PCB Encapsulation Market Analysis | 2025-2032

Attractive Opportunities

Global Demand Analysis & Sales Opportunities in PCB Encapsulation Market 

• The annual demand for PCB encapsulation was USD 3.6 billion in 2024 and is expected to reach USD 3.81 billion in 2025, up 5.7% than the value in 2024.
• During the next 8 years (forecast period of 2025-2032), the PCB encapsulation market is expected to grow at a CAGR of 8.70%. The annual demand will reach of USD 6.82 billion in 2032, which is almost 1.79 times (~79% up) of the demand in 2025.
• During 2025-2032, the PCB encapsulation industry is expected to generate a cumulative sales opportunity of USD 41.64 billion which is almost 2.5 times the opportunities during 2019-2024.

High-Growth Market Segments: 

• Asia-Pacific generated the highest demand, because of its strong manufacturing base.
• By resin type, acrylic adhesives segment is projected to be the dominant segment during the forecast period.
• By application type, medical devices segment is expected to have the largest market share during the forecast period.
• By product type, Dam & Fill segment is expected to have the largest market share during the forecast period.

Market Statistics 

Have a look at the sales opportunities presented by the PCB encapsulation market in terms of growth and market forecast.

PCB Encapsulation Market Data & Statistics

Market Dynamics

Introduction 

What is PCB Encapsulation?

PCB encapsulation is a process that involves covering a printed circuit board (PCB) with a protective compound to shield it from environmental factors such as moisture, dust, and extreme temperatures. These methods range from dunking the entire PCB into protective material to gobbing loose chunks of encapsulating fluid onto the general spots you're attempting to target.

The PCB encapsulation industry is the global market involved in the manufacture, development, and use of protective materials to coat or enclose printed circuit boards (PCBs). The industry involves several encapsulation methods and materials aimed at protecting PCBs from environmental degradation, electrical interference, and mechanical stress for use in industries like automotive, electronics, aerospace, and healthcare that depend on robust and dependable electronic components.

Market Drivers: 

Rising Demand for AI-Integrated Autonomous Vehicles:

• The integration of autonomous AI technologies in passenger cars and commercial vehicles is driven by the rise of ride-hailing and ride-sharing services, leading to accelerated growth of the automotive AI market worldwide.
• Companies like Tesla, Waymo, and others are investing heavily in self-driving technology, which will eventually promote the demand for autonomous vehicles globally. The rapid adoption of leading-edge AI technologies in autonomous vehicles requires semiconductors for increased functionality, driving the demand for adequate protection of PCBs.

Rapid Urbanization and Infrastructural Development:

• Urbanization is growing rapidly as people migrate towards urban areas for better living standards and quality of life. According to a report, 55% of the world’s total population resides in urban areas, which is expected to increase to 68% by 2050.
• The rapid urbanization is also increasing constructional and infrastructural developments such as residential and non-residential developments, surveillance tech apartments, malls, and others, packed with 5G networks and electronics, propelling the demand for rugged high-performance PCB encapsulant, which in turn will drive its market.

Market Challenges: 

High Cost of Advanced Adhesive Materials:

• Advanced adhesive materials used in electrical appliances have better thermal conductivity, mechanical stability and environmental resistance, which leads to improved performance, but these adhesives are extremely costly, and this may bother manufacturers from investing in new dispensing and curing systems, often resulting in a significant restraint on the growth of the PCB encapsulation market.

Stringent Regulatory Requirement:

• With the shifting trends towards green and sustainable materials, there is an upshift in environment-oriented regulatory policies, which include restrictions on hazardous contents like lead and volatile organic compounds.
• These restrictions lead to an increase in production cost, lengthy testing, and complex certification procedures, slowing down the rolling of the products and ultimately hampering the PCB encapsulation market.

Market Opportunities: 

Accelerating Demand for Consumer Electronics:

• Digital devices such as laptops, tablets, smartwatches, wireless earbuds, and smartphones have set a widespread Dominance in the global market. The increase in complexity of PCBS in these devices to reduce the size and make them more handy is catalysing the PCB encapsulation market globally. 
• Moreover, the rising trend of AI-powered gadgets and E-books also encourages high-performance encapsulation materials for heat dissipation, shock, and vibration resistance, etc. is creating a significant opportunity for the proliferation of the PCB encapsulation market. 

Segment Analysis

By Resin Type

“Acrylic adhesives segment is projected to be the dominant segment during the forecast period.”

• The PCB encapsulation market is segmented by resin type into epoxy, silicone, acrylic, and polyurethanes.
• Acrylic adhesives segment is projected to be the dominant segment during the forecast period because they exhibit superior water, chemical, and UV resistance compared to other adhesives, which allows an overall enhanced lifespan and reliability of electronic components under the most adverse conditions.

By Application Type 

“Medical Devices segment is expected to be the fastest-growing segment during the forecast period.”

• The PCB encapsulation market is segmented by application type into consumer electronics, automotive electronics, aerospace & defense, and medical devices.
• The medical devices segment is expected to be the dominant segment during the forecast period. Industrial automation propels the demand for medical devices that require PCBs that can work efficiently and reliably in high-stakes settings, such as protection from external environmental conditions.
• Moreover, the high demand for wearable health monitors, diagnostic tools, which require reliable and sophisticated demand for effective PCB protection solutions, drive the PCB encapsulation market. 

By Product Type 

“Dam & Fill segment is expected to be the fastest-growing segment during the forecast period.”

• The PCB encapsulation market is segmented by product type into glob top, dam & fill, conformal coatings, underfill, and connect bonding.
• The dam & fill segment is expected to be the dominant segment during the forecast period as electrification continues to expand. These relays play a crucial role in maintaining the mechanical stability of a PCB by providing structural support to the components.
• Moreover, in the Dam and fill method, a dam is made around the area to be protected by high-viscosity material, and it is filled in with lower-viscosity material to safeguard it from external environmental factors. This acts as a key benefit that drives the large-scale adoption of the product.

Regional Analysis

“Asia-Pacific is expected to be the dominant and the fastest-growing region over the forecasted period.”

• Based on region, the PCB encapsulation market has been segmented into North America, Europe, Asia Pacific, and the Rest of the world.
• Asia-Pacific is expected to be the dominant and the highest market share holding region of the PCB encapsulation market over the forecasted period, because it is a forefront region of manufacturing. The region's rapid industrialization, particularly in automotive, electronics, and power infrastructure, increases the demand for PCB encapsulation.
• Furthermore, Asia-Pacific is the largest automobile manufacturing hub, with increasing demand for PCB encapsulation in EVs, hybrid vehicles, and automotive electronics. Fast-growing urban centres and government initiatives for smart cities fuel the need for PCB encapsulation in automation, transportation, and energy management.

Competitive Landscape

Top Players

Most of the major players compete in some of the factors, including price, service offerings, regional presence, etc. The following are the key players in the PCB encapsulation market -  

• Henkel AG & CO. KGAA
• H.B. Fuller Company
• DOW
• Parker Hannifin Corp.
• Dupont
• Nagase Chemtex Corp.
• Panacol Elosol GmbH
• Shin Etsu Chemical Co., LTD.

Note: The above list does not necessarily include all the top players in the market.

Are you a leading player in this market? We would love to include your name. Please write to us at [email protected]

Recent Developments/Mergers & Acquisitions: 

• In March 2024, Henkel announced the commercial scaling of Localite Stycast CC 8555, a conformal coating designed to protect electronics from extreme environmental conditions. This latest development offers protection for PCBs, PLCs, EVs’ charging infrastructure, and other high-voltage electronics.
• In March 2024, the global leaders Henkel and Kraton merged for advancement in the manufacturing of sustainable adhesives. Henkel has signed a multi-year supply partnership with Kraton for the deployment of biobased products derived from pine wood pulp.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.

The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation 

This report studies the market, covering a period of 15 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The PCB encapsulation market is segmented into the following categories:

By Resin Type

• Epoxy
• Silicone
• Acrylic
• Polyurethanes
• Other Resin Types

By Product Type

• Glob Top
• Dam and Fill
• Conformal Coatings
• Under Fill
• Connect Bonding
• Other Types

By Application Type

• Consumer Electronics & Appliances
• Automotive
• Aerospace and Defence
• Medical Devices
• Other Applications

By Curing Type

• Heart Cure
• UV Cure
• Room Temperature Cure
• Other Curing Types

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, Italy, The UK, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s PCB encapsulation market realities and future market possibilities for the forecast period. 
• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

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