Thick Film Devices Market - Forecast(2024 - 2030)

Thick Film Devices Market Overview

Thick Film Devices Market Size is forecast to reach $123.0 billion by 2026, growing at a CAGR of 8.9% during 2021-2026. Thick film technology is used to produce electronic devices such as surface mount devices, hybrid integrated circuits, heating elements, integrated passive devices and sensors. The growing production of automobiles and escalation in the demand for micro electromechanical systems and multi-layer ceramic capacitors is driving the growth of the thick film devices market. Additionally, Thick Film Devices have been observing several advancements in technology over the past few years. In 2020, researchers from the Fraunhofer Institute for Ceramic Technologies and Systems IKTS, in collaboration with MOZAIK, a UK-based company, have developed conductors based on screen-printing technology with a resolution of 20 micrometers or less for industrial applications (especially 5G) and mass production, owing to which its Thick Film Devices industry is gaining traction in the forecast period 2021-2026.

Report Coverage

Key Takeaways

• Asia-Pacific is one of the most significant regions for the thick film devices market, mainly due to government policies favoring the growth of semiconductor manufacturing. Also, the region is the largest producer of consumer electronics.
• The global semiconductor supply chain has been suffering severe capacity constraints since 2020 due to pent-up demand in different sectors. To meet increased demand during the current global chip shortage, the semiconductor industry is substantially increasing its fab capacity utilization. This will positively affect Thick Film Market growth.
• Automotive sector is expected to witness a highest CAGR of 10.9% the forecast period, owing to various factors such as increase in sales of electric vehicles due to rising concerns over greenhouse gases emissions, and favourable government policies in countries such as India, China and so on.
• Thick Film Devices companies are strengthening their position through mergers & acquisitions and continuously investing in research and development (R&D) activities to come up with solutions to cater to the changing requirements of customers.

Global Thick Film Devices Market, By Region, 2020

Thick Film Devices Market Segment Analysis - By Type

Resistors segment held significant market share of 24.5% in 2020, owing to the rising demand for these resistors in automotive industry, consumer electronics goods, and telecommunications products. In addition, rising IC and electric vehicles sales along with the government regulations to enhance fuel efficiency and safety standards are enhancing OEMs to install more electrical and electronic devices, which ultimately drives market for these hybrid integrated circuits in the automotive industry. Moreover, robust technological advancements in electronic goods and the increasing adoption of 4G/5G networks across the globe have also spurred the demand for products with thick film power resistors. Further many OEMs are launching these resistors for several applications. In 2020, Vishay Intertechnology has introduced a line of high-power thick film resistors that meet the AEC-Q200 automotive qualification. Hence these factors are analysed to drive the Thick Film Devices Market in the forecast period 2021-2026.

Thick Film Devices Market Segment Analysis - By End User

Automotive sector is expected to witness a highest CAGR of 9.8% the forecast period. Thick film devices have been widely used in the automotive for their high reliability, excellent thermal, mechanical, and dimensional stability. Thick film integrated passive devices have gained importance in recent years and are widely used in engine control units, antilock brake systems, airbag control modules, LEDs, entertainment & navigation systems, pressure control modules, and transmission system modules. In addition thick film devices 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. Further the growing production of automobiles is a significant factor in driving market growth due to the high adoption of electrical and electronic devices in automotive manufacturing. In the United States, all heavy trucks must be installed with electronic logging devices (ELD) from the US Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA). These government regulations would increase the demand for integrated passive devices, and hence, may expand the studied market vendor’s growth scope further. Moreover Canada-based thick film heating element manufacturer, Datec Coating Corporation, was awarded a $1.3 million contract by the Innovation, Science and Economic Development Canada (ISED), a government organization that works toward improving investment scenario for several industries in Canada, for Automotive Supplier Innovation Program. Hence these factors are analyzed to drive the Thick film Market Size in the forecast period 2021-2026.

Thick Film Devices Market Segment Analysis - By Geography

APAC region is dominating Thick Film Devices Market growth. This region held significant market share of 40.5% in 2020. Asia-Pacific is one of the most significant regions for the thick film devices market, mainly due to government policies favoring the growth of semiconductor manufacturing. Also, the region is the largest producer of consumer electronics. In 2020, the Chinese government raised around $23-30 billion to pay for the second phase of its National IC Investment Fund. Moreover, the growth of the food processing industry in China and India is further expected to fuel the demand for the thick film devices market. The expansion of the semiconductor industry throughout the region and the rising adoption of MEMS among various industries are bolstering the demand for these integrated passive devices in the region. For instance, the consumption of semiconductors is rapidly increasing in China, compared to other countries, owing to the continuing transfer of global, diverse electronic equipment to China, wherein the product is a necessary component. China is home to three of the top five largest smartphone companies worldwide, posing tremendous opportunities for the thick film device market. According to India Electronics and Semiconductor Association, the semiconductor component market in the country is expected to be worth USD 32.35 billion by 2025. The report states that the country is a lucrative destination for global R&D centers. Thus, the government's ongoing Make in India initiative is expected to result in investments in the semiconductor industry in the country, further providing ample opportunities for the Thick Film Devices market.

Thick Film Devices Market Drivers

Rise in demand for Electric Vehicles

Capacity Expansion by Semiconductor Manufacturers

The global semiconductor supply chain has been suffering severe capacity constraints since 2020 due to pent-up demand in different sectors. To meet increased demand during the current global chip shortage, the semiconductor industry is substantially increasing its fab capacity utilization. In 2021, Taiwan Semiconductor Manufacturing Co's (TSMC), board has approved $2.89 billion in spending to increase capacity. Similarly in 2021, United Microelectronics Corporation (UMC), is also increasing its capacity to produce mature expertise chips in alternate for monetary ensures, in response to the shortage gripping the worldwide semiconductor provide chain. In addition, Tower Semiconductor is investing $150mn in 2021 and the first quarter of 2022 to expand manufacturing at its facilities in Israel, the US and Japan for the production of 200mm wafers. As Thick film Devices are used in Wafer processing, hence these capacity expansion are analysed to drive the Thick Film industry outlook in the forecast period 2021-2026.

Thick Film Devices Market Challenges

Decrease in Sales of Desktop PC

As per latest industry trends publications, the sales of Consumer PC have witnessed worst slumps in volume sales globally. Several Countries such as U.S, China, Germany, UK, and others have experienced the worst decline in volume sales of Desktop PCs. According to Mint, Worldwide PC shipments totaled 51.6 million units in the first quarter of 2020, a 12.3% decline from the first quarter of 2019, after three consecutive quarters of growth, the worldwide PC market experienced its sharpest decline since 2013 due to the COVID-19 outbreak. These kind of declining trend will negatively affect the growth of the Thick Film Devices as it widely used in desktops. The decline in the volume shipments of personal computers due to the growing adoption of convertible laptops, smartphones and tablets in the enterprises, coupled with the adoption of policies such as Bring-Your-Own-Device (BYOD) is also set to negatively impact the adoption of desktop PCs in the small, medium as well as large enterprises. This is low demand of the products is set to negatively impact the procurement of Thick Film Devices during the forecast period 2021-2026.

Thick Film Devices Market Landscape

Product launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Thick Film Devices market. Thick Film Devices top 10 companies include Panasonic Corporation, Samsung Electronics Co. Ltd, Vishay Intertechnology Inc., Rohm Semiconductor GmbH, TE Connectivity Ltd, KOA Speer Electronics Inc., AVX Corporation, Aragonesa de Componentes Pasivos SA, Wurth Electronics Inc., FDK Corporation among others.

Acquisitions/Product Launches

• In April 2020, Panasonic Corporation introduced NEW ERJ-UP3 Series Anti-Sulfurated Thick Film Chip Resistors, Anti-Surge type in 0603-inch case size. It is designed to be extremely durable in challenging or unclean, harsh environments. This new series provides anti-sulfurization characteristics that avoid an open circuit caused by a sulfide disconnection.
• In 2020, Vishay Intertechnology has introduced a line of high-power thick film resistors that meet the AEC-Q200 automotive qualification. This series feature better accuracy and stability than most standard thick film chip resistors that enable designers to reduce component counts, placement costs, and PCB size.
  

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