Polyimide Films Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Polyimide Films Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for polyimide films is expected to reach USD 1,750.40 million by 2026, registering a CAGR of 5.70% during the forecast period (2021-2026). The factors driving the growth of the market studied are increasing demand from the electronics industry, and accelerating usage in the aerospace industry.

On the flip side, apart from the business impact of the COVID-19 pandemic, automotive production decline, processing costs of polyimide, and raw material price volatility, will somewhat hinder the growth of the market studied.

Asia-Pacific dominated the market across the globe with the largest consumption from countries, such as China and India.

Key Market TrendsIncreasing Demand from the Electronics Industry

Polyimide film is an optimal substrate for high-temperature applications, making it widely suitable for the electric and electronics industry. Polyimide film finds application in various electric and electronic products, such as wires and cables, printed circuit boards, semiconductors, motors, generators, integrated circuits, speakers, tape-automated bonding, rotating machines, computers, medical technologies, heavy equipment, and recording devices. As such electrical and electronic products have been increasing in production, the application of polyimide films is also rising.

The electronics industry is expanding due to various reasons, such as increasing population and infrastructural activities, rising living standards and middle-class per capita income, and the replacement of conventional lightings. These factors are expected to drive the market for polyimide film applications in the electronics and electrical industry. The electronics manufacturing market in Asia-Pacific is expected to proliferate during the upcoming years due to the presence of a large number of OEMs in the region. Low cost, the availability of raw materials, and cheap labor are driving the growth of the sector. The companies in the region provide manufacturing and assembling services to companies in Germany, France, and the U.S. Moreover, these companies are rapidly digitizing their business to achieve end-to-end integration of their operation. This is further encouraging the OEMs from Europe and North America to outsource their production to Asia-Pacific.

As the electronics industry is continuously making remarkable progress and development, the demand for the market studied is growing rapidly. The production of cellular phones, portable computing devices, gaming systems, and other personal electronic devices will continue to spark the demand for semiconductors, capacitors, and other electronic components. The global consumer electronics industry has been growing rapidly across the world, over the years, owing to the consistently increasing demand for cellular phones, portable computing devices, gaming systems, and other personal electronic devices. For instance, the Indian electronics market is expected to reach USD 400 billion by 2025. Additionally, India is expected to become the fifth-largest consumer electronics and appliances industry in the world by 2025.

With the growth in the electrical and electronics segment, the demand for polyimide films are expected to witness growth during the forecast period. However, the current COVID-19 outbreak is hampering all the manufacturing activities in all countries due to the temporary shut down. This is currently affecting the growth of the market but is expected to recover during the forecast period.

China to Dominate the Asia-Pacific Market

In Asia-Pacific, China is the largest economy in terms of GDP. In 2019, the country witnessed about 6.1% growth in its GDP, despite the trade disturbance, due to the trade war, with the United States.​ The country was by far the worst affected nation in the first few months of 2020 with the virus outbreak originating in the country itself. All the major manufacturing industries have taken a major hit as the entire nation has gone into the self-quarantine situation to contain the virus outbreak during most of Q1 2020 and early periods of Q2 2020. According to the National Bureau of Statistics of China, in the first three months of 2020, the total industrial output in the country has fallen by 13.5%, 13.5%, and 1.1%, respectively. China's industrial production rebounded sharply in April due to the government's push for work resumption and easing lockdown measures. In April 2020, total industrial output in the country witnessed 3.9% growth Y-o-Y over April 2019.

According to the International Monitory Fund (IMF) projections, the Chinese GDP growth declined to 1.9% in 2020, due to the COVID-19 outbreak in the country. It is expected to recover and reach 8.2% by the end of 2021. Although China is the first country affected by the COVID-19 and its related lockdown, it is the first country that has come out of the lockdowns and is starting its long journey toward normalcy. However, as a major chunk of the Chinese economy is linked to foreign exports, where demand is still low will negatively affect the Chinese industry in the near future. China is the largest base for electronics production in the world. Electronic products, such as smartphones, TVs, wires, cables, portable computing devices, gaming systems, and other personal electronic devices recorded the highest growth in the electronics segment. The country serves not only domestic demand for electronics but also exports electronic output to other countries and is also a leading manufacturer of PCB in the world. In China, with the increase in the disposable income of the middle-class population and the rising demand for electronic products countries importing electronic products from China, the production of electronics is projected to grow. With the growing electronics industry, the demand for the market is expected to increase.

The Chinese automotive manufacturing industry is the largest in the world, with a production share of just over 28% in 2019. The industry witnessed a slowdown in 2018, wherein the production and sales declined. A similar trend continued in 2019, with the production declined to 25.7 million vehicles by dropped by about 7.5% year-on-year. According to the China Association of Automobile Manufacturers (CAAM), automotive production is expected to decline by about 2% in 2020. But due to the coronavirus pandemic and the implementation of lockdown, the automotive manufacturing units have been shut down in the first quarter. However, the number of passenger cars produced in November 2020 is about 2.33 million, which registered a staggering 11.8% month-on-month growth, while 518 thousand commercial vehicles were produced in November with a 10.6% M-o-M growth. The number of passenger cars produced from January to November is down by 8.1% year-on-year compared to the same period last year, while commercial vehicle production increased by 22.2%. The uncertainties in the automobile industry are expected to impact the market studied.

China is one of the largest manufacturers of aircraft and one of the largest markets for domestic air passengers. According to International Air Transport Association, IATA, the number of domestic air passengers in China in 2018 is 515 million and is estimated to cross 600 million by 2020. The high demand for aviation has led to the government's decision of introducing an airport building program, which includes huge investments in terminals and runways. As of May 2019, China comprised approximately 235 airports, which the government planned to increase by 260 in 2020. Besides, the government’s long-term targets remain around 450 airports for the country by 2035. The aircraft parts and assembly manufacturing sector in the country is growing at a rapid pace, with the presence of over 200 small aircraft parts manufacturers. However, the aviation industry in China is hard hit due to the coronavirus. In 2020, the aviation industry suffered a loss of about CNY 38.1 billion in the first quarter and about CNY 34.2 billion in the second quarter. Currently, due to the COVID-19 outbreak, the economic activities and industrial manufacturing activities have been affected significantly in the country. However, industrial production has returned to normal in the country. Hence, from the above-mentioned factors, the demand for polyimide films in China is estimated to grow during the forecast period.

Competitive Landscape

The global polyimide films market is consolidated in nature, with the top six players accounting for an estimated ~86% of the global market in terms of production capacities. These companies include PI Advanced Materials Co. Ltd, DuPont-Toray Co. Ltd, Kaneka Corporation, Taimide Tech Inc., DuPont, and UBE Industries Ltd, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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