Bonding Wires Market Size & Industry Share - Growth Trends & Forecasts (2023 - 2030)

Based on the Type :

Based on the type, the market is segregated into ball bonders, wedge bonders, stud/bump bonders, and peg bonders. The wedge bonding segment accounted for the largest revenue share in the year 2022. The ability of wedge bonders to offer high mechanical strength and reliability in interconnecting electronics components is driving the growth of the market. Wedge bonding involves the usage of a wedge-shaped tool to bond the wire to the bonding pad. Moreover, wedge bonders enable bonding with a large variety of wire and ribbon materials, including gold, aluminum, and silver. Consequently, the application of wedge bonders in power electronics and automotive electronics is propelling the growth of the market.

Stud/bump bonders segment is anticipated to emerge as the fastest-growing segment during the forecast period. Stud bonding is a technique used for three-dimensional integrated circuits and flip-chip applications. Stud bonders require metal studs made up of gold or copper for attachment onto the bonding pads of semiconductor devices. For instance, in November 2022, SET Corporation SA launched an advanced R&D flip-chip bonder called FC150 Platinum for telecom, automotive, and defense applications. Thus, stud bonders allow for high-density interconnects enabling the integration of multiple chips and components in a compact space, resulting in the growth of bonding wires market.

Based on the Bonding Process Type :

Based on the bonding process type, the market is trifurcated into thermo-compression bonding, thermosonic bonding, and ultrasonic bonding. Thermo- compression bonding segment accounted for the largest revenue share in the year 2022. Thermo-compression bonding is a technique that deploys heat and pressure to create a bond between the wire and the bonding pad. As a result, thermo-compression bonding technique is well-suited for advanced packaging and microelectronics applications. For instance, in October 2022, Kulicke & Soffa Industries, Inc. shipped its first Fluxless Thermo-Compression Bonder (TCB) ensuring interconnect integrity through integrated fluxless delivery module to facilitate transistor-dense packaging in semiconductors to produce high levels of performance. Consequently, the application of thermos-compression technique for Heterogeneous Integration (HI) and System-in-Package (SiP) in semiconductor devices is accelerating the growth of the market.

The ultrasonic technique is anticipated to witness fastest CAGR growth during the forecast period. Ultrasonic bonding technique utilizes high frequency mechanical vibrations to create a bond between wire and the bonding pad. As a result, ultrasonic energy produces frictional heat that softens the wire and bonding pad, thereby fusing them together. Therefore, the application of ultrasonic technique in MEMS devices and medical applications is propelling the growth of the market.

Based on the Wire Thickness :

Based on the wire thickness, the market is segmented into 0μm-75μm, 75μm-150μm, 150μm-300μm, and 300μm-500μm. 0μm-75μm segment accounted for the largest revenue share in the year 2022. Bonding wires of thickness 0μm-75μm provide high-density interconnects allowing for a large number of wires to be packed within a compact space. Moreover, fine bonding wires are made up of a wide variety of materials including gold, aluminum, and copper. Thus, the application of fine wires in consumer electronics devices and other miniaturized devices is propelling the growth of the market.

300μm-500μm segment is expected to register fastest CAGR growth during the forecast period. The wires are referred to as thick wires providing high mechanical strength and reliable connections in high power semiconductor devices. The large diameter of 300μm-500μm bonding wires allows for increased current-carrying capacity in comparison to fine wires. Moreover, the ability of 300μm-500μm bonding wires to offer high thermal conductivity is accelerating the growth of bonding wires market.

Based on the Material :

Based on the material, the market is divided into copper, aluminum, gold, silver, and Palladium-Coated Copper (PCC). Copper segment accounted for the largest revenue share in the year 2022. The high electrical conductivity and cost-effectiveness of copper bonding wires is driving the growth of the market. The high conductivity of bonding wires allows for efficient transmission of current and helps minimize resistance in wire interconnects. For instance, in August 2021, QP Technologies installed two new Hesse Mechatronics ultrasonic wire bonders made up of aluminum and copper to provide advanced wedge bonding capabilities for axis recognition and pattern recognition in multichip modules (MCM), high-frequency components, chip-on-board (COB), hybrids, optical and automotive electronics. Moreover, the high availability of copper as a semiconductor material is contributing to the growth of the market.

The Palladium-Coated Copper (PCC) is anticipated to register fastest CAGR growth during the forecast period. The palladium coating on copper wires provides a protective layer, thereby eliminating oxidation concerns associated with bare copper wires. Moreover, palladium-coated copper wires are compatible with aluminum bond pads. Subsequently, the cost-effectiveness and high compatibility of Palladium-Coated Copper (PCC) is expected to drive market growth during the forecast period.

Based on the Application :

Based on the application, the market is segregated into MEMS, memory, sensors, optoelectronics system, and others. The MEMS systems accounted for the largest revenue share of 34.5% in the year 2022. Bonding wires play a crucial role in providing electrical connectivity between different components of MEMS devices such as MEMS chips, package leads, and circuit boards. Micro-electromechanical systems (MEMS) is a process technology used to create tiny integrated devices or systems that combine mechanical and electrical components. The components are fabricated using integrated circuit (IC) batch processing techniques. Thus, bonding wires play a crucial role in MEMS systems, resulting in the growth of the market.

The sensor segment is expected to witness high CAGR growth during the forecast period. The deployment of advanced sensors in consumer electronics and automotive industry is driving the growth of the market. Sensors play a crucial role in transmitting information between different components in semiconductor devices. As a result, wire bonders are utilized in the packaging of sensors to establish electrical connections between the sensor chip and the package leads. Thus, the growing miniaturization of consumer electronics and IoT-enabled is driving the demand for efficient bonding wires, resulting in market growth.

Based on the End-User :

Based on the end-user, the market is divided into automotive, aerospace & defense, consumer electronics, telecommunications, healthcare, and others. The consumer electronics segment accounted for the largest revenue share in the year 2022. Bonding wires are essential in IC packaging wherein semiconductor chips are enclosed within protective packages. Moreover, bonding wires play a crucial role in consumer electronics display technologies such as LCD, OLED, and AMOLED screens. Furthermore, the growing adoption of smart wearables among consumers is propelling the growth of the market.

The automotive industry is expected to witness the fastest CAGR growth during the forecast period. Bonding wires are widely used in assembly of ECUs to establish electrical connections between semiconductor chips, sensors, and other electronic components. Moreover, bonding wires are widely used in ADAS applications for efficient transmission of vital information between different devices. Furthermore, the application of bonding wires in automotive lighting systems is accelerating the growth of the market.

Based on the Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

North America accounted for a revenue share of USD 5,270.33 million in 2022 and is expected to reach USD 6,669.98 million in 2030, registering a CAGR of 3.1% during the forecast period. Additionally, in the region, U.S. accounted for the largest revenue share of 59.80% in the year 2022. The widespread adoption of consumer electronics devices such as smartphones, laptops, and tablets are driving the growth of the market. Bonding wires are essential in establishing reliable electrical connections between different semiconductor devices. For instance, in July 2021, Amkor Technology announced to offer wire bond and flip-chip packaging to provide reliable and cost-effective wire bond for devices manufactured on 0.13-micron and low-k processes. Moreover, the application of bonding wires in medical devices is accelerating the growth of the market. Bonding wires are used in the assembly of monitoring and diagnostic devices including ECG machines and ultrasound devices.

The Asia-Pacific region is anticipated to register the fastest CAGR growth of 3.4% during the forecast period. The large manufacturing industry in countries such as India, China, and Japan are driving the demand for efficient and reliable bonding wires for manufacturing of consumer electronics and automotive parts. The growing automotive industry in Asia-Pacific region is propelling the growth of the regional market. Bonding wires are extensively used in ADAS applications for efficient functioning of a wide variety of sensors. Therefore, the growing adoption of wire bonding techniques in the aforementioned industries is accelerating the growth of the regional market.