Growing Demand from Packaging and Electronics Industry
The demand for PUR hot-melt adhesives is consistently increasing in Asia-Pacific due to the rapid growth in the packaging and electronics segment. The demand for packaging has been steadily increasing in Asia-Pacific, especially in countries, such as, India, China, among other South Asian countries, due to a steady growth in the food-processing sector. Additionally, the rise in work pressure and consumer shift towards modern lifestyle food-needs is increasing the demand for packaged foods, in turn, boosting the demand for PUR hot melt adhesives in the packaging sector. The demand for PUR hot-melt adhesives in this sector is further propelling by Asia-Pacific gradually becoming the electronics-manufacturing hub. In addition, PUR hot-melts are also used in telecommunication equipment, such as, electronic components and cell phones, due to their properties like oxidation and temperature resistance. Currently, most electronics manufacturers are outsourcing their production to low-cost countries in Asia, especially China, Taiwan, and other South-East ASEAN countries.
Electronics - The Fastest Growing Application
PUR hot-melt adhesives find applications in various electronics, including adhesives for touch panels, structural bonding, and other bonding requirements. They are used in various consumer electronics, such as, smart watches, laptops, structural components and touch panels of smartphones and other applications, demanding fast curing speed for fast production line. The non-hazardous, fast curing, and flexible solvent-free PUR hot-melt adhesives are utilized for bonding insulated panel materials. PUR hot-melts offers solutions that are also used in the coating of insulating materials, for securing electrical components against vibration, and for fixing electronic modules on circuit boards. The miniaturization trend in electronics, such as, the system-on-chip (SoC) technology, is boosting the demand for PUR hot-melt adhesives, where it is used in anti-vibration shock mounting of circuit boards (as it is well suited for metal and engineered plastics bonding applications, where shock and impact resistance is required). Most electronic and automated assembly lines benefit from a fast-curing adhesive that don’t require drying time or measuring, and bonds, regardless of temperature swings or contact with water. These adhesives can replace conventional screws and clips that once held together many electronic products, like mobile phones, mp3 players, and hand-held medical devices, making them smaller and more durable than ever.
China to Lead the Market
China is globally recognized for its architectural boom. The demand for low-cost housing and commercial housing is the reason for its growth in the recent years. China’s real estate sector has been growing rapidly with increased investment from the government. China’s transport ministry and National Development and Reform Commission (NDRC) planned to invest 724 Billion USD between 2016-2018 for constructing 303 key transportation projects which include railways, highways, waterways, airports, and urban rail. Under the 13th five year plan (2016-2020), the Chinese government is planning infrastructure development of 30,000 km of railway lines and 30,000 km of expressways. The production of light vehicles in China recorded a growth of 1.6% YOY, reaching a total of 24,806,687 units in 2017. The production of trucks in China recorded a growth of 28.5% YOY, reaching a total of 2,257,562 units in 2017. In 2017, the healthcare expenditure in the country increased, as the fiscal spending increased by 10% year-on-year to reach CNY 1.31 billion. All these factors would rapidly drive the market for PUR hot-melt adhesives in China in the forecast period (2018 - 2023).
Notable Developments in the Market
October 2017: H.B. Fuller’s finalized its acquisition of Royal Adhesives & Sealants for USD 1.575 billion. This acquisition is likely to deepen H.B. Fuller’s expertise in a range of sectors, such as, medical, electronics, hygiene, transportation, construction, clean energy, and others.
Major Players: Henkel AG, HB Fuller, Arkema, Sika AG, and 3M, amongst others.
Reasons to Purchase the Report
To understand the impact of end-user applications on the market
Analyzing various perspectives of the market with the help of Porter’s five forces analysis
To understand the dominating technology in the market
Countries expected to witness the fastest growth during the forecast period
Identify the latest developments, market shares, and strategies employed by the major market players
3 months analyst support, along with the Market Estimate sheet (in excel)
Customization of the Report
This report can be customized to meet your requirements.
1.1 Research Phases
1.2 Scope of the Market
1.3 Study Deliverables
2. Executive Summary
3. Market Insights
3.1 Industry Value Chain Analysis
3.2 Industry Attractiveness - Porter's Five Forces Analysis
3.2.1 Bargaining Power of Suppliers
3.2.2 Bargaining Power of Consumers
3.2.3 Threat of New Entrants
3.2.4 Threat of Substitute Products and Services
3.2.5 Degree of Competition within the Industry
4. Market Dynamics
4.1.1 Growing Demand from Packaging and Electronics Industry
4.1.2 Increasing Usage as a Substitute for Solvent-borne Adhesives
4.1.3 Growing Demand from Construction Industry
4.2.1 Volatility in Availability and Price of Raw Material
4.2.2 Other Restraints
4.3.1 Growing Demand for Bio-based PUR Hot Melt Adhesives
4.3.2 Innovative Product Development to Gain Competitive Edge
5. Market Segmentation and Analysis (Market Size, Growth, and Forecast)
5.1 By Type
5.2 By Application
5.2.4 Furniture (Woodworking)
6. Regional Market Analysis
6.4 South Korea
6.5 ASEAN Countries
6.6 Rest of Asia-Pacific
7. Competitive Landscape
7.1 Mergers and Acquisitions, Joint Ventures, Collaborations and Agreements
7.2 Market Share Analysis**
7.3 Strategies Adopted by Leading Players
8. Company Profiles (Overview, Financials**, Products & Services, and Recent Developments)
8.1 3M Company
8.2 Arkema Group (Bostik SA)
8.5 Franklin International
8.6 DIC Corp.
8.7 H.B. Fuller Co.
8.8 Henkel AG& Co. KGaA
8.9 Huntsman Corp.
8.10 ITW Performance Polymers & Fluids (Illinois Tool Works Inc.)
8.11 Jowat Adhesives
8.12 Lord Corp.
8.13 TEX Year Fine Chemicals
8.14 Sika AG
*List Not Exhaustive
**Subject to availability on public domain
- 3M Company
- Arkema Group (Bostik SA)
- DOW Chemical Company
- Franklin International
- DIC Corp.
- H.B. Fuller Co.
- Henkel AG& Co. KGaA
- Huntsman Corp.
- ITW Performance Polymers & Fluids (Illinois Tool Works Inc.)
- Jowat Adhesives
- Lord Corp.
- TEX Year Fine Chemicals
- Sika AG.