Market Trends of High Temperature Adhesives and Sealants Industry
This section covers the major market trends shaping the High Temperature Adhesives & Sealants Market according to our research experts:
Electrical and Electronics to Dominate the Market
- The electrical and electronics industry is one of the key consumer of adhesives and sealants. The adhesives and sealants in electrical and electronics applications are subjected to high temperatures due to the continuous operation of gadgets and other equipment.
- In electrical and electronics industry, high temperature adhesives and sealants are used as solder replacement, semi-conductor bonding, quick repairs, heat transfer, shielding, etc.
- The global consumer expenditure on electronics has been registering a 5% increase over the past few years. Asia-Pacific is the largest manufacturer of consumer electronics, with the major producing countries being China, India, Japan, and South Korea, among other developing countries of the region.
- According to Japan Electronics and Information Technology Industries Association (JEITA), the production in the global electronics and IT industry is driven largely by increasing demand for newer and faster electronic products, rapid pace of innovation, advancement of technology, and R&D activities in the electronics industry.
- However, the industry faced a slowdown due to the outbreak of COVID-19. China, which is one of the largest manufacturers of electrical and electronic appliances, shut their factories temporarily to tackle the outbreak.
- This has led to lack of supply, which, in turn, is expected to increase the prices of electronic appliances. Countries that import appliances areexpected to hit hard, as the prices are expected to go up. This is expected to negatively affect the demand and hinder the high temperature adhesive and sealants market growth
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China to Dominate the Asia-Pacific Market
- The Asia-Pacific region dominated the global market. It is also expected to witness the fastest growth owing to the growing demand from various end-user industries in the countries such as China, India, Japan, and South Korea, with China dominating the market.
- China is the world's largest electronics production base and offers a tough competition to the existing upstream producers, such as South Korea, Singapore, and Taiwan. Electronic products, such as smartphones, OLED TVs, and tablets, among others, have the highest growth rates in the consumer electronics segment of the market, in terms of demand. With the increase in the disposable incomes of the middle-class population, the demand for electronic products is projected to increase steadily in the future, thereby, driving the market studied.
- The electronics manufacturing industry is constantly expanding in China, as a result of the low cost of and increasing demand for electronics products. With the increase in the disposable incomes of the middle-class population, the demand for electronic products is projected to grow in the near future, thereby, driving the Chinese liquid crystalline polymer market.
- The Chinese aerospace policy represents one of the most comprehensive attempts to enter the top levels of aerospace development and production. China is expected to be the world's largest singlecountry market for civil aircraft sales, over the next 20 years.
- Under the plan, 'Made in China 2025', it is expected that China will supply over 10% home-made commercial aircraft to the domestic market by 2025. This is expected to propel the demand for long fiber thermoplastics during the forecast period.
- Moreover, the Chinese automotive manufacturing industry is the largest in the world. Though the industry witnessed a slowdown in 2018, wherein the production and sales declined. Similar trend continued, with the production witnessing a 7.5% decline in 2019. According to the China Association of Automobile Manufacturers (CAAM), automotive production is expected to decline by about 2% in the end of 2020.
- Such growth in the above-mentioned industries is expected to drive the market for long fiber thermoplastics during the forecast period. However, the demand is likely to be affected during 2020 as well, as economic performance and demand are likely to remain affected by the current COVID-19 pandemic in the country.
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