Global Potting Compound Market Grows at a CAGR of 3.9%

Introduction

Potting compounds are used as encapsulants to safeguard against harm from water, dust, voltage discharge, vibration, and physical contact. Due to the excellent adhesive properties of the potting material, which is used during the electronic assembly, it is tough to remove them once they have been applied because they permanently bond to the surface, making rework impossible. Using meter-mix-dispense (MMD) equipment, the potting procedure can be carried out manually or automatically. Due to the potting compound's ideal properties for electronic applications, the market is growing internationally. Additionally, the output of the consumer electronics sector will rise during the anticipated time frame, and miniaturization will spread more widely. However, it is anticipated that the incorrect choice of potting resin for various applications will limit market growth during the examined timeframe. The major market participants in potting compounds worldwide should profit from end users' gradual adoption of two-component polyurethane potting compounds in the upcoming years. The expansion of this industry is fueled by rising middle-class disposable income, which promotes the purchase of cutting-edge electronics products.

Market Dynamics

Perfectly Suitable Properties For Electronic Applications

Therefore, potting compounds are frequently used in electrical and electronic applications. They have advantageous qualities that protect electronics and electrical equipment from the outside environment. Potting materials have exceptional chemical resistance, electrical insulation, super adhesive strength, and excellent thermal conductivity and stability. Because they produce more power while providing desired services, electronic machinery and products are expected to operate at higher temperature ranges. It has effectively managed the heat that builds up in an electronic assembly using thermally conductive potting materials. Because electrical equipment is frequently used in low, medium, and high-voltage applications, thermally conductive potting compounds offer a dependable path for the heat to consistently move away from a heat-generating source and toward a metal enclosure. This is the primary cause of the rise in demand for potting compounds. The potting liquid hardens after being added to the electronic assembly, permanently protecting the component from moisture, allowing it to operate in challenging conditions, and ensuring the device’s security.

Adoption Of Two-Component Polyurethane Potting Compounds Over Time

Potting resins are used as an encapsulant in various electronic devices to protect them from the outside world. Electrical potting compounds have specific applications in preventing corrosion, mechanical and electrical faults, and electrical short circuits. Some players have offered two-component polyurethane potting compounds to address the problems with using epoxy resin in potting compounds. This is because polyurethane potting materials have more advantages over epoxy potting materials, such as good electrical properties, low-temperature curing, chemical resistance, the absence of odor problems, and low shrinkage. In the upcoming years, more companies are expected to start producing two-component polyurethane potting resins because polyurethane potting compounds are suitable for industrial and commercial applications. So manufacturers will soon have lucrative opportunities thanks to two-component polyurethane potting compounds.

Regional Analysis

Asia Pacific is the highest contributor to the global potting compound market and is anticipated to grow at a CAGR of 3.3% during the forecast period. The development of the building, construction, energy, and power industries is fueled by the region's rapid economic and population growth. The demand for potting compounds from end-user industries like consumer electronics, automotive, and aerospace is expected to increase in the upcoming years, leading to market growth in the region. The growing demand for electronic device miniaturization from end-user industries like automotive and consumer electronics also supports the Asia-Pacific potting compound market. China, Japan, and India have become manufacturing powerhouses in the electronic industry, increasing the demand for potting compounds for the ongoing production of electronic components and driving the market for potting compounds forward in the coming years.

North America is expected to grow at the fastest CAGR of 4.4% during the forecast period. The United States is North America's largest producer and consumer of potting compounds. The market for potting compounds in the region has a ton of potential in countries like Canada and Mexico. The electronics and automotive industries, which are expanding steadily, have a high demand for potting compounds. The demand for potting compounds is increased because many component producers in the area make parts for the aerospace and defense industries. Aircraft structures, parts, and engines require superior-quality structural adhesive solutions to guarantee a dependable and secure fleet for airline operators. Potting substances are essential in these kinds of applications. Because of their high compressive strength and dispense rate, potting compounds are an excellent choice for use in the aerospace industry.

Key Highlights

• The global potting compound market was valued at USD 49 billion in 2022. It is projected to reach USD 4.92 billion by 2031, growing at a CAGR of 3.9% during the forecast period (2023–2031).
• Based on resin type, the global potting compound market is bifurcated into epoxy, polyurethane, silicone, polyester, polyamide, polyolefin, and acrylics. The silicone segment is the highest contributor to the market and is forecasted to grow at a CAGR of 4.0% during the forecast period.
• Based on curing technology, the global potting compound market is bifurcated into UV curing, thermal curing, and room-temperature curing. The UV curing segment is the major contributor to the market and is anticipated to grow at a CAGR of 4.1% during the forecast period.
• Based on application, the global potting compound market is bifurcated into electrical and electronics. The electrical segment owns the highest market share and is forecasted to grow at a CAGR of 3.4% during the forecast period.
• Based on end users, the global potting compound market is bifurcated into electronics, aerospace, automotive, and industrial. The electronics segment is the major contributor to the market and is anticipated to grow at a CAGR of 4.2% during the forecast period.
• Asia Pacific is the highest contributor to the global potting compound market and is forecasted to grow at a CAGR of 3.3% during the forecast period.

Competitive Players

Competitive Players

The global potting compound market’s major key players are Henkel AG & Co. KGaA, The 3M Company, MG Chemicals, ELANTAS GmbH, ALPAS Srl, Dymax Corporation, Aremco Products, Inc., DowDuPont Inc, HItach Chemical LLC, WEVO-CHEMIE GmbH, Huntsman Advanced Materials, Wacker-Chemie, Master Bond, Inc., Lord Corporation, RBC Industries, Inc., Shanghai Sepna Chemical Technology Co. Ltd.

Recent Developments

Market News

• In August 2022, The importance of adequate ventilation and efficient heating and cooling in buildings is growing due to rising energy costs. Ventilation systems provide air circulation and temperature control for industrial settings, agriculture, and increasingly private homes.

• In January 2022, MacDermid Alpha Electronics Solutions is a global provider of integrated solutions from our Circuitry, Assembly, and Semiconductor divisions offering unmatched electronics design and manufacturing capabilities.

Segmentation

Global Potting Compound Market: Segmentation

By Component

• Epoxy
• Polyurethane
• Silicone
• Polyester
• Polyamide
• Polyolefin
• Acrylics

By Organization Size

• UV Curing
• Thermal Curing
• Room Temperature Curing

By Application

• Electrical
• Electronics

By End User

• Electronics
• Aerospace
• Automotive
• Industrial

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA