Organic Substrate Packaging Material Global Market Report 2024

The global organic substrate packaging material market has grown strongly in recent years. It will grow from $14.24 billion in 2023 to $15 billion in 2024 at a compound annual growth rate (CAGR) of 5.4%. The growth observed in the historic period can be credited to several factors, including the surge in consumer electronics demand, heightened environmental consciousness, adherence to regulatory standards, intensifying market competition, and shifts in global economic trends.

The global organic substrate packaging material market is expected to see strong growth in the next few years. It will grow to $18.53 billion in 2028 at a compound annual growth rate (CAGR) of 5.4%. Anticipated growth in the forecast period stems from various factors, notably the expanding electric vehicle market, initiatives promoting a circular economy, stricter environmental regulations, increasing trends in consumer electronics, and a focus on resilient supply chains. Key trends expected include the incorporation of nanotechnology in packaging, broader applications in healthcare, innovative material compositions, the demand for high-performance and cost-effective solutions, and the integration of next-generation technologies.

The organic substrate packaging material market anticipates substantial growth driven by the increasing adoption of self-driving vehicles. These autonomous vehicles, capable of operating without human intervention, heavily rely on semiconductors for data processing and sensing. This surge in semiconductor usage consequently amplifies the demand for semiconductor packaging, thereby augmenting the need for organic substrate packaging materials. Reports from the SMMT in 2021 project that connected and autonomous vehicles (CAVs) will contribute £62 billion to the UK economy by 2030, with an estimated 1 in every 5 miles traveled using self-driving vehicles, potentially preventing over 47,000 accidents. Furthermore, insights from the American Automobile Association indicate that 72% of U.S. adults feel safer in a self-driving car when they can assume control. Hence, the increasing adoption of self-driving vehicles acts as a catalyst for the organic substrate packaging material market growth.

A surge in semiconductor utilization is poised to drive growth within the organic substrate packaging material market. Semiconductors, pivotal in electronics, bridge the conductivity gap between conductors and insulators. Organic substrate packaging materials play a crucial role in packaging and assembling integrated circuits (ICs), offering structural support and electrical insulation. These materials significantly enhance the reliability, thermal performance, and overall functionality of semiconductors. The demand for compact and high-performance electronic devices fuels the reliance on advanced organic substrate packaging materials to enable efficient semiconductor integration. Statistics published by the Federation of American Scientists in April 2023 highlight a doubling in global semiconductor sales to $602 billion from 2012 to 2022, propelled by increased digitization and connectivity across industries. Additionally, firms announced over $200 billion in investments to expand semiconductor manufacturing capacities between 2020 and 2022 across 16 states. Thus, the surge in semiconductor usage serves as a primary driver for the organic substrate packaging material market.

Technological advancements emerge as a significant trend shaping the organic substrate packaging material market, with major companies prioritizing innovative solutions to fortify their market positions. For instance, in June 2021, Panasonic Holdings Corporation introduced R-1515V, a new substrate packaging material designed to enhance assembly-level reliability and reduce package warpage. Its optimized mechanical properties alleviate residual stress on solder joints during assembly, improving IC chip reliability. This technological innovation addresses critical challenges in the IC chip packaging process by minimizing thermal expansion, thereby enhancing reliability.

Strategic partnerships constitute a vital strategy among major players in the organic substrate packaging material market to reinforce their positions. These structured affiliations, such as the partnership between Toyo Ink and ITOCHU Corporation announced in March 2021, aim to establish a plastic recycling scheme for multilayer film packaging materials. Leveraging their technologies and business networks, the collaboration focuses on developing materials technology to achieve circularity in multilayer flexible packaging. Specifically, their goal is to transform currently non-recyclable multilayer plastic packaging into recyclable materials. Toyo Ink, a Japan-based provider of printing inks and functional materials, joins forces with ITOCHU Corporation, a textile and corporate business entity, to drive this recycling initiative forward.

ASE Kaohsiung, a semiconductor packaging and test services provider based in Taiwan, entered a collaboration with Siemens AG in February 2021. Their joint effort aimed to introduce cutting-edge high-density advanced packaging designs, focusing on accelerating the adoption of innovative technologies such as 2.5D, 3D IC, and Fan-Out wafer-level packaging for next-gen IC designs. The collaborative program introduced a new design flow, streamlining the process of designing and resolving physical verification concerns across their entire wafer package assembly. Siemens AG, a Germany-based conglomerate, specializes in the substrate packaging industry.

Major companies operating in the organic substrate packaging material market report are Amkor Technology Inc., Advanced Semiconductor Engineering Inc., Compass Technology Co. Ltd., Hitachi Chemical Company Ltd., Mitsubishi Corporation, STATS ChipPAC Pte Ltd., NGK Spark Plug Co. Ltd., Shinko Electric Industries Co. Ltd., Showa Denko KK, Kyocera Corporation, WUS Printed Circuit Co. Ltd., Ajinomoto Group, Microchip Technology Inc., Texas Instruments Incorporated, Unimicron Technology Corporation, Ibiden Co. Ltd., AT&S Austria Technologie & Systemtechnik AG, Samsung Electro-Mechanics Co. Ltd., Amcor PLC, Fujikura Ltd., Nippon Mektron Ltd., Tripod Technology Corporation, Compeq Manufacturing Co. Ltd., HannStar Board Corporation, Kingboard Chemical Holdings Ltd., Sumitomo Bakelite Co. Ltd., Panasonic Corporation, Nitto Denko Corporation, Rogers Corporation, Shenzhen Kinwong Electronic Co. Ltd., Unitech Printed Circuit Board Corporation, Young Poong Electronics Co. Ltd., CMK Corporation, Daeduck GDS Co. Ltd., Dynamic Electronics Co. Ltd., Flexium Interconnect Inc., Fujitsu Interconnect Technologies Ltd., Interflex Co. Ltd., LG Innotek Co. Ltd., Multek Corporation

Asia-Pacific was the largest region in the organic substrate packaging material market share in 2023. North America was the second-largest region in the organic substrate packaging material market. The regions covered in the organic substrate packaging material market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the organic substrate packaging material market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The technology associated with organic substrate packaging material encompasses various package types like small outline (SO), grid array (GA), flat no-leads packages, quad flat packages (QFP), dual in-line packages (DIP), and others. For instance, a small outline package constitutes a surface-mounted component with pins positioned on both sides of its body. These technologies find applications across diverse sectors including consumer electronics, automotive, manufacturing, healthcare, and more, catering to end-uses such as mobile phones, flat panel displays (FPD), and various other applications.

This report provides organic substrate packaging material market statistics, including organic substrate packaging material industry global market size, regional shares, competitors with organic substrate packaging material market share, detailed organic substrate packaging material market segments, market trends, and opportunities, and any further data you may need to thrive in the organic substrate packaging material industry. This organic substrate packaging material market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The organic substrate packaging material market consists of sales of integrated circuit packaging, flip-chip scale packaging, and high-density multilayers. 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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