Low Dielectric Materials Market - Forecast(2024 - 2030)

The Low dielectric materials market size is forecast to reach USD 2.88 billion by 2029, after growing at a CAGR of 7.25% during the forecast period 2024-2029. The growing need for the manufacturing of electronic components like PCBs and microelectronics is one of the main market drivers for low-dielectric materials. Additionally, during the projection period, there will be a greater requirement for low-dielectric due to the increased need for antennas and randoms worldwide as a result of increased airline traffic. 

The report “Low Dielectric Materials Market – Forecast (2024-2029)”, by IndustryARC, covers an in-depth analysis of the following segments of the Low dielectric materials market.

By Material Type: Polyimides (PIs), Fluoropolymers, Polyethylene, Cyclic Olefin Copolymer, Polytetrafluoroethylene (PTFE), Cyanate Ester, Liquid Crystal Polymer, Others.

By Network Structure: Organic Network, Inorganic Network.

By Type: Ceramics, Thermoplastics, Thermoset.

By Application: PCBs, Antennas, Radomes, Wires, Connectors, and others.

By End Use Industry: Automotive, Electronics, Defense, Healthcare, Goods, Telecommunications, Others.

By Geography:  North America, South America, Europe, APAC, and Middle East and Africa.

• The persistent expansion of the automotive sector has facilitated advancements in both autonomous vehicles and in-car infotainment. As a result, greater degrees of package dependability are now required. Such low dielectric constant packaging materials are used by independent automakers in their quest for fast reactions, high speeds, and little delay. On the other hand, the electrification of commercial airplanes has become more and more popular in recent years. This is achieved by substituting electrical systems for mechanical, pneumatic, and hydraulic ones. Accordingly, the demand for low-dielectric materials from the aerospace and automotive industries is increasing, which is fueling the expansion of the global market.

• In 2021, Fortify and Rogers Corporation, a US-based producer of low-dielectric materials and electric components, have collaborated for an undisclosed sum. Through this collaboration, the firms would be able to increase the volume of low-loss dielectric materials they produce for electronics and radio frequency (RF) devices and use their specialties to unlock scalable manufacture of high-value RF components.3D printing companies in the US are called Fortify.

• The demand for wire & cables, PCBs, microelectronics, and antennas has skyrocketed in recent years due to the growing need for electronics such as cell phones, TVs, and other appliances. Fluoropolymers are an excellent choice for these components because of their inexpensive cost, excellent heat resistance, and low dielectric constants. 

Fluoropolymers dominated the Low dielectric materials market in 2023. Polymers like Polytetrafluoroethylene (PTFE), Ethylene tetrafluoroethylene (ETFE), and others have the biggest market share because of their low cost and exceptional moldability. PTFE is a thermoplastic that possesses the properties of a thermoset polymer. Heat causes it to alter shape, albeit slowly, making it appropriate for making PCBs. The market is rising to new heights because of the widespread usage of ETFE and other fluoropolymers in the production of wires and cables. In contrast, there is a great need for liquid crystal polymers in the production of microelectronics.

Organic Network dominated the Low dielectric materials market in 2023. Organic network materials have garnered a lot of interest lately and are being used more frequently in a variety of industries because of their adaptability, tunability, and compatibility with cutting-edge technology. Consumer electronics such as laptops, tablets, smartphones, and wearable technology frequently incorporate organic materials. They are utilized in energy storage devices (organic batteries and supercapacitors), displays (OLEDs), and flexible printed circuit boards (PCBs).

Thermoplastics dominated the Low dielectric materials market in 2023. Thermoplastic materials generally exhibit superior dielectric characteristics, including reduced dissipation factors and dielectric constants, in contrast to thermoset materials. Furthermore, because of their high purity, minimal outgassing, and broad chemical resistance, high-performance thermoplastics like fluoropolymers and polyaryletherketones are highly sought after in airplane applications. Moreover, 5G communication systems are driving up demand for polycarbonate (P.C.), acrylonitrile butadiene styrene (ABS), and polymethyl methacrylate (PMMA). The majority of the market's growth is explained by these reasons.

For instance, in July 2021, to satisfy the demands of developing 5G application industries, Evante announced the launch of PREPERMTM low dielectric loss thermoplastics have been added to its growing materials range.

PCBs dominated the Low dielectric materials market in 2023. The necessity of PCBs for the operation of contemporary electronics and intelligent components has increased demand for them recently. Moreover, PCBs are necessary for the operation of commonplace appliances like refrigerators, washing machines, and televisions. They are also needed to operate sophisticated equipment like satellites and missiles. Consequently, the majority of the demand for low-dielectric materials is met by the application segment.

For instance, in April 2020, Shin-Etsu developed a "Quartz Cloth" and a "Thermoset Ultra-low Dielectric Resin" that are perfect for usage in 5G high-frequency (including millimeter-wave) communication in electronics devices, printed circuit boards, IC substrates.

Electrical & Electronics dominated the Low dielectric materials market in 2023. Low-dielectric materials are in high demand as a result of the widespread use of electronic equipment in a variety of sectors, including consumer electronics, automotive, telecommunications, and healthcare. These materials are necessary for producing printed circuit boards (PCBs), integrated circuits (ICs), and capacitors—elements that are fundamental to contemporary electronics. For instance, according to IBEF India, in 2020, the global electronics market was projected to be worth $2.9 trillion. The robust Electrical & Electronics industry is fueling the market for Low dielectric materials.

APAC dominated the Low dielectric materials market in 2023. Due to the increased demand for producing electronic components like PCBs and microelectronics, the low-dielectric materials market in APAC is expanding at the quickest rate. The region's need for antennas has also increased due to an increase in air traffic, which drives up the demand for low-dielectric materials even more. The region is home to some of the world's top producers of electronics, including China, Taiwan, Japan, and South Korea. Businesses that produce electronic solutions have a great deal of room to grow in these nations. Furthermore, it is anticipated that the region's need for these materials will increase as 5G and other telecommunications-related operations expand.

For instance, according to the Mobile Economy China 2024 report, By the end of 2024, more than half of Chinese mobile connections will be 5G. By 2030, 5G is predicted to have contributed over $260 billion to China's GDP, or 23% of the country's yearly mobile economy. Additionally, by 2030, China will have about one-third of the world's 5G connections; the country has nearly 90% of the world's 5G adoption rate, making it one of the world's top markets.  

The market for low-dielectric materials is anticipated to increase at a rapid pace in the future due to the introduction of 5G communications. The newest cellular technology, known as fifth-generation wireless communication (5G), is intended to greatly increase the responsiveness and speed of wireless networks. For the production of 5G network components such as communication devices, cables, and antenna interlayers, low dielectric constant resins are frequently utilized. 

For instance, in April 2023, data from the US-based industry trade group 5G Americas revealed that there were 1.05 billion 5G wireless connections worldwide by the end of 2022, a 76% increase from the end of 2021. By 2027, it will reach a value of 5.9 billion. Consequently, the market for low-dielectric materials is expanding due to the introduction of 5G communications.

For example, Toray Industries, Inc., created a high-performance polybutylene terephthalate (PBT) in July 2021 that has significantly fewer dielectric losses than traditional PBT. The primary focus of this service is on applications for intelligent transportation systems, SG Communications, and automated driving.

Future growth in the low-dielectric material market is anticipated to be driven by the increase in electronics production. The field of physics and technology known as electronics is devoted to the investigation, creation, and utilization of apparatuses and frameworks that manage the movement of electrons. By decreasing the capacitance effect, low dielectric materials are used in electronics to minimize signal interference and improve the efficiency of electronic components. 

For example, in November 2020, U.S. electronic manufacturing increased by more than 8%; in January 2021, it increased by 8.7%, according to the UK-based weekly trade publication Electronics Weekly, which was published in March 2021. Thus, the demand for low-dielectric materials is being driven by the increase in electronics production. 

For instance, according to IBEF India, The National Policy for Electronics (NPE) 2019 of the Indian government acknowledges the industry's strategic significance and growth prospects.   India's electronics manufacturing industry grew exponentially overall, from $37.1 billion in 2015–16 to $67.3 billion in 2020–21.

Dielectric materials are derived from a variety of worldwide raw materials sources. The supply chain may be disrupted by fluctuations in the availability of these commodities brought on by events like trade disputes, natural disasters, or geopolitical unrest. Price volatility is frequently the result of changes in raw material supply. The cost of producing dielectric materials can be impacted by this fluctuation, which could affect the profit margins of market participants. Businesses might have to absorb these higher expenses or pass them along to customers, which could reduce the finished products' ability to compete in the market.

Technology launches, acquisitions, and R&D activities are key strategies players adopt in the Low dielectric materials market. The major players in the dielectric materials market are Arkema, Arxada, Asahi Kasei, Celanese Corporation, Chenguang Research Institute of Chemical Industry, Circuit Components Supplies Ltd, Daikin Industries Ltd, DIC Corporation, Dow, Fluorocarbon, and Others.

 In March 2024, a Swiss startup for use in wireless systems and next-generation electronics, INCAPTEK developed novel dielectric materials with extremely low dielectric constants. pushing the limits of technology. 

 In March 2021, Arkema developed three ultra-low loss materials for radiofrequency applications: PRO14729, PRO14730, and PRO14731. Because of the growing need for incredibly low-power electronic applications, several unique materials were developed.