Electronic Chemicals and Materials: The Indian Market Outlook

With a range of electronic products being made in India today, the demand for the chemicals and materials used in making them is on the rise. However, while there are a lot of opportunities for this industry, there are quite a few challenges too.

- Sudeshna Das

A wide range of highly so-phisticated chemicals and materials—solid, liquid and gaseous—is used at different stages of electronic components’ and products’ manufacturing, starting from semiconductor and printed circuit board (PCB) fabrication to flat-panel displays, various stages of cleaning, chip packaging and product insulation. It follows that the demand for these chemicals and materials will increase with the growth in electronics manufacturing.

This report highlights the key demand and supply drivers, as well as challenges faced by companies in this sector.

Opportunities galore

The increase in demand for electronic chemicals is related to the overall growth in the production of electronic devices, as well as innovations in technology. According to BCC Research, the global market for electronic chemicals is expected to reach US$ 30.5 billion by 2020, growing annually at 5.9 per cent from 2016 to 2020. Wafer fabrication segment had the highest revenue share in 2016 and is expected to maintain its lead throughout this period. Silicon wafers are the most common type of wafer fabrication materials used globally.

The same report states that the global demand for electronic chemicals and materials has increased owing to technology advancements and the increase in demand from applications like photo voltaics, integrated circuits, as well as PCBs for mobiles, laptops, computers, tablets, LED bulbs and others. Other factors driving market growth globally include strict environmental regulations, increasing consumption of IC process chemicals, and rapid economic growth in emerging countries. The Indian market may be a significant contributor to this growth, considering resurgence of the Indian electronics manufacturing industry.