The demand for industrial electronics packaging is closely associated with the growth of different industrial activities. Thus, the steep decline due to the coronavirus (COVID-19) pandemic is hampering the demand for packaging solutions. Customers are stockpiling industrial electronics products, causing disruption in the supply chain, which is offsetting the demand. Further, heavy duty corrugated packaging for e-commerce deliveries is also witnessing reduced demand.

Players in the industrial electronics packaging market needs to brace themselves for second-wave of the COVID-19 crisis. While crude oil prices have fallen, cost of oil-based raw materials such as plastic resin for packaging is poised to fall. Cross-border trade closures are compelling companies with extended supply chains to overhaul equipment manufacturing.

Demand for sensitive and fragile industrial electronic products in various end-use industries will rise, albeit steadily. This will accent the need for all-weather protective packaging. In order to stay ahead of the curve, manufacturers will leverage the Internet of things (IoT) market with the advent of Industry 4.0. Digitalization will continue to transform the packaging industry, and will boost the scope for implementing IoT for offering sophisticated industrial electronics packaging solutions.

Manufacturers Stepping up Product Performance with IIoT-driven Pneumatics

Pneumatics is widely deployed in the packaging machines for equipment such as grippers and sealers, pneumatic actuators, and pick-and-place machines for material handling. With the advent of the Industrial Internet of Things (IIoT), packaging OEMs are exploring significant prospects to enhance operations of pneumatics. This will help end users in improving energy efficiency, cut downtime and maintenance costs, and enhance safety.

Moving forward, IIoT-driven pneumatics provides extensive information to the industrial electronics packaging companies about the operational performance of the packaging lines and equipment. Preventive and predictive maintenance programs are crucial in maximizing the returns on investment (ROI) and handling equipment life cycles economically. IIoT-driven pneumatics helps in enhancing the overall equipment effectiveness (OEE) of production equipment.

IIoT sensors allow technicians to predict possible equipment deformities within few milliseconds, thus avoiding unplanned downtime on the packaging lines. Influenced by the umpteen advantages of IIoT-driven pneumatics, players in industrial electronics packaging are heavily investing in R&D activities to meet the ever-changing needs of end users.

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Players Rethinking their Strategies with Smart Packaging Solutions

Smart elements in the packaging are immensely improving the customers’ experience. In keeping pace with the rising trend of IoT, active smart and intelligent packing is becoming the new standard in the manufacturing industry.

Smart packaging for industrial electronics includes everything from external packaging designed to engage the consumers to internal packaging components that can manage quality control and sense temperature. Printed electronics, a component of smart packaging, will also gain traction in the near future. As printed electronics make considerable strides, smart packaging will become the new trend for point-of-sale packaging solutions.

Near Field Communication (NFC), the technology behind smart packaging, allows two transmitters to communicate with each other and easily be printed on labels at a low cost. Many businesses use NFC transmitters printed on their labels to prove the genuineness of their products. Growing adoption of NFC will drive the growth of industrial electronics packaging market.

Tracing the Path Ahead for Industrial Electronics Packaging Market

The industrial electronics packaging market will significantly rely on international trade flows. Moreover, market players are unpacking several methods to scale up product innovation and restructuring of value chains and business models.

  • Product Innovation

Suppliers of raw materials, particularly plastics, will continue to provide improvements to key raw materials, including greater rigidity, and strength to support down gauging, and enhanced mechanical and chemical properties.

  • Health, Safety, and Regulatory Standards

Players in industrial electronics packaging market, especially in developing regions, might face difficulties in adapting to international standards. However, they will continue to introduce step-change improvements in fire safety and durability attributes of the materials used for industrial electronics packaging.

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