Attractive Opportunities in the Hermetic Packaging Market

The hermetic packaging market was valued at USD 3.06 Billion in 2017 and is expected to reach USD 4.52 Billion by 2023, at a CAGR of 6.80% during the forecast period. The base year considered for the study is 2017, and the market size forecast is provided for the period between 2018 and 2023.  This report provides the market size and growth potential of the market across different segments such as configuration, type, application, industry, and geography. The study identifies and analyzes the market dynamics such as drivers, restraints, opportunities, and challenges for the market. It also profiles the key players operating in the market. Factors such as adoption of hermetic packaging for protecting highly sensitive electronic components and growing demand from industries such as automobile electronics and aerospace are expected to propel the growth of the overall market.

The research methodology used to estimate and forecast the hermetic packaging market begins with capturing data on key vendor revenues through secondary research. The secondary sources include annual reports, press releases, and investor presentations of companies; white papers, journals, and certified publications; and articles from recognized authors, websites, directories, and databases such as Hoovers, Bloomberg Businessweek, Factiva, and OneSource. The vendor offerings have also been taken into consideration to determine the market segmentation. The bottom-up procedure has been employed to arrive at the overall size of the market from the revenue of the key players in the market. After arriving at the overall market size, the total market is split into several segments and subsegments that have been verified through primary research by conducting extensive interviews with key industry experts such as CEOs, VPs, directors, and executives. The data triangulation and market breakdown procedures have been employed to complete the overall market engineering process and arrive at exact statistics for all segments and subsegments. 

This report segments the hermetic packaging market on the basis of configuration, type, application, industry, and geography. The market, on the basis of configuration, is driven by high adoption rate of the multilayer ceramic packages for high frequency applications such as data communication, wireless communication, and optical communication, as multilayer ceramic packages offer better hermeticity than other configurations for high-frequency applications, and also enable a large number of electrical feedthroughs within small spaces.

The hermetic market for ceramic-metal (CERTM) sealing is expected to hold a major share and grow at the highest CAGR between 2018 and 2023. Growing demand for thermal shock-resistant and low-porosity type of hermetic packaging material is the key factor that propels the growth of the said market. The CERTM sealed sensors, such as heating-ventilation-air conditioning (HVAC) sensors, chassis level sensors, and differential non-contacting sensors, are finding potential applications in the automotive industry as they assure the safety of the passengers while offering failure-free operation.

Based on application, the market for transistors is expected to hold a major share during the forecast period. The hermetically sealed transistors are mainly used for designing telecommunication circuits and home appliances. This is a key driving factor for the said market. However, the market for microelectromechanical system (MEMS) switches is expected to grow at the highest rate during the forecast period.

The market in APAC is expected to hold the largest market share and also projected to grow at the highest CAGR between 2018 and 2022. Increasing energy needs (backed by the high GDP growth rates) in developing countries, such as China and India, is creating huge opportunities for manufacturers of hermetically packaged electronic components in APAC. China, Japan, and India, among others, are now stepping up in space research activities, such as satellite launches and space exploration missions, which is expected to add to the high growth of the hermetic packaging market in APAC during the forecast period.

The major challenges for the companies in the market are the high infrastructure cost incurred by controlled and regulated packaging environment and competition from near-hermetic packaging. SCHOTT AG (Germany), AMETEK (US), Amkor Technology (US), Texas Instruments (US), Teledyne Microelectronics (US), Kyocera Corporation (Japan), Materion Corporation (Japan), Egide (France), Micross Components (US), Legacy Technologies Inc. (US) are the major players that adopt various strategies such as new product developments; mergers and acquisitions; partnerships, agreements, and collaborations to cater to the needs of customers.

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