Electronic Wet Chemicals Market

Updated on : August 05, 2024

Electronic Wet Chemicals Market

Electronic Wet Chemicals Market was valued at USD 3.8 billion in 2023 and is projected to reach USD 5.4 billion by 2028, growing at 7.2% cagr from 2023 to 2028. The market is mainly led by the significant usage of electronic wet chemicals in various end-use industries. The growing demand for hydrogen peroxide from the semiconductor industry is a major driver for the growth of the electronic wet chemicals market.

Attractive Opportunities in the Electronic Wet Chemicals Market

To know about the assumptions considered for the study, Request for Free Sample Report

Electronic Wet Chemicals Market Dynamics

Driver: Technological advancements in electronic industry.

Technological progress in the electronic industry significantly influences the demand and evolution of electronic wet chemicals, essential in various manufacturing processes like semiconductor production and PCB fabrication. As electronic devices continue to shrink in size due to advancements in miniaturization and nanotechnology, electronic wet chemicals become indispensable for precise processes like photolithography, crucial for creating intricate patterns on semiconductor wafers to produce smaller and more powerful components. Furthermore, the strides in advanced semiconductor manufacturing necessitate high-purity chemicals for cleaning, etching, and deposition, pivotal in processes like chemical-mechanical planarization (CMP) and atomic layer deposition (ALD), ensuring the precision required for contemporary semiconductor devices. The emergence of new materials, including advanced polymers and metal alloys, in electronic components prompts the adaptation and development of electronic wet chemicals to efficiently and precisely address specific fabrication requirements. Additionally, stringent environmental and safety regulations drive the industry towards greener practices, prompting electronic wet chemical suppliers to formulate eco-friendly solutions without compromising performance. The increasing complexity of electronic devices demands a diverse range of specialized chemicals in manufacturing processes, while innovations in packaging technologies, such as 3D packaging, present new challenges met by adapted electronic wet chemicals to ensure the integrity and reliability of packaged electronic devices. The rise of automation and Industry 4.0 underscores the need for electronic wet chemicals compatible with advanced manufacturing equipment, emphasizing their crucial role in ensuring efficient and consistent production in the evolving landscape of electronic manufacturing.

Driver: Rise in demand for hydrogen peroxide from the semiconductor industry.

The surge in hydrogen peroxide demand within semiconductor manufacturing serves as a pivotal catalyst for the electronic wet chemicals market. With its versatility, hydrogen peroxide is integral in cleaning and etching procedures, effectively eliminating organic and inorganic contaminants from semiconductor wafers. As semiconductor technology advances towards smaller nodes, like 7nm and 5nm, the precision demands escalate, propelling hydrogen peroxide's utilization in critical cleaning processes to attain the requisite cleanliness for advanced semiconductor nodes. Additionally, its role as an oxidizer in Chemical-Mechanical Planarization (CMP) slurries contributes to the effectiveness of the planarization process crucial for achieving a flat and smooth wafer surface. The environmentally friendly nature of hydrogen peroxide aligns with industry trends emphasizing sustainability and safety, potentially steering the semiconductor industry towards its increased adoption. Moreover, its compatibility with emerging materials and its reputation for cost-effectiveness and efficiency further position hydrogen peroxide as a strategic choice, emphasizing its pivotal role in the electronic wet chemicals market amid the evolving landscape of electronic manufacturing.

Restraint: Stringent health and environmental regulations for certain chemicals

Meeting stringent health and environmental standards may require significant research and development efforts to formulate alternative chemicals that comply with regulations. This can slow down the pace of innovation and the introduction of new electronic wet chemical products. Companies in the electronic wet chemicals market may face increased compliance costs associated with testing, monitoring, and ensuring that their products meet health and environmental standards. These costs can impact profit margins and make it challenging for smaller businesses to compete. Compliance with stringent regulations may involve changes in the supply chain, including sourcing raw materials that meet environmental and health standards. This can lead to supply chain disruptions and increase the complexity of managing and ensuring the compliance of the entire supply chain. Some electronic wet chemicals that are commonly used in manufacturing processes may be restricted or banned due to their adverse health or environmental effects. This limitation in material options can restrict manufacturers in choosing the most effective and cost-efficient solutions for their processes. Certain stringent regulations may limit the use of electronic wet chemicals in critical applications, such as medical devices or aerospace components. This restriction can impact market opportunities and the potential for growth in high-value segments

Opportunity: Improved IT infrastructure and upcoming technologies

The electronic wet chemicals market is poised for substantial growth, propelled by the transformative potential of improved IT infrastructure and upcoming technologies. With a robust IT backbone, the industry can leverage data-driven decision-making, enabling sophisticated collection, analysis, and management of real-time data. Integration with Industrial IoT facilitates seamless connectivity between electronic wet chemical processes and devices, fostering enhanced monitoring, predictive maintenance, and overall optimization. Upcoming technologies usher in advanced process control systems that utilize real-time data and algorithms, ensuring precision in applying electronic wet chemicals during semiconductor and electronics manufacturing. Automation and robotics, supported by improved IT infrastructure, enable precise handling of chemicals, minimizing human intervention and errors. Digital twin technology introduces virtual replicas of manufacturing processes, allowing for simulation, analysis, and optimization before implementation, enhancing formulation testing and quality improvement. The strengthened supply chain visibility facilitated by enhanced IT infrastructure is pivotal for ensuring quality, safety, and compliance throughout the manufacturing and distribution process. Blockchain technology contributes to transparency, reducing the risk of counterfeit products and ensuring regulatory adherence. Cloud computing provides scalable resources, supporting the growth of manufacturing operations and global collaboration. Machine learning and predictive analytics optimize electronic wet chemical formulation, forecasting demand, improving production schedules, and enhancing efficiency. The capability for remote monitoring and control, facilitated by improved IT infrastructure, empowers manufacturers to oversee processes in real-time, even from remote locations. Furthermore, advanced technologies enable customization and personalization of electronic wet chemical formulations, accommodating diverse materials and processes in the dynamic electronics industry. Embracing these opportunities promises to lead the electronic wet chemicals sector towards more efficient, sustainable, and technologically advanced manufacturing processes.

Challenge: Rapid decline in the use  of  old technologies.

A rapid decline in the use of old technologies presents challenges for the electronic wet chemicals market, including compatibility issues, reformulation challenges, disruptions in the supply chain, the need for additional R&D investments, market uncertainty, obsolete product lines, transition costs, customer resistance, regulatory compliance adjustments, and potential imbalances in market adaptation. Successfully navigating these challenges requires strategic planning, flexibility, and a proactive approach to innovation and market dynamics.

Electronic Wet Chemicals Market Ecosystem

A market ecosystem for electronic wet chemicals refers to the interconnected network of various entities, factors, and dynamics that collectively influence the production, distribution, and consumption of electronic wet chemicals in the market. This ecosystem involves a range of participants, both internal and external, and includes various components that interact with each other to shape the overall functioning of the market.Avantor Inc. (US), BASF SE (Germany), Cabot Microelectronics (US), and Kanto Chemical Co. Inc. (Japan), Honeywell International, Inc. (US), Eastman Chemical Company (US), Linde Plc (Ireland), Solvay (Belgium), Fujifilm Corporation (Japan), and Technic Inc. (US) etc.

Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis

"Acetic acid is the largest sub-segment amongst the type segment in the electronic wet chemicals market in 2023, in terms of value."

Acetic acid's prominence and dominance in the electronic wet chemicals market are attributed to its remarkable versatility, advantageous properties, and several additional factors. Acting as a mild yet potent cleaning agent, acetic acid effectively removes impurities such as organic residues, inorganic salts, and metal oxides from electronic components, offering flexibility in usage based on cleaning needs. In controlled doses, acetic acid proves invaluable in etching specific materials like copper and aluminum oxide, crucial for precision in circuit board manufacturing. Its role as a weak acid enables precise pH control during various wet chemical processes, ensuring optimal results in etching and cleaning. Notably, acetic acid is safer to handle at lower concentrations compared to many other acids in electronics, reducing the risk of accidents for workers. Its moderate evaporation rate allows controlled cleaning and etching without rapid drying or residue buildup. Furthermore, its cost-effectiveness, biodegradability, and compatibility with a wide range of materials used in electronics contribute to its popularity. The long history of acetic acid's use in electronics has led to established protocols and available equipment, simplifying integration for manufacturers. Altogether, these factors position acetic acid as a versatile, safe, cost-effective, and environmentally friendly choice, underlining its longstanding and central role in electronic wet chemical processes.

Liquid form accounted for the largest by form share of the electronic wet chemicals market in 2023 in terms of value.

In the realm of electronic wet chemicals, liquid formulations are frequently favored due to their practical advantages in handling, dispersion, and application precision. Liquids, inherently easier to manage than solids or gases, play a pivotal role in coating, cleaning, and etching during electronic manufacturing. Their ability to achieve uniform dispersion ensures consistent coverage on electronic components, crucial for reliable outcomes. Liquids allow easy mixing and dilution for specific concentrations, offer convenient transportation and storage, and provide superior control over reaction parameters. Their adaptability to tool compatibility and precise measurement capabilities contribute to a safe, efficient, and accurate manufacturing environment, underscoring the prevalent use of liquid forms in electronic wet chemical processes.

“Semiconductor accounted for the largest application of the electronic wet chemicals market in 2023” in terms of value.”

Semiconductor manufacturing commands the forefront in the utilization of electronic wet chemicals, primarily driven by their indispensable role in precision-oriented fabrication processes. The semiconductor industry heavily relies on electronic wet chemicals in critical processes such as photolithography, etching, and deposition, ensuring the meticulous creation of intricate circuit patterns on semiconductor wafers. Key steps like Chemical-Mechanical Planarization (CMP) employ electronic wet chemicals, crucial for achieving a flat and smooth wafer surface. From deposition processes like Chemical Vapor Deposition (CVD) to cleaning and surface preparation, these chemicals are integral in shaping semiconductor components with paramount cleanliness. As semiconductor technology advances to smaller nodes, demanding heightened precision and purity, electronic wet chemicals continually evolve to meet these stringent requirements. The industry's commitment to integrating new materials for enhanced performance underscores the pivotal role of electronic wet chemicals, solidifying the semiconductor sector's position as the foremost application in the electronic wet chemicals landscape within the electronics industry.

“Consumer goods accounted for the largest end-use industry for the electronic wet chemicals market, in terms of value in 2023”

The consumer goods industry emerges as the foremost consumer of electronic wet chemicals, primarily propelled by its high-volume production and diverse applications in electronics. Ranging from smartphones to home appliances, these goods require miniaturized components and advanced technologies, relying on intricate processes like photolithography and deposition where electronic wet chemicals play a vital role. Rapid technological advancements and the industry's cost sensitivity further underscore the essentiality of these chemicals in adapting to changes and ensuring cost-effective manufacturing. The compatibility of electronic wet chemicals with a diverse range of materials used in consumer electronics, coupled with their role in achieving high-quality finishes, aligns with the dynamic preferences and trends shaping the electronics market. The substantial global reach and size of the consumer electronics market reinforce the consumer goods industry's pivotal position as the largest end-user of electronic wet chemicals.

"Asia pacific is the largest market for electronic wet chemicals Market in 2023, in terms of value."

The Asia-Pacific region stands out as the foremost market for electronic wet chemicals due to a confluence of key factors. Serving as a global manufacturing hub, countries like China, Japan, South Korea, and Taiwan drive substantial demand for electronic wet chemicals in the production of semiconductors and consumer electronics. The region's dominance in semiconductor fabrication, marked by advanced facilities, contributes significantly to the demand for these chemicals, particularly in intricate processes like photolithography and deposition. The boom in consumer electronics, fueled by rapid economic growth and an expanding middle-class population, propels the extensive use of electronic wet chemicals in manufacturing smartphones, tablets, and smart appliances. Asia-Pacific's technological leadership, well-integrated electronics supply chain, ongoing investments in research and development, and status as a major global electronics exporter further solidify its position as a significant market for electronic wet chemicals. Supportive government policies in countries like China foster industry growth, and the densely populated urban centers drive demand for electronic products, creating a substantial market for electronic wet chemicals in manufacturing a diverse array of electronic components.

To know about the assumptions considered for the study, download the pdf brochure

Electronic Wet Chemicals Market Players

The key players in this market are Avantor Inc. (US), BASF SE (Germany), Cabot Microelectronics (US), and Kanto Chemical Co. Inc. (Japan), Honeywell International, Inc. (US), Eastman Chemical Company (US), Linde Plc (Ireland), Solvay (Belgium), Fujifilm Corporation (Japan), and Technic Inc. (US) etc. Continuous developments in the market—including new product launches, mergers & acquisitions, agreements, and expansions—are expected to help the market grow. Leading manufacturers of electronic wet chemicals have opted for new product launches to sustain their market position.

Read More: Electronic Wet Chemicals Companies

Electronic Wet Chemicals Market Report Scope

Electronic Wet Chemicals Market Segmentation

This report categorizes the global electronic wet chemicals market based on type, application, form, end-use industry and region.

On the basis of type, the electronic wet chemicals market has been segmented as follows:

• Acetic acid
• Isopropyl alcohol
• Hydrogen peroxide
• Hydrochloric acid
• Ammonium hydroxide
• Hydrofluoric  acid
• Nitric acid
• Phosphoric acid
• Sulfuric acid
• Others

On the basis of application, the electronic wet chemicals market has been segmented as follows:

• Semiconductor
• IC packaging
• PCB
• Others

On the basis of form, the electronic wet chemicals market has been segmented as follows:

• Liquid form
• Gas form
• Solid form

On the basis of end-use industry, the electronic wet chemicals market has been segmented as follows:

• Consumer goods
• Automotive
• Aerospace & defence
• Medical
• Others

On the basis of region, the electronic wet chemicals market has been segmented as follows:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• South America

Recent Developments

• In December 2023, BASF SE (Germany)and Vattenfall (Netherland) are in advanced and exclusive discussions to partner on the Nordlicht 1 and 2 projects through a sale of 49% of the project shares to BASF. Both parties signed a Memorandum of Understanding to formally express their joint ambition. Vattenfall will use its share of the fossil free electricity to supply its German customers.
• In April 2023, Cabot Microelectronics Corporation (US) announced that it has acquired the Chiba solar farm (China).
• In January 2022, Honeywell International, Inc. (US) acquired 100% of the issued and outstanding shares of US Digital Designs, Inc.,(Us) a leading provider of technologies for first responders, for total consideration of $186 million. The business is included within the Honeywell Building Technologies reportable business segment.
• In June 2019, Kanto Chemical Co. Inc invested around USD 63.7 million to expand its production facility in Taiwan to meet the growing demand of major local clients from the semiconductors industry. This facility will increase the annual output of semiconductor products from 120,000 tons to 200,000 tons.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst