ABF (Ajinomoto Build-up Film) Substrate market is Estimated to reach USD 9.33 billion by 2029

ABF (Ajinomoto Build-up Film) Substrate market is Estimated to reach USD 9.33 billion by 2029

Ajinomoto Build-up Film (ABF) is a specialized packaging material used in the electronics industry to produce printed circuit boards (PCBs). ABF is a multilayer film composed of various materials, including polyimide, adhesive, and copper. Several factors, such as increasing demand for high-performance electronics, miniaturization of devices, and growing emphasis on sustainability, drive the ABF industry. However, the industry also faces challenges, such as fluctuating raw material prices, intense competition, and stringent regulatory requirements. In this blog, we will discuss the drivers and challenges of the ABF industry in detail, along with the global market scenario and the market opportunities for this specialized material.

1 . Drivers of the ABF Industry

Increasing Demand for High-Performance Electronics

The demand for high-performance electronics, such as smartphones, laptops, and tablets, has increased rapidly in recent years. As consumers demand faster, more powerful devices with better battery life, manufacturers are looking for advanced materials to meet these requirements. ABF is one such material, as it offers high thermal and electrical conductivity, allowing for faster data transfer and better heat dissipation. For example, Samsung recently announced that it would use ABF for its next-generation DRAM chips, offering higher performance and lower power consumption.
 
ABF Interesting Facts

Miniaturization of Devices

The trend towards miniaturization of devices is another driver of the ABF industry. As devices become smaller and more compact, the space available for PCBs is reduced, requiring materials that can be made thinner and more flexible. ABF is ideal for this purpose, as it can be made thinner than traditional materials such as FR-4 while maintaining its electrical and thermal properties. For example, ABF is used in the Apple Watch, which requires a thin and flexible PCB due to its small size.

Growing Emphasis on Sustainability

The increasing emphasis on sustainability is also driving demand for ABF. As more companies look for eco-friendly alternatives to traditional PCB materials, ABF is becoming attractive due to its recyclability and lower environmental impact. For example, IBM has announced that it will use ABF for its next-generation processors as part of its commitment to sustainability and reducing its carbon footprint.

Emerging Technologies

The emergence of new technologies such as 5G, IoT, and electric vehicles creates opportunities for the ABF industry. These technologies require advanced PCBs that can handle high temperatures, power densities, and frequency ranges, making ABF an ideal choice due to its electrical and thermal properties. For example, ABF is used in the base stations for 5G networks, which require high-performance PCBs to handle the increased data transfer rates.

Demand from Developing Countries

Developing countries such as India and Brazil also drive demand for ABF as they continue to invest in infrastructure and technology. These countries are seeing rapid growth in the electronics industry, driven by rising incomes and increased access to technology. As a result, there is a growing demand for advanced materials such as ABF, which can support the development of these industries. For example, ABF is used in producing LED lighting in India, which is seeing rapid growth due to government initiatives to promote energy efficiency.

2 . ABF Substrate Global Market Scenario

Here are the market forecast of the global Ajinomoto Build-up Film (ABF) Industry:
 
ABF (Ajinomoto Build-up Film) Substrate Market Size, Competition and Demand Analysis Report #Insights

ABF (Ajinomoto Build-up Film) Substrate Market Research Report

The Global market for ABF (Ajinomoto Build-up Film) Substrate, estimated at US$ 6249 million in the year 2023, is projected to reach a revised size of US$ 9332 million by 2029, growing at a CAGR of 6.91% during the forecast period 2023-2029
 

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Global Market for ABF Substrate:

  • The global market for ABF Substrate was estimated at US$ 6249 million in 2023.
  • It is projected to reach US$ 9332 million by 2029, growing at a CAGR of 6.91% during the forecast period of 2023-2029.

North America Market for ABF Substrate:

  • The North American market for ABF Substrate is estimated to increase from $882.6 million in 2023 to $1180 million by 2029.
  • It is expected to grow at a CAGR of 4.19% from 2024 through 2029.

China Market for ABF Substrate:

  • The China market for ABF Substrate is estimated to increase from $1133 million in 2023 to $2182 million by 2029.
  • It is expected to grow at a CAGR of 11.54% from 2024 through 2029.

Europe Market for ABF Substrate:

  • The Europe market for ABF Substrate is estimated to increase from $450 million in 2023 to $559.6 million by 2029.
  • It is expected to grow at a CAGR of 3.66% from 2024 through 2029.

Key Manufacturers of ABF Substrate:

  • The global key manufacturers of ABF Substrate include Unimicron, Ibiden, Nan Ya PCB, Shinko Electric Industries, Kinsus Interconnect, AT&S, Semco, Kyocera, and TOPPAN, among others.
  • In 2022, the global top five players had a share of approximately 75% in revenue.

3 . Challenges for the ABF Industry 

Fluctuating Raw Material Prices

The ABF industry is heavily reliant on raw materials such as polyimide and copper foil, the prices of which can be volatile and subject to market fluctuations. This can make it difficult for manufacturers to predict their costs and can impact profit margins. For example, in 2018, the price of copper rose sharply, leading to higher costs for ABF manufacturers.

Intense Competition

The ABF industry is highly competitive, with many manufacturers offering similar products. This can lead to price wars and pressure on profit margins. Additionally, the industry is dominated by a few large players, making it difficult for new entrants to compete. For example, Ajinomoto Co. Inc. is one of the leading players in the ABF market, with a significant market share.

Stringent Regulatory Requirements

The ABF industry is subject to stringent regulatory requirements, particularly in safety and environmental impact areas. Manufacturers must comply with regulations such as RoHS and REACH, which restrict the use of certain chemicals and materials. This can increase costs and make it difficult for smaller manufacturers to compete. For example, compliance with RoHS can require significant investment in testing and certification.

Technical Complexity

The production of ABF is a technically complex process, requiring advanced equipment and skilled personnel. This can make it difficult for smaller manufacturers to enter the market, as they may not have the necessary resources or expertise. Additionally, developing new products and technologies requires significant investment in research and development. For example, developing ABF with improved thermal conductivity and flexibility requires significant R&D investment.

Supply Chain Disruptions

The ABF industry is vulnerable to supply chain disruptions, such as natural disasters, political instability, or trade disputes. This can impact the availability of raw materials and components, leading to delays in production and higher costs. For example, the COVID-19 pandemic led to disruptions in the global supply chain, impacting the ABF and other electronics industries.

4 . Market Reports Related to Other Advanced Electronic Materials

In addition to ABF, Ajinomoto produces other electronic materials, such as copper-clad laminates (CCL), dry films for solder resist and solder masks, and other advanced materials for electronic packaging applications. These products are used by manufacturers of electronic components and devices, such as smartphones, tablets, and other consumer electronics, as well as in the automotive and aerospace industries.

5 . Copper-Clad Laminates (CCL)

Copper-clad laminates (CCL) are composite materials made up of layers of copper foil and a substrate material such as fiberglass, epoxy resin, or polyimide film. These laminates are used as a base material for the production of printed circuit boards (PCBs).

The copper foil provides the electrical conductivity necessary for the circuitry, while the substrate material provides the mechanical support and insulation needed for the board. The thickness of the copper foil and substrate material can vary depending on the application and requirements of the PCB.
 

Copper-clad Laminates (CCL) Market Research Report

The key global companies of Copper Clad Laminate (CCL) for IC Substrates include Panasonic, Showa Denko Materials Co., Ltd., Hitachi Chemical, Toppan Printing, Kinsus Interconnect Technology, Simmtech, Nanya PLASTICS, Kyocera and LG Innotek, etc.
 

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Global Copper Clad Laminate (CCL) For IC Substrates Market Size, Competition and Demand Analysis Report #Insights
 

6 . Dry Film

Dry Film is a type of film applied to printed circuit boards to protect them from harsh environments and provide insulation. It is a photosensitive material coated on copper-clad boards and used to manufacture printed circuit boards (PCBs). The dry film process involves exposing the film to UV light through a photomask, which hardens the areas not covered by the mask, creating a pattern on the board. The unexposed film is then washed away, leaving behind the patterned photoresist layer.
 
Dry Film Laminator Market Size, Competition and Demand Analysis Report #Insights

Dry Film Laminator Market Research Report

The critical global companies of Dry Film Laminator include Bungard Elektronik, MITS Electronics, Cipel Italia, Fortex Engineering, Vanguard Electronic and SLN Technologies, etc.
 

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7 . Adhesive Films

The adhesive film is a thin layer coated onto a flexible substrate, such as a polymer film or paper. The film is designed to be applied to a surface or substrate, and when pressure is applied, the adhesive forms a bond with the surface, creating a robust and durable bond.

Adhesive films can be made from various materials, including acrylics, rubber, silicone, and polyurethane. They are used in a wide range of applications, including industrial, automotive, electronics, and medical industries. For example, in the automotive industry, adhesive films bond car windows to the car's body. In the electronics industry, they are used to bond electronic components to circuit boards.
 

Adhesive Films Market Research Report

The Global Adhesive Films market is projected to grow from US$ 12920 million in 2023 to US$ 15430 million by 2029, at a Compound Annual Growth Rate (CAGR) of 3.0% during the forecast period.
 

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Adhesive Films Market Size, Competition and Demand Analysis Report #Insights
 

8 . Thermal Interface Materials (TIMs)

Thermal Interface Materials (TIMs) are materials used to improve heat transfer between two surfaces by filling in the microscopic gaps and irregularities between them. These materials are commonly used in electronic devices, such as CPUs, GPUs, power electronics, and LED lighting, where heat dissipation is a critical performance factor.

TIMs can be made from various materials, including grease, adhesive pads, thermal tapes, thermal gels, and phase change materials. The choice of material depends on the specific application and the desired thermal conductivity and resistance.
 
Semiconductor Thermal Interface Materials Market Size, Competition and Demand Analysis Report #Insights

Semiconductor Thermal Interface Materials Market Research Report

The key global companies of Semiconductor Thermal Interface Materials include Honeywell, Dupont, Indium Corporation, Shin-Etsu, Infineon, Linseis, SEMIKRON, Henkel Adhesive Technologies and ICT SUEDWERK, etc.
 

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9 . Coverlay Films

These are polyimide films with a layer of adhesive on one side, used to cover and protect exposed copper traces and pads on PCBs. Coverlay films provide electrical insulation and protection against environmental factors, such as moisture and dust. They are commonly used in flexible PCBs and other high-density applications where space is limited. Ajinomoto produces a range of coverlay films with various thicknesses, adhesive types, and peel strengths to meet different application requirements.
 

Global FPC Polyimide (PI) Coverlay Market Research Report

The major global companies of FPC Polyimide (PI) Coverlay include Dupont, Ube, Kaneka, MGC, SKCKOLONPI, Taimide, KGKTAPE ADHESIVE PRODUCTS, NIKKAN INDUSTRIES and Rayitek Hi-tech Film, etc.
 

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Global FPC Polyimide (PI) Coverlay Market Size, Competition and Demand Analysis Report #Insights
 

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