Adhesive Film Market

Market Overview

The global adhesive film market size was valued at USD 22.3 billion in 2022. It is estimated to reach USD 32.81 billion by 2031, growing at a CAGR of 4.6% during the forecast period (2023–2031).

The adhesive film is a thin layer of fabric with glue applied to one or both sides. It is commonly used for bonding or attaching objects or to a surface. Adhesive films are versatile and can be made from materials such as plastics, rubber, metals, or even specialized materials like acrylics or silicones. These films provide a convenient and efficient way to create strong bonds without liquid adhesives or messy application methods. Adhesive films come in different forms, including sheets, tapes, or rolls, and can be easily cut or shaped to fit specific applications. Adhesive films offer advantages such as ease of use, uniform application, and the ability to bond different materials together.

Adhesive films find applications in various industries, including manufacturing, construction, automotive, electronics, and healthcare. They are used for bonding components, sealing joints, protecting surfaces, insulating electrical connections, and providing temporary or permanent adhesion. Overall, adhesive films provide a reliable and effective solution for bonding and attaching objects, offering convenience, versatility, and strong adhesion properties.

Market Dynamics

Market Drivers

Growing Focus on Lightweight Products

Proper utilization of resources and focus on developing environment-friendly products are important factors in several industries, such as automotive, aerospace, and construction. In order to reduce CO2 emissions, lightweight materials play an important role in product design. Weight reduction in vehicles and airplanes leads to less fuel consumption, therefore, less CO2 emissions. Welding activities for engine parts assembly in the automotive industry are gradually replaced with adhesives to reduce vehicle weight, increasing fuel efficiency.

In addition, vehicle manufacturers are required to reduce the average energy consumption of vehicles. This goal can be met by using lightweight products, which often include bonded plastic parts. Adhesives offer several possibilities for bonding these new materials. Vehicles designed for greater fuel economy continue to utilize higher quantities of lighter plastic and composite components requiring adhesives. These factors drive market growth.

Rising Infrastructure Development

Growth in infrastructure activities drives the growth of the adhesives film market. Rapid urbanization, population growth in emerging countries, and a rise in buildings in Europe and the U.S. drive the demand for adhesives. Mechanical fasteners used for different construction activities, such as glass walls, must be replaced with adhesive bonding technologies to develop lighter construction. In addition, polyethylene film has a major role in providing plastic protection and is used in construction as a vapor retarder, window film, flooring and countertop protection, and roofing.

Polyethylene sheet is increasingly utilized to seal off rooms, cover building materials, and lead abatement projects. In addition, the growth in infrastructure activities, fueled by rapid urbanization, population growth, and construction projects, creates a strong demand for adhesive films. The advantages of adhesive bonding technologies and the versatility of polyethylene film contribute to their increasing adoption in various industries. The increasing use of these films is expected to drive the market growth.

Market Restraint

Availability of Raw Material and Volatile Cost

Deficiency in the supply of key raw materials for the production of water-based and other adhesives worldwide is a major problem faced by the global adhesives film market. According to the German Adhesives Association, the supply–demand gap of key raw material vinyl acetate monomer (VAM) in the global market was around 1 million metric tons as of 2014. The shortage of VAM is due to the shutdown of a few production plants in Europe, the U.S., and Asia-Pacific due to plant failure, accidents, or regular maintenance scheduled work. In Europe alone, there is a deficiency of around 500,000 metric tons of VAM, which is used as a raw material for adhesives, paints and coatings, textiles, and construction. Due to the basic supply circumstance, the cost of VAM and other raw materials increased a few times following the end of 2013, thus increasing the cost of adhesives products.

Market Opportunities

Surge in Demand for Adhesives from Southeast Asia and Africa

The economic reform and stability witnessed in Southeast Asia and Africa have opened up new growth opportunities for various industries, including the petroleum, footwear, and automotive sectors. These developments directly impact the market for adhesive film in these regions. In countries like Kenya and Vietnam, the petroleum industry is expected to experience substantial growth. This growth can be attributed to increased exploration and production activities and the discovery of new oil reserves. As the petroleum industry expands, there is a corresponding rise in the demand for adhesive films used in various applications such as pipeline coatings, equipment bonding, and insulation.

The overall economic growth and industrial development in Southeast Asia and Africa create a favorable environment for the adhesive film market. These regions' expanding petroleum, footwear, and automotive industries drive the demand for adhesive films, resulting in market growth. As these industries continue to flourish, the market of adhesive film is expected to experience significant growth in the coming years.

Regional Analysis

Based on region, the global adhesive film market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East, and Africa.

North America Dominates the Global Market

North America is the most significant global adhesive film market shareholder and is estimated to exhibit a CAGR of 4.41% over the forecast period. One of the major markets for adhesive film is North America. The U.S., Mexico, and Canada are major countries contributing to this region's growth. As the market is in its saturation stage, manufacturers must focus on new developments to attain stability. The region has abundant natural resources, such as natural gas, crude oil, and shale gas. Raw materials used to formulate adhesives are sourced from these natural resources. Therefore, this region has high market potential, which producers of adhesive film products can explore. In addition, major producers of adhesives in North America are H.B. Fuller Company, Huntsman International LLC, RPM International Inc., Dow Corning Corporation, and 3M Corporation. These market players offer a wide variety of chemistries for most applications.

Furthermore, vehicle production and new building constructions in North America gradually decline yearly, notably affecting the demand for adhesive film. The consumption declined drastically post-2008 recession, following the decline in automotive and other manufacturing industries. With the eventual economic recovery, the market has resumed average growth. In addition, environmental obligations regarding VOC emissions in this region supplement the demand for water-based adhesives, which are free from VOC components.

Europe is estimated to exhibit a CAGR of 5.2% over the forecast period. The region's major countries are the UK, Germany, Japan, and Italy. The adhesives industry in the region is highly fragmented and dominated by well-established brands and broad product lines offered by global companies such as Henkel AG & Co. KGaA, Bostik SA, Huntsman International LLC, and 3M Corporation. Implementation of the registration, evaluation, and authorization of chemicals (REACH) program in Europe with effect from 2007 affected the cost of adhesives by a 1–1.5% increase, in addition, to the regular price fluctuations. Prices for adhesives and sealant products in the region are higher than in other regions due to higher energy costs and raw material prices. Similarly, the rise in vehicle production is a major driver for the adhesives film market, where these products are extensively used. Vehicle production in Europe increased by 3.3% from 2014 to 2015. In addition, rising adhesive usage in medicinal applications such as external and internal wound closure boosts market growth.

Asia-Pacific is the leading market for adhesive films, owing to a gradual shift of manufacturing industries from the Americas to Asia-Pacific. Major countries profiled in the report include China, Japan, and India. Southeast Asian countries are considered under the rest of Asia-Pacific. There are over 1,500 adhesives and producers in China, most of whom are small-scale producers. Paperboard packaging, building and construction, transportation, footwear industry, and assembly operations are the major areas that drive this region's adhesive film market growth.

Brazil is a primary producer and consumer of adhesives in LAMEA. Significant improvement in the construction and manufacturing activities in the LAMEA region has driven market growth. Apart from Brazil, countries in Africa also pose huge market potential. Mergers and acquisitions (M&A) are a key trend in the LAMEA adhesives film market. Following the global trends, the LAMEA market also experiences consolidation as global leaders are acquiring small- and medium-sized producers. For instance, Pidilite Industries, a leading adhesives company in India, partnered with Crown Classics Ltd. (Kenya) in 2014 to expand its business in the growing Kenya market. H.B. Fuller Company and Sika AG also acquired Continental Products Limited (Kenya, 2015) and Duro-Moza (Mozambique, 2015) to increase their footprints in Africa.

Segmental Analysis

The global adhesive film market is bifurcated into film material, technology, and end users.

Based on film material, the global market is bifurcated into polypropylene, polyvinyl chloride, polyethylene, and others.

The polypropylene segment dominates the global market and is projected to exhibit a CAGR of 5.21% over the forecast period. Polypropylene (PP) is one of the most widely used polymers in the world, with a diverse range of applications. It's versatility and desirable attributes contribute to its popularity across various industries. The use of polypropylene in producing artificial grass for sports and leisure activities highlights its suitability as a fiber material. Polypropylene fibers offer excellent durability and resilience, and They are perfect for high-performance and long-lasting synthetic grass installations because of their resilience to wear and strain.

The thermoplastic nature of polypropylene allows for easy processing and molding, making it a preferred choice for manufacturing a wide range of products. Its low cost compared to other polymers makes it an economical option for various industries, including packaging, where it is commonly used for food containers, disposable cups, and flexible packaging films. In addition, polypropylene's electrical insulating properties and heat resistance make it suitable for applications in the electrical and electronic industries. It is used to produce capacitors, whose dielectric properties ensure efficient energy storage and transmission. Polypropylene films are also utilized as cable wraps for layer and phase separation in rotating electrical equipment and transformers, providing insulation and protection.

Based on technology, the global adhesive film market is bifurcated into water-based, solvent-based, hot melt, pressure-sensitive, and others.

The water-based segment owns the highest market share and is projected to exhibit a CAGR of 5.12% over the forecast period. Due to their advantages and applications, water-based adhesives are a powerful technology in the adhesive film market. These adhesives are formulated by dispersing or dissolving polymeric materials in an aqueous phase. One of the key advantages of water-based adhesives is their environmental friendliness. They have greatly increased in popularity recently because they do not release volatile organic compounds. (VOCs) It may harm both the environment and human health. Water-based adhesives find extensive use in industries such as wood, paper, fabrics, leather, and other porous substrates. They offer excellent adhesion properties on these materials, allowing for strong and durable bonding.

Additionally, adhesives are commonly used in woodworking, packaging, bookbinding, textiles, and automotive interiors. The growth of the water-based adhesive market is driven by increasing investments in R&D by prominent players in the industry. These investments aim to develop more efficient and high-performance water-based adhesive products. For example, 3M, a leading adhesive manufacturer, has introduced the "Fast Tack Water Based Adhesive 1000NF," which offers superior bonding speed and high strength. Such innovations in water-based adhesive formulations contribute to the expanding demand for these adhesives.

Based on the end-user industry, the global adhesive film market is bifurcated into electrical and electronics, aerospace, automotive and transportation, and others.

The electrical and electronics segment dominates the global market. Electrically conductive adhesives and film are utilized in electrical and hardware components for transmitting current through layers of a gadget, shaping electrical interconnections, and holding electrical parts. The advantages of adhesive film in electrical and electronics applications are that it offers strength and consistency in surrounding temperatures and gives stable execution in extraordinary temperature and dampness conditions. Likewise, the adhesive film offers reliable bonds with strong cold drop performance and shock resistance.

Particularly, pressure-sensitive adhesives are utilized in the electronics field for interconnection, assembly, static dissipation, and control. The need for reliable and efficient electrical interconnections, the miniaturization of electronic devices, and the demand for high-performance and durable products drive the use of adhesive films in electrical and electronics applications. These adhesive materials enable precise and efficient bonding, facilitate miniaturization by eliminating the need for mechanical connectors, and contribute to improved device performance and longevity.

Recent Developments

• March 2023- Eastman Chemical Company announced the launch of its new water-based adhesive film for the packaging industry. The film is designed to provide a strong and durable bond while being environmentally friendly.
• February 2023- Avery Dennison Corporation announced the launch of its new hot melt adhesive film for the automotive industry. The film is designed to provide a strong and durable bond while withstanding high temperatures.