Hermetic Packaging Market - Forecast(2024 - 2030)

Hermetic Packaging Market Report Overview

Hermetic Packaging Market size is analyzed to grow at a CAGR of 4.3% during the forecast 2022-2027 to reach $4.3 billion by 2027. Hermetic packaging is a type of elevated packaging used in active and passive electronic equipment, as well as the electronics and semiconductor sectors. Hermetic packaging protects ultrasensitive electronics such as laser diodes, sensors, and optoelectronic elements against moisture and rust. Hermetic packaging also protects against environmental elements such as air pressure changes, moisture, dirt, and other hazards that could destroy electrical contacts or vital electronic components. Increasing the working life of electronic systems helps to ensure the reliable and safe operation of various medical and technological equipment. When the glass and the metal being hermetically sealed have the same coefficient of thermal expansion, matched seals derive their strength from the link between the glass and the metal's oxide. This form of glass-to-metal hermetic seal is the weaker and is typically employed in low-intensity applications such as light bulb bases. When the glass and the metal have differing coefficients of thermal expansion, the metal compresses around the solidified glass as it cools. Compression seals can resist extremely high pressure and are utilized in a wide range of industrial applications. Passivation glasses are formulated and processed to achieve very low alkali and iron levels. They can be applied to semiconductors. Hermetic packaging solutions that prevent inside components from interacting with oxygen or moisture in the air are crucial for a wide range of microscale technologies such as sensors, batteries, supercapacitors, energy harvesters, and other energy systems. Developing appropriate packaging techniques for this microscale technology is becoming increasingly important as the markets for these devices grow. The use of hermetic packaging to protect extremely sensitive electrical items is at an all-time high and is expected to rise further throughout the projection period. The increasing use of reed glass in seat belt & brake fluid control in the electrical & electronics household appliances and automobile sector are some of the factors driving market expansion. 

Report Coverage

The report: “Hermetic Packaging Industry Outlook – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Hermetic Packaging industry.

Key Takeaways

Hermetic Packaging Market Share, By Region, 2021 (%)

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Hermetic Packaging Market Segment Analysis – By Type

By Type, the Hermetic Packaging Market has been segmented into Passivation Glass, Reed Glass, Transponder Glass, Glass Metal Sealing, and Ceramic Metal Sealing. The Reed Glass segment is expected to grow at the fastest CAGR of 28.4% during the forecast period. Reed Glasses provide highly reliable encapsulation of reed switches over millions of switching cycles. Glass tubes are used in several electronic applications where discrete electronic components require protection, isolation, or sealing. However, the function of this glass is frequently to electrically insulate passive components or to act as a hermetic seal. Reed glass has been used in automotive centralized locking systems, hot water boiler switches, and belt sensors. The reed switches open and closes the electrical circuits without any external mechanical influence. When a weak magnetic field presses two metal contact blades together inside a thin glass tube, contact is formed. A reed switch does not require power when in the resting state, which is beneficial for devices that consume very little power. Reed switches can withstand millions of make-and-break cycles without wear since they lack mechanical control. To ensure operation, the metal blades should be dust-free and hermetically sealed inside the glass tubes with inert gas with high tolerances.

Hermetic Packaging Market Segment Analysis – By End-User

By End-User, the Hermetic Packaging Market has been segmented into Petrochemical, Aerospace, Military and Defense, Automotive, Healthcare, Energy and Nuclear Safety, Consumer Electronics, Telecommunication, and Others. During the forecast period, the Military and Defense segment is expected to grow at the fastest CAGR of 14.7% in the Hermetic Packaging Market. The military and defence industries rely heavily on tailored systems for air and undersea surveillance. Adoption of hermetically packaged components is crucial given the necessity for high-quality standards and reliable performance of electronic components used in this industry. Hermetic packaging technology is highly trusted and dependable for customers in the military and defence industries because it aids in addressing unique issues connected to safety and total reliability that are inherent in applications such as air surveillance and underwater surveillance. Increasing military and defence spending, particularly in the United States, will boost the Hermetic Packaging Market growth in this sector. According to SIPRI Military spending in the United States is expected to exceed USD 778 billion in 2020, a 4.4% increase over 2019. Hermetic packaging is primarily utilized in the military and defence sectors for the packaging of electronic components such as thermal imaging systems, laser range finders, radar systems, various electronic warfare equipment, and so on. Ongoing R&D initiatives, shifting political conditions, and other reasons are all contributing to an increase in global military spending.

Hermetic Packaging Market Share Segment Analysis - Geography

By Geography, Hermetic Packaging Market has been segmented into North America, Europe, APAC, South America, and RoW. During the projected period, North America will account for the largest market share of 41% in the Hermetic Packaging Market. The region's government's increased spending on the aerospace and defense sectors is likely to drive the Hermetic Packaging Market throughout the forecast period. Furthermore, because of its reliance on new aircraft, the aviation industry stimulates demand for hermetic packaging, consequently bolstering the hermetic packaging industry. Military spending in the United States is expected to exceed USD 778 billion in 2020, a 4.4% increase over 2019. Rising consumer electronics spending, combined with increased penetration of smart communication devices like as smartphones, is predicted to drive demand for hermetic packaging over the forecast period. The United States is home to some of the world's top automotive firms, who are investing in electric vehicles and self-driving cars, both of which require high-performance ICs. In 2016, around 17.5 million advanced driver assistance systems (ADAS) were produced in the United States alone. That figure is predicted to rise by around 1.5 million units by 2021. Hermetic is used in the automotive sector to assure sensor performance in rollover devices and airbag equipment. When a result, as airbag equipment becomes more prevalent, the market may need hermetic packaging.

Hermetic Packaging Market Drivers

The growing use of hermetic packaging to protect highly sensitive electronic components is expected to boost the Hermetic Packaging Market:

Hermetic products provide protection against a variety of external variables such as soil/grime, humidity/moisture, changes in atmospheric pressure, and other natural hazards that could otherwise damage fragile electronics or disrupt electrical connections within hermetic products. Product applications that are subject to harsh external conditions and whose disrupted functionality could result in disastrous effects must be hermetically packaged. As a result, the adoption rate of hermetic packaging for protecting highly sensitive electronic components is extremely high and is likely to rise further during the projection period. This is one of the primary drivers of the Hermetic Packaging Market. The Hermetic Packaging Market is one of those affected by the Covid-19 epidemic. According to the Semiconductor Sector Association, the semiconductor industry began to revive from the fourth quarter of 2020. Despite logistical obstacles caused by the coronavirus, semiconductor factories in Asia-Pacific continued to operate at high capacity rates. Furthermore, in other nations, like South Korea, most semiconductor activities continued unabated, and chip exports increased by 9.4 percent in February 2020.

Growing Adoption of hermetic packaging for the protection of implantable medical devices:

Despite increasing complexity and integration, modern microtechnology has resulted in the tremendous downsizing of smart devices. As a result, reliable, compact microelectronic packaging is becoming increasingly critical. The package must provide a high-quality hermetic environment to shield the gadget from the human body for life-critical devices such as implantable medical devices. The downsizing of next-generation implantable medical devices is projected to open up new possibilities for the development of innovative packaging technologies. The primary growth drivers for the implantable and life-sustaining devices market are the aging population, increasing prevalence of cardiovascular and neurological diseases, investments and funds to develop technologically advanced products, expanded applications of neurostimulators, and favorable reimbursement scenario for ENT procedures in developed countries.

Hermetic Packaging Market Challenges

Alternate Packaging Technologies may limit the market growth.

The availability of alternative packaging technologies is expected to hinder the Hermetic Packaging Market's progress. Despite its growth, hermetic packaging is in danger of being surpassed by a variety of substitutes thought to be more protective and trustworthy. One of these alternatives is plastic packaging. Microelectronic components used in military, aerospace, and medical systems must adhere to the toughest hermetic packaging regulations due to their harsh environments and crucial applications. Because older equipment lacks the sensitivity required to test to the higher requirements, the tightening of regulations pushes enterprises to purchase new leak test equipment. Manufacturers of hermetic packaging systems must adhere to such standards in order to increase their market share at the expense of escalating costs. These stringent hermetic packaging specifications are expected to hinder industry expansion. Plastic packaging becomes a feasible alternative due to its capacity to withstand external impacts.

Hermetic Packaging Market Landscape

Technology launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in Hermetic Packaging Market. In 2021, the market Hermetic Packaging Market share has been fragmented by several companies. Hermetic Packaging top 10 companies include

1. AMETEK Inc.
2. Amkor Technology Inc.
3. Egide SA
4. Kyocera Corporation
5. Legacy Technologies Inc.
6. Materion Corporation
7. Micross Components
8. Texas
9. Teledyne
10. Schott AG

Acquisitions/Technology Launches/Partnerships

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