Underfill Dispenser Market: Flip Chips Constituted Leading Application Segment by Revenue

The presence of several established players has rendered the global underfill dispenser market highly fragmented. While new players are keen on venturing into the market, the high investment required in the research and development are restricting their entry. In order to gain pace, a majority of the companies are eyeing opportunities prevalent in untapped markets. Expanding regional footprint has therefore emerged as a key strategy. These companies are currently focusing on consolidating larger share in semiconductor industries especially across South America and the Middle East and Africa, finds Transparency Market Research (TMR) in a new study.

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.

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