Underfill Market Size, Share, Growth, Trends, Consumption, Revenue, Company Analysis and Forecast 2020-2027

Published Date : Nov 2020 | No. of Pages : 200 Pages | Category : Others

Vision Research Reports annnounced the global underfill market is expected to grow a CAGR of 10% during the forecast period 2020 to 2027 and to reach valueation US$ 610 million by 2027.

Growing demand for low cost, high performing, and compact devices are some of the factors boosting the growth of the global underfill market.

Asia Pacific Underfill Market to Register Double Digit Growth over Forecast Period

The Asia Pacific region is a highly lucrative market for players offering underfill material, as it is a noteworthy manufacturing hub. The growing interest in smartphones and automotive MCUs boosts the growth of the underfill market in this region, as the manufacturers of the above mentioned products account for a substantial demand for underfill materials. China is projected to cross US$ 100 Mn by 2021 in the underfill market. This growth can be attributed to the increased support of Chinese Government in the development of the semiconductor industry in the last few years. According to Chinese Semiconductor industry Association (CSIA), high imports of integrated circuit valued over US$ 310 Bn were recorded in 2019. All these factors contribute to the high demand for underfill material over the forecast period of 2020-2027.

New Entrants to Use Eclectic Approaches in Underfill Market

The microelectronic industry is governed by more complex devices, due to the trending system on chip (SOC) and system in package (SIP). The trends in portable end use market are driving the global underfill material market growth. New companies that strive to penetrate the underfill market are trying to develop processes or materials that guarantee a good output at a reduced cost to establish their presence in the market. If new entrants are well-funded, they can opt for more modern approaches, and try to develop underfill materials and plans that can be used to save overall production cost.

In the flip chip packaging of low-k devices, underfill choice is extremely crucial. Companies are introducing underfill materials that offer better properties for leading edge semiconductors that use low-k inner layer dielectric materials for wafer fabrication. This helps companies to meet the rising demand for underfill material and capture a larger market share. The interference of key suppliers in the underfill market is low, thereby enhancing the scope of growth for small & regional players in the market.

Moreover, being a technology-driven market, the underfill market is expected to be shaped by the recent advancements in the electronic industry. This end-use segment demands underfill products that are compatible with lead-free solder paste material, as a result of the latest trend of sustainability in the electronic industry. Thus, some of the leading manufacturers in the market are offering underfill material products that are compatible with lead free solder paste.

Rising Preference for High Performance & Compact Electronic Devices to Propel Market Growth

  • The demand for portable electronic equipment is growing at an exponential rate across the globe, particularly in developing countries. Companies seek compact components for their electronic products, which can be achieved through the application of underfill materials that provide strength and increased impact resistance. Use of underfill materials also boosts thermal cycling resistance and improves overall reliability of products.
  • In the electronics industry, the preference for products with high functionality boosts the sales of smartphones, laptops, and tablets. The use of underfill materials becomes crucial in order to achieve reliability, and reduce the overall size of electronic products. On the back of these factors, the underfill market is anticipated to witness substantial growth over the forecast period.

Increasing Demand for Portable Systems in Aerospace and Military

  • The growing use of electronics in aerospace and military is anticipated to contribute considerably to the demand for underfill materials during the forecast period. High reliability, along with the ability to withstand thermal stress further increases the applications of underfill materials in this sector.
  • Rise in applications of electronic components in automobiles has increased the demand for underfill materials. Underfill materials are primarily used to enhance the solder joint reliability and thermal cycling board level reliability of automobile electronics.
  • Moreover, high usage of underfill material for wafer level packaging and flip chip packaging, attributable to the rising demand for these packaging solutions from manufacturers of electronic gadgets is anticipated to bolster growth of the underfill market over the forecast period

Growing Adoption of Flip Chip Underfill Materials to Boost Sales

  • Underfill material has changed the scenario for the flip chip technology as well as the landscape of the entire semiconductor industry by dispensing thermal-induced stress, as underfill directly attaches a silicon chip to low-cost organic materials. On the back of this factor, the flip chip packaged unit is projected to exhibit an above average growth during the forecast period. This, in turn, creates a significant demand for underfill materials.
  • Several manufacturers of high-end devices are transitioning from the use of wire bond to flip chip bonding, primarily due to the added advantage offered by flip chip bonding that includes board area reduction up to 95%, high speed electrical performance, more durable interconnection, and lower cost for high volume production. This is expected to positively impact the sales volume of the underfill market in the foreseeable future.

Focus on Cost-effective Underfill Materials

  • The packaging industry is undergoing a transition with the use of wafer level and more cost-effective underfill by combining the processes into one or two steps to reduce the cost of production, attributable to the considerable pricing pressure on suppliers. Underfill material manufacturers such as NAMICS Corporation are making small changes in material properties by 1 to 2 degrees to make these offerings more customized. However, there are no new innovations taking place in the conventional underfill market.

Copper Pillars Gaining Traction

  • Demand for miniaturized electronic devices with high functionality leading to a shift to use of the flip chip technology boosts the growth of the underfill market. In order to cope with this shift, copper pillars are increasingly being employed, attributable to their pliancy for ultra-fine pitches and superior electrical connections. This is expected to positively impact the sales of underfill materials, as these provide the strength required in such tight dimensions.
  • The adoption of copper pillars is increasing, as manufacturers are deploying the new interconnect structure to exploit technological and cost advantages

Market Players Facing Downward Pricing Pressure with Sizable R&D Cost

  • The profit margins for underfill suppliers are reducing, as end users seek low-cost packaging solutions. Manufacturers in the semiconductor industry prefer use of cost-effective materials, which puts pressure on suppliers to reduce the cost of their packaging solutions targeted at the electronics and semiconductors industries.
  • Companies across the supply chain need to collaborate with each other to maintain the momentum of this new development in the underfill market, and to supply products at lower cost. In this industry, competition is high, and a large portion of the underfill market is dominated by a few companies. Yet, new suppliers are entering the underfill market, and they face intense pricing pressure from end users. However, companies are reluctant to spend money on the development of new processes or on innovation, which is a time consuming process.

Competitive Landscape

TMR has identified some of the key players in the underfill market - Henkel AG & Co. KGaA, Panasonic Corporation, NAMICS Corporation, Nordson Corporation, H.B Fuller, Epoxy Technology Inc., Yincae Advanced Material, LLC, Master Bond Inc., Zymet Inc., AIM Metals & Alloys LP, Won Chemicals Co. Ltd., and Bondline Electronic Adhesives, Inc.

Manufacturers can leverage the remunerative growth potential offered in the global underfill market. In order to gain the most benefits out of this scenario, key players such as Henkel AG & Co. KGaA and Panasonic Corporation are strengthening their presence in the global underfill market by focusing on collaborations and mergers.

  • In August 2019, Henkel AG & Co. KGaA partnered with ALPLA to invest more than US$ 130 Mn in infrastructure and equipment for production of new bottle. A few years ago, the company launched a new generation (NCP) underfill material–LOCTITE ECCOBOND NCP to overcome challenges from use of capillary underfill materials in flip chip devices.
  • In September 2018, Panasonic launched a new underfill product CV5794, which increases the reliability of automotive electronic systems by reinforcing the solder connections between semiconductor packages and printed circuit boards to meet the stringent industry requirements

Market Segmentation

By Material

  • Capillary Underfill
  • No Flow Underfill
  • Molded Underfill

By Application

  • Flip Chips
  • Ball Grid Array
  • Chip Scale Packaging

By Region

  • North America
    • United States
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Rest of Latin America
  • Europe
    • Germany
    • Spain
    • Italy
    • France
    • U.K.
    • Benelux
    • Nordic
    • Russia
    • Poland
    • Rest of Europe
  • Asia Pacific (APAC)
    • China
    • India
    • Japan
    • South Korea
    • ASEAN
    • Australia & New Zealand
    • Rest of Asia Pacific
  • Middle East & Africa (MEA)
    • North Africa
    • South Africa
    • GCC Countries
    • Rest of MEA

Report Scope

The Underfill market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.

The report provides size (in terms of volume and value) of Underfill market for the base year 2020 and the forecast between 2020 and 2027. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.

This report focuses on the global Underfill market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Underfill market development in United States, Europe and China.

It is pertinent to consider that in a volatile global economy, we haven’t just conducted Underfill market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.

In terms of production side, this report researches the Underfill capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.

In terms of consumption side, this report focuses on the consumption of Underfill by regions (countries) and application.

Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Underfill market. These figures have been provided in terms of both revenue and volume for the period 2016 to 2027. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.

With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Underfill market companies.

Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Underfill market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.

The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.

For the region, type and application, the sales, revenue and their market share, growth rate are the key research objects; we can research the manufacturers' sales, price, revenue, cost and gross profit and their changes. What's more, we will display the main consumers, raw material manufacturers, distributors, etc.

Geographically, global xxx market competition by top manufacturers, with production, price, revenue (value) and market share for each manufacturer.

We will provide market shares of the prominent market suppliers/companies separately for each of these geographies.

Overall, this is an in-depth research report specifically for the Underfill industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.

Underfill market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Underfill market.

Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Underfill market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.

Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Underfill market. These factors have benefited the growth of the global market for Underfill. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.

New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Underfill. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).

In this study, the years considered to estimate the market size of Underfill are as follows:

  • History Year: 2016-2019
  • Base Year: 2020
  • Forecast Year 2020 to 2027

Reasons to Purchase this Report:

- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players

Research Methodology:

In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.

This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.

Market Size Estimation

Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).

The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.

Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.

All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.

Market Breakdown and Data Triangulation

After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.

Secondary Sources

Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.

Primary Sources

 In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.

The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.

The study objectives of this report are:

  • To analyze and study the global market capacity, production, value, consumption, status (2016-2019) and forecast (2020-2027);
  • Focuses on the key manufacturers, to study the capacity, production, value, market share and development plans in future.
  • Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
  • To define, describe and forecast the market by type, application and region.
  • To analyze the global and key regions market potential and advantage, opportunity and challenge, restraints and risks.
  • To identify significant trends and factors driving or inhibiting the market growth.
  • To analyze the opportunities in the market for stakeholders by identifying the high growth segments.
  • To strategically analyze each submarket with respect to individual growth trend and their contribution to the market
  • To analyze competitive developments such as expansions, agreements, new product launches, and acquisitions in the market
  • To strategically profile the key players and comprehensively analyze their growth strategies.

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