Global Epoxy Molding Compound Market 2025 – 2034

Reports Description

According to Custom Market Insights (CMI), The Global Epoxy Molding Compound Market Size was valued at USD 2086.0 million in 2021 to USD 2188.1 million in 2022 and is estimated to reach USD 3400.0 million by the end of 2030 at a CAGR of approximately 6.2% during the forecast period 2025-2034.

The epoxy mold is a type of solid polymer, a silicon-based filler used to encapsulate semiconductors or electronic devices. The molds are created when the solid powder converts into a liquid mold through heat. When in liquid form, the molds can take the shape of any material after heating. 

There are widely used along with other materials such as wood, metal, and fabric to enhance furniture and home décor items. The epoxy molds protect semiconductors and electronic devices from external disturbances like moisture, heat, shock, corrosion, etc. The major components of epoxy molds include hardener, silica, epoxy resin, and other additives.

Epoxy molding compounds are widely used as a metal substitute in various end-use industries such as automotive, building and construction, manufacturing, aerospace, etc. The wide usage of epoxy molds is contributed by their extensive insulation properties and protection of electronic equipment from corrosion, heat, shock, etc. The molds are dynamically stable and are manufactured at reduced prices. The increase in demand for epoxy compounds due to their.

Growth Factors

The epoxy molding compound is a better alternative to conventional resin molding materials that drive market growth.

The casting resins were traditionally used as a mold; however, the epoxy resin overcomes certain limitations of the traditional resin mold, which drives the market growth for epoxy molding compounds. The epoxy molds are comparatively better than traditional resins in terms of heat resistance, tolerance, UV protection, hardness, corrosion resistance, etc. Such factors serve as driving factors for the epoxy molding compound market growth.

Demand for electronic components from various industries drives the market growth of epoxy resins.

The demand for electronic components from various industries, such as automotive, consumer electronics, aerospace, defense, etc., tends to boost the market growth of epoxy molds. The epoxy mold is used as a semiconductor encapsulation to cover the electronic components like inductors, connectors, power suppliers, etc., to prevent them from shock. 

The increase in demand for green epoxy molding compounds drives the epoxy molding market growth.

Compared to the traditional polyester or chemical-driven molding compounds, the green epoxy molds are made of plant-based products such as legumes and plant latex, which are on the safe side per the environmental concern. Also, traditional molding compounds are chemicals that can cause skin irritation. Such aspects drive the market growth for green epoxy resins.

The progressive transport networks and the increase in urbanization propel the epoxy molding compound market growth.

There is a rise in demand for epoxy molding compounds due to the increase in urbanization and the subsequent development in the transport network, which drives market growth. Epoxy molding compounds have a long-lasting capacity and other useful properties compared to conventional ones. For such reasons, epoxy molding compounds are highly demanded worldwide.

Epoxy Molding Compound Market Segmentation

The market is segmented based on type, end-user or Application, and region.

Market segmentation based on the type

Based on type, the market is segmented into normal and green epoxy molding compounds. The normal epoxy mold segment has dominated the market in 2021 and is poised to grow at a significant CAGR rate in the forecast period.

The normal epoxy mold segments are widely used in various industries due to their extensive properties like high thermal stability, excellent coating capability, UV protection, prevention from corrosion, etc. They are a coating material for transistors and electric circuits to prevent them from outer disturbances, including moisture, shock, dirt, dust, etc. The market domination of the normal epoxy segment can be attributed to the conventional manufacturing process, low cost-processing and easy maintenance.

The main composition of the normal epoxy mold includes phenolic resin, epoxy resin, and catalytic silicone compounds. It is the most primitive epoxy mold compound, mainly used as packaging for materials like diodes and transistors and a surface lamination for electronic circuits.

Market segmentation based on Application

Based on end-user or Application, the epoxy molding market is segmented into semiconductor encapsulation and electronic components. As per the revenue, the semiconductor encapsulation segment has dominated the market in 2021 and is expected to grow significantly during the forecast period. The rise in demand across various industries has led to the market’s growth. Epoxy molds are abundantly used to coat the semiconductors to prevent them from corrosion, heat dissipation, moisture, etc. 

The encapsulation refers to forming a solid cover using the epoxy mold under which lies the semiconductor chip. The composition includes the resin and hardener, which creates strong molds which can surround circuit boards, wires, wafers, lead frames, etc.

Report Scope

Regional Insights

Based on the region, the epoxy molding compound market is distributed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific has dominated the epoxy molding market with a market share of more than 40% in 2021 and is poised to grow at a significant CAGR of 6.1% during the forecast period. This can be attributed to the demand for high steel production in various end-use sectors, including construction infrastructure, automotive, and other industries.

The increase in iron and steel production demand has led to the high production of molding compounds used for temperature stability. Currently, China holds the 13% market share of the epoxy mold market across APAC, followed by japan with a 10% market share. The consumer goods industry of China has focused on the initiatives like corrosion resistance, which is the major factor for epoxy market growth across APAC regions.

Key Players 

The emerging key players have invested in multiple projects to enhance their position in the market, which positively impacted the epoxy molding compound market.

The profiled companies:

•  Sumitomo Bakelite
• Hitachi Chemical
• Chang Chun Group
• Hysol Huawei Electronics
• Panasonic
• Kyocera
•  KCC
• Samsung SDI
• Eternal Materials
• Jiangsu Zhongpeng New Material
• Shin-Etsu Chemical
• Hexion
• Nepes
• Tianjin Kaihua Insulating Material
• HHCK

Covid-19 Impact on Epoxy Molding Compound Market

· The arrival of the pandemic has globally affected the market, and the epoxy molding compound market is also one of them, which has witnessed a decline since the pandemic. The implementation of the lockdown caused the temporary shutdown of industries, due to which the supply chains were disrupted, which harmed the epoxy molding compound market. 

· Along with that, the shutdown of the manufacturing plants led to a shortage in labor and production loss, especially across regions like Europe and APAC. 

· Government-driven regulations and increased awareness regarding work safety brought an additional challenge for the epoxy molding compound market, which led to the disruption in operation and manufacturing process, which negatively impacted the market.

· The lack of investments and the breakdown of the transport chain hampered the market growth during the pandemic. 

Recent Developments 

• In July 2021, Sumitomo Bakelite Co. Ltd. announced an increase in its production rate through the installment of the equipment manufacturing unit and semiconductor packaging to enhance its product portfolio. Currently, Sumitomo is the leading company that owns 40% of the market share of the epoxy molding compound market.

• In 2021, a Japanese company named Shin-Etsu announced the manufacturing and production of electrophysiological dry electrodes and wiring materials with high elasticity, which are expected to become the next-generation wearable devices for health purposes.

• In 2018, Panasonic Corporation, Osaka, Japan, announced the commercialization of a granular semiconductor specially designed for panel-level packaging (PLP) and fan-out water-level package (FOWLP). The developed products are expected to enhance the productivity of the semiconductor packages at reduced manufacturing costs.

• In 2017, Kyoto/ London Kyocera Corporation announced the construction high –a thermal-conductivity epoxy molding compound with a 6W/mK thermal conductivity range. This development made a significant increase in the production of semiconductor components.

• In March 2017, the Columbus-based company named Hexion Inc. introduced the prominent epoxy resin system, which served the purpose of styrene-free manufacturing compound as per the environmental concern.

Market segments covered in the report

By Type

• Normal epoxy molding compound
• Green epoxy molding compound

By End-User/Application

• Semiconductor encapsulation
• Electronic components

By Industry Vertical

• Electrical
• Automotive
• Aerospace
• Others

On the basis of Geography

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America