Published: Nov, 2016
The companies operating in the pressure sensitive adhesives market are striving to gain a competitive advantage over each other in terms of product pricing and innovation, states Transparency Market Research (TMR) in a new research report. In order to meet the requirements of the automotive and electronics industries, the manufacturers of pressure sensitive adhesives are focusing on the expansion of manufacturing units. Some of the leading companies operating in the global pressure sensitive adhesives market are Ashland Inc., LG Chem, BASF SE, Henkel AG, HB Fuller, and 3M Company.
The global pressure sensitive adhesive market is likely to expand at a CAGR of 5.2% between 2013 and 2019. In 2012, the market stood at US$5.58 bn and is projected to rise to US$7.96 bn by the end of 2019. Based on product, the market is segmented into radiation cured, hot melt, solvent based, and water based pressure sensitive adhesives. Among these, water based pressure sensitive adhesives are likely to emerge dominant in terms of growth during the forecast period. Solvent based pressure sensitive adhesives emerged as the second-leading growing segment in 2012. However, the market share of pressure sensitive adhesives is likely to be negatively impacted as they release harmful organic compounds. The use of such chemicals is controlled by various regulations and is banned from use in populated areas. On the contrary, hot melt adhesives are gaining prominence in construction applications due to benefits such as reduced process time, easy applicability, and bond strength.
Saturation of Mature Markets to Pave Way for New Opportunities for Untapped Markets
Geographically, Asia Pacific led the global pressure sensitive market in 2012 with a share of 40% and is expected to retain a lead until 2019. Asia Pacific also enjoys the position of being the leading region in terms of growth as well. The growth of the pressure sensitive adhesives market in Asia Pacific can be attributed to the mounting demand from the electronics and automotive industry in the region. In addition, the sales of pressure sensitive adhesives in consumer goods sectors such as furniture, office stationery, and footwear also witnessed a significant rise in Asia Pacific.
The pressure sensitive adhesives markets in North America and Europe are projected to witness a moderate growth as the markets in these regions have reached maturity. The demand from the medical industry is expected to fuel the growth of the markets in these regions. Furthermore, implementation of stringent regulations by organizations such as the U.S. Environment Protection Agency has impelled chemical manufacturers to improve sustainability.
Emergence of New Applications across Diverse Industries to Drive Adoption
According to a TMR analyst, “The growth of the global pressure sensitive adhesives market is likely to be aided by the growing deployment of radio-frequency identification (RFID) labels owing to their involvement in improving inventory management.” These adhesives have applications in various sectors such as footwear, furniture, construction, electronics, automotive, and packaging. The key revenue generators for this market are industries such as consumer electronics and automotive. Owing to the tilt towards miniaturizing of devices, the sales of pressure sensitive adhesives is expected to accelerate over the forthcoming years in the electronics industry.
Volatile Raw Material Prices to Act as Hindrance
Pressure sensitive adhesives are derived from materials such as silicone, styrene butadiene, polyurethane, and acrylic. Polyurethane is a derivative of crude oil, thus the fluctuating prices of crude oil are expected to adversely impact the productivity of the pressure sensitive adhesives industry. Moreover, implementation of stringent regulations against chemicals that are known for discharging volatile organic compounds is further anticipated to inhibit the growth of the market. However, manufacturers of pressure sensitive adhesives can expect growth opportunities from the development of VoC free and sustainable products.
This review is based on a Transparency Market Research report, titled, “Pressure Sensitive Adhesives Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019.”
The report segments the global pressure sensitive adhesives market as:
- Pressure Sensitive Adhesives Market – Product Segment Analysis
- Hot melt
- Radiation cured
- Pressure Sensitive Adhesives Market – Application Analysis
- Others (Automotive trims, dental adhesives, notepads, etc.)
- Pressure Sensitive Adhesives Market - Regional Analysis
- North America
- Asia Pacific
- Rest of the World
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