Low Dielectric Materials Market Report 2025

The low dielectric materials market size has grown rapidly in recent years. It will grow from $2.42 billion in 2024 to $2.89 billion in 2025 at a compound annual growth rate (CAGR) of 19.7%. The growth in the historic period can be attributed to increasing demand for high-speed data processing, rise of wireless communication, miniaturization in electronics, development of high-frequency applications, emergence of IoT devices.

The low dielectric materials market size is expected to see exponential growth in the next few years. It will grow to $6.6 billion in 2029 at a compound annual growth rate (CAGR) of 22.9%. The growth in the forecast period can be attributed to increasing demand in electric vehicles, expanding Internet of things (IoT) market, continuous miniaturization in electronics, growing data center requirements, advancements in semiconductor manufacturing. Major trends in the forecast period include integration in aerospace and defense, miniaturization in electronics, 5G technology advancements, rise in Internet of things (IoT), demand for high-speed data processing.

The emergence of 5G communications is expected to drive the growth of the low-dielectric materials market in the coming years. Fifth-generation wireless communication (5G) represents the latest cellular technology, aimed at significantly enhancing the speed and responsiveness of wireless networks. Low dielectric constant resins are widely used in the manufacturing of equipment such as antenna interlayers, cables, and communication devices for 5G networks. For example, in April 2023, data from 5G Americas, a US-based industry trade organization, revealed that global 5G wireless connections surged by 76% from the end of 2021 to the end of 2022, reaching approximately 1.05 billion. This figure is projected to reach 5.9 billion by the end of 2027. Hence, the rise of 5G communications is propelling the growth of the low dielectric materials market.

The increase in electronics production is anticipated to fuel the growth of the low-dielectric material market in the future. Electronics pertains to the branch of physics and technology that focuses on the study, design, and application of devices and systems involving the controlled flow of electrons. Low dielectric materials are utilized in electronics to minimize signal interference and improve the efficiency of electronic components by reducing the capacitance effect. For instance, in May 2023, reports from the Office for National Statistics, a UK-based organization, indicated that monthly production output rose by 0.7% in March 2023, with manufacturing being the leading contributor. Notably, the production of computer, electronic, and optical products increased by 3.3%, positively impacting the overall production index. Therefore, the growth in electronics production is driving the low dielectric material market.

New technological innovations are a significant trend gaining traction in the low dielectric materials market. Major companies within this sector are introducing new technology products that utilize optimized electrical technology to maintain their competitive edge. For example, in July 2024, Applied Materials, Inc., a US-based equipment and software firm, launched a new chip wiring technology that employs ruthenium, enabling the scaling of copper chip wiring to the 2nm node and beyond. This innovation reduces resistance by up to 25%, leading to more energy-efficient computing. The low-k dielectric material decreases chip capacitance and enhances the strength of logic and DRAM chips for 3D stacking.

Leading companies in the low-dielectric material market are concentrating on developing advanced products, such as innovative dielectric and thermal solutions, to improve PCB performance and reliability by introducing low-loss, high-thermal-conductivity materials. Advanced Dielectric and Thermal Solutions are pioneering materials that boost electrical system performance by enhancing thermal management and dielectric properties. For instance, in September 2024, Ventec International Group, a China-based electronic components manufacturer, introduced Pro-bond and Thermal-bond materials. These materials are vital for advanced multilayer PCBs, which are crucial in computing and networking applications, including high-performance motherboards and cellular network power amplifiers. This initiative aims to improve performance in low-dielectric materials, especially for high-speed applications in printed circuit boards (PCBs).

In June 2022, Applied Materials, Inc., a US-based equipment and services company, acquired Picosun Oy for an undisclosed sum. This acquisition enables Applied Materials Inc. to enhance the intelligence and functionality of a wide range of edge computing devices. Picosun Oy is a Finland-based producer of ALD solutions for microprocessors, printed electronics, and graphene-based displays.

Major companies operating in the low dielectric materials market include Daikin Industries Ltd., Nishimura Advanced Ceramics Co Ltd., Idemitsu Kosan Co Ltd., Saudi Basic Industries Corporation (SABIC), Applied Materials Inc., Sumitomo Chemical Co Ltd., Asahi Kasei Corporation, Shin-Etsu Chemical Co Ltd., TDK Corporation, Murata Manufacturing Co Ltd., DuPont (E.I. du Pont de Nemours and Company), Teijin Limited, Huntsman Corporation, The Chemours Company, Kuraray Co Ltd., Showa Denko Materials Co Ltd., JSR Corporation, Zeon Corporation, Taiyo Yuden Co Ltd., Tokyo Ohka Kogyo Co Ltd., KEMET Corporation, AVX Corporation, Hindustan Fluorocarbons Limited, CeramTec GmbH, DNF Co Ltd., Gelest Inc., Vishay Intertechnology Inc.

Asia-Pacific was the largest region in the low dielectric materials market in 2024. The regions covered in the low dielectric materials market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the low dielectric materials market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A low dielectric material is a substance that poorly conducts electricity but efficiently supports electrostatic fields and can store electrical charges. These materials can be solid, liquid, or gaseous, such as paper, air, polyethylene film, or silicone oil. They are used to minimize power loss in high-frequency or power applications, acting as insulators that temporarily store electric charges.

In the low dielectric materials market, the main types are thermoset, thermoplastic, and ceramics. Thermoset materials are used in electronics fields such as printed circuit boards and encapsulation due to their dimensional stability, good chemical resistance, insulation, and adhesion properties. These materials undergo a chemical reaction due to factors such as heat, a catalyst, or ultraviolet light, leaving them in a largely infusible state. Examples of thermoset materials include fluoropolymer, modified polyphenylene ether, polyimide, cyclic olefin copolymer, cyanate ester, liquid crystal polymer, and others, which find applications in PCBs, antennas, microelectronics, wire and cable, radome, and other electronic components.

The low dielectric materials market research report is one of a series of new reports that provides low dielectric materials market statistics, including low dielectric materials industry global market size, regional shares, competitors with a low dielectric materials market share, detailed low dielectric materials market segments, market trends and opportunities, and any further data you may need to thrive in the low dielectric materials industry. This low dielectric materials market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The low dielectric material market consists of sales of ceramics, benzocyclobutene (BCB), SiLK, SLK, and polyetheretherketone (PEEK). Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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