server adhesives and encapsulants market was valued at $801.6 million in 2025 and is projected to reach $1,786.7 million by 2035, growing at a CAGR of 8.4% from 2026 to 2035. The global server adhesives and encapsulants market is being shaped by the increasing complexity and power density of modern server electronics. Growth in AI computing, high-performance computing, cloud infrastructure, and high-speed networking is increasing the need for materials that provide reliable bonding, insulation, encapsulation, and thermal management. Advanced processors and memory packages require materials capable of managing thermal stress while maintaining mechanical and electrical reliability. The growing use of advanced semiconductor packaging is also increasing demand for underfills, die-attach materials, encapsulants, and thermal interface materials. Higher server component density is encouraging manufacturers to adopt materials that can be precisely dispensed and cured within compact assemblies. Dow specifically identifies thermal management requirements in AI and high-performance computing as a growing materials consideration.
Increasing Demand for Thermal Management Materials
The rising computational intensity of AI and high-performance computing is increasing heat generation within server processors and associated electronic components. This is strengthening demand for adhesives and encapsulants that can contribute to thermal transfer while maintaining mechanical stability. Thermal interface materials are becoming increasingly important around high-power processors, packages, optical components, and power electronics. Material suppliers are consequently developing formulations with higher thermal conductivity, controlled bond-line thickness, and improved resistance to thermal cycling. Dow, for example, identifies TIM materials and lid adhesives as important materials for high-performance computing and AI devices. Henkel has similarly introduced a high-thermal-conductivity silicone TIM specifically for AI data-center optical transceivers. The trend is therefore moving the market beyond basic bonding toward multifunctional materials that combine adhesion, protection, and heat-transfer characteristics.
Shift Toward Advanced Semiconductor Packaging
The adoption of larger packages, chiplets, heterogeneous integration, and advanced memory architectures is creating new requirements for adhesives and encapsulation materials. Conventional packaging materials must increasingly accommodate tighter geometries, greater thermal loads, and higher mechanical stress. Low-warpage encapsulants and advanced underfill materials are consequently becoming more relevant to processor and memory packages used in computing infrastructure. Sumitomo Bakelite's recent development of a liquid encapsulant for advanced packages reflects this shift toward materials designed for larger and more complex packages driven by AI applications. The company has also identified increasing adoption of molded underfill and related materials in AI semiconductor applications. Suppliers are therefore concentrating on improved flow characteristics, controlled curing, low warpage, thermal stability, and reliability under demanding operating conditions.
Market Segmentation
Thermal Management Segment to Lead the Market with the Largest Share
Thermal Management is a leading application because modern servers increasingly operate with high processor and accelerator power densities. Adhesives and encapsulants used in thermal management can provide both physical attachment and controlled heat transfer between semiconductor packages, lids, heat spreaders, and other thermal components. The growing deployment of AI accelerators and high-performance processors is increasing the importance of materials with high thermal conductivity and stable performance under repeated thermal cycling. Dow specifically identifies TIM1 gels and adhesives as materials supporting next-generation high-performance computing and AI devices. Henkel's commercialization of a high-thermal-conductivity material for AI data-center optical transceivers further demonstrates the expansion of thermal-material requirements into high-speed networking components.
GPU and AI Servers: A Key Segment in Market Growth
GPU and AI Servers represent a rapidly expanding server category because AI workloads require specialized computing architectures with substantially greater processing density than conventional systems. These servers incorporate high-performance GPUs, accelerator packages, high-bandwidth memory, power modules, and high-speed interconnects, creating greater requirements for bonding, encapsulation, insulation, and thermal management materials. The increasing integration of advanced semiconductor packages also raises the need for materials capable of managing warpage, mechanical stress, and heat within compact assemblies. Sumitomo Bakelite has specifically linked its advanced liquid encapsulant development to larger and more complex semiconductor packages associated with AI technology. This makes GPU and AI servers an important demand area for specialized adhesives and encapsulants.
Regional Outlook
The global server adhesives and encapsulants market is further divided by geography, including North America (the US and Canada), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), and the Rest of the World (the Middle East & Africa, and Latin America).
Asia-Pacific Region Dominates the Market with Major Share
Asia-Pacific is the dominating region for server adhesives and encapsulants because it combines extensive semiconductor manufacturing, advanced packaging, electronics assembly, and server-component production. Japan, Taiwan, South Korea, and China collectively provide a strong manufacturing base for semiconductor packages, memory, electronic components, and computing hardware. The region also has a concentrated supplier base for epoxy, silicone, underfill, molding, and die-attach materials. DELO reported that more than half of its sales were generated in Asia and identified the region as the global center of chip production. Sumitomo Bakelite has also expanded semiconductor encapsulation capacity in China to address demand associated with AI, IoT, and other electronics applications. These factors support the region's leading position.
North America to Witness the Fastest Growth
North America is the fastest-growing region, supported by rapid expansion of AI computing infrastructure, hyperscale data centers, cloud services, and high-performance computing facilities. The increasing deployment of GPU-based computing systems is raising requirements for thermal management, semiconductor packaging reliability, and protection of high-speed networking components. Material suppliers are responding with products specifically designed around AI data-center requirements. Henkel commercialized LOCTITE TCF 14001 in the United States for high-power-density optical transceivers used in AI data centers. Dow has also highlighted thermal interface materials and other cooling technologies for data centers experiencing increasing workloads from AI and high-performance computing. These developments are supporting stronger demand for specialized server-related materials in the region.
The major companies operating in the global server adhesives and encapsulants market include Henkel AG & Co. KGaA, Dow Inc., Shin-Etsu Chemical Co., Ltd., DuPont de Nemours, Inc., and Sumitomo Bakelite Co., Ltd., among others. Market players are leveraging partnerships, collaborations, mergers and acquisition strategies for business expansion and innovative product development to maintain their market positioning.
The Report Covers
1. Global Server Adhesives And Encapsulants Market Research And Analysis By Product Type, 2025-2035 ($ Million)
2. Global Adhesives Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
3. Global Underfill Encapsulants Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
4. Global Potting and Encapsulation Compounds Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
5. Global Conformal Coatings Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
6. Global Edge-Bond and Corner-Bond Materials Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
7. Global Server Adhesives And Encapsulants Market Research And Analysis By Chemistry, 2025-2035 ($ Million)
8. Global Epoxy Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
9. Global Silicone Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
10. Global Polyurethane Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
11. Global Acrylic Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
12. Global Other Chemistries Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
13. Global Server Adhesives And Encapsulants Market Research And Analysis By Application, 2025-2035 ($ Million)
14. Global Chip and Die Bonding Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
15. Global Thermal Management Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
16. Global PCB and Component Protection Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
17. Global Interconnect Protection Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
18. Global Power Module Encapsulation Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
19. Global Connector and Cable Bonding Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
20. Global Server Adhesives And Encapsulants Market Research And Analysis By Server Component, 2025-2035 ($ Million)
21. Global CPU and GPU Assemblies Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
22. Global Memory Modules Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
23. Global Motherboards and PCBs Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
24. Global Power Supply and Power Modules Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
25. Global Storage Components Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
26. Global Networking Components Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
27. Global Server Adhesives And Encapsulants Market Research And Analysis By Server Type, 2025-2035 ($ Million)
28. Global Rack Servers Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
29. Global Blade Servers Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
30. Global Tower Servers Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
31. Global Modular Servers Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
32. Global GPU and AI Servers Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
33. Global Server Adhesives And Encapsulants Market Research And Analysis By End User, 2025-2035 ($ Million)
34. Global Hyperscale Data Centers Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
35. Global Cloud Service Providers Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
36. Global Colocation Data Centers Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
37. Global Enterprise Data Centers Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
38. Global Telecommunications Data Centers Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million)
39. Global High-Performance Computing Facilities Server Adhesives And Encapsulants Market Research And Analysis By Region, 2025-2035 ($ Million) Global Server Adhesives And Encapsulants Market Research And Analysis By Geography, 2025-2035 ($ Million)
40. North American Server Adhesives And Encapsulants Market Research And Analysis By Country, 2025-2035 ($ Million)
41. North American Server Adhesives And Encapsulants Market Research And Analysis By Product Type, 2025-2035 ($ Million)
42. North American Server Adhesives And Encapsulants Market Research And Analysis By Chemistry, 2025-2035 ($ Million)
43. North American Server Adhesives And Encapsulants Market Research And Analysis By Application, 2025-2035 ($ Million)
44. North American Server Adhesives And Encapsulants Market Research And Analysis By Server Component, 2025-2035 ($ Million)
45. North American Server Adhesives And Encapsulants Market Research And Analysis By Server Type, 2025-2035 ($ Million)
46. North American Server Adhesives And Encapsulants Market Research And Analysis By End-User, 2025-2035 ($ Million)
47. European Server Adhesives And Encapsulants Market Research And Analysis By Country, 2025-2035 ($ Million)
48. European Server Adhesives And Encapsulants Market Research And Analysis By Product Type, 2025-2035 ($ Million)
49. European Server Adhesives And Encapsulants Market Research And Analysis By Chemistry, 2025-2035 ($ Million)
50. European Server Adhesives And Encapsulants Market Research And Analysis By Application, 2025-2035 ($ Million)
51. European Server Adhesives And Encapsulants Market Research And Analysis By Server Component, 2025-2035 ($ Million)
52. European Server Adhesives And Encapsulants Market Research And Analysis By Server Type, 2025-2035 ($ Million)
53. European Server Adhesives And Encapsulants Market Research And Analysis By End-User, 2025-2035 ($ Million)
54. Asia-Pacific Server Adhesives And Encapsulants Market Research And Analysis By Country, 2025-2035 ($ Million)
55. Asia-Pacific Server Adhesives And Encapsulants Market Research And Analysis By Product Type, 2025-2035 ($ Million)
56. Asia-Pacific Server Adhesives And Encapsulants Market Research And Analysis By Chemistry, 2025-2035 ($ Million)
57. Asia-Pacific Server Adhesives And Encapsulants Market Research And Analysis By Application, 2025-2035 ($ Million)
58. Asia-Pacific Server Adhesives And Encapsulants Market Research And Analysis By Server Component, 2025-2035 ($ Million)
59. Asia-Pacific Server Adhesives And Encapsulants Market Research And Analysis By Server Type, 2025-2035 ($ Million)
60. Asia-Pacific Server Adhesives And Encapsulants Market Research And Analysis By End-User, 2025-2035 ($ Million)
61. Rest Of The World Server Adhesives And Encapsulants Market Research And Analysis By Country, 2025-2035 ($ Million)
62. Rest Of The World Server Adhesives And Encapsulants Market Research And Analysis By Product Type, 2025-2035 ($ Million)
63. Rest Of The World Server Adhesives And Encapsulants Market Research And Analysis By Chemistry, 2025-2035 ($ Million)
64. Rest Of The World Server Adhesives And Encapsulants Market Research And Analysis By Application, 2025-2035 ($ Million)
65. Rest Of The World Server Adhesives And Encapsulants Market Research And Analysis By Server Component, 2025-2035 ($ Million)
66. Rest Of The World Server Adhesives And Encapsulants Market Research And Analysis By Server Type, 2025-2035 ($ Million)
67. Rest of the World Server Adhesives And Encapsulants Market Research And Analysis By End-User, 2025-2035 ($ Million)
1. Global Server Adhesives And Encapsulants Market Share By Product Type, 2025 Vs 2035 (%)
2. Global Adhesives Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
3. Global Underfill Encapsulants Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
4. Global Potting and Encapsulation Compounds Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
5. Global Conformal Coatings Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
6. Global Edge-Bond and Corner-Bond Materials Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
7. Global Server Adhesives And Encapsulants Market Share By Chemistry, 2025 Vs 2035 (%)
8. Global Epoxy Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
9. Global Silicone Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
10. Global Polyurethane Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
11. Global Acrylic Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
12. Global Other Chemistries Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
13. Global Server Adhesives And Encapsulants Market Share By Application, 2025 Vs 2035 (%)
14. Global Chip and Die Bonding Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
15. Global Thermal Management Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
16. Global PCB and Component Protection Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
17. Global Interconnect Protection Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
18. Global Power Module Encapsulation Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
19. Global Connector and Cable Bonding Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
20. Global Server Adhesives And Encapsulants Market Share By Server Component, 2025 Vs 2035 (%)
21. Global CPU and GPU Assemblies Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
22. Global Memory Modules Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
23. Global Motherboards and PCBs Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
24. Global Power Supply and Power Modules Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
25. Global Storage Components Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
26. Global Networking Components Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
27. Global Server Adhesives And Encapsulants Market Share By Server Type, 2025 Vs 2035 (%)
28. Global Rack Servers Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
29. Global Blade Servers Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
30. Global Tower Servers Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
31. Global Modular Servers Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
32. Global GPU and AI Servers Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
33. Global Server Adhesives And Encapsulants Market Share By End User, 2025 Vs 2035 (%)
34. Global Hyperscale Data Centers Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
35. Global Cloud Service Providers Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
36. Global Colocation Data Centers Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
37. Global Enterprise Data Centers Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
38. Global Telecommunications Data Centers Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
39. Global High-Performance Computing Facilities Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
40. Global Server Adhesives And Encapsulants Market Share By Region, 2025 Vs 2035 (%)
41. US Server Adhesives And Encapsulants Market Size, 2025-2035 ($ Million)
42. Canada Server Adhesives And Encapsulants Market Size, 2025-2035 ($ Million)
43. UK Server Adhesives And Encapsulants Market Size, 2025-2035 ($ Million)
44. France Server Adhesives And Encapsulants Market Size, 2025-2035 ($ Million)
45. Germany Server Adhesives And Encapsulants Market Size, 2025-2035 ($ Million)
46. Italy Server Adhesives And Encapsulants Market Size, 2025-2035 ($ Million)
47. Spain Server Adhesives And Encapsulants Market Size, 2025-2035 ($ Million)
48. Russia Server Adhesives And Encapsulants Market Size, 2025-2035 ($ Million)
49. Rest Of Europe Server Adhesives And Encapsulants Market Size, 2025-2035 ($ Million)
50. India Server Adhesives And Encapsulants Market Size, 2025-2035 ($ Million)
51. China Server Adhesives And Encapsulants Market Size, 2025-2035 ($ Million)
52. Japan Server Adhesives And Encapsulants Market Size, 2025-2035 ($ Million)
53. South Korea Server Adhesives And Encapsulants Market Size, 2025-2035 ($ Million)
54. ASEAN Server Adhesives And Encapsulants Market Size, 2025-2035 ($ Million)
55. Australia and New Zealand Server Adhesives And Encapsulants Market Size, 2025-2035 ($ Million)
56. Rest Of Asia-Pacific Server Adhesives And Encapsulants Market Size, 2025-2035 ($ Million)
57. Latin America Server Adhesives And Encapsulants Market Size, 2025-2035 ($ Million)
58. Middle East And Africa Server Adhesives And Encapsulants Market Size, 2025-2035 ($ Million)