Wet Chemicals Market: Recycling of Semiconductors & E-Waste Trends to Create Growth Opportunities

Wet Chemicals Market was valued at USD 7.61 Billion in 2023, and is expected to reach USD 11.83 Billion by 2030, exhibiting a CAGR of 6.5 % during the forecast period (2024-2030)

The rapid growth of e-waste has resulted in severe environmental impact along with other challenges associated with multifaceted resource recovery. Therefore, recycling e-waste, such as semiconductors, is necessary, and it gives industries an opportunity to reuse their expensive metals recovered from the recycling processes. The exponential growth in consumer electronics over the last decade has significantly increased the amount of e-waste which needs to be recycled, as these materials can prove to be hazardous to the environment and human health. This is expected to increase the demand for wet chemicals, further driving the growth of the wet chemicals market during the forecast period.

E-waste is the electronics that are nearing the end of their useful life and are discarded. E-waste has grown significantly in recent years due to rapid growth in the electronics industry. Over 80% of the E-waste generated remains unaccounted, and only 20 percent is documented as having been collected and recycled. Global e-waste generated reached a record 53.6 million metric tonnes. The annual E-waste generated globally has been continuously rising, and in the period 2014 to 2019, global e-waste grew by 21%. In 2018, the highest policy-making body of the ITU, the Plenipotentiary Conference, established a target to increase the global e-waste recycling rate to 30 percent by 2023 from 17% in 2018. Factors like these are expected to create new avenues for the growth of the demand for wet chemicals used in electronics and semiconductor applications, further driving the wet chemicals market growth.To know about the Research Methodology :- Request Free Sample Report

Favorable Wet Chemicals Market Growth for Semiconductors in Malaysia

Malaysia is more likely to attract multi-billion semiconductor investments from the United States, Japan, and Europe, where some of the niche FABs and supporting industries require to be relocated or have a ‘dual-location’ strategy. Malaysia has a long history of being a welcoming country for foreign investors, and it is one of the worldwide hubs for the electronic industry in Southeast Asia, with global reach. In February 2022, Leuze Electronic GmbH + Co. KG, a world-class optical sensor manufacturer, chose Malaysia as the location for its first Southeast Asian manufacturing facility. Factors like these are expected to create new avenues for the growth of the demand for wet chemicals, thus, driving the wet chemicals market growth during the forecast period.
Wet Chemicals Market Dynamics
Rising Demand from Industries Driven by Modern Technologies

In the electronics application, the demand for integrated circuit (IC) manufacturing and printed circuit boards (PCB) manufacturing is increasing at a steady rate, owing to the surging demand from smartphone production, automotive electronics, and a surge on the internet of things (IoT) applications. Smartphones account for a major chunk of the globally integrated circuits demand, and the increasing adoption of smartphones worldwide, especially in developing economies, is expected to further increase the production of, and demand for, ICs in the future, which may further increase the consumption of wet chemicals, further boosting the growth of the wet chemicals market during the forecast period.

Technological advancements in mobile service infrastructure and significant growth in the near field communication (NFC) services for purposes like mobile ticketing and access control are expected to provide growth opportunities for the wet chemicals market during the forecast period. This may increase the demand for wet chemicals during the forecast period. Countries like China, Germany, and India, among others, have witnessed continuous growth in the demand for electronics from various end-user industries in recent years. Regionally, The Asia-Pacific region is expected to be the key growth region for the wet chemicals market market, thanks to the increasing smartphone production base in China, India, and Taiwan.

Surging Demand for Hydrogen Peroxide from the Semiconductor Industry

Semiconductors are used in a wide range of applications and are becoming increasingly important to day-to-day life. Semiconductors are vital components in consumer electronics, including laptops and mobile phones, microwaves and refrigerators, game consoles, and others. The global sales of semiconductors have grown from USD 204.4 billion in 2000 to USD 440.4 billion in 2020, a compound annual growth rate of 3.91% per year. This is expected to drive the growth of the wet chemicals market. Regionally, Asia-pacific has the largest semiconductor manufacturing capacity. China, Taiwan, Japan, United States are the key countries engaged in semiconductor production. However, the share of the United States in the semiconductor manufacturing capacity has fallen in the last two decades, from 37% to around 12%. Whereas China's semiconductor production has experienced rapid growth in recent years.

China’s semiconductor device sales were just USD 13 billion in 2015, accounting for only 3.8% of global chip sales. In 2020, the Chinese semiconductor industry reached USD 39.8 billion in total annual sales, registering an annual growth rate of over 30%. European countries have also registered continuous growth in semiconductor sales. Semiconductor sales in July 2022 reached USD 4.465 billion, increasing by 2.7% compared to the previous month and registering a y-o-y growth rate of 7.2%.

Stringent Health and Environmental Regulations on the Use of Certain Chemicals

Acids are hazardous and corrosive in nature. The electronic grades of acids are the grades with the highest purity and concentration, thereby increasing the risk factor associated with them. For example, Sulphuric acid, which has a purity of over 90%, is used for electronic applications. This electronic-grade Sulphuric acid is highly corrosive in nature and capable of corroding skin, paper, metals, and even stone in some cases. Unprotected exposure to this acid is destructive to the skin, eyes, teeth, and lungs. Long unprotected exposure to electronic-grade sulphuric acid can even lead to death. Because of the risk factors associated with these chemicals' various regulatory bodies in many parts of the world have issued regulations for the safe handling of these chemicals. This is expected to restraint the wet chemicals market growth during the forecast period.

Due to the corrosive and hazardous nature of wet chemicals, various regulatory bodies like the National Institute for Occupational Safety and Health (NIOSH) in the United States, European Chemicals Agency (ECHA) in the EU, and the Canadian Center for Occupational Health and Safety (CCOHS) among others have placed regulations on the usage of these chemicals to reduce workplace hazards. In 2019, European Union further restricted the sale of key wet chemicals like Hydrogen peroxide, acetone, and sulfuric acid through regulatory reforms, as these substances are also used as explosive precursors. Regulations like these are expected to negatively affect the demand for certain wet chemicals, but as most of these regulations were enforced since the early 2000s, the impact of these on the wet chemicals will be low during the forecast period.
Wet Chemicals Market Segment Analysis
Based on the grade, industrial grade segment held the largest share of more than 30% in the wet chemicals market in 2021. Wet chemicals of industrial grades are used as intermediates in the agrochemical industry to make insecticides and as an electrolyte in batteries. Increasing environmental concerns and rising demand for electric cars are driving up demand for lithium ion batteries, which is further driving the growth of wet chemicals industry. In 2018, the global stock of electric vehicles increased by 63%. As a result of the rise in electric cars, the usage of wet chemicals as an electrolyte in batteries has increased.

Based on application, the market is segmented into semiconductor and other electronic applications. Semiconductor is further segmented into cleaning and etching. Other electronic applications segment is sub segmented Integrated Circuit (IC) manufacturing and Printed Circuit Boards (PCB) manufacturing. Cleaning is expected to dominate the global wet chemicals market over the forecast period.

The cleaning process is expected to reach USD 555.12 million by 2024, with a CAGR of 7.89% during the forecast period. The cleaning process comprises removing impurities from the wafer surfaces as well as controlling the degree of developed oxide on the wafer. The etching segment is also likely to increase significantly in the near future. In 2023, the etching process accounted for a large portion of the entire semiconductor application in the global wet chemicals market. Etching is widely used in the development and manufacture of silicon devices, systems, and circuits.
Wet Chemicals Market Regional Insights
The Asia-Pacific region dominated the global Wet Chemicals market in 2023. With rising demand for electronics in nations such as China, India, and Japan, the region's use of wet chemicals is increasing. China has the world's largest electronics manufacturing base. China is a major producer of electronic items such as cellphones, televisions, wires and cables, portable computer devices, gaming systems, and other personal electronic gadgets. The previous year's export value of Chinese electronics] goods increased by about 11.4% in 2023. Due to continuous demand from the global market, prominent manufacturers' sales increased by 16.2% year on year.

China is a net importer of semiconductor chips, producing less than 20% of the semiconductors consumed. Because of the profitable demand in both local and foreign markets, 38 of 86 Chinese-listed semiconductor businesses declared net profits in their yearly sales in 2023, showing a favourable need for the industry's wet chemicals. China's integrated circuit sector has grown steadily in recent years, thanks to high market demand and favourable government policies. Chinese integrated circuit sales will surpass CNY 1 trillion (USD 157.08 billion) for the first time in 2023. Despite recent increases in manufacturing capacity, China continues to rely significantly on imports.

Furthermore, the domestic electronics manufacturing sector in India has been steadily expanding as a result of favourable government policies such as 100% Foreign Direct Investment (FDI), no industrial licence requirement, and the technological transition from manual to automatic production processes. New incentives, such as the Modified Incentive Special Package Scheme (M-SIPS) and the Electronics Development Fund (EDF), have been launched in the nation with a USD 114 million budget for domestic electronics production in India. By 2025, the country's semiconductor component industry is expected to be worth USD 32.35 billion. The government's continuing "Make in India" campaign is expected to result in investments in the country's semiconductor industry.

Furthermore, the Indian Ministry of Electronics and Information Technology said that during the next five years, firms will make smartphones and other electronic components worth more than USD 143 billion. Samsung and three Apple contract manufacturing partners, together with 16 other businesses, got USD 6.65 billion in incentives as part of India's goal to increase local smartphone production over the next five years. The country's increasing smartphone production is expected to boost demand for PCBs, driving the market for wet chemicals over the forecast period. During the forecast period, all of the aforementioned reasons are expected to increase overall demand for wet chemicals in the Asia-Pacific region.
Wet Chemicals Market Scope: Inquiry Before Buying 



Global Wet Chemicals Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US 7.61 Bn.


Forecast Period 2024 to 2030 CAGR:
6.5 %
Market Size in 2030:
US 11.83 Bn.


 Segments Covered:
by Form
1. Aqueous Chemicals
2. Organic Chemicals


by Grade
1. Agriculture Grade
2. Electronic Grade
3. Food Grade
4. Industrial Grade
5. Others


by Product
1. Acids
2. Bases
3. Solvents
4.Oxidizers
5. Others


by Application
1. Semiconductor
1. Etching
2. Cleaning
2. Others
1. Integrated Circuity (IC) Manufacturing
2. Printed Circuit Boards (PCB) Manufacturing


by End-User Industry
1. Electronics
2. Consumer Goods
3. Agrochemicals
4. Automotive
5. Textile
6. Aerospace & Defense
7. Personal & Beauty Care
8. Medical
9. Others



Wet Chemicals Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Wet Chemicals Market, Key Players are
1. BASF SE
2. Chang Chun Group
3. Dow
4. Eastman Chemical Company
5. Evonik Industries
6. Formosa Daikin Advanced Chemicals Co. Ltd.
7. Honeywell International Inc.
8. Hubei Xingfa Chemicals Group Co. Ltd.
9. KANTO KAGAKU
10. Mitsubishi Electric Corporation
11. Rin Kagaku Kogyo Co. Ltd.
12. Santoku Chemical Industries Co. Ltd.
13. Solvay Inc.
14. Yingpeng Chemical Co. Ltd.
15. Zhejiang Kaisn Fluorochemical Co. Ltd.
16. Avantor Inc.
17. CMC Materials
18. FUJIFILM Corporation
19. KMG Chemicals
20. Linde PLC
21. Songwon
22. Technic Inc.
23. T.N.C. Industrial Co. Ltd

Frequently Asked Questions:

1] What is the growth rate of the Global Wet Chemicals Market?
Ans. The Global Wet Chemicals Market is growing at a significant rate of 6.5% during the forecast period.

2] Which region is expected to have the highest growth rate in the Global Wet Chemicals Market?
Ans. The Asia Pacific region is expected to hold the highest growth rate in the Wet Chemicals Market during the forecast period.

3] What is the market size of the Global Wet Chemicals Market by 2030?
Ans. The market size of the Wet Chemicals Market by 2030 is expected to reach USD 11.83 Bn.

4] What are the major key players of the Global Wet Chemicals Market?
Ans. The major key players of the Global Wet Chemicals Market are BASF SE, Chang Chun Group, Dow, Eastman Chemical Company, Evonik Industries, Formosa Daikin Advanced Chemicals Co. Ltd., and Honeywell International Inc.

5] What factors are driving the growth of the Global Wet Chemicals Market in 2023?
Ans. Rising demand from industries driven by modern technologies and surging demand for hydrogen peroxide from the semiconductor industry are the major factors expected to drive the Global Wet Chemicals Market during the forecast period.