Market Trends of Electronic Packaging Industry
The Aerospace and Defense Segment is Expected to Increasingly Adopt Electronic Packaging
- The defense budgets of developed nations, such as the United States, France, and the United Kingdom, and many developing nations, such as Russia, India, and China, have been increasing regularly. Many of these nations are also interested in the export of weapons. This has resulted in continued investment in R&D in the aerospace and defense market.
- The importance of collective defense must be addressed in today's ever-changing geopolitical landscape. From weapons, guidance, navigation systems, countermeasures, and armed vehicles and their power sources, military and defense forces are essential for a nation's security and defense against external threats. Surveillance and armed forces must operate effectively and efficiently to maintain a strong military system.
- According to the Department of Defence Production (India), the value of the country's defense production increased from INR 811.20 billion (USD 11.52 billion) in FY 2019 to INR 1086.84 billion (USD 13.16 billion) in FY 2023. Furthermore, the country's demand for defense batteries was expected to surge from 4 gigawatt hours in 2022 to 10 gigawatt hours in 2030. Such a constant rise in defense production in the country, coupled with the rise in the adoption of defense batteries, is expected to bolster the market growth during the forecast period.
- Naval warships, satellite communication channels on board, weapon control systems, coastguards, etc., use many sophisticated electronic products and require military-grade packaging of the electronic components. Humidity and harsh environments require high-quality products and facilitate investment in R&D.
Understand The Key Trends Shaping This Market
Download PDF
Asia-Pacific to Experience Significant Market Growth
- Asia-Pacific is estimated to hold the largest market share during the forecast period owing to growing automotive infrastructure and increased sales of electric vehicles. Rising middle-class income and a large youth population may drive up demand in the automotive industry. According to the Society of Indian Automobile Manufacturers (SIAM), in 2023, the total production of passenger vehicles was 4.54 million units, significantly up from 3.65 million units in 2022, which would drive the growth of the market studied in the future.
- Furthermore, China is considered the electronic hub worldwide because it mass-manufactures and produces electrical components and electronic products that meet the highest quality, performance, and delivery standards. This gives significant growth potential to the electronic packaging market.
- Massive increases in domestic demand, technological advancements, and the production of high-quality products have been China's primary drivers of industry growth. Such large-scale production of paper and paperboard in China is creating a healthy environment for the sales of electronic packaging.
- According to the National Investment Promotion & Facilitation Agency (NIPFA), India has seen a significant increase in demand for electronic products. The electronic manufacturing sector is anticipated to reach USD 220 billion by 2025 due to strong policy support, massive investments by multiple stakeholders, and a surge in demand for electronic products.
Get Analysis on Important Geographic Markets
Download PDF
