Pressure Sensitive Adhesives Market Expected to Reach $17.6 Billion by 2030

According to a new report published by Allied Market Research, titled, "Pressure Sensitive Adhesives Market by Chemical Composition, Technology, Application, and End Use: Global Opportunity Analysis and Industry Forecast, 2021–2030,"the global pressure sensitive adhesives market was valued at $9.8 billion in 2020, and is projected to reach $17.6 billion by 2030, growing at a CAGR of 6.1% from 2021 to 2030.

A pressure sensitive adhesive is a material that adheres two different or identical surfaces together solely through surface contact, and the bond formation is achieved by applying small magnitude of external pressure.    

Pressure sensitive adhesives are used in numerous applications in the automotive industry, which include assemblies, fixing carpets to various vehicle interior substrates, brake shims, cable wrapping, foam & fiber bonding, fixing gaskets in multitude configurations, and others. In addition, convectional fuel tanks that used to be made with medium surface energy materials are replaced by polypropylene material. This tank requires proper heat protection from vehicle temperature to avoid melting of the tank. Thus, use of acrylic modified PSAs are right choice owing to its ability to offer resistance from high temperature, chemicals, gasoline, and other fluids. These factors are predicted to notably contribute toward the global pressure sensitive adhesives market. 

However, implementation of stringent regulations on the use of pressure sensitive adhesives is anticipated to hamper the market growth. Environmental Protection Agency (EPA) defined VOCs as "any compound of carbon, excluding carbon monoxide, carbon dioxide, carbonic acid, metallic carbides or carbonates, and ammonium carbonate, which participates in atmospheric photochemical reactions." VOCs found in certain pressure sensitive adhesives have the tendency to react with nitrogen oxides present in the atmosphere to form ozone, which poses a health threat by causing respiratory problems. EPA drafted regulations to limit VOC emission from a wide range of consumer products and industrial adhesive application processes. Solvent-based adhesives contain certain solvents emit VOCs, owing to which the market is experiencing a shift towards VOC-free water-based adhesives. This factor is anticipated to thereby hamper the market growth.

Advanced acrylic adhesive technologies utilized in pressure sensitive tapes are a preferred bonding solution in various applications across numerous industries replacing mechanical fasteners, spray & liquid adhesives, and other fastening & bonding systems. These pressure sensitive tapes enhance efficiency and speed of assembly operations by integrating smoothly into automated processes with the help of in-line dispensing equipment or through hands. Advanced technologies utilized in tapes have impressive performance and assembly-related characteristics, which include the ability to withstand harsh environments, high temperatures, and bond securely with a variety of materials and substrates. This factor is anticipated to create remunerative opportunities for the expansion of the pressure sensitive adhesives market in the coming future.

The pressure sensitive adhesives market is segmented on the basis of chemical composition, technology, application, end-use, and region. 

By chemical composition, the market is segregated into acrylic, rubber, ethylene vinyl acetate, silicone, polyurethane, and others. The acrylic segment dominated the global market in terms of revenue in 2020, with over two-sevenths of the total share. This is attributed to the fact advantages of solvent based acrylic pressure sensitive adhesives offer advantages such as improved adhesion to non-polar compounds, quick dryability, improved bonding strength with plastic materials, and versatility. Waterborne acrylic based pressure sensitive adhesives offer advantages such as improved adhesion towards polar substances, heat & aging resistance, and they can be cleaned easily. 

By technology, the global pressure sensitive adhesives market is segmented into water-based, radiation cured, solvent based, and hot melt. The water-based segment dominated the global market in terms of revenue in 2020, with over one-third of the total share. This is attributed to the fact Water based PSAs are used in applications such as clear labels, general purpose permanent labels, labels used in pharmaceutical sector, resealable labels, foam tape, and mounting tape.

By application, the market is fragmented into tapes, labels, graphic, and others. The tapes application dominated the global market, with over one-third of the total share in 2020. This is attributed to the fact that, automotive tape, conspicuity tape, foam tape, mounting tape, medical tape, roofing tape, general purpose permanent tape, hook tape, and hoop tape are other examples that used PSA for bonding two substrates. Automotive cars have number of cables and electronic assemblies that are attached or protected with PSA adhesive tapes owing to its properties such as minimal fogging, high tackiness, and improved adhesion. 

By end use, the global pressure sensitive adhesives market is segmented into packaging, automotive, healthcare, building & construction, consumer goods, and others. The packaging segment dominated the global market in terms of revenue in 2020, with over two-seventh of the total share. This is attributed to the fact, key-players in pressure sensitive adhesives market are developing new products and technologies in order to gain high market share from packaging sector. PSAs are gaining importance for broad range of packaging applications and they are swiftly altering the way goods are packed and delivered to different consumers across retail and e-commerce sector.

Region-wise, the pressure sensitive adhesives market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific pressure sensitive adhesives market size is projected to grow at the highest CAGR during the forecast period and accounted for a major pressure sensitive adhesives market share, owing to use of silicone, acrylic, and epoxies based adhesives in the electronics industry. Doubles sided tapes incorporates pressure sensitive adhesives that are used in electronic appliances such as smartphone speakers and display frames. Electronic sector in India has been experiencing rapid growth owing to rise in sales of consumer electronic goods such as flat panel televisions, laptops, smart phones, and others.

Key players operating in the global pressure sensitive adhesives market include The 3M Company, Henkel Ag & Co. KGAA, The Dow Chemical Company, Sika Group, Exxonmobil Corporation, Avery Dennison Corporation, H.B. Fuller, Arkema Group, Ashland Global Holdings Inc., and Wacker Chemical Corporation.

COVID-19 analysis

The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The major end-users of pressure sensitive adhesives include automotive, electronics, building & construction, consumer goods, and others. Pressure sensitive adhesives are used in numerous applications in the automotive industry, which include assemblies, fixing carpets to various vehicle interior substrates, brake shims, cable wrapping, foam & fiber bonding, fixing gaskets in multitude configurations, and others. However, due to negative impact on automotive industry there has been decline in the demand of PSAs from automotive sector. Factors such as disruption in value chain analysis has impacted large scale manufacturers in automotive sector. For instance, major exporter of automotive parts from China has been hit due to travel ban across globe and temporary closure of manufacturing hubs, which in turn has pivoted automotive manufacturers across Europe. In addition, automotive assembly plants across the U.S. are shut due to risk of infection among workers which has created pressure on distressed supply of automotive cars. 

Construction and roofing tapes are other applications that uses hot melt pressure sensitive adhesives. In addition, connecting two wood components with tapes that are made up of pressure sensitive adhesives offers benefits such as enhanced combined ductility and seal protection from water imposition damages that are usually caused due to hurricanes. Particular country economic development is largely dependent upon construction industry. Rise in number of COVID-19 infections has forced governmental bodies to impose strict lockdown which in turn has affected the deadlines of construction projects being delayed.

Moreover, construction sector accounted for 7.7% of global employment and it was projected to reach 13.4% by 2022. However, current pandemic situation has created stress among workers and downfall in the revenue from construction & building sector has impacted negatively on this sector. These all factors have indirectly affected on the production and supply of pressure sensitive adhesives that are used in building & construction end-use. 

Doubles sided tapes incorporates pressure sensitive adhesives that are used in electronic appliances such as smartphone speakers and display frames. In addition, these tapes are used for various bonding applications owing to advantages such as immediate adhesion. The electronics sector is also hit negatively due to COVID-19 impact. According to report by Wakefield, the overall revenue from electronic sector has been decreased by 5-10%. However, there are some sectors in the electronic industry that has seen rise in demand for the products such as industrial semiconductors utilized in the medical sector. In addition, mobility sector among automotive and aviation industry is also been impacted negatively due to COVID-19 outbreak.

Key findings of the study

• The polyurethane segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 7.7% from 2021 to 2030.
• The radiation cured segment is anticipated to register the highest CAGR of 6.5% during the forecast period.
• The graphic application segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 6.9% from 2021 to 2030.
• The automotive end-use segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 7.5% from 2021 to 2030.
• Asia-Pacific garnered the highest share of 49.2% in 2020, in terms of revenue, growing at a CAGR of 6.9%.