Underfill Dispenser Market: Flip Chips Constituted Leading Application Segment by Revenue
Some of the key market players enjoying a stronger foothold are Henkel AG & Co. KGaA, Nordson Corporation, MKS Instruments, Inc., and Zmation Inc. Besides funding innovation, these companies are focusing on mergers and acquisitions and expansion in Asia Pacific countries to expand their product portfolio and geographic footprint.
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According to TMR, the global underfill dispenser market is expected to reach US$91.19 bn by the end of 2025. The market’s valuation in 2016 was US$42.73 bn. If these figures hold true, the global underfill dispenser market will exhibit a strong 8.9% CAGR between 2017 and 2025. By end use, flip chips contributed nearly 52.6% to the overall revenue generated by the market in 2016. Regionally, the Asia Pacific had clear dominance with a share of 64.4% in the global market based on revenue in 2016. The region is forecast to remain dominant through the course of the forecast period.
Rising Demand for Handheld Devices Creating Lucrative Sales Opportunities
The market is primarily gaining from the increasing demand for handheld devices. Asia Pacific especially showcases lucrative market opportunities as it the home to a booming consumer electronics industry. The demand for handheld devices such as tablets and mobile phones is considerably high across nations such as India, Australia, China, and Japan. This in turn creates an environment conducive to growth of the underfill dispenser market in Asia Pacific, subsequently propelling the market’s overall growth.
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Also, with the growing inclination towards miniaturizing gadgets, in future the demand for underfull dispenser is poised to rise exponentially. These factors are indicative of the rising willingness of consumers towards spending on advanced consumer electronics. Considering this, rising disposable income witnessed across emerging nations will subsequently steer the market’s growth. On account of the increasing use of underfill dispensers in the automotive sectors, the market is bound to witness lucrative prospects especially in nations with strong automotive industry.
High Investment in R&D Activities Dissuades Key Players thus Limiting Growth
On the downside, the rising demand for low-cost packaging solutions will pose a major threat. The factor also connotes the declining profit margins as manufacturers are compelled to decrease prices of semiconductor packages and other electronic materials. Moreover, with the entry of new players, the semiconductor industry is likely to face intense price pressure from end users. This is a major bottleneck inhibiting the market’s growth.
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Also several market players are finding it difficult to cope with the high investment required for research and development. This makes companies reluctant to fund R&D activities, which could act against the overall market prospect.
Entry of New Companies to Fuel Growth Opportunities
New companies targeting the underfill dispenser market are aiming to develop novel products, technologies, materials, or processes. Their intention being establishing a footprint in the market. Strategies adopted by these companies will not only trigger interest in end users, but will create lucrative growth opportunities. Besides this, several players are exploring opportunities in military and aerospace sectors. Spurred by these factors, the global underfill dispenser market will continue exhibiting healthy growth through the forecast period.
Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. We have an experienced team of Analysts, Researchers, and Consultants, who us e proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.
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