Server Adhesives and Encapsulants Market Size to Reach $1.8 Billion by 2035

Server adhesives and encapsulants market is projected to grow from $801.6 million in 2025 and is projected to reach $1,786.7 million by 2035, growing at a CAGR of 8.4% during the forecast period 2026-2035. The server adhesives and encapsulants market is increasingly influenced by the transition toward high-density computing infrastructure. AI workloads are driving the deployment of GPUs, accelerators, high-bandwidth memory, and increasingly complex server architectures. These systems generate greater thermal loads and place higher demands on the reliability of semiconductor packages and electronic interconnects. As component dimensions become smaller while functionality increases, conventional mechanical attachment methods are being supplemented by specialized adhesive technologies. Underfill materials help reinforce fine-pitch interconnects, while encapsulants protect against moisture, mechanical stress, and thermal cycling. Thermal interface materials are also becoming more important as heat removal becomes a central design consideration. Dow's portfolio demonstrates the convergence of adhesives, encapsulants, and thermal materials within high-performance computing applications. Henkel's development of materials for AI data-center optical transceivers further illustrates how thermal requirements are extending into networking components. These developments are encouraging greater specialization in material formulations and application processes.

Browse the full report description of “Server Adhesives and Encapsulants Market Size, Share & Trends Analysis By Product Type (Adhesives, Underfill Encapsulants, Potting And Encapsulation Compounds, Conformal Coatings, And Edge-Bond And Corner-Bond Materials), By Chemistry (Epoxy, Silicone, Polyurethane, Acrylic, And Other Chemistries), By Application (Chip And Die Bonding, Thermal Management, PCB And Component Protection, Interconnect Protection, Power Module Encapsulation, And Connector And Cable Bonding), By Server Component (CPU And GPU Assemblies, Memory Modules, Motherboards And PCBs, Power Supply And Power Modules, Storage Components, And Networking Components), By Server Type (Rack Servers, Blade Servers, Tower Servers, Modular Servers, And GPU And AI Servers), and By End User (Hyperscale Data Centers, Cloud Service Providers, Colocation Data Centers, Enterprise Data Centers, Telecommunications Data Centers, And High-Performance Computing Facilities), Forecast Period (2026-2035)” at https://www.omrglobal.com/industry-reports/server-adhesives-and-encapsulants-market

Another important driver is the advancement of semiconductor packaging used in processors, accelerators, memory, and networking devices. Chiplet architectures, larger package formats, heterogeneous integration, and advanced memory configurations require materials with controlled flow, low warpage, reliable adhesion, and resistance to thermal and mechanical stresses. Encapsulation materials are increasingly expected to perform multiple functions, including environmental protection, electrical insulation, mechanical reinforcement, and heat dissipation. Manufacturers are also focusing on curing behavior and dispensing precision because automated assembly requires consistent material placement and predictable processing. Sumitomo Bakelite's development of a low-warpage liquid encapsulant for advanced packages illustrates the industry's response to increasingly complex package structures. The company is also expanding production capacity for semiconductor encapsulation materials in China in response to increasing semiconductor demand associated with AI and other applications. Meanwhile, DELO's development of fine-structure adhesives for semiconductor packaging shows the increasing importance of precise adhesive deposition in miniaturized electronic assemblies.

Competitive Landscape of the Server Adhesives and Encapsulants Market

The key players in the server adhesives and encapsulants market are Henkel AG & Co. KGaA, Dow Inc., Shin-Etsu Chemical Co., Ltd., DuPont de Nemours, Inc., and Sumitomo Bakelite Co., Ltd., among others. The competitive landscape is characterized by large diversified chemical and specialty-material manufacturers alongside specialized electronic adhesive suppliers. Competition is increasingly centered on formulation performance, thermal characteristics, curing behavior, dispensing precision, reliability, and compatibility with advanced semiconductor packaging processes. Suppliers with established semiconductor and electronics-material portfolios are expanding toward AI computing, high-performance computing, optical interconnects, and advanced packaging applications. The market is also seeing greater emphasis on localized manufacturing and technical support close to major semiconductor and electronics production centers. Henkel, for example, expanded its electronics capabilities in India with facilities focused on adhesive and thermal-management applications. Overall, competitive positioning is increasingly determined by application-specific material development rather than by general-purpose adhesive capacity alone.

• In September 2025, Henkel introduced LOCTITE ECCOBOND LCM 1000AG-1, a liquid mold material designed for warpage control in wafer-level and panel-level packaging. The product was presented as part of Henkel's expanded semiconductor packaging portfolio supporting AI-enabling advanced packages, including large dies, 2.5D and 3D architectures, chiplets, and stacked memory. These technologies are increasingly used in AI accelerators and high-performance computing systems deployed in data centers. The material therefore represents an expansion of Henkel's encapsulation and packaging-material offering relevant to the server ecosystem, particularly for protecting and maintaining reliability of high-density processor and memory packages used in AI servers.

Market Coverage

• The market numbers available for 2025-2035
• Base year- 2025
• Forecast period- 2026-2035
• Segment Covered-
  • By Product Type
  • By Chemistry
  • By Application
  • By Server Component
  • By Server Type
  • By End User
• Regions Covered-
  • North America
  • Europe
  • Asia-Pacific
  • Rest of the World
• Competitive Landscape - Henkel AG & Co. KGaA, Dow Inc., Shin-Etsu Chemical Co., Ltd., DuPont de Nemours, Inc., and Sumitomo Bakelite Co., Ltd., among others.

Key questions addressed by the report.

• What is the market growth rate?
• Which segment and region dominate the market in the base year?
• Which segment and region will project the fastest growth in the market?
• Who is the leader in the market?
• How are players addressing challenges to sustain growth?
• Where is the investment opportunity?

Global Server Adhesives and Encapsulants Market Report Segment

By Product Type

• Adhesives
• Underfill Encapsulants
• Potting and Encapsulation Compounds
• Conformal Coatings
• Edge-Bond and Corner-Bond Materials

By Chemistry

• Epoxy
• Silicone
• Polyurethane
• Acrylic
• Other Chemistries

By Application

• Chip and Die Bonding
• Thermal Management
• PCB and Component Protection
• Interconnect Protection
• Power Module Encapsulation
• Connector and Cable Bonding

By Server Component

• CPU and GPU Assemblies
• Memory Modules
• Motherboards and PCBs
• Power Supply and Power Modules
• Storage Components
• Networking Components

By Server Type

• Rack Servers
• Blade Servers
• Tower Servers
• Modular Servers
• GPU and AI Servers

By End User

• Hyperscale Data Centers
• Cloud Service Providers
• Colocation Data Centers
• Enterprise Data Centers
• Telecommunications Data Centers
• High-Performance Computing Facilities

Global Server Adhesives and Encapsulants Market Report Segment by Region

North America

• United States
• Canada

Europe

• UK
• Germany
• Italy
• Spain
• France
• Russia
• Rest of Europe

Asia-Pacific

• China
• India
• Japan
• South Korea
• Australia and New Zealand
• ASEAN Economies
• Rest of Asia-Pacific

Rest of the World

• Latin America
• Middle East & Africa

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