Advanced Packaging Market Trends

ID: MRFR/PCM/10939-CR

124 Pages

Snehal Singh

April 2024

Advanced Packaging Market Research Report Information by Type (Flip Chip Scale Package, Flip Chip Ball Grid Array, Wafer Level Chip Scale Packaging, 5D/3D, Fan Out Wafer-level Packaging and Others), by End-user (Consumer Electronics, Healthcare, Industrial, Aerospace and Defense, Automotive and Other), and by Region (North America, Europe, Asia Pacific, South America, and Middle East & Afri...

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Market Trends

Key Emerging Trends in the Advanced Packaging Market

With the rise of 3D packaging technologies, advanced packaging is going through a big change. People want smaller and more efficient electronics, which is what led to the use of advanced packaging solutions like 3D IC (integrated circuit) packaging. This technology lets you stack layers of integrated circuits, which improves performance, reduces footprint, and makes the device work better overall.

System-in-Package (SiP) has become a major trend in the advanced packaging market. SiP combines multiple functions into a single package, which makes it possible for electronic systems to be small and very efficient. This method is especially useful for making complex electronic devices like smartphones, wearable tech, and Internet of Things (IoT) gadgets.

Fan-Out Wafer Level Packaging (FoWLP) is a new way to package electronics that is becoming more popular. This technology moves an integrated circuit's external connections to a larger area, which makes it possible for more input and output density. FoWLP works well in situations that need high performance and miniaturization, which is why it is becoming more popular in many industries.

Modern materials are a big trend in the advanced packaging market. To meet the changing needs of electronic devices, materials that are better at conducting heat, conducting electricity, and being reliable are being added. This includes adding new substrate materials and advanced interconnect technologies to make the products work better and last longer. Advanced packaging is changing because of the need for flexible and organic electronics. As companies look for new form factors and wearable tech, flexible packaging solutions are becoming more popular. Next-generation electronics will need to use advanced packaging techniques that can handle flexible substrates and organic materials. The auto industry is quickly adopting more advanced packaging solutions for electronic parts. As cars get more advanced in terms of technology, the need for reliable and small packaging methods has grown. These new packaging technologies help make automotive electronics smaller while also improving their performance and durability. Digitalization and smart manufacturing are having an effect on the advanced packaging sector. Using digital technologies like AI and the Internet of Things (IoT) together makes production processes more efficient, quality control better, and overall efficiency higher. Smart manufacturing practices allow for real-time monitoring and decision-making based on data in advanced packaging facilities. Companies that want to expand their skills and market reach are buying each other out and merging in the advanced packaging industry. At the same time, strategic alliances and cooperation between package providers and semiconductor manufacturers are growing, which encourages innovation and the creation of all-around packaging solutions.

Market Highlights

Author

Snehal Singh

Assistant Manager - Research

High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. By implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in Packaging, Construction, and Equipment domains. She handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.

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FAQs

What is the projected market valuation of the Advanced Packaging Market by 2035?

The Advanced Packaging Market is projected to reach a valuation of 67950.55 USD Million by 2035.

What was the market valuation of the Advanced Packaging Market in 2024?

In 2024, the Advanced Packaging Market was valued at 37315.56 USD Million.

What is the expected CAGR for the Advanced Packaging Market during the forecast period 2025 - 2035?

The expected CAGR for the Advanced Packaging Market during the forecast period 2025 - 2035 is 5.6%.

Which segments are included in the Advanced Packaging Market by type?

The Advanced Packaging Market includes segments such as Flip Chip Scale Package, Flip Chip Ball Grid Array, and Wafer Level Chip Scale Packaging.

What are the projected valuations for the Consumer Electronics segment in the Advanced Packaging Market?

The Consumer Electronics segment is projected to range from 10000.0 to 18000.0 USD Million.

Who are the key players in the Advanced Packaging Market?

Key players in the Advanced Packaging Market include Amcor, Sealed Air, and Mondi Group.

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Market Summary

As per MRFR analysis, the Advanced Packaging Market Size was estimated at 37315.56 USD Million in 2024. The Advanced Packaging industry is projected to grow from 39405.23 USD Million in 2025 to 67950.55 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 5.6 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Advanced Packaging Market is poised for substantial growth driven by sustainability and technological advancements.

North America remains the largest market for advanced packaging, reflecting robust demand across various sectors.
The Asia-Pacific region is emerging as the fastest-growing market, fueled by rapid technological adoption and innovation.
The Flip Chip Scale Package segment dominates the market, while the Flip Chip Ball Grid Array segment is witnessing the highest growth rates.
Key market drivers include sustainability initiatives and consumer demand for customization, which are shaping the future of advanced packaging.

Advanced Packaging Market

CAGR

5.6%

Market Size & Forecast

2024 Market Size	37315.56 (USD Million)
2035 Market Size	67950.55 (USD Million)
CAGR (2025 - 2035)	5.6%
Largest Regional Market Share in 2024	Asia Pacific

Major Players

Amcor (AU), Sealed Air (US), Mondi Group (GB), Berry Global (US), Sonoco Products (US), WestRock (US), Smurfit Kappa (IE), Huhtamaki (FI), Tetra Pak (SE)

Market Trends

The Advanced Packaging Market is currently experiencing a transformative phase, driven by the increasing demand for miniaturization and enhanced performance in electronic devices. This market appears to be evolving rapidly, as manufacturers seek innovative solutions to meet the needs of various industries, including consumer electronics, automotive, and healthcare. The integration of advanced materials and technologies is likely to play a crucial role in shaping the future landscape of packaging solutions. Furthermore, sustainability concerns are prompting companies to explore eco-friendly alternatives, which may influence design and production processes significantly. In addition, the rise of Internet of Things (IoT) devices is contributing to the growth of the Advanced Packaging Market. As connectivity becomes more prevalent, the need for efficient and reliable packaging solutions is paramount. This trend suggests that companies are investing in research and development to create packaging that not only protects but also enhances the functionality of electronic components. Overall, the Advanced Packaging Market appears poised for substantial growth, driven by technological advancements and changing consumer preferences.

Sustainability Initiatives

The Advanced Packaging Market is witnessing a shift towards sustainable practices, as companies increasingly prioritize eco-friendly materials and processes. This trend indicates a growing awareness of environmental impact, prompting manufacturers to adopt greener alternatives in their packaging solutions.

Miniaturization of Electronics

The trend of miniaturization in electronic devices is significantly influencing the Advanced Packaging Market. As products become smaller and more compact, the demand for advanced packaging technologies that can accommodate these changes is likely to rise, driving innovation in the sector.

Integration of Smart Technologies

The incorporation of smart technologies into packaging solutions is emerging as a notable trend within the Advanced Packaging Market. This development suggests that packaging is evolving beyond mere protection, potentially offering enhanced functionality and interactivity for consumers.

Advanced Packaging Market Market Drivers

Regulatory Compliance

Regulatory compliance is a critical driver for the Advanced Packaging Market, as manufacturers must adhere to stringent guidelines regarding safety, quality, and environmental impact. Various regions have implemented regulations that dictate the materials and processes used in packaging, particularly in sectors such as food and pharmaceuticals. Compliance with these regulations not only ensures product safety but also enhances consumer trust. The market for advanced packaging solutions that meet these regulatory standards is expected to grow, with estimates suggesting a rise of approximately 7 percent annually. Companies are investing in technologies that facilitate compliance, such as traceability systems and quality assurance processes. Therefore, the emphasis on regulatory compliance is likely to propel growth in the Advanced Packaging Market.

Sustainability Initiatives

The Advanced Packaging Market is increasingly influenced by sustainability initiatives. As consumers and regulatory bodies demand environmentally friendly solutions, manufacturers are compelled to innovate. This shift towards sustainable packaging materials, such as biodegradable and recyclable options, is gaining traction. In fact, the market for sustainable packaging is projected to grow significantly, with estimates suggesting a compound annual growth rate of over 10 percent in the coming years. Companies are investing in research and development to create packaging that minimizes waste and reduces carbon footprints. This trend not only addresses environmental concerns but also enhances brand reputation, as consumers are more likely to support companies that prioritize sustainability. Therefore, the integration of sustainable practices is likely to drive growth in the Advanced Packaging Market.

Miniaturization of Electronics

The trend of miniaturization in electronics is a pivotal driver for the Advanced Packaging Market. As devices become smaller and more compact, the demand for advanced packaging solutions that can accommodate these changes is rising. This miniaturization allows for enhanced functionality in smaller form factors, which is particularly relevant in sectors such as consumer electronics and medical devices. The market for advanced packaging technologies, including 3D packaging and system-in-package (SiP) solutions, is expected to expand as manufacturers seek to optimize space and improve performance. Reports indicate that the miniaturization trend could lead to a market growth rate of approximately 8 percent annually. Consequently, the Advanced Packaging Market is likely to see increased investment in innovative packaging technologies that support this trend.

Consumer Demand for Customization

Consumer demand for customization is increasingly shaping the Advanced Packaging Market. As consumers seek personalized experiences, brands are responding by offering tailored packaging solutions. This trend is particularly evident in sectors such as cosmetics and food, where unique packaging can enhance product appeal and differentiate brands. The market for customized packaging is projected to grow significantly, with estimates indicating a potential increase of around 9 percent annually. Companies are leveraging advanced printing technologies and design innovations to create bespoke packaging that resonates with consumers. This shift towards customization not only meets consumer preferences but also fosters brand loyalty. Consequently, the Advanced Packaging Market is likely to see a surge in demand for innovative packaging solutions that cater to this growing trend.

Integration of Smart Technologies

The integration of smart technologies into packaging solutions is emerging as a significant driver within the Advanced Packaging Market. Smart packaging, which incorporates sensors and RFID technology, enhances product tracking and consumer engagement. This trend is particularly relevant in sectors such as food and pharmaceuticals, where monitoring freshness and safety is crucial. The market for smart packaging is projected to witness substantial growth, with estimates indicating a potential increase of over 15 percent in the next few years. Companies are increasingly adopting these technologies to provide real-time data and improve supply chain efficiency. As a result, the Advanced Packaging Market is likely to experience a surge in demand for innovative packaging solutions that leverage smart technology.

Market Segment Insights

By Type: Flip Chip Scale Package (Largest) vs. Flip Chip Ball Grid Array (Fastest-Growing)

The Advanced Packaging Market is witnessing a diverse distribution of market share among various packaging types. The Flip Chip Scale Package (FCSP) leads the segment, characterized by its compact size and efficiency in thermal and electrical performance. Following closely is the Flip Chip Ball Grid Array (FCBGA), known for its robust interconnections and increasing adoption in high-performance applications. Wafer Level Chip Scale Packaging (WLCSP) and Fan Out Wafer-level Packaging (FOWLP) are also prominent, indicating a well-rounded portfolio in advanced packaging solutions.

Packaging Types: Flip Chip Scale Package (Dominant) vs. Flip Chip Ball Grid Array (Emerging)

The Flip Chip Scale Package is a dominant force within the Advanced Packaging Market, praised for its excellent electrical performance and smaller footprint. This packaging solution offers significant advantages in design flexibility and heat dissipation, making it ideal for dense circuit integrations. Conversely, the Flip Chip Ball Grid Array is positioned as an emerging player, rapidly gaining traction due to its advanced thermal management and reliability in high-speed devices. As the demand for miniaturization and higher functionality in electronics grows, both packaging types are expected to contribute significantly to technological advancements, reflecting their unique advantages and competitive positioning.

By End-user: Consumer Electronics (Largest) vs. Healthcare (Fastest-Growing)

In the Advanced Packaging Market, the end-user segment showcases a diverse distribution, with Consumer Electronics leading the charge. This segment's importance is underscored by the ongoing demand for innovative packaging solutions that enhance the user experience and protect sensitive components. Meanwhile, the Healthcare sector is witnessing a rapid ascent, driven by the increasing need for specialized packaging that ensures product safety and compliance with stringent regulations. Recent trends indicate a notable shift toward sustainable practices, particularly in healthcare packaging, which is becoming a crucial consideration for manufacturers. Furthermore, technological advancements and the rise in e-commerce are propelling growth in Consumer Electronics packaging, while the global focus on health and wellness is accelerating the development of advanced packaging solutions in the Healthcare sector.

Consumer Electronics: Dominant vs. Healthcare: Emerging

Consumer Electronics holds a dominant position in the Advanced Packaging Market, characterized by the demand for protective, lightweight, and attractive packaging solutions that align with consumer preferences for the latest gadgets. This sector is continuously innovating to incorporate smart packaging technologies that offer enhanced functionalities such as interactivity and tracking. On the other hand, the Healthcare segment is emerging rapidly due to its unique packaging needs for pharmaceuticals and medical devices, focusing on safety and compliance. The growth in telemedicine and home healthcare has further fueled the demand for packaging that maintains product integrity over extended transportation and storage periods. Both segments, while distinct, are tailored to meet the evolving expectations of their respective markets.

Get more detailed insights about Advanced Packaging Market Research Report—Global Forecast till 2035

Regional Insights

The Advanced Packaging Market, based on country, has been divided into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America consists of US, Canada, Mexico. Europe consists of UK, Germany, France, Italy, and Rest of Europe. Asia-Pacific consists of China, India, Japan, and Rest of Asia-Pacific. South America consists of Brazil, Argentina, and Rest of South America. Middle East & Africa consists of South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa. The Asia-Pacific will hold the maximum share in 2022 and are expected to reach USD 36,528.58 Million by 2030.

The market share in the Asia-Pacific region is significant due to the high number of semiconductor manufacturing operations there. Manufacturers in this region are increasing their production capacity to meet the growing demand from fabless vendors, and China is trying to consolidate its substrate manufacturing market.

The North America advanced packaging market is experiencing significant growth due to several factors. Firstly, there is a rising demand for consumer electronics, which directly impacts the market. As people increasingly rely on electronic devices for various purposes, such as communication, entertainment, and productivity, the need for advanced packaging solutions to accommodate these devices' complex and compact designs is growing. Additionally, the growing demand for high-end chips is driving the market forward. High-performance chips are essential in various industries, including telecommunications, automotive, healthcare, and aerospace. These chips require advanced packaging techniques to ensure optimal performance, reliability, and miniaturization.

Another important factor contributing to the market's growth is the cost reduction and improved efficiency brought about by advancing packaging technologies.

The Europe Advanced Packaging Market growth can be attributed to the rapid expansion of the advanced packaging market, particularly in wafer level packaging, fueled by the increasing demand for smartphones, electronic devices, and the Internet of Things (IoT). To meet this growing demand, suppliers of advanced packaging are actively developing processes and strategies to reduce the overall cost of advanced packaging and ensure optimal operational efficiency.

The advanced packaging material market in South America is growing steadily, driven by several factors. The increasing demand for advanced electronic devices such as smartphones, tablets, and wearable devices is driving the need for advanced packaging solutions. These devices require smaller, more powerful, and energy-efficient semiconductor chips, which can be achieved through advanced packaging technologies. Furthermore, South America's growing adoption of emerging technologies such as artificial intelligence (AI), Internet of Things (IoT), and 5G connectivity is fueling the demand for advanced packaging materials. These technologies require high-performance and reliable semiconductor chips, which can be achieved through advanced packaging techniques.

The Middle East and Africa (MEA) region is experiencing significant growth in the advanced packaging semiconductor material market. Advanced packaging refers to integrating and encapsulating semiconductor chips compactly and efficiently, enabling higher performance and functionality in electronic devices. The MEA region is witnessing a surge in demand for advanced packaging solutions due to the rapid expansion of industries such as telecommunications, automotive, consumer electronics, and healthcare. These industries require advanced packaging technologies to meet the increasing demand for smaller, faster, and more energy-efficient electronic devices.

Figure 3: Advanced Packaging Market Size By Region 2022 & 2030 (USD Million)

Advanced Packaging Market Size By Region 2022 & 2030

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Key Players and Competitive Insights

The advanced packaging market is a highly competitive landscape, characterized by intense rivalry among key players. The market is witnessing significant growth due to the increasing demand for advanced packaging solutions in various industries, such as electronics, healthcare, automotive, and aerospace.

Several major companies dominate the advanced packaging market, including Amkor Technology Inc., ASE Technology Holding Co. Ltd., China Wafer Level CSP Co. Ltd., ChipMOS Technologies Inc., FlipChip International LLC, HANA Micron Inc, Jiangsu Changjiang Electronics Technology Co. Ltd., King Yuan Electronics Corp, Nepes Corporation, Powertech Technology Inc. and many more. These companies have established themselves as leaders in the industry and are known for their comprehensive product portfolios and strong market presence.

In addition to these industry giants, there are numerous other players competing in the market, ranging from large multinational corporations to smaller regional players. The competition in the advanced packaging market revolves around factors such as product innovation, technological advancements, cost-effectiveness, and customer service. Companies strive to develop cutting-edge packaging solutions that offer higher performance, improved power efficiency, and smaller form factors. They also focus on providing customized solutions to meet the specific requirements of their clients. Partnerships, collaborations, and acquisitions are common strategies employed by companies to strengthen their market position and expand their product portfolios.

Companies also invest heavily in research and development to stay at the forefront of technological advancements and maintain a competitive edge. Moreover, market players engage in aggressive marketing and promotional activities to enhance brand visibility and attract new customers. They also strive to build long-term relationships with their clients by providing excellent after-sales support and service.

Key Companies in the Advanced Packaging Market market include

Industry Developments

February 2021: Siemens Digital Industries Software announced a collaboration with Advanced Semiconductor Engineering, Inc. (ASE) to evaluate multiple complex integrated circuit (IC) package assemblies and interconnects in a data-robust graphical environment before and during physical design implementation.

In October 2022, Amkor Technology declared their dedication to supporting initiatives in the Europe automotive sector. They are predicted to engage in enhanced semiconductor manufacturing in order to speed up the creation of technologies such as advanced driver assistance systems and infotainment for the automobile industry.

In August 2022, Intel Corporation, a USA-based maker of integrated circuits, announced that the Meteor Lake, Arrow Lake, and Lunar Lake processors were produced by utilizing Foveros technology. The latest high-end graphics processing units 9GPlJs) were built using embedded multi-die interconnect bridge (EMIB) and cutting-edge Foveros technology.

Future Outlook

Advanced Packaging Market Future Outlook

The Advanced Packaging Market is projected to grow at a 5.6% CAGR from 2024 to 2035, driven by technological advancements, sustainability initiatives, and increasing demand for miniaturization.

New opportunities lie in:

Development of biodegradable packaging materials for eco-conscious consumers.
Integration of IoT technology in packaging for real-time tracking and data analytics.
Expansion into emerging markets with tailored packaging solutions for local industries.

By 2035, the Advanced Packaging Market is expected to achieve substantial growth, driven by innovation and strategic market positioning.

Market Segmentation

Advanced Packaging Market Type Outlook

Flip Chip Scale Package
Flip Chip Ball Grid Array
Wafer Level Chip Scale Packaging
5D/3D
Fan Out Wafer-level Packaging
Others

Advanced Packaging Market End-user Outlook

Consumer Electronics
Healthcare
Industrial
Aerospace and Defense
Automotive
Other

Report Scope

MARKET SIZE 2024	37315.56(USD Million)
MARKET SIZE 2025	39405.23(USD Million)
MARKET SIZE 2035	67950.55(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	5.6% (2024 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Million
Key Companies Profiled	Market analysis in progress
Segments Covered	Market segmentation analysis in progress
Key Market Opportunities	Integration of sustainable materials and smart technologies in the Advanced Packaging Market presents substantial growth opportunities.
Key Market Dynamics	Technological advancements drive innovation in advanced packaging, enhancing sustainability and efficiency across various industries.
Countries Covered	North America, Europe, APAC, South America, MEA