The global WLCSP electroless platting market was valued at USD 3,398.85 million in 2022. It is estimated to reach USD 5,596.93 million by 2031, growing at a CAGR of 5.7% during the forecast period (2023–2031).
Electroless plating is also known as conversion coating or auto-catalytic plating. It is a non-galvanic plating method that involves several simultaneous reactions in aqueous solutions. Electroless plating is used to form the conductive part of printed circuit boards in manufacturing. It is a way of plating PCBs without using an external power source. The process involves placing the part in an aqueous solution, depositing nickel, and creating a catalytic reduction of nickel ions to plate the part without any electrical energy dispersal.
Wafer-level chip scale package or WLCSP is the technique of packaging an integrated circuit at the wafer level instead of the conventional method of placing individual units in packages after slicing wafers into smaller pieces. Wafer-level CSP differs from BGA as no bond wires or interposer connections are required. The key advantage of wafer-level CSP is that the die-to-PCB inductance is minimized, along with reduced package size and enhanced thermal conduction characteristics.
With the increase in technological advancement, manufacturers emphasize providing compact electronic devices in various industry verticals such as consumer electronics, healthcare, automotive, and semiconductor IC manufacturing. These manufacturers are reducing the size of the integrated circuits to ensure delicate patterning and plating on the wafers and chips. In addition, the medical devices industry is observing an increase in demand for nano-sized robotic surgery equipment with sophistication and advances in wearable and personalized healthcare gadgets. Therefore, the trends toward compact electronic devices have created the need for designers to outgrow conventional plating and adopt WLCSP electroless plating.
Miniaturized electronic devices are experiencing growth in the semiconductor industry due to the rise in demand for high-performance electronics. Moreover, the increase in developments of technologies such as RFID, MEMS devices, and other power devices boosts the demand for thin wafers. Thin wafers help reduce the thickness of packages, especially for smartphones, handheld devices, and compact electronic products. The emerging applications in semiconductor technology that use very thin and ultra-thin die create massive demand for miniaturized electronic devices and further assist in developing the WLCSP electroless plating market globally.
WLCSP electroless plating is applied with zero or significantly less comprehensive stress. No electricity is required in this plating or coating process. The entire process takes place through a chemical reaction. As no electricity is needed for the coating process, the accuracy level of the process is relatively high, even without less equipment. This factor promotes the cost-effectiveness of WLCSP electroless plating. Electroless plating requires less cost than electroplating, which lowers its price. In addition, the requirement of no external current for the coating process makes it a convenient method and majorly drives market growth.
The cost of raw materials remains the primary concern among various industry verticals globally. The extreme prices of raw materials such as nickel, copper, ceramic, gold, phosphorus, and others are a real challenge among its customers. According to estimates, the semiconductor market in raw materials is unstable in North America and Europe. As various types of materials, such as copper, aluminum, steel, phosphorus, and others, are used in electronic components, the prices of raw materials tend to fluctuate due to their demand. In addition, various electronic companies are susceptible to material cost, as it increases the cost of production and affects the demand and supply gap. Therefore, rising raw materials prices in semiconductor manufacturing pose a more significant threat to the global WLCSP electroless plating market.
The semiconductor plating industry provides advanced IC packages to develop next-generation chip designs. Traditionally, the integrated circuit industry used traditional chip scaling and innovative architectures for new devices. In addition, multi-chip packages exist in every phone, data center, consumer electronics, and network, driving advanced packaging growth as it promotes system optimization. Therefore, enhanced operational capabilities and precise processing are lucrative for various industry verticals, such as automotive, healthcare, aerospace and defense, and industrial sectors, which are now adopting advanced WLCSP electroless plating. All these factors assist in providing enhanced system performance in its operation, which majorly drives the market's growth.
| Study Period | 2019-2031 | CAGR | 5.7% |
| Historical Period | 2019-2021 | Forecast Period | 2023-2031 |
| Base Year | 2022 | Base Year Market Size | USD 3,398.85 Million |
| Forecast Year | 2031 | Forecast Year Market Size | USD 5596.93 Million |
| Largest Market | Asia-Pacific | Fastest Growing Market | Europe |
Based on region, the global WLCSP electroless platting market is bifurcated into North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific is the most significant global WLCSP electroless platting market shareholder and is anticipated to grow at a CAGR of 6.3% during the forecast period. Asia-Pacific is leading the WLCSP electroless plating market and is expected to be the fastest-growing regional segment over the forecast period. It is the most lucrative market for WLCSP electronic plating due to the availability of high-end enhanced technologies, increased demand for innovative electronics, and growth in manufacturing industries. Moreover, various supportive non-profit organizations promoting packaging technologies fuel the growth. These organizations take multiple initiatives to build power infrastructure with advanced technologies, which drives the development of the WLCSP electroless plating market in the region. Due to increased demand for high-voltage operating devices, organizations across verticals realize the importance of packaging technologies to ensure efficient power management. High demand for automated switching devices and power modules will boost the market growth.
Europe is estimated to exhibit a CAGR of 3.9% over the forecast period. Europe exhibits lucrative opportunities for the global WLCSP electroless plating market players. The market is primarily driven by the strengthening of the European economy and the rising penetration of Chinese products across Western and Eastern Europe regions. Europe is one of the significant markets for advanced WLCSP electroless plating. Prominent players are acquiring small semiconductor companies to strengthen their market presence and deliver next-generation technologies through their product portfolio. Furthermore, growth in digital electronic devices, adoption of advanced electronic vehicles, and advanced virtual systems foster several growth opportunities for WLCSP electroless plating technology vendors in Europe. The region is also anticipated to witness a high growth rate for the advanced packaging market during the forecast period due to the development in the consumer electronics industry, the adoption of advanced technologies such as advanced driver assistance in automotive, and the need for low-power consumption devices in the region, which in turn propels the market growth.
North America is one of the key contributors to the WLCSP electroless plating market owing to the increase in the number of electronics, automotive, and machinery applications, which fuels the demand for WLCSP electroless plating in the region. The need for intelligent and smart devices and technology platforms by different industries has increased the use of advanced packaging solutions, which creates demand for WLCSP electroless plating. Moreover, using microcontrollers and microprocessors in consumer electronics and electric vehicles is estimated to drive the market for WLCSP electroless plating during the forecast period. In addition, the early adoption of new technology and the presence of different U.S.-based companies facilitate the exploration of more recent applications of the technologies. Companies have adopted mergers and acquisitions to increase their market share in the highly fragmented market. Also, the region has significant players offering advanced solutions. This is attributed to the region's extensive adoption of advanced technology for security purposes for the public and the infrastructure, which is expected to propel the market growth.
The adoption rate of advanced technologies in various industries could be faster in LAMEA. Among these, Latin America and the Middle East are the key regions for the WLCSP electroless plating industry. The rise in demand for enhanced technologies in the countries such as Dubai, Abu Dhabi, Oman, Jordan, and others is expected to be opportunistic for the growth of the WLCSP electroless plating market. In addition, major market players are setting up their manufacturing and distribution networks in LAMEA, which is expected to affect the market growth significantly. As this region witnessed the lowest growth rate in the adoption of wireless technologies, it is treated as an untapped region and offers enormous scope. This scenario shows the vast opportunities for advanced technologies in this region that support the growth of the WLCSP electroless plating market. Furthermore, LAMEA is slowly adopting advanced packaging technology across applications such as energy and power, electric vehicles, inverters, consumer electronics, etc. Growth of power modules is anticipated to occur in applications such as air conditioners and refrigerators, which is opportunistic for the market.
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The global WLCSP electroless platting market is segmented by type and end-user.
Based on type, the global WLCSP electroless platting market is bifurcated into nickel, copper, and composites.
The nickel segment is the highest contributor to the market and is projected to grow at a CAGR of 4.7% over the forecast period. The electroless plating of nickel operates without an external source of current. It is also known as chemical or autocatalytic nickel plating, which uses chemical nickel-plating baths. The nickel-plating process has been modified to produce molds for blow molding, thermoforming, and rotational molding industries. The most common reducing agent used is sodium hypophosphite. Sodium hypophosphite is estimated to be used in more than 99% of all electroless nickel plating. In addition, printed circuit boards for electronics are frequently coated with them and then overlaid with gold to prevent corrosion. Electroless nickel immersion gold is the name of this procedure. Electroless nickel plating for WLCSP is widely used in the chemical process industry.
Furthermore, properties such as corrosion resistance, chemical purity, elasticity, water resistance, chemical hardness, electrical & thermal properties, and efficiencies have made it a significant plating process and the electroless industry. Electroless nickel plating for WLCSP is commonly used for corrosion and wear protection for automotive and aerospace components. It plates evenly and symmetrically, which allows the part to be plated to its final dimension. All these factors significantly affect the adoption of nickel electroless plating for WLCSP.
Electroless copper plating and coatings protect common metal surfaces exposed to corrosion and wear and tear. Electroless copper plating is used in several industrial applications ranging from aerospace, automotive, electronics, telecommunications, information technology, food processing, nuclear engineering, petrochemicals, plastics, textiles, and power transmission. Electroless copper plating is being extensively used in microelectronics, and the packaging of devices, for interconnects in ultra-large-scale integration IC fabrication. In addition, the electroless copper plating for WLCSP is used for surface protection, decoration, electronics, satellites, and others. This type of plating is widely used for the wiring of printed boards in commercial applications. The majority of printed wiring boards are made through electroless copper plating. However, electroless copper plating is a conventional plating process with the requirement of multiple coats. This further increases the plating's thickness, which is problematic and hinders market expansion.
Based on the end-user, the global WLCSP electroless platting market is segmented into automotive, electronics, aerospace, machinery, and others.
The electronics segment owns the highest market share and is estimated to exhibit a CAGR of 5.8% during the forecast period. Electronics includes smartphones, television, DVD players, and other equipment used by end-users daily for commercial and personal purposes. The consumer electronic industry is proliferating owing to the emergence of IoT and the high adoption of smart devices across various industry verticals. An embedded processor is a microchip used in many electronic devices such as digital watches, digital cameras, MP3 players, and other home appliances to process data rapidly. It helps perform the system operations efficiently for continuous and repetitive operations. In addition, consumer electronics product packaging considers protection from mechanical damage, cooling, RF noise emission, and electrostatic discharge. Product safety standards are followed precisely. Advanced packaging in consumer electronics relies on mechanical engineering principles such as dynamics, stress analysis, heat transfer, and fluid mechanics through electroless plating. As electronic assembly consists of component devices, circuit card assemblies, and connectors and cable components, advanced packaging plays an essential role in semiconductor packaging, creating demand for a global electroless plating market for WLCSP.
The automotive industry contains a broad range of motor vehicles, which demands advanced and enhanced vehicle infotainment systems like parking assistance, navigation, audio/video interfaces, touchscreen displays, adaptive cruise control, and anti-locking systems. All these systems are enabled with embedded OS software processors because the processors provide real-time system solutions and make the functions more reliable and safer. Moreover, the rise in demand for hybrid and electric vehicles also contributes toward an increase in the use of electroless plating technology for advanced packaging in the automotive industry. The automotive industry needs hardware, software, and peripherals to run its business, which depends on processors and microcontrollers. Arm-based chips are primarily used in the automotive industry for high and reliable performance, computing platforms, and low power. The adoption of ADAS and the electrification of vehicles drive the growth of the electroless plating market for automotive. For instance, according to Yole development, in 2018, advanced packaging accounted for only 3% of the total automotive packaging revenue. All these factors boost the growth of the electroless plating market for WLCSP in the automotive industry.
