FEATURE

Opportunities to increase market share will increase when companies are pre-positioned for growth in a resilient and scalable way.

Pressure-Sensitive Adhesives Enable the Next Wave of High-Tech Manufacturing

By Lisa Anderson, Founder and President, LMA Consulting Group

By Gauri Kanale, Digital Media, Research Nester, Pune, India

Driven by innovation, pressure-sensitive adhesives (PSAs) are evolving rapidly.

The pressure-sensitive adhesive (PSA) industry is evolving rapidly, driven by innovation in materials and a growing demand across various sectors. Sectors that are spurring demand within the PSA market include automotive, medical, industrial, and smart labels, as well as a drive for more sustainable solutions across sectors.

As industries around the globe push for greener solutions, PSA manufacturers are focusing on biobased and environmentally friendly adhesives. Biobased adhesives boost the use of environmentally friendly components in goods. An example is Henkel's TECHNOMELT DM ECO innovation, which delivers 70% bio-based content. These new formulations are not only reducing reliance on petroleum-based products but also cutting down on the environmental footprint of the packaging and labeling industries.

In the automotive sector, PSAs are playing an essential role in lightweighting, and with rising sales of vehicles, PSAs are set to propel the industry. The U.S. auto sector sold about 15.5 million light vehicle units in 2023. Within these units, PSAs are replacing mechanical fasters and traditional adhesives to help bond components like interior panels, trims, and electronic displays, improving fuel efficiency and reducing emissions without compromising durability.

With the rise in wearable health devices, the medical adhesive sector is another area witnessing significant innovation. By the end of 2031, the market for wearable medical devices is expected to grow to a value of around $183 billion. The need for skin-friendly PSAs has surged. Manufacturers are focusing on hypoallergenic, breathable adhesives that can be worn on the skin for extended periods without causing irritation. Demand for these adhesives is particularly strong in the aging population, where medical tapes, patches, and monitoring devices are becoming essential for daily health monitoring.

On the industrial front, the electronics industry is adopting PSAs for the assembly of devices like smartphones, tablets, and computers. The demand for electronic adhesives is expected to develop at the fastest rate between 2024 and 2031, with a compound annual growth rate (CAGR) of 6.1%. The need for adhesives that can withstand extreme temperatures, provide insulation, and offer flexibility has positioned PSAs as a critical component in the production process. With the miniaturization of electronics, PSAs offer a solution that mechanical fasteners simply cannot match in terms of precision and strength.

Find suppliers, manufacturers, associations, and distributors of the raw materials and equipment for the formulation and production of adhesives and sealants in ASI’s online Buyers’ Guide.

Smart labels and tapes are another game-changer in the PSA industry. These labels, equipped with RFID or NFC technology, require adhesives that maintain performance over long periods while being exposed to various environmental conditions. PSAs are rising to the occasion, providing solutions that can adhere to different surfaces and ensure that smart labels function as intended.

According to market studies, the PSA industry is experiencing robust growth, driven by increasing demand across diverse sectors mentioned above. The market for PSAs was valued at over $10.78 billion in 2023 and is projected to reach $28.62 billion by the end of 2036, witnessing a CAGR of around 7.8% during the forecast period of 2024-2036. As industries seek more sustainable, high-performance solutions, the PSA industry is poised for continued expansion and innovation.

Regional Overview

The PSA industry is witnessing diverse regional growth patterns. In Asia-Pacific, rapid industrialization, e-commerce expansion, and booming electronics manufacturing are driving growth. When it comes to electronics, Asia is the place to be, with a sizable and varied industrial sector accounting for about 70% of global production.

China, Japan, and South Kore, are driving demand, while North America leads in innovation, with strong growth in the automotive, healthcare, and packaging sectors, particularly in the United States and Canada. Europe is demanding more sustainable and eco-friendly PSAs, fueled by strong environmental regulations and a focus on green packaging solutions. By 2029, the eco-friendly packaging market in Europe is projected to grow at a CAGR of 4.2% and is expected reach $53 billion by the end of the forecasting period.

Emerging markets in Latin America and Africa are also seeing increased adoption, primarily in packaging and consumer goods, contributing to the overall global expansion of the PSA market.

In the end, the PSA industry is no longer just about sticking two surfaces together. It is becoming an enabler of innovation in various high-tech sectors. Whether it's sustainable packaging, advanced medical devices, or the next generation of electronics, PSAs are at the forefront of some of the most exciting industrial advancements today.