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Three pivotal regions depicting a positive outlook for hermetic packaging industry through 2027

‘While electronic plastic packages can survive 20 years in clean environments at lower temperatures, corroding atmospheric conditions and extreme pressure or temperatures could cut their lives short, deteriorating the components of the packet. In this regard, the development of hermetic packaging has emerged as a viable solution in the space.’
In the era where sustainability is a key trend across the electronics packaging industry, hermetic packaging market is projected to foresee a radical change in the coming years. The concept of hermetic packaging is quite simple – it makes use of moisture-tight, gas-tight materials to store goods and commodities that are generally used across different industries including aerospace, military & defense, medical, and more.
Hermetic packaging technology restricts the entry of an outside gas from entering inside the bag that can potentially damage the products locked. Replacing a corroded electronic component could potentially drain the finances of a company or it might end up in a landfill leading to pollution. To that end, may emerge as a reliable solution and could become mainstream in the foreseeable future.
Hermetic packaging market size is slated to reach USD 5.5 billion by 2027, as per a recent report by Global Market Insights Inc., driven by the surge in product demand from emerging markets of Asia Pacific, North America, and Europe. A gist of the industry trends across the key regions worldwide has been given below:
1. Growing demand for hermetic packaging in North America- Propelled by thriving healthcare and military and defense industries
Hermetic packaging is gaining considerable traction across the North American economies, attributed to the expanding product applications across the healthcare and military sectors.
· Rise in military spending could catalyze product demand
In the military sector, hermetic packaging is used for covering electronic components like laser range finders, thermal imaging systems, radar systems, and several other electronic warfare equipment. The product demand is further impelled by increasing geopolitical tensions between countries, as the volatile scenario could destroy vital packages.
Increasing investments in the military and defense sector across the United States and Canada could help push the market expansion considerably over 2021-2027. According to data published on a U.S. government spending website, the US defense expenditure in FY 2021 was nearly 4.5% of the GDP. In FY 2022, the overall defense spending is assigned to be USD 1,116.2 billion, with military spending allocated at USD 779.7 billion.
· Rise in implantable medical device use to boost product demand
The medical sector makes use of hermetic packaging to ensure proper electronic functionality of hearing devices and pacemakers implanted in the human body. This indicates that the growing number of pacemaker installations in North American economies will help increase the demand for hermetic packaging in the region. Nearly 200,000 pacemakers are implanted in the U.S. every year, as per the American College of Cardiology.
The expansion of hermetic packaging industry from the medical sector can also be credited to the ongoing developments in the vertical. For instance, SCHOTT announced the acquisition of Primoceler to expand the former’s hermetic packaging profile. This partnership would enable the companies to develop innovative glass micro bonding technology that would create new opportunities for electronic implantable devices.
2. Surging adoption in Asia Pacific- Propelled by automobile production and sales in India and China
Exponential production and sales of automobiles across the countries of Asia Pacific, like India and China, will increase the deployment of hermetic packaging in the automotive sector. As per IBEF statistics, the sales of passenger vehicles in India rose by 26.6% to a whopping 3.08 million units in calendar year 2021, while commercial car sales stood at 677,119 units.
The automotive industry utilizes hermetic technology to ensure optimum sensor functionality in airbag equipment and rollover devices. Introduction to new policies in APAC economies pertaining to the automotive industry would further strengthen the demand for hermetic packaging in the years to follow. In one such instance, the Chinese government in 2022 began offering subsidies for trade of petrol vehicles for electric cars.
Industry experts speculate the Asia Pacific hermetic packaging industry to depict a CAGR of 9% through 2027.
3. Proliferating demand in Europe- Propelled by burgeoning demand for hermetic connectors in aerospace industry
Hermetic connectors and sealed terminals are observing a substantial rise in sales across Europe, impelled by the product’s rising demand across the aviation and aerospace industry. The growth in aerospace sector in the European economies is ascribed to the surging air transportation and travel.
As per a report by Germany’s Federal Statistical Office, about 73.6 million air passengers traveled to and from Germany in 2021. This has produced a decent demand for hermetic connectors and packaging solutions in the country.
The aerospace sector uses hermetic connectors, hermetically sealed headers, and terminals in different systems in an airplane. The main aim of these connectors is to ensure that the integrity of delicate electronics within a black box is maintained in situations where the contents of the box are needed. Besides, hermetic connectors are also used in sensor systems within fuel tanks to notify and prevent leakage of fuel.
As per GMI projections, the aerospace sector may account for 20% of the hermetic packaging market share by 2027.
The high reliability of hermetic packaging in offering protection to electronic components in harsh environmental conditions is unmatched. This has opened new avenues for the market – say for instance, the petrochemical sector is anticipated to emerge as a viable revenue vertical for this industry.
In the petrochemical sector, hermetic packaging could be used to provide protection to sensors and electronics in downhole drilling exploration equipment. The growth in exploration and drilling activities worldwide will thus help increase hermetic packaging market share in 2022 and beyond. Needless to mention, product developments by leading market players would also pave way for profitable expansion of the industry in the forthcoming years.
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