The industrial electronics packaging market has been witnessing a steady and moderate growth in recent years, with over 2/3rds of the demand coming from packaging for industrial controls and power electronics.

The continuous demand for sturdy industrial packaging for fragile and sensitive industrial electronic products, has led to new and innovative packaging processing and materials being used. The fragility of electronics, however, has led to rigid packaging being the more popular choice in comparison to flexible for industrial electronics packaging. Rigid packaging, as of right now holds a larger share of the market at about 93%, and this is a trend that is expected to continue in the foreseeable future. This is opening up opportunities for manufacturers to provide innovative packaging solutions that cater to the individual requirements of industrial electronics around the world.

Sustainability, an Underlying Trend in Industrial Packaging

Sustainability, which is considered predominantly as a consumer facing trend, has had an impact on the industrial operations as well, particularly in the industrial packaging industry, in recent years. The growing awareness of the negative impact of processes and materials on the environment and the global push for sustainability has led to manufacturers in the industrial electronics packaging market looking at products that are ecologically sound. Players are looking at aligning both materials used in industrial packaging and the production process itself to global sustainability goals, in order to become more environmentally responsible.

With buzzwords such as ‘sustainable materials management’ and ‘ecological efficiency’ increasingly being pushed into the spotlight, players are trying to follow the 3Rs of sustainability – reduce, reuse and recycle, as well. From sturdy packaging that can be returned and reused, to the use of responsibly sourced whether wood, fiber or paper, these solutions are only scratching the surface when it comes to sustainable packaging solutions.

This has led to increased adoption of paper and board as packaging materials, even for industrial electronics packaging. And although the market demand for these materials remains significantly lower than that of plastic, the increased adoption is being seen as a step in the right direction.

The global discouragement of the use of plastic bags and single use plastic in general have also had an indirect impact on the industrial electronics packaging market, with all the stakeholders looking to take responsible actions. Complying with this demand while not sacrificing operational efficiency is likely to be a challenge for players in the packaging industry.

Asia Pacific: A Potential Lucrative Market

In recent years, there has been significant economic development in countries in Asia, leading to a significant growth of the industrial sector. This has in turn pushed for the development of the electronics industry contributing to the demand of industrial electronics packaging in the region as well. This is likely to encourage manufacturers to make inroads to capitalize on the sales opportunities in the region.

While the market in APEJ is set to grow in the foreseeable future, the regional market of North America continues to hold a massive global share. North America, which is also a production hub, has leading manufacturers with a strong presence in the region. The profitability of the region’s market rests on the concentration of global production of industrial electronics, with 60% of the global production of industrial electronics, based in North America and Europe.

The future of the of the industrial electronics packaging market is expected revolve around a circular economy, where non-conventional plastics, such as plant based plastics and recycling forms the driving force determining the direction of the industry. The industry as a whole, is looking towards switching to holistic solutions, that impact every aspect of the supply chain, which holds untapped potential for industrial packaging.

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