The Global Liquid Encapsulation Materials Market was valued at US$ 1298.6 Million in 2023 and is projected to reach US$ 1814.8 Million by 2030, growing at a Compound Annual Growth Rate (CAGR) of 4.8% during the forecast period (2024–2030). This robust growth is primarily fueled by the expanding semiconductor and electronics industries, the proliferation of Internet of Things (IoT) devices, and the rising demand for advanced packaging solutions that ensure device reliability and longevity.

As electronic components become smaller, more powerful, and more ubiquitous, the critical role of encapsulation materials in protecting them from moisture, dust, mechanical stress, and thermal cycling cannot be overstated. In this blog, we profile the Top 10 Companies in the Liquid Encapsulation Materials Industry—a mix of chemical giants, specialized material scientists, and electronics innovators shaping the future of device protection and performance.

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🔟 1. Henkel AG & Co. KGaA

Headquarters: Düsseldorf, Germany
Key Offering: Epoxy, Silicone, and Polyurethane-based Encapsulants (e.g., Loctite® products)

Henkel is a global leader in adhesive technologies, and its electronics division is a major supplier of high-performance liquid encapsulation materials. Their products are widely used in automotive electronics, consumer devices, and industrial applications, offering excellent thermal conductivity and environmental protection.

Innovation and Sustainability Initiatives:

• Development of thermally conductive but electrically insulating encapsulants for high-power devices.

• Focus on halogen-free and environmentally compliant material formulations.

• Investment in R&D for next-generation materials for 5G and electric vehicle power modules.

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9️⃣ 2. BASF SE

Headquarters: Ludwigshafen, Germany
Key Offering: Epoxy molding compounds, Underfills, Potting resins

BASF provides a comprehensive portfolio of advanced materials for the electronics industry. Their liquid encapsulation solutions are critical for protecting semiconductors, sensors, and LEDs, ensuring reliability under harsh operating conditions.

Innovation and Sustainability Initiatives:

• Pioneering bio-based epoxy resins to reduce the carbon footprint of electronic products.

• Tailored solutions for heterogeneous integration and advanced packaging techniques like Fan-Out Wafer-Level Packaging (FOWLP).

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8️⃣ 3. Panasonic Corporation

Headquarters: Kadoma, Osaka, Japan
Key Offering: Heat dissipation sheets, Potting gels, Conformal coatings

Panasonic’s industrial materials division is a key player, particularly in the Asian market. They offer a range of liquid encapsulants known for their high reliability in automotive and industrial electronics, where durability is paramount.

Innovation and Sustainability Initiatives:

• Development of low-stress encapsulants to prevent damage to delicate semiconductor dies.

• Emphasis on materials that support miniaturization and higher integration densities.

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7️⃣ 4. Hitachi Chemical Company (now part of Showa Denko Materials)

Headquarters: Tokyo, Japan
Key Offering: Semiconductor encapsulants, Adhesive films, Underfill materials

Hitachi Chemical, now operating under Showa Denko Materials following a merger, has a long-standing reputation for high-quality materials used in semiconductor packaging. Their products are essential for Flip-Chip Ball Grid Array (FC-BGA) and Chip-Scale Package (CSP) applications.

Innovation and Sustainability Initiatives:

• Advanced materials with low coefficient of thermal expansion (CTE) to match silicon and substrate materials.

• Focus on enhancing product performance for artificial intelligence (AI) and high-performance computing (HPC) chips.

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6️⃣ 5. Sumitomo Bakelite Co., Ltd.

Headquarters: Tokyo, Japan
Key Offering: Epoxy molding compounds, Encapsulation resins for power devices

Sumitomo Bakelite is a specialist in phenolic and epoxy resins, making it a significant supplier to the global semiconductor packaging market. The company’s materials are critical for encapsulating everything from discrete transistors to complex system-in-package (SiP) modules.

Innovation and Sustainability Initiatives:

• Leading the development of high-heat resistance materials for silicon carbide (SiC) and gallium nitride (GaN) power semiconductors.

• Initiatives to reduce volatile organic compound (VOC) emissions from their material production processes.

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5️⃣ 6. Shin-Etsu Chemical Co., Ltd.

Headquarters: Tokyo, Japan
Key Offering: Silicone gels, resins, and elastomers for encapsulation

Shin-Etsu is the world’s largest producer of silicone products. Its high-purity silicone-based liquid encapsulants are renowned for their excellent flexibility, UV resistance, and ability to withstand extreme temperatures, making them ideal for LEDs and automotive electronics.

Innovation and Sustainability Initiatives:

• Continuous innovation in optical-grade silicones for high-brightness LED packaging.

• Development of soft, stress-absorbing gels for sensitive sensor encapsulation.

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4️⃣ 7. Nitto Denko Corporation

Headquarters: Ibaraki, Osaka, Japan
Key Offering: Film-type encapsulants, Adhesive tapes, Potting materials

Nitto Denko specializes in precision polymer technology. While known for films and tapes, they also offer advanced liquid and paste encapsulants used in the assembly of smartphones, wearable devices, and other compact electronics where space is at a premium.

Innovation and Sustainability Initiatives:

• Research into novel material systems for flexible and stretchable electronics.

• Commitment to developing recyclable and biodegradable material alternatives.

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3️⃣ 8. Kyocera Corporation

Headquarters: Kyoto, Japan
Key Offering: Ceramic packages, Organic substrate packages with integrated encapsulation solutions

Kyocera is a major player in ceramic packaging for semiconductors. Their expertise extends to the materials science of encapsulation, providing holistic solutions that combine the package and the protective material for optimal performance in harsh environments.

Innovation and Sustainability Initiatives:

• Integration of encapsulation materials with advanced ceramic substrates for superior thermal management.

• Focus on materials for aerospace, defense, and medical implant applications requiring ultimate reliability.

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2️⃣ 9. Resin Technical Systems

Headquarters: Elk Grove Village, Illinois, USA
Key Offering: Custom-formulated epoxy, urethane, and silicone potting compounds

Resin Technical Systems is a key North American supplier specializing in custom-formulated encapsulation materials. They serve a diverse range of industries, from military and aerospace to renewable energy, providing tailored solutions for specific application challenges.

Innovation and Sustainability Initiatives:

• Expertise in creating flame-retardant and high-dielectric-strength formulations.

• Rapid prototyping and small-batch production capabilities for specialized customer needs.

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1️⃣ 10. Sanyu Rec Co., Ltd.

Headquarters: Tokyo, Japan
Key Offering: Epoxy and silicone potting materials, Conformal coatings

Sanyu Rec is a specialized Japanese manufacturer with a strong focus on encapsulation and bonding materials for the electronics industry. They are particularly noted for their high-reliability products used in automotive control units and power electronics.

Innovation and Sustainability Initiatives:

• Development of fast-curing systems to increase manufacturing throughput.

• Focus on materials with high thermal stability for under-the-hood automotive applications.

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🌍 Outlook: The Future of Liquid Encapsulation Materials is Smarter and More Specialized

The liquid encapsulation materials market is evolving rapidly, driven by the relentless pace of innovation in the electronics sector. While traditional epoxy resins continue to hold a significant market share, the industry is shifting towards high-performance silicones, advanced thermally conductive materials, and environmentally sustainable formulations.

📈 Key Trends Shaping the Market:

• Rise of Wide-Bandgap Semiconductors: The adoption of SiC and GaN in electric vehicles and power grids demands encapsulants with much higher thermal stability and thermal conductivity.

• Advanced Packaging Proliferation: Technologies like 2.5D/3D IC integration and FOWLP require ultra-low-stress, fine-feature encapsulants with excellent flow properties.

• Sustainability and Regulations: Increasing pressure for halogen-free, low-VOC, and bio-based materials is driving innovation in green chemistry.

• Miniaturization and IoT Expansion: The growth of tiny, ubiquitous sensors and IoT devices necessitates encapsulants that offer maximum protection in minimal volumes.

Get Full Report Here:
Liquid Encapsulation Materials Market – View in Detailed Research Report

The companies listed above are not only supplying essential materials—they are enabling the technological advancements that define modern electronics, from the smartphone in your pocket to the electric vehicle on the road.