Soaring Electronics Sales to Benefit Global Pressure Sensitive Adhesives Market

Transparency Market Research (TMR) has announced the release of a new research report, titled “Pressure Sensitive Adhesives Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019”. TMR states that the global pressure sensitive adhesives market will display a 5.2% CAGR from 2013 to 2019.

If the figures hold true, the market, which had a valuation of US$5.58 billion in 2012, will reach US$7.96 billion by 2019.According to the study, rapid expansion of the electronics and automotive sectors is one of the major factors propelling demand for pressure sensitive adhesives.

Increasing pressure from regulatory agencies for low emission, light weight, and better mileage in vehicles is accentuating the demand of lightweight devices for automotive applications, most of which utilize pressure sensitive adhesives. Furthermore, miniaturization of electronic devices will propel the demand for pressure sensitive adhesives from the electronics sector.

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Additionally, growing demand for labeling and packaging applications, which use pressure sensitive adhesives due to the improvement inventory management and cost-effectiveness of packaging materials they bring about, will support growth of the pressure sensitive adhesives market.However, fluctuating prices of crude oil-based feedstock and regulations in place against volatile organic compounds (VOC), which are synthesized from solvent-based pressure sensitive adhesives, will hinder the market’s growth.Products, applications, and key regional markets are the main criteria on which the global pressure sensitive devices market is divided. By product type, the market is segmented into hot melt, radiation cured, water-based, and solvent-based.

In 2012, water-based pressure sensitive adhesives accounted for the largest share of the market, followed by solvent-based products. Due to discharge of hazardous volatile organic compounds, these products are heavily regulated and are restricted to be used away from populated areas, and thus will lose their strong market share in the coming years.However, hot melt adhesive products are estimated to gain higher application in the construction industry owing to their ease of application and stronger bond strength, thus reducing processing time, state analysts.Radiation-cured pressure adhesives are used in masking tapes that are suitable for sub-zero or extremely high temperatures.

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The report states that by application, tapes dominated the market and held more than 40% of the market in 2012. Labeling application of pressure sensitive adhesives is expected to grow at a CAGR of 5.1% between 2013 and 2019. This is mainly due to higher adoption of RFID labels for improved inventory management. RFID labels offer process efficiency and hence account for almost a quarter of overall label sales in the market. Retail labeling is expected to be the fastest growing application segment of the pressures sensitive adhesives market.

Among the regional markets, Asia Pacific registered a share of more than 40% in the global pressure sensitive adhesives market in 2012. North America and Europe, which have mature chemical industries, will not contribute significantly to the growth of the overall market. Strict regulations in place for the chemical industry to develop eco-friendly products will slow the growth of the pressure sensitive adhesives market in these regions.

The report segments the global pressure sensitive adhesives market as:

Pressure Sensitive Adhesives Market – Product Segment Analysis

Water-based
Solvent-based
Hot melt
Radiation cured

Pressure Sensitive Adhesives Market – Application Analysis

Tapes
Specialty
Labels
Graphics
Others (Automotive trims, dental adhesives, notepads, etc.)

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