HYDERABAD, India, June 13, 2019 /PRNewswire/ -- According to a new market research report by Mordor Intelligence, the Wet Chemicals Market for Electronics and Semiconductor Applications is expected to grow at a CAGR of 6.36% during the forecast period of 2019 – 2024.
Highlights From the Report:
Rising demand from modern technology industries and surging demand for hydrogen peroxide from the semiconductor industry are expected to drive the growth of the market studied.
Due to rapid expansion in the electronics industry, the demand for electronic chemicals used to clean and etch large-scale integrated circuits and semiconductors has also surged. To offset that demand, companies have started investing in new hydrogen peroxide production plants.
However, sudden dip in the semiconductor industry and waste management of semiconductors are anticipated to hinder the growth of the market studied.
By product type, the hydrogen peroxide segment accounted for the largest share of 25%, in 2018.
By geography, Asia-Pacific dominated the global market in 2018. It is also expected to register the fastest CAGR of 7.05% over the forecast period.
Asia-Pacific region dominated the global market share in 2018. With growing demand for the electronics in countries such as China, India, and Japan, the usage of wet chemicals is increasing in the region.
The semiconductors market in China is currently lagging behind. Currently, China is a net importer of semiconductor chips with China manufacturing less than 20% of semiconductors used. As part of the country's ambitious "Made in China 2025" plan, the Chinese government has announced their decision to reach output of USD 305 billion by 2030, and therefore meet 80% of its domestic demand. In 2018, China imported semiconductor chips worth USD 312 billion.
Similarly, over 90% of the IC's that are currently being used by China are either imported or domestically manufactured by foreign chipmakers. In 2018, the total imported volume of integrated circuits in China was about 417.60 billion units, representing an increase of 10.80% Y-o-Y over 2017. The total imported value of these integrated circuits was about USD 312.06 billion, representing an increase of 20% Y-o-Y over 2017.
The Chinese government has declared to invest above USD100 billion over the following decade to catch up with the United States in semiconductor technology. Some of the cities which have announced their plans for the production facilities for semiconductors include Chongqing, Shanghai, Beijing, Chengdu, Hefei, Shenzhen, Wuhan, Xiamen and Liaoning, and Shaanxi. Therefore with the establishment of new semiconductor manufacturing facilities, the demand for wet chemicals is expected to rapidly increase over the forecast period.
The aforementioned factors are contributing to the increasing demand for wet chemicals consumption in the region during the forecast period.
The wet chemicals market for electronics and semiconductor applications is highly concentrated, with the top five players accounting for over 60% of the market share in 2018. Major players in the market include KMG Chemicals, BASF SE, Avantor Inc., Honeywell International LLC and KANTO CHEMICAL CO. INC., amongst others
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