Pre COVID-19 2020 Forecast
Post COVID-19 2020 Correction
Expected BPS Drop
Evaluating Situations – Learning from the Past
The SARS outbreak of 2003 left economies of 26 countries reeling with its impact. Its adversarial effects were felt on the chemicals and its ancillary industries. However the impact was relatively manageable and short-lived owing to the disease being limited in its spread. COVID-19 on the other hand has led to a tumultuous downturn with its lethality, reduced factory outputs worldwide and disturbed supply chains. Today the economic landscape for electronics and its cleaning solvents in more volatile and less favorable with strained US-China relations, trade wars and global restrictions on the movement of people and goods. Sluggish demand for cleaning solvents from end-use electronics plants are set to continue as countries struggle to contain the deadly pandemic. The market for electronics cleaning solvents will witness an L-shaped recovery curve as the electronics industry starts to bounce back by the third quarter of 2020 and quarantines are lifted. Our analysts predict that demand for electronics will heighten with major footfalls at electronic retail outlets. This will have a cascading effect on supply of electronic cleaning solvents in sync with demand.
FMI is revising its outlook on the global electronics cleaning solvents market. Request a sample of the updated study to stay abreast with the evolving situation.
Succeeding Amidst & After the Crisis
Electronics cleaning solvents are steadily emerging as a one-stop cleaning solution for PCBs. Production hubs worldwide are reporting a tighter supply of memory chips, temperature sensors and PCBs amidst pervasive lockdowns. However, this has been offset with many regions getting the green light to ramp up production for medical electronic devices and equipment. This will proliferate demand for electronic cleaning solvents and pharmaceutical solvents. Some companies are setting an example through arbitrage by hoarding components and sizeable inventories by keeping track of historic patterns of customers’ orders. Well integrated supply chain networks with their chemical intermediaries is also helping these companies stay afloat. Simultaneously the solvents industry will see continued demand for other end uses such electronic medical devices and equipment to fight the pandemic. Concurrently, a large part of the workforce is working from home. This will fuel demand for electronics cleaning solvents for laptops, PCs and mobile phones.
Sudip Saha, Research Director
"We anticipate governments to tighten regulatory requirements for the use of solvents once the pandemic abates. Environmental concerns and worker safety will give rise to vapor degreasing processes that will offer more lucrative possibilities and outperform conventional cleaning solvents. Moreover, many electronics companies are steering consumers away from traditional solvents and are urging them to use disinfectant chemicals in the form of wipes for component protection and, as an added safety measure against the virus. "
Nikhil Kaitwade, Practice Lead
"The duration and severity of the outbreak are still to be seen. Mobility restrictions are the main limit to the pace of recovery. Once the pandemic is contained and production and outflow of both electronics and solvents will start to see a normal trend. As people adopt a more cautious approach, we also foresee a high demand growth for water based solvents for their low toxicity and non-VOC properties. "