Adhesive Tapes Market Trends

Growth Drivers

• Increasing Revenues of the Automotive Industry – The expansion of the adhesive tapes market can be attributed to the increasing revenues of the automotive industry worldwide. This is the result of increased vehicle production worldwide. The global automotive industry is expected to reach approximately USD 9 trillion by 2030. Additionally, increasing demand for premium vehicles with premium materials, safety and technical features, and aesthetically enhanced environments is expected to drive the adhesive tapes market growth. Adhesive tapes for the automotive industry are a combination of materials with an adhesive-coated backing and optionally a release liner.
• Increasing Incorporation of Advanced Driver Assistance Systems (ADAS) Technology – Adhesive tapes are used as bonding solutions and connecting solutions in the ADAS systems. ADAS is the latest safety technology to help drivers navigate and park by coordinating the actions of cameras, sensors and radar to scan an area and relay this information to the driver. With the increase in road accidents and fatalities, road safety has become very important. About 1.3 million people die each year in road accidents. This can be mitigated with safety technology such as its ADAS, which has hitherto been limited to luxury vehicles.
• Rise in Research Spending – Growth in the global market during the forecast period can be further attributed to increased investment in research and development activities to continuously find more viable solutions for adhesive tapes. Research reports show that global R&D spending on adhesive tapes has more than tripled in real terms since 2000, rising from about USD 680 billion to more than USD 2.5 trillion in the year 2019.
• Growing Demand for Environmentally Friendly Products: The increasing awareness about the environmental impact of products is driving the demand for eco-friendly adhesive tapes market that are made from renewable and biodegradable materials. In a survey conducted in the year 2020, nearly 68% of US consumers stated that they had switched to a more environmentally friendly product in the past year.
• Increase in Construction Activities: With the increase in construction activities worldwide, the demand for adhesive tapes for bonding, sealing, and masking applications is increasing. In the United States, construction spending in the residential sector reached nearly USD 614 billion in 2020, up 14% from the previous year.

Challenges

• Price volatility of raw materials: The prices of raw materials used in adhesive tapes, such as petroleum-based adhesives, can be volatile, making it challenging for manufacturers to maintain stable prices for their products.
• Increasing competition in the global adhesive tapes market.
• Supply chain disruptions: Disruptions in the global supply chain, such as those caused by the COVID-19 pandemic, can impact the availability of raw materials and finished products, leading to challenges for manufacturers in meeting customer demand.