Liquid Crystal Polymer Films and Laminates Market

LCP films and laminates find widespread application in the electricals and electronics industry. LCPs offer excellent electrical and mechanical properties such as low dielectric constant, high moisture barriers, controllable thermal coefficient of expansion, high frequency properties, and non–halogen flame retardant characteristics. LCP films are used in the manufacturing of flexible circuits, whereas LCP laminates are used in the manufacturing of rigid printed circuit boards (PCB). LCP laminates are made either by layering LCP films one above the other and joining them using alternate high–temperature films or by inserting LCP films between copper clads and joining them using adhesives.

Nowadays, LCD films are widely preferred as an alternative for traditional polyimide films for use as a substrate in flexible circuit construction. Polyimide films were the most commonly used substrates in the manufacturing of flexible electronics circuits in the last decade. However, the tendency of polyimide to absorb moisture degrades the performance of flexible circuits. The evaporation of water causes blistering, delamination, and metal corrosion. On the other hand, LCP films have very low moisture absorption and water vapor transmission rates, which eliminate many moisture–induced problems encountered while using polyimide film as a circuit substrate. Apart from this, polyimide films have a high coefficient of hygroscopic expansion and, therefore, flatness and dimensional stability are the other concerns associated with polyimide circuits. A polyimide base film expands when it absorbs water, resulting in curling of the flexible circuit. An LCP film has a low coefficient of hydroscopic expansion (CHE), which helps it to stay stable and flat when the moisture level changes.

LCP has excellent thermal stability and can retain temperatures of up to 250°C; it is also inherently flame–retardant, which protects the electronic circuit in high–frequency applications. LCP films have a lower dielectric constant and are superior in permittivity (Dk) and dissipation factor (DF) over the functional frequency range of 1 kHz to 45 GH, which allows for closer spacings, higher density, with less crosstalk. A wide range of polymers can also be rendered in liquid crystal state, some of which are very inexpensive such as polyester, the basic cost of which is one–tenth that of polyimide. These advantages of LCPs are influencing demand in the electricals and electronics industry. The use of LCPs eliminates the inherent limitations of polyimide circuits and offers enhanced electronic device design with good electrical performance and superior manufacturing capabilities. For instance, a lower dielectric constant of LCD films allows for faster electric signal transfer and lower moisture absorption leads to higher frequency signal and data processing. Thus, LCP is a promising substrate for electronic packaging owing to its excellent combination of electronic, thermal, mechanical, and chemical properties.

The electricals and electronics industry has been growing across the globe at a significant rate over the last decade. The increasing demand for smart built–up and thin electronics systems is driving the growth of the global electricals and electronics industry. Japan, South Korea, Taiwan, Germany, and California in the US are the major electronics hubs. The growth of the electricals and electronics industry is significantly driving the demand for performance–efficient PCBs, since they play an active role in the fabrication of electronics, which is expected to drive the growth of the global liquid crystal polymers films and laminates market.

Asia–Pacific is the dominant electricals and electronics market due to presence of some of the major electronics hubs, such as Japan, South Korea, and Taiwan, as well as the growing demand for electronic devices in emerging economies such as China and India. Increasing per capita disposable income, and rising consumer spending are some of the other factors contributing to the growth of the electricals and electronics industry in the region.

The Indian electricals and electronics industry is showcasing remarkable growth due to increasing demand and ongoing shift toward an end–to–end manufacturing ecosystem. Government policies such as the National Policy on electronics (NPE), Modified Special Incentive Package Scheme (M–SIPS), Electronics Development Fund (EDF), and Preferential Market Access (PMA) have encouraged the manufacturing of electronics in the country. In addition to this, the Make in India and Digital India initiatives are expected to boost the growth of the Indian electricals and electronics industry during the forecast period.

China’s electricals and electronics industry is also growing at an exponential rate due to supportive government policies, strong demand from the domestic market, and opportunities provided by the international transfer of technology in the electricals and electronics manufacturing sector. The export–oriented approach of China is also driving the growth of the electricals and electronics industry. For instance, major players such as Huawei Technologies, Xiaomi Technology, OPPO, and Vivo Communication Technology are witnessing high international demand due to the affordability of their products. Technological advancements such as the Internet of things (IoT), automation, and robotics are also likely to fuel the demand for LCP films and laminates in the manufacturing of numerous electronic gadgets such as smart homes, wearables, connected buildings, and power tools.

Thus, the increasing demand for flexible and rigid PCBs in the growing electricals and electronics industry is expected to fuel the growth of the global liquid crystal polymer films and laminates market during the review period.

Recently, there has been growing demand for LCP films and laminates for next–generation implantable neural prosthetic devices. LCP has a very low moisture absorption rate as compared to other polymers such as polyimide or parylene–C, which ensures superior long–term reliability in the human body. Other medical applications of LCP films and laminates are in trays and drug delivery systems.

Furthermore, the application of LCD films and laminates is increasing in e–textiles, electronic tags, intelligent smart cards, solid state lighting, solar cells, X–ray imaging, finger print scanners, flexible electronics on foil, lightweight displays, protective clothing, plastic disposables, and industrial waste bags.

Thus, the growing application of LCP films and laminates is expected to create immense growth opportunities for players in the global liquid crystal polymers films and laminates market during the forecast period.

LCP films and laminates are made from LCP resins, which are manufactured using raw materials such as benzoic acid and p–Hydroxy naphthoic acid. The number of suppliers of these raw materials is less than the required number needed to meet the global demand. This is limiting the supply of these raw materials in the global market. In addition to this, the processing of LCP into films and laminates is expensive, which also adds to the overall cost. For instance, manufacturing films from LCPs requires specialized processes to make uniform films, which are not very cost–effective and are volume limited. Furthermore, LCP laminates require adhesion to a metal foil substrate such as a copper sheet. The high cost of copper also influences the overall cost of LCP laminates.

Thus, the high manufacturing and processing costs of LCP films and laminates is a major factor expected to hamper the growth of the global market

The global liquid crystal polymer films and laminates market is expected to register a CAGR of 5.85% during the forecast period, 2018–2023. The growth of the global liquid crystal polymer films and laminates market is projected to be driven predominantly by the rising demand for LCP films and laminates in the electricals and electronics industry. The automotive and transportation industry is showcasing high demand for LCP films and laminates and the demand is further expected to surge during the forecast period. The increasing demand for LCP films and laminates in diverse applications is expected to create new growth opportunities for the players operating in the market. However, the high cost of LCPs and their low weld properties are projected to restrain the growth of the market to some extent. Difficulty in metal adhesion during the formation of LCP laminates is expected to be a major challenge in the growth of the global market.