The electrostatic discharge (ESD) packaging market is expected to increase from US$ 2.0 billion in 2023 to US$ 3.3 billion in 2033 and is likely to capture a 5.1% CAGR during the forecast period.
Electrostatic discharge packaging (ESD) is made of plastic. It aids in the reduction of static electricity as well as the protection of electro-sensitive equipment or products that contain flammable gases or liquids from a range of sources such as other devices, friction, and even the weather. The electronic equipment is packaged inside a robust black polyethylene box surrounded by poly foam. ESD packaging is designed to keep static electricity at bay, maintaining the integrity of the contents within.
ESD packaging is also a good concept in electronics as integrated circuits are made of semiconductor materials like silicon and insulating materials that might be damaged by high voltages. To avoid this issue, integrated circuit producers and users must take precautions like using appropriate packaging materials and printing techniques.
The rising defence and military, healthcare, industrial, automotive, and aerospace industries for a variety of operational uses are driving market expansion. Furthermore, increased investments in biodegradable electrostatic discharge packages by several organizations in the country are expected to provide the profitable potential for market expansion throughout the projection period.
Electrostatic discharge (ESD) trays market expansion is being driven by product innovations and demand in biodegradable packaging and other end-use sectors. Furthermore, increasing investments in recyclable electrostatic discharge trays by numerous product producers offer the market with new potential prospects.
Electrostatic Discharge (ESD) Packaging Market Outlook in Comparison to 2023 to 2033 Growth Forecast:
The electrostatic discharge (ESD) packaging market accounted for US$ 1.79 billion in 2022, expanding at a 5.3% CAGR from 2018 to 2022.
Rising adoption across industries like electrical & electronics, automotive, defense & military, aerospace, healthcare, etc is a key factor boosting sales of electrostatic discharge packaging products in the market.
Electrostatic discharge (ESD) packaging is a protective packaging solution used to protect products from any instance of electrostatic discharge during their handling, storage, or shipping. This type of packaging helps in reducing the risk of electrical charge in the product.
The electrostatic discharge (ESD) packaging helps from the loss caused due to any operational disturbance. The expanding electrical & electronic industry is the key factor fueling the demand for electrostatic discharge (ESD) packaging. Similarly, the rise in trade of various electrical & electronic components, medical devices, explosives, and military equipment is projected to boost the growth of the electrostatic discharge (ESD) packaging market during the forecast period.
The equipment manufacturer ensures that the product is safely delivered to the customer without any damage as the cost of equipment is very high. Proper protective packaging is preferred by equipment manufacturers which creates a growth opportunity for the electrostatic discharge (ESD) packaging market.
· Short-term Growth (2023 to 2026): Short-term growth prospects for the market may witness significant growth. In the upcoming years, the ESD packaging market is likely to be driven by the rising demand for sophisticated packaging solutions for electronics to protect them from electrostatic charges generated during friction in transportation.
· Medium-term Growth (2026 to 2029): During this time, the market may rise slightly. There are many standards in place around the world to ensure the safety of ESD-prone electronics during shipping and handling. These factors may also help to drive market expansion in the upcoming years.
· Long-term Growth (2029 to 2033): Electrostatic Discharge Packaging is used in the long run to store electronic components such as printed circuit boards and semiconductors. This packaging is also useful for transporting electronic components safely. As a result, increased demand from the electrical and electronics industries is going to drive the Electrostatic Discharge market in the forecast years.
Electrical Device Demand is Increasing:
The increased demand for smart gadgets, as well as the miniaturization of such electronic equipment, are crucial factors driving demand for ESD packaging. Another key element fueling the usage of ESD packaging is the existence of multiple standards governing the safety of ESD-prone electronics during handling and shipping. In this sense, the electronics industry has established acknowledged criteria for electronic equipment manufacturers to demonstrate acceptable conformity.
The increase in the miniaturization of such electronic devices, the use of ESD packaging technology in the automotive industry, the expansion of various industries, the growing population, and the surge in people’s disposable income, are the significant factors driving the growth of the electrostatic discharge (ESD) packaging market. Furthermore, an increase in research and development activities, as well as an increase in demand from emerging nations, generate new opportunities for the electrostatic discharge (ESD) packaging market during the projection period.
Why is China Considered a Lucrative Electrostatic Discharge (ESD) Packaging Market?
Rise in Export of Information and Communication Technology Goods Driving Market in China:
As per FMI, China is projected to hold around 60% of the East Asia electrostatic discharge (ESD) packaging market by the end of 2032 and further accelerate at a steady growth rate during the assessment period.
Growth in China’s electrostatic discharge packaging market is fueled by rapid production and sales of electronics, a rise in the export of electronic devices, and the strong presence of leading manufacturers. Similarly, the expanding information and communication technology goods industry in China is projected to fuel the demand for electrostatic discharge (ESD) packaging.
According to the United Nations Conference on Trade and Development (UNCTAD), China is one of the leading exporters of ICT goods. In 2021, the ICT goods export in China stood around US$ 857 billion. This is gradually making China one of the attractive markets for electrostatic discharge (ESD) packaging and the trend is likely to continue during the forecast period.
How Growth Unfolds in India Electrostatic Discharge (ESD) Packaging Market?
Rising Spending on Developing and Upgrading Military Defence Systems Pushing Demand in India:
India electrostatic discharge (ESD) packaging market is anticipated to register a CAGR of 6.3% during the forecast period of 2022 to 2032. The rapid expansion of packaging industry, growing usage of electronic devices across various industries, and the increasing focus on protecting sensitive electronics during transportation are the vital factors driving the electrostatic discharge packaging market in India. Similarly, rising military spending and expenditure in the country further push the demand for electrostatic discharge packaging solutions during the forecast period.
As per the data of the All-India Association of Industries (AIAI), the expenditure on the military and defence sector has significantly increased in India during the last few years. It announced a defense budget of around US$ 67.4 billion from 2020 to 2021.
India is spending a high amount on military defense systems and this trend is likely to continue during the forthcoming years, creating lucrative growth opportunities for the electrostatic discharge (ESD) packaging market.
These insights are based on a report Electrostatic Discharge (ESD) Packaging Market by Future Market Insights.