The Global Optically Clear Adhesive Market is expected to grow at a high CAGR of 8.5% during the forecasting period (2022-2029).
Optically clear adhesives (OCA) are transparent and uncoloured adhesives that allow bonding of the entire surface area of a screen to the devices without any distortion display. The optical clarity is an important aspect of these adhesives as it is clean & high in transparency hence used in most critical applications. It helps to improve durability, optical characteristics, adhesive strength and excellent adhesion reliability and high bonding strength. It is used to bind display devices, touch panels, plastic, cover lens and other optic materials like the primary sensor unit with one another to provide a clear visual appearance.
The optically clear adhesive has a wide range of applications such as bonding optical film, cover glass, cover plastic to flat panel displays, electronic devices medical devices flat-screen CRTs etc.
The global optically clear adhesive is driven by rising demand for consumer electronics with growing internet users and rising E-commerce website sales around the globe. Optically clear adhesive provides dimensional stability, low shrinkage and whitening resistance to the electronics devices such as mobile phones, tablets, smartphones, computers, display screens of medical devices, television sets LCD screens etc.
Rising sale of the consumer's electronics such as mobile phones, tablets, computers, televisions etc
The market is driven by rising demand for the latest technology-based smart devices, smartphones, tablets, smartphones, computers, display screens of medical devices, television sets and LCD screens. As per the International Monetary Fund Organization, smartphone sales in 2019 reached around 1.37 million units globally and more than half of the world’s population that is around more than 5 billion people have their own mobile devices.
As the optically clear adhesive is used for the binding of the transparent layer in devices to protect against harsh chemicals, damages and scratches. It also improves viewability, readability and contrast in both indoor and outdoor devices, mechanical, optical and electrical performance of the display module and device
Rising number of sales of smart devices with the surge in the use of E-commerce websites due to the rising number of internet users around the globe
An increase in the adoption of the optically clear adhesive by the electronics devices manufacturing industries for providing transparent bonding with growing E-commerce website sales such as from Flipkart, Amazon etc drives the growth of the OCA market. For instance, as per the UNCTAD in 2018, E-commerce sales reached around US$ 25.6 trillion globally increased by 7% from 2017 and over 1.4 billion people shopped online in 2018. The shopping included consumer electronics such as smartphones, tablets, televisions, LED screens etc. It created a massive demand for the OCA used by the OEMs to manufacture and pack these devices.
Growing technological advancement around the globe as several leading players are launching novel electronic devices with considerably growing investment is to produce advanced product may create a huge opportunity for this market
The growing adoption of advanced technology devices around the globe as several leading players are launching novel electronic devices with considerably growing investment for producing newly developed products may create a huge opportunity for the growth of the OCA market. For instance on 11th Sept 2018. Samsung has innovated the world's first Optically Clear Adhesives for its foldable smartphones and panels.
COVID-19 Impact Analysis
The global optically clear adhesive market has shown slightly down during the Covid-19 pandemic, as several leading manufacturing plants were closed due to lockdown in many countries. Further sales of the automobile and consumer electronics were down in the month of the first three months of 2020. In April 2020, the sale of smartphones has been increased as several institutions, schools and colleges closed due to this the demand for the online class propellers ultimately increased the OCA market. Further in August 2020, the OCA market remained constant will recover again as soon as the pandemic will over.
The global optically clear adhesive market is segmented based on resin types, thickness, substrate, application and region.
Rising launching of flexible adhesive based on acrylics segment by leading players
In terms of resin type, the global optically clear adhesive market is bifurcated into acrylics, polyvinyl acetate, polyurethane, polypropylene, silicone, epoxy and others. Among these, acrylics have the highest market share in 2019, owing to the rising launching of bonding displays in electronic devices and laminating optics.
For instance, on 8th Nov 2019, Techsil launched Vitralit 50004 a new acrylic-based, optically clear, low viscosity and UV curable adhesive into the UK market. The optically clear adhesive manufactured by the company consists of a one-component acrylic adhesive designed to use for bonding display screens in electronic devices and laminating optics. It offers optimal balance, full re-workability and high bonding strength.
Similarly, polyvinyl acetate, polyurethane, polypropylene, silicone, epoxy segments are also growing due to rising sales of consumer electronics in developing countries rising consumer spending. For instance as per the India Brand Quity Foundation Organization in 2020, electronic manufacturing sector turnover in India has reached around US$ 400 billion in 2020, including foreign direct investment in India of about US$ 100 billion. It created a massive demand for the various types of optically clear adhesive for bonding and providing transparent lamination to electronic devices.
The tapes segment has the highest demand in the electronics industry owing to rising global sale
In terms of form, the global optically clear adhesive market is classified as Less Than 1MM, 1-2 MM, 2-3 MM, 3-4 MM, 4-5 MM and others. Among this, 2-3 MM segment has the highest market share in 2019, this is primarily due to rising demand of the packaging for end-user industries such as consumer electronics such as mobile phones, tablets, etc.
Similarly, 1MM, 1-2 MM, 3-4 MM, 4-5 MM segments are also growing at a faster pace owing to rising demand for the UV resistant curable, bonding of touch panels to cover lens and bonding of displays to cover lens and touch panels.
Based on substrate, the global optically clear adhesive market is classified as Metal, Glass and ITO Glass, Polyethylene Terephthalate (PET), Polymethyl Methacrylate (PMMA), Polycarbonate (PC) and others. Among this Glass and ITO Glass segment has the highest share in 2019, this is primarily due to increasing demand by the consumer electronics manufacturers. It is used as a transparent adhesive for smartphones, tablets, computers, LED, television etc. As the demand for these consumer electronics has been increased substantially which ultimately propels this segmental growth.
The rising sale of smartphones with surge in the number of internets have propelled the OCA segmental growth
The smartphone segment has the highest contribution to the OCA market owing to rising sales with the surge in global demand and rising investment for manufacturing mobile phones around the globe. For instance, on 20th Jan 2020, Samsung invested around US$ 500 million in the establishment of the manufacturing plant for a new smartphone display in Delhi, India.
Based on the end-user, automotive, electronic medical devices, aerospace & avionics, consumer electronics, construction industry and others. Among this consumer electronics segment has the highest market share in 2019, due to the rising sale of electronics appliances with the surge in consumer spending and growing population demand.
Further growing investment by the leading players for the establishment of manufacturing of the mobile phone in developing region such as India, China etc. For instance, India has approved the partnership of Apple and Samsung the investment of around US$ 143 billion smartphone manufacturing plan. It created a massive demand for the OCA market used in the manufacturing of the smartphone.
Similarly automobile, electronic medical devices, aerospace & avionics, construction industry segments are also growing at a faster pace, this is primarily due to a surge in automobile sales with the advent of electric vehicles which requires optian cally clear adhesive market. For instance, as per the International Organization of Motor Vehicle Manufacturers (OICA) in 2019, around 67149196 units of passenger cars were sold around the globe. It created a massive demand for the OCA for providing lamination with transparent adhesive for the vehicles.
Asia-Pacific region holds the largest market share global optically clear adhesive market
Asia-Pacific region is dominating the global optically clear adhesive market and accounted for the largest market share in 2019, due to the presence of several manufacturing facilities of the consumer electronics, growing urban population with rising consumer spending as well as rising government support and initiative funding followed by North America and Europe.
As of 2019, China accounted for the highest share for consumer electronics manufacturing followed by India and Japan in the Asia-Pacific region. For instance, as per the India Brand Equity Foundation in 2019, the Indian appliance and consumer electronics (ACE) market reached around US$ 10.93 billion and is projected to grow by double to around US$ 21.18 billion by 2025 which is primarily due to rising consumer spending and surge in the internet penetration in this region which boost the sale and ultimately OCA market. Similarly, North America s also growing at a faster pace owing to the presence of advanced technology devices adoption and the rising launching of smart and wearable devices in this region followed by Europe.
The optically clear adhesive market is moderately competitive with the presence of local as well as global companies. Some of the key players which are contributing to the growth of the market include Hitachi Chemical, HB Fuller, Nitto, Dymax Corporation, 3M, Norland Products, Henkel, LG Chem, Tesa, Dymax Corporation, Masterbond, Delo Industrial Adhesives Ltd and among others.
The major players are adopting several growth strategies such as product launches, acquisitions and collaborations, which are contributing to the growth of the optically clear adhesive market globally. For instance, on 17th Aug 2020, Henkel Adhesive Technologies, one of the market leaders of high-impact adhesives, sealants and functional coatings solutions providers recently invested to establish a manufacturing facility for UV-curable acrylic pressure-sensitive adhesives (PSA) in Salisbury, North Carolina. Further on 4th Feb 2020, Henkel Adhesives Technology has invested around US$ 59 million (Rs 400 crores) for its new manufacturing facility in Kurkumbh near Pune.
Overview: Masterbond, founded in 1976, office based in Hackensack, New Jersey, United States. Masterbond is one of the preeminent adhesive manufacturers in the world with over 3,000 grades of advanced adhesives. Master Bond is one of the leading innovators in the field of custom formulated adhesives. The master Bond extensive product line consists of adhesives, sealants, coatings, potting/encapsulation compounds and impregnation resins that have been designed to meet specific application requirements. Master Bond offers a diversified and high-performance product portfolio in the business including
Product Portfolio: The Company has a diverse product portfolio of optically clear adhesive including: Epoxy Adhesives, Sealants and Coatings, Medical Adhesives, Adhesives for Aerospace, Adhesives for Electronics, Adhesives for Optics, Epoxy Systems for Potting and Encapsulation and LED Curable Adhesives
Key Developments: On 12th Sept 2019, Master Bond Inc. has launched Supreme 3CCM-85 a new single component epoxy designed for glob top and chip coating applications.
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