Ceramic Substrates Market To Generate Revenue worth $11,740.8 Million by 2030

The global ceramic substrates market will grow at a CAGR of 6.3% in the forecast period (2024–2030) and reach USD 11,740.8 million by 2030.

This can be ascribed to the surging need for nanotechnology and advanced electronic architectures. Other key drivers are the rapid development of EVs and the rising focus on solar power and other renewable energy sources. These factors lead to a surge in the demand for powerful electronic devices, which require ceramic substrates for efficient thermal management.

The electronic device sector is continuously undergoing innovation with the robust pace of R&D. Devices today can perform complex functions in seconds, are smaller in size, and weigh a fraction of what they did a couple of decades ago. All of this is due to the emergence of advanced architectures, specifically integrated circuits. This architecture requires high thermal conductivity, electrical insulation, and mechanical support, all of which can be achieved with ceramic substrates.

These materials also enable miniaturization and increase the performance and functionalities of the devices, as they are capable of integrating multiple components in a small space. Thus, the market is primarily driven by the fact that in the chip form, ceramic substrates are present in all the electronic devices that people use in their daily lives.

Further, companies in this industry are developing new products to maintain their competitive edge. For instance, in May 2023, CeramTec launched a high-performance substrate, called Rubalit ZTA, which has high electric insulation, thermal conductivity, and flexural strength. It can used in power generation and electromobility, both of which are fast-growing market segments.

Additionally, low-temperature co-fired ceramics (LTCCs) are used extensively in the automotive and telecommunications industries for a wide range of purposes. This is because of the rising the demand for miniaturization and a high performing capability together. Further, both these industries are growing at a fast pace due to R&D, which enables the introduction of new technology.

Moreover, in the automotive industry, battery electric and hybrid electric vehicles are in trend, while in the telecommunications domain, 5G infrastructure, OTT, and wireless devices are gaining widespread popularity. These factors will strongly drive the market as ceramic substrates are used to manufacture the high-end semiconductor and electronic components intrinsic to these two applications.

Aluminum Nitride Is Fastest-Growing Category

The aluminum nitride category in the product type segment will have the highest CAGR, of 6.5%, during the forecast period. This is because this compound offers high thermal, shock, and corrosion resistance and good thermal conductivity to the ceramic substrate. This is why it is an ideal choice for high-temperature purposes. Thus, it is used in aeronautical systems, optoelectronics, semiconductors, power electronics, military applications, and microwave communication and appliances. AlN substrates are also used in heat sinks and chip carriers as they enable efficient cooling.

Further, the LED lighting industry is a major end user because aluminum nitride helps in managing heat efficiently, which, in turn, increases the life of lighting devices. For instance, Nippon Carbide has patented an aluminum-based substrate that has high brightness, reflectivity, heat resistance, and emittance, which makes it suitable for LEDs. Therefore, as the use of LED lights is increasing in the commercial and residential sectors, the demand for AlN ceramic substrates is rising as well.

Some key players in the market are KYOCERA Corporation, MARUWA Co. Ltd., NIKKO COMPANY, CeramTec GmbH, KOA Corporation, TONG HSING ELECTRONIC Industries Ltd., LEATEC Fine Ceramics Co. Ltd., and Nippon Carbide Industries Co. Inc.