Electronic Chemicals and Materials Market Trends

Growth Drivers

• The Use of Electronic Chemicals and Materials in the Semiconductor Industry – During the production of semiconductors, the semiconductor industry significantly relies on electronic chemicals and materials. Electronic gadgets such as computers, cell phones, and televisions all depend on semiconductors. Electronic chemicals and materials are employed throughout the manufacture of semiconductors, including wafer cleaning, lithography, etching, and deposition, and it is anticipated to boost the growth of the global electronic chemicals and materials market. The semiconductor industry globally generated USD 415 billion in sales in 2019 and climbed up to USD 439.4 Billion in 2020, a 6.8% increase, partly as a result of increased demand brought on by the COVID-19 pandemic.
• Technology is the Fastest Growing Industry – With constant developments in various sectors ranging from AI and ML to cloud computing and 5G, technology has become the most valuable and fastest-growing sector in the world.  In 2020, over 40% of the top 50 biggest global corporations belonged to the technology sector.
• Growing Adoption of Nanotechnology – By manipulating substances at the nanoscale, nanotechnology enables the development of novel materials with special qualities, including boosted strength, better electrical conductivity, and improved optical capabilities. Nanotechnology is being applied to the semiconductor industry to develop new semiconductor types with enhanced functionality and reduced power consumption. For instance, it is anticipated that in the next 3 years, the Nanotechnology industry is set to generate over 300 billion USD in revenue globally.
• Recovering Semiconductor Industry Post Global Shortage – The productivity of semiconductor manufacturers has grown around the world, which helped in driving up the predicted revenue growth to over 8.5% in 2021 from roughly 5% in 2019, the last year before the pandemic. To minimize supply chain interruptions, governments are also increasing their investments in semiconductor technology.
• Global Advent and Adoption of 5G – Over 1/3^rd of all semiconductors produced are used in the communications industry. It is anticipated that in 2025, one-third of the world's population will be covered by 5G networks 2025. The growth of 5G technology will further propel the global electronic chemicals and materials market.

Challenges

• High associated cost of operations, investment, and manufacture of electronic chemicals and materials. - The production and use of electronic chemicals and materials can be costly owing to several factors, such as the fluctuating prices of raw materials, costs incurred during the manufacturing process, and the ongoing research and development process. These factors contribute to the high associated cost of operations, investment, and manufacture in electronic chemicals and materials market. However, the industry is continuously evolving, and new methods and technologies are being developed to reduce the cost of production and make the materials more accessible to manufacturers.
• Strict regulations regarding the use of hazardous chemicals
• Disruptions in supply chains that can cause imbalances.