Electronic Board Level Underfill and Encapsulation

Global Electronic Board Level Underfill and Encapsulation Market to Reach US$404.3 Million by 2030

The global market for Electronic Board Level Underfill and Encapsulation estimated at US$333.0 Million in the year 2024, is expected to reach US$404.3 Million by 2030, growing at a CAGR of 3.3% over the analysis period 2024-2030. Underfills Type, one of the segments analyzed in the report, is expected to record a 2.7% CAGR and reach US$258.1 Million by the end of the analysis period. Growth in the Gob Top Encapsulations Type segment is estimated at 4.5% CAGR over the analysis period.

The U.S. Market is Estimated at US$90.7 Million While China is Forecast to Grow at 6.0% CAGR

The Electronic Board Level Underfill and Encapsulation market in the U.S. is estimated at US$90.7 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$79.5 Million by the year 2030 trailing a CAGR of 6.0% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.3% and 2.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.9% CAGR.

Global Electronic Board Level Underfill and Encapsulation Market – Key Trends & Drivers Summarized

Why Are Underfill and Encapsulation Solutions Crucial in PCB and Microelectronics Assembly?

Electronic board-level underfill and encapsulation materials are critical to ensuring the mechanical integrity, thermal stability, and long-term reliability of semiconductor packages and printed circuit boards (PCBs). As electronic devices become more compact and powerful, the stresses exerted on solder joints, interconnects, and die surfaces intensify, particularly in ball grid arrays (BGAs), chip-scale packages (CSPs), and flip-chip configurations.

Underfill materials are typically epoxy-based formulations applied between the chip and substrate to reinforce solder joints, mitigate coefficient of thermal expansion (CTE) mismatch, and absorb mechanical shock. Encapsulation compounds—used for overmolding or potting—offer protection from moisture, chemicals, and particulate contamination. These materials extend the operational life of electronics exposed to automotive, aerospace, industrial, or consumer-grade environments.

In devices subject to thermal cycling, vibration, or drop impact—such as smartphones, automotive ECUs, and wearable electronics—underfill and encapsulants serve as a physical buffer and a thermal path. In advanced packaging architectures like 2.5D/3D ICs and system-in-package (SiP), underfill solutions help manage internal stress loads across multiple dies and interposer layers, making them indispensable in semiconductor packaging.

What Material Innovations and Application Techniques Are Reshaping the Segment?

Material innovations in underfill and encapsulation are focused on improving thermal conductivity, lowering curing temperatures, enhancing flow characteristics, and enabling faster dispense cycles. Conventional capillary underfill systems have evolved into no-flow underfills, pre-applied underfills (PAUF), and reworkable variants to suit diverse process flows and assembly line constraints.

Thermally conductive underfills with filler materials like alumina, boron nitride, and silver flakes are increasingly used in high-power devices and RF modules. These formulations combine low viscosity with high heat dissipation, allowing for rapid curing and minimal void formation. UV-curable and snap-cure systems are being adopted for high-throughput manufacturing environments where cycle time is a key performance metric.

Encapsulation materials are transitioning toward hybrid resin systems combining epoxy, silicone, and polyurethane characteristics for better flexibility and adhesion on challenging substrates. For MEMS devices and optical sensors, low-stress, optically clear encapsulants with low outgassing profiles are becoming mainstream. Jet-dispensing and stencil printing techniques are now common for volume production in mobile and consumer electronics.

Which End-Use Segments and Packaging Trends Are Driving Demand?

The semiconductor industry remains the largest consumer of underfill and encapsulation solutions. Foundries and OSATs (Outsourced Semiconductor Assembly and Test providers) use these materials in flip-chip packaging, wafer-level CSPs, and emerging 3D-stacked architectures. Leading players like TSMC, ASE, and Amkor are specifying custom underfills for AI chips, RF front-end modules, and logic-memory integration.

Consumer electronics is the second-largest end-use segment, encompassing smartphones, wearables, tablets, and gaming devices. As devices become thinner and more densely packed, thermal and mechanical reliability become central to user experience and warranty cycles. Advanced encapsulants are used to safeguard against water ingress and thermal degradation—especially in IP-rated devices.

Automotive electronics is a rapidly growing segment, driven by the increasing number of ECUs, sensors, and power modules. Underfill materials are essential for ensuring vibration resistance and thermal cycling endurance in harsh automotive environments. Key applications include ADAS processors, infotainment systems, and battery control units in EVs. Industrial automation, medical electronics, and aerospace applications further diversify demand.

What Factors Are Accelerating Growth in the Underfill and Encapsulation Market?

The growth in the electronic board level underfill and encapsulation market is driven by several factors including miniaturization of electronics, increasing power density in semiconductors, reliability requirements in harsh environments, and the rise of heterogeneous integration in packaging technologies.

First, the push toward smaller, lighter, and multifunctional electronic devices necessitates more robust protective materials. As solder joint pitch narrows and component stacking increases, mechanical reinforcement via underfill becomes critical to avoid premature failures, especially during drop tests and thermal cycles.

Second, power semiconductors and RF components used in 5G, automotive, and high-performance computing generate substantial heat. Underfill and encapsulants with enhanced thermal conductivity help dissipate this heat efficiently, preventing hot-spot failures and ensuring long-term reliability—especially in confined PCB layouts.

Third, the automotive and aerospace sectors are increasing reliability thresholds. Devices in these environments must endure wide temperature swings, vibrations, and exposure to corrosive agents. High-temperature stable, chemically inert encapsulants and reworkable underfills are being demanded to meet industry-specific standards such as AEC-Q100 and MIL-STD-883.

Lastly, the emergence of fan-out wafer-level packaging (FOWLP), system-in-package (SiP), and chiplet architectures is pushing material engineers to develop highly customizable, low-CTE, and void-free underfills. These architectures, which blend logic, memory, and analog blocks on a single module, rely heavily on precision material deposition to ensure signal fidelity and physical integrity.

SCOPE OF STUDY:

The report analyzes the Electronic Board Level Underfill and Encapsulation market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Product Type (Underfills Type, Gob Top Encapsulations Type); Material (Quartz / Silicone Material, Alumina Based Material, Epoxy Based Material, Urethane Based Material, Acrylic Based Material, Other Materials); Board Type (Chip Scale Package Board, Ball Grid array Board, Flip Chips Board)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 41 Featured) -

• Ablestik Laboratories
• AI Technology Inc.
• Advanced Technology & Materials Co., Ltd.
• Dow Inc.
• Dupont Electronics & Imaging
• Henkel AG & Co. KGaA
• Hitachi Chemical Co., Ltd.
• JSR Corporation
• Kyocera Corporation
• LORD Corporation
• Nagase ChemteX Corporation
• Namics Corporation
• NuSil Technology LLC
• Panacol-Elosol GmbH
• Sika AG
• Shin-Etsu Chemical Co., Ltd.
• Sumitomo Bakelite Company, Limited
• Techsil Ltd
• Trelleborg AB
• UMC Electronics Co., Ltd.

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