Ceramic Substrates Market worth $8.7 billion by 2025 | Key Players include Kyocera Corporation, Murata Manufacturing, Coorstek Inc., Ceramtec, Maruwa

According to recent market research "Ceramic Substrates Market by Product Type (Alumina, Aluminum Nitride, Silicon Nitride, Beryllium oxide), End-use Industry (Consumer Electronics, Automotive, Telecom, Industrial, Military & Avionics), and Region - Global Forecast to 2025", is projected to reach USD 8.7 billion by 2025, at a CAGR of 6.0% from USD 6.5 billion in 2020. Ceramic substrates are packaging layers used to support various electronic components such as microelectronic circuits, resistors, and capacitors. These substrates can be a combination of glasses, ceramics, and metals and are used in microelectronic, semiconductor, and electrical applications in various end-use industries. According to United States Environmental Protection Agency ceramic substrates is also formed by applying a thick film of ceramic paste on a substrate. Ceramic pastes are used for decorating ceramic tableware and forming capacitors and dielectric layers on rigid substrates for microelectronics. Slurry forming of ceramics generally is accomplished using slip casting, gel casting, or tape casting. Tape casting consists of forming a thin film of ceramic slurry of controlled thickness onto a support surface using a knife edge. Tape casting is usually used to produce thin ceramic sheets or tape, which can be cut and stacked to form multilayer ceramics for capacitors and dielectric insulator substrates.

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Aluminum nitride (AlN) substrate has very good thermal conductivity and excellent thermal shock and corrosion resistance. AlN substrate is used in power electronics, aeronautical systems, railways, optoelectronics, semiconductor processing, microwave, and military applications. It is also used in heaters, windows, IC packages, and heat sinks. The thermal conductivity of AIN substrates is eight times higher than that of alumina substrates and is second only to beryllium oxide, which makes it an ideal choice for high-temperature applications. The high cost of AIN substrates limit the application areas and are only used in situations where no other feasible substitutes are found. AIN substrates provide efficient cooling as compared to other substrates, which makes it suitable for usage in chip carriers and heat sinks. They are widely used in the military & avionics industry as the higher cost of materials is not a barrier.

Ceramic substrates have been widely used in the automotive industry since its introduction in the early 1970s. High reliability; excellent thermal, mechanical, and dimensional stability; and high thermal conductivity make ceramic substrates a suitable choice for automotive manufacturers. Thick film substrates were used in engine components, voltage regulator components, and radio audio amplifier modules during the 1980s. Ceramic substrates such as thick film and LTCC have gained importance in recent years and are widely used in engine control units, antilock brake systems, airbag control modules, LEDs (automotive lighting), entertainment & navigation systems, pressure control modules, and transmission system modules. Ceramic substrates have proven to be cost-effective and can sustain very harsh environments and are used in various automotive applications such as motorcycles and car engines.

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The ceramic substrates market size is estimated to be USD 6.5 billion in 2020 and is expected to reach USD 8.7 billion by 2025, at a CAGR of 6.0% during the forecast period. Factors such as Increasing need for advanced architecture and miniaturization of electronics devices and increasing demand for ceramic substrates over traditional metal substrate will drive the ceramic substrate market. The major restraint for the market will be volatility in raw material prices. However, growing demand for nanotechnology and high-end computing system will act as an opportunity for the market.

The key market players profiled in the report include Kyocera Corporation (Japan), Murata Manufacturing Co. Ltd. (Japan), Coorstek Inc. (US), Ceramtec (Germany), Maruwa Co. Ltd. (Japan), Koa Corporation (Japan), Yokowo Co. Ltd. (Japan), Tong Hsing Electronics Industries (Taiwan), Leatec Fine Ceramics (Taiwan), and Nikko Company (Japan).

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Kyocera (Japan) is one of the major players in the ceramic substrate market. In order to widen their product portfolio, the company has adopted new product launch strategy. For instance, in February 2020, Kyocera introduced a new ceramic material, AH100A Alumina, that provides superior high-voltage electrical insulation performance. It provides faster conditioning time, higher creeping voltage resistance, higher breakdown voltage resistance, unprecedented potential for miniaturization and light weighting. Its applications include scientific instruments, such as SEM and TEM microscopes; mass spectrometers, X-ray, CT and MRI systems; particle accelerators; electron beam positioning; and many other types of high-voltage equipment or components involving power between 5kV and 1MV. Similarly, Murata manufacturing has started mass production of two new multilayer ceramic capacitors for automotive applications—the NFM15HC105D0G3, worlds smallest size(1.0×0.5mm) three-terminal low-ESL multilayer ceramic capacitor, and the NFM18HC106D0G3, three-terminal low-ESL multilayer ceramic capacitor with the worlds highest capacitance of 10µF in 0603 inch size(1.6×0.8mm).

The companies also adopted expansion and acquisition as a strategy to strengthen their market presence. For instance, in May 2019, Aliaxis SA, a manufacturer and distributor of advanced plastic piping systems signed an agreement to divest its Ceramics business consisting of high-performance ceramics and laboratory technology to Kyocera Fine ceramics GmbH. Similarly, in April 2019, Kyocera had announced that it has started construction of a facility on the premises of its Yasu manufacturing complex in Shiga Prefecture, Japan. It aims to develop and produce Kyocera’s own proprietary automated production equipment, enabling the company to strengthen its use of robotics and artificial intelligence (AI) in manufacturing.

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