The Adhesive Films Market to Reach $76.7 billion in 2023, Rising Demand for Electric Vehicle Interiors, and Technical Textiles to Drive Growth

The Adhesive Films Market to Reach $76.7 billion in 2023, Rising Demand for Electric Vehicle Interiors, and Technical Textiles to Drive Growth

16 February 2021, New York, USA – The adhesives films market is expected to witness major growth in the near future, as demand for electric cars will likely boost the application of adhesives which are ideal as sealants for various car components. These sealants promise to reduce costs significantly, make way for lighter components (a key requirement for the production of electric vehicles), and deliver key applications like reducing or replacing heavy mechanical fasteners in EV battery design. The rising demand for EVs and the growing application of adhesive films in the automotive sector will likely propel the market to grow at a 5.9% CAGR during 2021-2027 to reach $76.7 billion in 2023.

Furthermore, the textile industry in the US has witnessed a major dip in demand over the last decade. However, in recent years, the rising demand for US manufactured textiles like medical textiles, non-woven textiles, and industrial textiles is witnessing a growing demand globally. The growing demand for technical or industrial textiles in emerging nations will remain a major driver of growth as the total manufacturing output of US textile manufacturing rose to $18.79 billion in 2019, rising by 23.8% from 2009. On the other hand,

2020 Promises to Remain One of Riskiest Year to Invest

In bad news, 2020 seems to be the riskiest year for investors in the textile market. According to the International Trade Administration, the US exported textiles & apparel worth USD22 billion in 2016. The number rose per year since then only to make a sudden dip to USD19 billion in December 2020.  The analysis of the textile manufacturing industry points to shrinking manufacturing activity in the US, likely due to the Covid-19 crisis. According to the US economic bureau, US apparel manufacturing dropped to $9.5 billion in 2019, lower by 4.4% as compared to a decade ago. This led to a shrinking output of 21.4%, and 14.9% in the textile and apparel output in the first, and second quarter of 2020 respectively. Moreover, due to the rising competition, the value of US yarn, and fabric exports was reduced by 31% and 19% respectively. Hence, the conventional key end-sector for the adhesives films market requires an in-depth study for the period 2021-2027.

Rising Demand for Electric Vehicles Is a Promising Horizon for Growth  

According to the International Energy Agency (IEA), in 2019, over 9 million Americans delayed their vehicle purchase due to uncertainties caused by financial difficulties, the better fuel efficiency of upcoming EVs, and regulations like BS-VI. Moreover, carmakers like Tesla have enjoyed unprecedented growth despite the Covid-19 crisis, as opposed to established players like Toyota, GE, among others. Furthermore, countries like the UK have banned sales of petrol, and diesel vehicles post 2030, marking a clear shift to a sustainable electric future. The demand for EVs will be a major boon for players in the adhesive films market. According to a report from the Economic Times, the adhesives promise to improve the range of electric vehicles by replacing heavy mechanical fasteners, with lighter, and thinner bonds. This is why major players in the adhesive business including Henkel, 3M, DuPont, among others are investing in the future of EV designs. Moreover, advanced adhesive films like epoxy promise more flexibility, and strength than traditional nuts, and bolts. The rising demand for electric vehicles, the open horizon of innovation for advanced adhesives, and the promising application in EV battery design promise robust growth for players in the adhesive films market.

Rising Demand in Aircraft Manufacturing Remains a Promising Driver of Growth

According to a Guardian report, the demand for personal aircraft is on a tremendous rise. The newspaper report estimates that multinational companies, and high net worth individuals will purchase as many as 8,000 aircraft during the 2019-2029 period. Moreover, the demand will constitute a 9% increase in new business jets over 2018, with the world’s three top manufacturers launching new models to cater to the growing demand. Furthermore, the total costs of purchase of these new aircraft will hover near $248 billion in the same period. The film adhesives are ideal for aircraft manufacturing as these are used in the most demanding applications in aircraft, and improve the performance, and safety of aircraft, as well as manufacturing efficiency. For example, in the honeycomb and metal assembly segment, film adhesives are ideal for original construction, and repairs. Furthermore, these are ideal for a range of applications like heat curing offering high strength, and toughness.

Medical Textiles Promise New Avenue for Growth for Players in the Adhesive Films Market

The demand for medical textiles made up of biomaterials continues to grow in the adhesive films market. The medical textiles promise a wave of future for innovation, as the conventional textiles remain a potential source of pollutants with bacteria shed by nursing staff among others can be fatal for patients with chronic diseases. According to the Centre for Disease Prevention and Control, the Hospital Acquired Infections (HAIs) in the US impact 25 patients admitted each year. Moreover, the infections are often caused by the most serious antibiotic-resistant, and urgent bacteria, and can lead to death or sepsis. The conventional woven cotton goods are not ideal for hospitals as these allow the release of bacteria particles from surgeons and the nursing staff members. This has led to rising demand for highly sophisticated non-woven surgical gowns, which require the use of polyethylene films. The growing demand to cater to HAIs in the healthcare sector, along with tackling an infectious pandemic will drive major growth for equipment like surgical gowns among others. The healthcare industry and highly sophisticated textiles will present new opportunities for growth and innovation for players in the adhesive films market.

Film Material Outlook

  • Polypropylene (PP)
  • Polyethylene (PE)
  • Polyvinyl Chloride (PVC)
  • Others (PET, PU, PA)

Application Outlook

  • Tapes
  • Graphic Films
  • Labels

End-use Industries

  • Packaging
  • Transportation
  • Electrical & Electronics
  • Textile
  • Others (Signage, Medical, and Construction)

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