The market demand for specialty chemicals will continue to grow
Support the development of digital technology and artificial intelligence
From the production of microprocessors and semiconductor chips used in computing to packaging solutions, adhesives, coatings, display materials and flame retardants adopted in electronic devices and electric vehicles, specialty chemicals support the advancement of digital technology and artificial intelligence (AI) in multiple fields. However, for a long time, in discussions about the AI market, the voices of specialty chemical producers have often been overlooked. However, the recent "Overview of the Specialty Chemicals Industry" report released by S&P Global Commodity Insights points out that with the development of AI technology, the specialty chemicals industry will be deeply involved in the AI and digital technology markets. It is expected that the global demand for specialty chemicals will continue to grow until 2025 and beyond, and the position of specialty chemicals in the AI and digital markets will also be significantly enhanced.
According to the "Overview of the Specialty Chemicals Industry" report, the demand for specialty chemicals used in the electronics industry and integrated circuit (IC) process chemicals is expected to maintain a high growth rate in the next five years. In addition, the demand for specialty chemicals used in display materials, printed circuit boards and packaging fields will also increase significantly. The report indicates that the continuous growth in demand for electronic devices such as smart phones, tablets and wearable technology is driving up the demand for advanced electronic components, thereby creating a continuously expanding market for specialty chemicals used in the manufacturing process of these components.
Specialty films are another important subfield that supports the advancement of electronic technology, and it is expected that their demand will continue to grow until 2029. For instance, the use of polycarbonate (PC) films in applications such as smart cards, identification technology, and light-guiding films for electronic displays is becoming increasingly widespread, and the demand for them will continue to rise. The report also mentioned that the market for multi-layer PC films used in 5G mobile phone casings will also experience rapid growth.
Kevin Micron, director of the Specialty Chemicals End-use Market at S&P Global Commodity Insights, said that the development of digital technology is closely related to the specialty chemicals industry. Specialty chemicals are of vital importance in the manufacturing of microprocessors, semiconductor chips, circuit boards, displays and cables. Lithography technology relies on a variety of high-purity process chemicals and special materials. It is precisely the participation of these materials that makes it possible to manufacture billions of nanoscale transistors on high-performance chips. Micron explained.
In addition, the displays in modern televisions, computers and smart phones are composed of a variety of special polymer films, liquid crystals, electroluminescent molecules and electrode materials. Lithium-ion batteries, as the key power supply for laptops, mobile phones and electric vehicles, are also composed of complex components made up of special metals and special chemicals.
Micron pointed out that with the popularization of AI technology in various household and industrial applications, the demand for special polymers, coatings, adhesives, sealants and additives is increasing. These materials are crucial for protecting electronic devices from environmental factors such as water, moisture, ultraviolet rays and heat. They not only ensure the normal function of electronic devices, but also provide electrical insulation and fire resistance. He added.
In addition, specialty chemicals also drive technological progress by enhancing their performance. For instance, synthetic dielectric fluids are becoming a solution for data center cooling and electric vehicle batteries.
Specialty chemical producers believe that specialty chemicals will play a greater role in digital innovation. Kay Beckman, a member of Merck's board of directors and CEO of its electronics division, said, "Without chips, there would be no digital world." Without suitable chemical materials, there will be no more powerful chips. Materials determine the future of AI." Beckman pointed out that although chemical material factors are often overlooked in AI discussions, the digital world cannot do without materials. To drive AI innovation, we must develop computer chips and semiconductors that meet the growing demands for computing power and storage capacity. The manufacturing of chips cannot do without chemical materials. Beckman added.
Conrad Kaiser, the CEO of Clariant, said that demand in major end markets will rebound in 2025. Among them, the market demand for electronic products and electric vehicles has changed and is expected to continue to grow this year. Clariant's analysis points out that the electronics industry is at the forefront of technological innovation in specialty chemicals. The development of flame retardants, wax additives, as well as packaging and cargo solutions are all key factors driving progress. Flame retardants help enhance safety, and wax additives improve the performance of electronic components by providing thermal conductivity and lubricity. In addition, packaging and cargo solutions can ensure that electronic products are protected during transportation and storage and meet the strict safety standards of the industry.