market faces a substantial hurdle due to fluctuating raw material prices, specifically for silver and epoxy resins, which can cause unpredictable spikes in manufacturing expenses. This financial uncertainty is frequently exacerbated by strict environmental regulations governing volatile organic compounds, compelling manufacturers to allocate significant resources toward compliant reformulations. These requirements can potentially hinder rapid market growth and add complexity to supply chain operations.
Market Driver
The rapid proliferation of electric vehicles and advanced driver-assistance systems acts as a major driver for the electronic adhesives sector, generating significant demand for materials capable of ensuring thermal control and structural integrity. Manufacturers are increasingly dependent on specific adhesive formulas to bond battery units, seal sensors, and safeguard power electronics against rigorous operating environments while preserving electrical insulation. The transition from internal combustion engines to electrified powertrains necessitates bonding solutions that can endure high voltages and thermal cycling, fundamentally altering material usage within the automotive industry. As noted in the 'Global EV Outlook 2024' by the International Energy Agency in April 2024, global electric car sales were forecast to approach 17 million units in 2024, signaling a substantial increase in production needs for automotive electronic assemblies.
Furthermore, the accelerating trend toward miniaturization in electronic devices and components boosts the market as manufacturers look for adhesives compatible with dense circuitry and heterogeneous integration. With devices becoming smaller yet more potent, the industry requires underfills and conductive adhesives that allow for precise application and efficient heat dissipation in compact semiconductor packaging. The Semiconductor Industry Association reported in its November 2024 update that global semiconductor sales reached USD 55.3 billion in September 2024, reflecting the massive volume of components needing advanced bonding technologies. This industrial scale is mirrored in corporate results, with Henkel reporting that its Adhesive Technologies unit generated sales of 2.8 billion Euros in the third quarter of 2024, emphasizing the enduring commercial importance of bonding agents in contemporary manufacturing.
Market Challenge
The main obstacle hindering the growth of the Global Electronic Adhesives Market is the price instability of raw materials, particularly critical inputs such as silver and epoxy resins. Since these materials are essential for manufacturing high-performance conductive and structural adhesives, unpredictable cost fluctuations place immediate strain on production overheads. This financial volatility interferes with long-term pricing models and reduces profit margins, making it challenging for suppliers to offer consistent pricing to electronics manufacturers. As a result, this uncertainty retards the uptake of advanced bonding solutions within cost-conscious mass production sectors.
This economic difficulty is compounded by a continuing disparity between the intense industrial demand for conductive metals and their available supply. According to the Silver Institute, global industrial demand for silver increased by 4 percent in 2024 to a record 680.5 million ounces, leading to a notable structural deficit in the market. Such a clear shortage of a primary raw material directly limits the scalability of conductive adhesive production. As raw material supplies tighten and prices rise, the market finds it difficult to satisfy the high-volume demands of emerging industries without facing prohibitive costs, which subsequently impedes overall market expansion.
Market Trends
The shift toward sustainable and bio-based adhesive formulations is transforming the market as manufacturers place a higher priority on environmental stewardship. Suppliers are actively substituting fossil-based ingredients with renewable alternatives to decrease carbon footprints while maintaining performance standards. This evolution is propelled by strict ESG goals from OEMs that require greater transparency and lower emissions. In its March 2025 'Sustainability Report 2024', Henkel announced it had reduced CO2 emissions in production per ton of product by 64 percent compared to the 2017 baseline, demonstrating a strong commitment to decarbonizing chemical manufacturing.
Concurrently, the incorporation of adhesives into flexible and foldable electronic devices is generating a need for materials that possess superior mechanical flexibility. In contrast to rigid solutions, these adhesives are required to endure repeated bending and thermal stress while preserving their integrity within OLED displays and foldable smartphones. This trend is spurring investment in the infrastructure needed to produce bendable components. Samsung Electronics revealed in its 'Fourth Quarter and FY 2024 Results' report from January 2025 that the company invested KRW 4.8 trillion in capital expenditures for its Display division throughout 2024, highlighting the financial dedication to progressing high-performance panel technologies.
Report Scope
In this report, the Global Electronic Adhesives Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Company Profiles: Detailed analysis of the major companies present in the Global Electronic Adhesives Market.
Global Electronic Adhesives Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report: