The potting compound market is expected to register a CAGR of over 3% during the forecast period. One of the main factors driving the market is the growing demand for potting compound from the electronic industry. However, the absence of compatibility of these compounds with each product and application-explicit characteristics is expected to hinder the growth of the market studied.
- Emerging new innovative applications in end-user industries are likely to act as an opportunity for the market studied in the coming years.
- By application, the growing demand for potting compound from the electronic industry is expected to dominate the market over the forecast period.
- The Asia-Pacific region is expected to dominate the market with the largest consumption from countries, such as China and India.
Key Market Trends
Growing Demand for Potting Compound from the Electronics Industry
- In electronics, potting is a procedure of filling a total electronic assembly with a strong or thick compound for high voltage gatherings, by excluding gaseous phenomena such as corona discharge, for resistance to shock and vibration, and the exclusion of water, moisture, or corrosive agents.
- In the potting process, an electronic assembly is placed inside a mold, which is then filled with an insulating liquid compound that hardens, permanently protecting the assembly.
- Potting materials are a permanent protective solution, which will remain an integral part of the unit to protect the electronic assembly, while providing numerous benefits, such as electrical Insulation, enhanced mechanical strength, and heat dissipation.
- The electronics industry is likely to grow significantly in the coming years, owing to the increasing demand for electronic devices, such as semiconductors, capacitors, transformer, and solenoids.
- Hence, owing to the above-mentioned factors, the application of potting compound in electronics is likely to dominate during the forecast period.
The Asia-Pacific Region is Expected to Dominate the Market
- The Asia-Pacific region is expected to dominate the market for potting compound during the forecast period. The rising demand for potting compound from the electronics industry in developing countries, like China and India, is expected to drive the demand for potting compound in this region.
- The largest producers of potting compounds are located in the Asia-Pacific region. Some of the leading companies in the production of potting compounds are Henkel Adhesives Technologies India Private Limited, ELANTAS Beck GmbH, MG Chemicals, Momentive Performance Materials Inc., and 3M, among others.
- India is a well-recognized consumer electronics manufacturing hub in the world because of its low-cost production, cheap labor, easy availability, low cost of raw materials, and a weak currency.
- The National Development and Reform Commission (NDRC) of China announced that the restrictions will be loosened on the automobile market, and appropriate subsidies will be provided to boost rural sales of some vehicles, as well as the purchase of new energy vehicles, which will in turn boost the demand for potting compound from the automotive industry.
- Owing to the above-mentioned factors, the market for potting compounds in the Asia-Pacific region is projected to grow significantly during the study period.
The global potting compound market is partially fragmented in nature, with only a few major players dominating the market. Some of the major companies are Henkel Adhesives Technologies India Private Limited, ELANTAS Beck GmbH, MG Chemicals, Momentive Performance Materials Inc., and 3M, among others.
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