Potting Compound Market

Market Overview

The global potting compound market size was valued at USD 3.49 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).

To protect against damage from water, dust, voltage discharge, vibration, and physical contact, potting compounds are used as encapsulants. The potting material is introduced during the electronic assembly and has excellent adhesive properties; as a result, it is very challenging to remove them once they have been placed because they adhere to the surface permanently, making rework impossible. The potting process can be done manually or automatically using meter-mix-dispense (MMD) machinery. The potting compound market is expanding globally due to its perfectly suited properties for electronic applications. Additionally, during the anticipated period, the output of the consumer electronics industry will increase, and miniaturization will become more prevalent. However, it is anticipated that the market growth during the examined timeframe will be constrained by improper potting resin selection for various applications. In the coming years, the key players in the global potting compound market should benefit from the end users' gradual adoption of two-component polyurethane potting compounds.Increased middle-class disposable income encourages the purchase of advanced electronics products, which drives the expansion of this industry.

Market Dynamics

What Are The Driving Factors For Potting Compound?

Perfectly Suitable Properties For Electronic Applications

Potting compounds in electrical and electronic applications areprevalent for an excellent reason. They have advantageous characteristics that shield electrical equipment and electronics from the outside environment. Potting materials have outstanding electrical insulation, super adhesive strength, excellent thermal conductivity and stability, and chemical resistance. Electronic equipment and products are expected to operate at higher temperature ranges as they deliver more power while delivering desired services. Thermally conductive potting materials have developed into an efficient way to manage the heat that accumulates in an electronic assembly. Thermally conductive potting compounds provide a reliable route for the heat to move away from a heat-generating source consistently and toward a metal enclosure because electrical equipment is frequently used in low, medium, and high-voltage applications. This is the main factor causing the demand for potting compounds to increase.Once the potting liquid has been added to the electronic assembly, it hardens, permanently shielding the device from moisture and enabling it to function in harsh environments, ensuring its security.

Increased Consumer Electronic Industry Output And Trend For Miniaturization

The consumer electronics sector experienced a boom fueled by technological advancements and economic reforms, which were visible to the world. The industry is renowned for its ongoing product innovation and widespread uptake by all demographic groups worldwide. The leading cause is an increase in middle-class people's disposable income. As a result, the consumer electronics industry is anticipated to grow in every way. The increase in single-family households led to a massive increase in high-tech appliance sales, benefiting the consumer electronics sector. Because potting materials are used in electronic assemblies to ensure safety, demand for potting compounds is increasing at a rate consistent with rising sales of consumer electronics products. They serve as encasing materials for corrosion, electrical, and thermal resistance. Encapsulants offer minimal curing time in integrated circuits (IC) and printed circuit boards (PCB) by providing the best protection. Due to the demand for portable and smaller-sized electronic devices, miniaturization is one of the most recent trends in the consumer electronics sector.

What Are The Challenges For Potting Compound Market?

Improper Selection Of Potting Resin

When choosing the potting resin, extra care must be taken to ensure a high level of protection. To achieve ideal adhesion, specific potting materials require surface preparation and primers. During application, the liquid potting material must flow easily to cover the component and leave no void. Every instance of a discrepancy eventually causes corrosion and component or product failure.One-part, no-mix systems can also be used for potting, even though two-part systems are the norm for epoxy and silicone potting compounds. However, the electronic components may be harmed because they typically cure at temperatures between 125 and 150 ºC. This should reduce the use of these potting compounds in turn. One-part epoxies can also cause thermal damage because they are exothermic.

What Are The Future Opportunities For Potting Compound?

Adoption Of Two-Component Polyurethane Potting Compounds Over Time

Various electronic devices use potting resins as an encapsulant to shield the device from the environment. Specific uses for electrical potting compounds include protection from mechanical and electrical faults and moisture, corrosion, and electrical short circuits. Some players have begun to offer two-component polyurethane potting compounds to address the issues with using epoxy resin in potting compounds. This is because polyurethane potting materials offer more benefits than epoxy potting materials, including good electrical properties, lower temperature curing, chemical resistance, no odor issues, and low shrinkage. Since polyurethane potting compounds are appropriate for industrial and commercial applications, more businesses are anticipated to start producing two-component polyurethane potting resins in the upcoming years. Therefore, two-component polyurethane potting compounds will soon present manufacturers with lucrative opportunities.

Regional Analysis

Asia Pacific Dominates the Global Market.

The global potting compound market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA.

Asia Pacific is the highest shareholder in the globalpotting compound market and is forecasted to grow at a CAGR of 3.3% during the forecast period. China, Australia, India, Japan, and the rest of Asia-Pacific are all included in the Asia-Pacific potting compound market analysis. The Asia-Pacific region's rapid population growth and economic expansion drive the expansion of the building, construction, energy, and power industries. One of the biggest markets for potting compounds is in the Asia-Pacific region, which is anticipated to proliferate in value during the forecast period. The Asia-Pacific potting compounds market is anticipated to expand in the coming years due to rising demand from end-user industries like consumer electronics, automotive, and aerospace. Additionally, the miniaturization of electronic devices is becoming more and more in demand from end-user industries like automotive and consumer electronics, which fuels the Asia-Pacific potting compound market.

North Americais expected to grow at the fastest CAGR of 4.4% during the forecast period.The U.S. and Canada are included in the analysis of the potting compound market in North America.North America's top producer and consumer of the potting compound is the United States. The region's potting compound market also has enormous potential in other nations like Canada and Mexico. Potting compounds are in high demand from the electronics and automotive industries, which are expanding steadily. Many component manufacturers in the area produce parts for the aerospace and defense sectors, which raises the demand for potting compounds. To ensure a reliable and safe fleet for airline operators, aircraft structures, parts, and engines require superior-quality structural adhesive solutions. Potting compounds play a significant role in these types of applications. Potting compounds are an excellent option for use in the aerospace industry because of their qualities like high compressive strength and high dispense rate.

Segmental Analysis

The market is segmented by resin type, application, curing technology, and end user.

Based on resin type, the globalpotting compound market is bifurcated into epoxy, polyurethane, silicone, polyester, polyamide, polyolefin, and acrylics.

The siliconesegment is the highest contributor to the market and is expected to grow at a CAGR of 4.0% during the forecast period due to its use in aerospace and transportation systems, electronics, photovoltaic and solar power, and automobiles. They are dependable for under-the-hood electronic (automotive assembly) applications because they are temperature-effective up to 200°C. The performance and dependability of intricate and delicate electronic components in the harshest environments are enhanced by silicone potting resins. They have a reputation for providing flexible protection against vibration, environmental contamination, and thermal stress, even in several centimeters thick layers, thanks to their adequate curing. Additionally, silicone potting compounds have excellent dielectric qualities and provide reliable insulation against high voltages.

Based on curing technology, the global potting compound market is bifurcated into UV curing, thermal curing, and room-temperature curing.

The UV curingsegment is the highest contributor to the market and is expected to grow at a CAGR of 4.1% during the forecast period.High-intensity UV light is used instead of heat in the photochemical process of UV curing because it instantly dries or cures coatings, adhesives, and other materials. Most printing processes use this technique. Potting materials that can be UV-cured have great electrical insulation qualities. These substances resist vibration, mechanical, thermal, chemical, and moisture shock. The physical properties of the products are significantly improved by this curing technology, which means they should be more robust overall and have a gloss finish, better scratch resistance, chemical resistance, and hardness resistance.

Based on application, the globalpotting compound market is bifurcated into electrical and electronics.

The electricalsegment is the highest contributor to the market and is expected to grow at a CAGR of 3.4% during the forecast period.Surface mount packages, beam-bonded components, memory devices & microprocessors, and high-power devices are all included in the electrical application segment. Potting compounds are used in the electrical assembly to maintain product quality by offering the desired protection. Electrical insulation is necessary for high-power devices to operate effectively and survive a wide temperature range. One of the best and most recent examples of electrical potting used in the automotive industry is the potting of the ignition coil to ensure smooth car starting.

Based on end users, the globalpotting compound market is bifurcated into electronics, aerospace, automotive, and industrial.

The electronicssegment is the highest contributor to the market and is expected to grow at a CAGR of 4.2% during the forecast period.One of the primary uses of potting compounds is in electronics. It is utilized in various parts and gadgets, including solenoids, cable joints, industrial magnets, transformers, and capacitors. Given that this sector uses the most potting material, its qualities make it perfect for electrical and electronic applications. Each potting resin has unique properties in particular applications, from epoxy and silicone to polyolefin and acrylic. As a result, the importance of each type of resin in the electronic potting process is equal.

Recent Developments

• 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.

• 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.