Thermal Adhesive Tape Market - Forecast(2023 - 2028)

Thermal Adhesive Tape Market Overview

The global thermal adhesive tape market size is estimated to reach US$ 11.5 billion by 2027 after growing at a CAGR of around 6.2% from 2022 to 2027. Thermal adhesive tape are high performance acrylic foam tapes coated with pressure sensitive adhesive, which are designed to provide a preferential heat transfer path between heat generating components and heat sinks. Such tape is made of heat resisting materials like polyvinyl chloride, derived from vinyl chloride monomer and is backed up by rubber, silicone or acrylic based adhesives. The tape is used in LED lighting, for heat sink attachment, as insulation material and in E-vehicles batteries for heat management. Hence, due to such unique applicability, thermal adhesive tape has high applicability in sectors like automotive, construction and electronics. Factors like growing demand for e-vehicles, increase in residential construction and high consumption of electronic item like smartphone are driving growth of global thermal adhesive tape market. However, costly nature of certain adhesives like acrylic and silicone can affect the production output of thermal adhesive tape, which can hamper the growth of global thermal adhesive tape industry.

COVID-19 Impact

The lockdown imposed by the countries in order to curb the effect of COVID-19, had a negative impact on the major end users of thermal adhesive tape like automotive, construction and electronics. The restriction on workplaces and movement of raw material supplies decreased the productivity of these sectors, which negatively impacted the demand for thermal adhesive tape. For instance, according to European Automobile Manufacture Association, in April 2020, commercial vehicle registrations in the European Union declined by 67%, as most of Europe was under lockdown for entire month. According to Canada Mortgage and Housing Corporation, in June 2020, number of housing construction was 211,972 units compared to 243,054 units in 2019 same month, showing 14.6% decrease. Further, according to China Academy of Information and Communications, in 2020, China domestic smartphone shipment decreased to 20.4% compared to 2019. Thermal adhesive tape is used in commercial vehicles for fixing roofbars and for headlight bonding, in residential construction it is used for bonding of insulation on walls while in smartphones, it is used for component bonding. The decrease in productivity of these sectors on account of COVID-19 restrictions, has reduced the usage of thermal adhesive tape in them, which has decreased the growth of global thermal adhesive tape industry.

Report Coverage

The “Global Thermal Adhesive Tape Market Report – Forecast (2022 – 2027)”, by IndustryARC covers an in-depth analysis of the following segments of the global thermal adhesive tape industry.

By Type – Single-Sided Tape, and Double-Sided Tape
By Adhesive – Acrylic, Silicone, and Rubber
By Substrate – Metallic, Ceramic, Plastic, and Others
By Thickness – 5 millimeters, 10 millimeters, 15 millimeters, 20 millimeters, and Others
By Application – Heat Sink Attachment, LED Bonding, Automotive Electronic Heating Module, Insulation Bonding, and Others
By End User – Automotive (E-Vehicles, and Commercial Vehicles), Electronics (LED TVs, Mobile Phone, Computer CPU, air-Conditioner), Construction, and Others
By Geography - North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherland, Spain, Russia, Belgium, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), Rest of the World (Middle East, Africa)

Key Takeaways

• Asia-Pacific dominates the global thermal adhesive tape industry as the region consist of major end use industries of thermal adhesive tape such as automotive and electronic in county like China which is leading producer of electronics and electric vehicles.
• Thermal adhesive tape such as polyvinyl chloride adhesive tape has goof abrasion resistance, acid resistance and excellent conformability due to which it is ideally suited to bed use in electrical applications.
• Thermal adhesive tapes also have high applicability in construction sector where it is used for bonding lightweight insulation panels, joining of plastic sheeting, filter membranes and damp-proof membranes.

Figure: Asia-Pacific Thermal Adhesive Tape Market Revenue, 2021-2027 (US$ Billion)

Thermal Adhesive Tape Market Segment Analysis – By Type

Double-sided thermal adhesive tape held a significant share in global thermal adhesive tape market in 2021, with a share of over 62%. Such thermal adhesive tape is coated with adhesive like pressure sensitive adhesive on both side which makes it easier in combining components and also provide strong adhesion. Double-sided thermal adhesive tape is used in sectors like automotive for commercial & electric vehicles, in construction and electronic sector. The rapid development in these sectors has increased their scale of productivity which has positively impacted the usage of double-side thermal adhesive tape. For instance, according to International Organization of Motor Vehicles Manufacturer, in 2021, light commercial vehicles production in North America was 11 million units showing 7.8% increase. According to data by US Census Bureau, in February 2022, new home construction starts jumped 6.8%. Further, according to China Academy of Information and Communications, in March 2021, shipment of smartphone within China was 35.5 million, showing 67.7% increase from February. Such increase in productivity of these sectors will increase usage of double-side thermal adhesive tape in them, which will boost growth of the global thermal adhesive industry.

Thermal Adhesive Tape Market Segment Analysis - By End Use Industry

Automotive sector held a significant share in the global adhesive tape market in 2021, with a share of over 27%. Thermal adhesive tape comprising of pressure sensitive adhesive, is majorly used in commercial vehicles for LED light bonding in headlight, fog light, position light and dashboard light. Also, it is used as versatile solution for mounting and heat management in E-vehicle batteries. The growing sale for commercial and electric segment has positively impacted the usage of thermal adhesive tape. For instance, according to International Organization of Motor Vehicle Manufacturer, in 2021, global production of light commercial vehicles was 18.5 million units compared to 17.2 million units in 2020, showing 7.5% increase. Further, according to EV Volumes World Sales Database, in 2021, global electric-vehicle sales reached 6.75 million units which was 108 % more than in 2020. The increase in commercial and electric vehicles will increase the usage of thermal adhesive tape in them, which will positively impact the growth of global thermal adhesive tape industry.

Thermal Adhesive Tape Market Segment Analysis – By Geography

Asia-Pacific held the largest share in global thermal adhesive market in 2021, with a share of over 34%. The region consists of major countries like India, China, Japan and South Korea, which are major producer of electric vehicles, electronic equipment and have well established construction market. The rapid growth in these sectors on account of growing economic development has positively impacted the usage of thermal adhesive tape in them. For instance, according to International Energy Agency, in 2021, China led the global e-vehicle growth as sales of e-vehicle tripled in the country to 3.4 million units. Also, according to International Data Corporation, in 2021, India shipped 161 million smartphones, showing a 7% increase compared to 2020. Further, according to data given by Japan’s Ministry of Land, Infrastructure, Transport and Tourism, the housing starts increased by 6.3% in 2022 compared to -3.7% decrease in 2020 same month. Thermal adhesive tape having acrylic foam is used in electric vehicle for battery pack adhesive tape, as insulation materials in houses and for component bonding in smartphones. The increase in productivity of these sectors has increased the usage of thermal adhesive tape in them, which has boosted growth of global thermal adhesive tape industry.

Thermal Adhesive Tape Market Drivers

Increase in Sale of Electric Vehicles

Factors like climate change and commitments to reach net-zero emission has led to increase in demand for electric vehicles in major regions like Asia-Pacific, Europe and North America. Thermal adhesive tape which have pressure sensitive adhesive coated on it, is majorly used in electric vehicles as battery pack adhesive tape for heat management which improves vehicle performance. The growing sales of electric vehicles on account of high demand has positively impacted the usage of thermal adhesive tape. For instance, according to International Energy Agency, in 2020, electric car sales reached a record 3 million units in 2020, up 40% from 2019. Such increase in global sale of electric vehicles will increase the usage of thermal adhesive tape in electric vehicles to be used in batteries. This will boost the growth of global thermal adhesive tape industry.

High Consumption of Electronic Equipment’s

Thermal adhesive tape having acrylic foam is rich in electrical and mechanical properties due to which it is used in electronic equipments like smartphone for component binding and in smart TVs for mounting LED arrays in metal profile. The growing consumption of these electrical equipment has increased the usage of thermal adhesive tape in them. For instance, according to data given by Government of China, in 2021, China shipped 342.8 million smartphones to domestic consumers, showing 15.9% increase compared to 2020. Further, according to India Brand Equity Foundation, in Q2 of 2021, smart TV shipment from India increased by 65% compared to Q2 of 2020. Such increase in consumption of smartphone and smart TVs will positively impact the usage of thermal adhesive tape in them. This will boost the growth of global thermal adhesive tape industry.

Thermal Adhesive Tape Market Challenges

High Cost of Adhesives

Certain adhesives like acrylic and silicone adhesive though they are high in quality and are resistant to very high temperature, however they are more expensive than rubber adhesive. The costly nature of such adhesive will limit their usage in making thermal adhesive tape by small scale manufacturers and will make them to switch towards rubber adhesive which are prone to oxidation and breaks down in heat. This will have negative effect on the quality of thermal adhesive tape, which can hamper the growth of global thermal adhesive tape industry.

Thermal Adhesive Tape Industry Outlook

The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. In global thermal adhesive tape market report, the global thermal adhesive tape top 10 companies are:

1. BOYD Corporation
2. Scapa Industrial
3. Glutape
4. EchoTape
5. 3M Company
6. Dupont
7. Avery Dennison
8. Berry Plastics
9. Sha Kundanmal Misrimal
10. Parker Chomerics

Recent Developments

• In 2021, BOYD Corporation acquired MBK Tape Solutions which is specialized in manufacturing of innovative, multi-layered adhesive products for medical industry, and such acquisition will strengthen BOYD’s medical material science capability.
• In 2021, ATP Adhesive System Group, a water based adhesive tape manufacturer acquired BDK Industrial Products Ltd. a UK based specialized adhesive tape converter and the acquisition will strengthen both company’s position in adhesive tape market.
• In 2019, 3M company launched 2480 3M Single Coated Medical Nonwoven Tape in medical adhesive market, which have longer worn timing and offer more secure adhesion.

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