The pressure sensitive adhesives market is expected to register a CAGR of 6.17% during the forecast period, 2019-2024. Major factors driving the market studied are the increasing development of low-cost flexible packaging and rising demand from the automotive industry. On the flip side, stringent environmental regulations regarding VOC emissions are expected to hinder the growth of the market studied.
- The tapes segment dominated the market in 2018, and it is expected to grow during the forecast period, owing to the growing end-user industries, such as packaging, medical, and transportation.
- Adoption of bio-based pressure sensitive adhesives is likely to act as an opportunity in the future.
- Asia-Pacific dominated the global market, with the largest consumption from countries, such as China and India.
Key Market Trends
Rising Demand from the Automotive Industry
- Over the past few years, adhesives have become a prime technology component of the automotive applications, as they are continuously replacing traditional bonding or adhesion methods. On average, the present-day automobile contains about 18 kg of adhesives, compared to 8 kg in 2004.
- In the automotive industry, pressure sensitive adhesives are widely used, as they offer superior benefits over mechanical fasteners. They help in improving crash efficiency of automotive, as they do not affect the substrate used in assembly. They help in distributing stress over the entire bonded area and do not allow the concentration of stress.
- Pressure sensitive adhesives are also used for the attachment of printed circuit boards to heat sinks in automotive electronics applications.
- Furthermore, some of the other applications of pressure sensitive adhesive products in the automotive sector are:
- Brake shim applications, to bond brake pad and metal shim
- The automotive passenger compartment, under-the-hood and exterior applications
- Moreover, the recent advancements in pressure sensitive adhesive technologies are aiding automotive manufacturers in the production of lightweight and fuel-efficient vehicles. The focus on minimizing carbon emission and enhancing fuel economy, by reducing the vehicle's weight, has provided an impetus to usage of pressure sensitive adhesives, as a bonding material for the manufacturing of automotive.
Asia-Pacific Region is Expected to Dominate the Market
- With over 40% of the global demand, Asia-Pacific is the most promising market for pressure sensitive adhesives, which is likely to dominate the market in the near future. This domination can be attributed to the growing demand for tapes and labels in the region.
- China, India, Japan, and South Korea account for over 80% of the demand for pressure sensitive adhesives. The growing packaging and automotive industries are driving the market for pressure sensitive adhesives in this region.
- China is one of the major exporter of adhesive products (tapes, label, etc.) and the factors concerning the majority of its customers are quality of the product, product range offered by the vendor, and reducing the dosage and wastage of adhesives. Owing to this reason, international players currently dominate the Chinese market for pressure sensitive adhesives. The same factor encourages local producers to invest in R&D to acquire a major share of the national market.
- The pressure sensitive adhesives market in India is expected to grow at a higher rate and its usage has increased with the transparent and filmic labels, shrink-wrap labels for fast moving consumer goods (FMCG) manufacturers, and flexible labels and multicolor wrap-around labels. The pressure sensitive adhesives market is still in its early growth stage and it has a higher scope of growth in the coming future.
- The large market size, coupled with the huge growth of Asia-Pacific, is quite instrumental in the expansion of the pressure sensitive adhesives market.
The pressure sensitive adhesives market is consolidated, and the top seven players account for almost 60% of the market. The major companies include 3M, Arkema, DowDuPont, HB Fuller, and Henkel AG & Co. KGaA, among others
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