The hermetic packaging market is poised to increase at a 4.2% CAGR from 2023 to 2033, acquiring a market value of US$ 5.2 billion by the end of 2033, up from US$ 3.4 billion in 2023.
Emerging hermetic packaging demand is associated with heightened research and development efforts in the defence and aerospace sectors. Electronic systems in hermetic electronic packaging are protected from external factors such as changes in atmospheric pressure and moisture, which can harm sensitive electronic components or electrical connections.
Many medical and electronic devices enjoy hermetic packaging’s safe and dependable performance by prolonging the service life of electrical components, consequently making the market strong.
Electronic device demand is set to rise due to the growing disposable income and increased internet usage among consumers. Governments around the world are promoting digitalization, pushing customers to adopt various electronic devices and which in turn strengthens the hermetic electronic packaging market growth.
Hermetic Packaging Demand:
A more advanced packaging method, hermetic packaging, is used in the electronics and semiconductor industries and for active and passive electronic devices. The hermetic food packaging protects highly sensitive electronics such as laser diodes, sensors, and optoelectronic components from moisture and rust.
Hermetic packaging protects against external influences such as air pressure fluctuations, moisture, dirt, and other hazards that could damage electrical contacts or important electronic components. To ensure the reliable and safe operation of various medical and electronic devices, it is important to extend the service life of electronic systems. Historically, this method has been used to protect MEMS equipment from moisture or gas in industries such as defence, healthcare, aerospace, and automotive. As a result of technological advances, many hermetic packaging manufacturers are launching a range of products that protect extremely sensitive electronic components and electronically implanted medical devices.
Electrical or electronic components can be hermetically sealed to protect them from water vapor and foreign objects to maintain their functionality and reliability. In landscape and outdoor construction projects, hermetic packaging is also used to protect general utilities and electrical connections/splice points for landscape lighting.
From 2017 to 2022, the hermetic packaging market expanded at a CAGR of 3.7%. The global hermetic packaging market has grown significantly due to the increasing hermetic packaging demand for the protection of highly sensitive electronic elements, and rising hermetic packaging demand in end-use industries.
The hermetic electronic packaging demand is high worldwide due to its widespread use in defence, aerospace, military, and commercial applications. Low-cost air travel combined with low fuel prices has attracted new travellers from around the world, resulting in increased flight frequency.
The hermetic electronic packaging demand is to secure a CAGR of 4.2% from 2023 to 2033, with the global market expected to reach US$ 5.2 billion by 2033.
What Trends Affecting Demand for Hermetic Packaging?
Hermetic Packaging is Preferred because it can Withstand a Variety of Environmental Conditions.
Hermetic products protect sensitive electronics and electrical connections from the elements such as dirt, moisture, atmospheric pressure, and other natural threats. Applications for hermetic food packaging are essential since their functionality may be impacted by extreme environmental conditions. In light of this, there is a record-high hermetic packaging demand to safeguard exceedingly delicate electrical components, and this demand is to rise during the projection period. This is one of the things contributing to hermetic food packaging demand.
Overwhelming Digital Industry Stimulates Hermetic Packaging Sales:
Two reasons driving the market growth are increasing demand for consumer electronics, and widespread use in packaging operations in new sectors.
Changing lifestyle preferences and increasing inclination towards the use of smart electronic devices are among the key drivers for the global consumer electronics industry expansion.
Over the forecast period, rising consumer disposable income coupled with the need for internet connectivity may boost demand for electronic gadgets. Governments around the world are focusing on digitization to encourage citizens to use a variety of electronic devices. On a global scale, this is likely to lead to a rise in the consumer electronics industry and an increase in hermetic electronic packaging demand.
Boosting Hermetic Packaging Demand in the Defence Sector:
The need for collective defence cannot be overstated in today’s increasingly complex geopolitical environment. This includes weapons, guidance and navigation tools, countermeasures, armed vehicles, and their energy sources.
Military and defence forces are critical to a country’s security and defence against foreign threats. To maintain a strong military system, surveillance, and arming must function efficiently and effectively. To achieve this, they must be securely packaged and transported. Hermetic packaging is suitable for this purpose.
The use of hermetic food packaging in the defence industry is increasing. Therefore, hermetic packaging market participants may continue to benefit from the hermetic food packaging industry during the forecast period.
What are the Future Prospects for Hermetic Packaging Manufacturers?
Growing Hermetic Packaging Demand in the Medical Sector to Protect Implantable Medical Devices:
Modern micro technology has made it possible to significantly reduce the size of smart devices despite increasing complexity and integration. As a result, reliable and compact microelectronics packaging is becoming increasingly important.
Packaging should provide a high-quality hermetic seal to protect vital electronics, such as implantable medical devices, from the human body. The downsizing of the next generation of implantable medical devices is expected to create more opportunities for the development of new packaging solutions.
Which Substitute has a Negative Impact on Hermetic Packaging Sales Growth?
Alternative Packaging Technologies may Slow Hermetic Packaging Sales Growth:
The availability of alternative packaging methods is expected to restrain the growth of the hermetic packaging industry. Despite their improvement, there is a risk that hermetic packaging may be overtaken by alternative equivalents that are considered protective and trustworthy. Plastic packaging is one of these options.
Microelectronic components used in military, aerospace, and medical systems must adhere to the most stringent hermetic packaging regulations due to their harsh environments and important applications. As old equipment does not have the sensitivity to meet the new requirements, companies may be forced to purchase new leak-testing equipment as regulations become stringent.
Hermetic packaging manufacturers must comply with these standards to increase market share at the expense of escalating costs. These stringent specifications for hermetic electronic packaging are expected to hinder the industry’s expansion. Plastic packaging is becoming a viable alternative as it can withstand external influences.
What is Accelerating Hermetic Packaging Sales in the United States?
Escalating Defence and Automotive Spending Advance Hermetic Packaging Sales:
Increasing United States defence spending may boost the adoption of hermetic packaging in the military and defence industries. The existence of the world’s leading aircraft manufacturers, together with the high standards of the national medical industry, may boost the hermetic packaging market revenue in the approaching years.
More government spending on aerospace and defence is predicted to boost the hermetic packaging market throughout the forecast period. The aviation sector stimulates hermetic packaging demand technology due to its reliance on new aircraft, supporting the hermetic electronic packaging market.
Aside from that, the United States is home to several world’s leading automotive businesses, which are investing in electric vehicles and self-driving automobiles, both of which necessitate high-performance integrated circuits. In the automotive sector, hermetic seals maintain sensor functionality in rollover devices and airbag equipment. If the use of airbags increases, the market may require hermetic packaging.
How is China Hermetic Packaging Industry Growing?
Evolving Electronic sector is Positively Influencing Hermetic Packaging Consumption.
China has the potential to make a substantial contribution to the uptick in hermetic packaging sales. The country’s booming semiconductor industry is fuelling hermetic food packaging market expansion as it is an electronics manufacturing centre.
The country’s growing consumer electronics sector, together with great government spending for China’s aerospace and defence sectors, is expected to accelerate hermetic electronic packaging market expansion.
These insights are based on a report Hermetic Packaging Market by Future Market Insights.