The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The global hermetic packaging market size is projected to reach USD 5.02 billion by 2025, growing at a CAGR of 6.6% over the forecast period, according to a new report by Grand View Research, Inc. Hermetic packaging market is expected to witness high penetration in military & defense applications over the forecast period. Growing defense expenditure and active research in military applications are anticipated to drive the demand for the product.
Hermetic packaging is also likely to witness high penetration in aeronautics & space application. High-capital projects and steady innovation & research in aeronautics & space sectors are expected to create a positive scope for market development over the forecast period. Growing use of optical fiber devices in telecommunications is expected to further augment the demand for hermetic packages.
Hermetic packaging helps in protecting optical fibers from harmful gases, extreme temperatures, etc., which is likely to boost their demand. Growing requirement of medical implants is expected to augment demand over the coming years.
Growing demand for better healthcare services and equipment is expected to increase the utilization of hermetic packages in medical devices. Similarly, technological advancements, resulting in increased use of smart devices in developing economies, are expected to augment the demand for hermetic packaging over the forecast period.
Ceramic to metal emerged as the largest product segment in the industry with a market share of 54.6% in 2018. Growing utilization of the product in applications such as aeronautics & space and military & defense due to its reliability at extreme temperatures is anticipated to drive the demand for ceramic to metal seals. The high mechanical strength of ceramics when welded with metals is likely to drive market development over the forecast period.
Military & Defense was the largest application segment in 2018. Rising defense and military budgets, rising security threats, falling crude oil prices, and stable growth in the global gross domestic product are expected to propel investment in the defense sector, which would ultimately lead to an increase in demand for hermetic packaging over the forecast period. Technological advancements, coupled with huge investments in defense weapons, are expected to propel the market demand.
Asia Pacific is expected to grow at the fastest CAGR over the forecast period. Increasing automotive production coupled with high demand for technologically advanced passenger cars and automobiles is expected to promote the utilization of hermetic packaging over the forecast period. Extensive R&D activities are expected to promote the utilization of the product in automobile electronic devices, thus propelling market growth.
Further key findings from the report suggest:
- In terms of product, transponder glass is expected to witness significant growth and is likely to grow at a CAGR of 6.7% over the forecast period
- Aluminum is among the typically employed materials to produce hermetic packages. The beneficial properties of aluminum including reusability, recyclability, versatility, ease of molding, and high protection level against harsh environmental conditions, such as extreme temperature and pressure, have led to its large-scale utilization in various applications
- In terms of application, aeronautics & space is expected to grow at the fastest CAGR of 7.5% over the forecast period. Asian markets, most notably India are being considered as lucrative destinations for the expansion of hermetic packaging products given the popularity of foreign direct investments (FDIs) in these markets
- Asia Pacific is expected to retain its pole position in the industry throughout the forecast period. The presence of electronic hubs in countries such as China and Japan has been encouraging prominent market participants to expand their operations in this region
- Research & development activities are likely to surface in the industry over the forecast period with prominent market players keen on global expansion
- The competitive landscape of the industry represents intense rivalry among domestic and international players. Product differentiation is expected to remain one of the key strategies among these players over the forecast period