Optically Clear Adhesive Market Size Forecast to Reach US$2.3 Billion by 2027

Optically Clear Adhesive Market Size Forecast to Reach US$2.3 Billion by 2027
Optically Clear Adhesive Market | IndustryARC
Rapidly Rising Need For Optically Clear Adhesive In The Automotive Industry For Screens, Rear-view Mirrors, And Other Applications Has Driven The Growth Of The Optically Clear Adhesive Market

Optically Clear Adhesive Market size is forecast to reach US$2.3 billion by 2027, after growing at a CAGR of 5.7% during 2022-2027. Globally, the optically clear adhesive finds usage in bonding of touch panels and display devices to bind the plastic, cover lens, and other optical materials to each other and to the main sensor unit, which is driving its market growth. Optically clear adhesives exhibit characteristics such as low loss fraction and high transmittance, which make them appropriate for utilization in touchscreens and displays of handheld devices. These adhesives can bond different types of surfaces such as polymethyl methacrylate (PMMA), polyethylene terephthalate (PET), indium tin oxide (ITOs), polycarbonate, and glass. The application of optically clear adhesives in various end use industries such as electrical & electronics, aerospace, automotive, and others, is estimated to drive the market growth.

COVID-19 Impact

The COVID-19 impacted the automotive, energy, aerospace & defense industries over 2020. The manufacturing process of various products in these end use industries declined due to the lockdown norms. Economies of the industries got impacted and resulted in stagnation of activities across the end use industries that use optically clear adhesive. For instance, according to the European Parliament, in 2020 European demand for aerospace production declined in overall by 43%. However, for 2021 European traffic was estimated to recover to 51% of the 2019 levels. Thus, once the aerospace sector’s activities get back on track and start functioning with total capacity, the market for optically clear adhesive is estimated to incline in the upcoming years.

Optically Clear Adhesive Market Segment Analysis – By Product Type

The liquid optically clear adhesives (LOCA) held the largest share in the optically clear adhesive market in 2021. Liquid optically clear adhesives are utilized as bonding adhesives for a number of touch panel, display screens, and other lens bonding applications. The re-positioning characteristics of LOCAs is gaining popularity, since optically clear acrylic adhesives, optically clear epoxy adhesives, and optically clear resin do not exhibit this property. LOCAs possess better gap filling characteristics as compared to other product types. Moreover, the assembly process for LOCAs can be fully automated; while that for other product types can only be semi-automated. Thus, the growing demand for liquid optically clear adhesives (LOCA),  due to its alluring characteristics will drive the demand for optically clear adhesive market over the forecast period.

For More Information About Optically Clear Adhesive Market @

https://www.industryarc.com/Research/Optically-Clear-Adhesive-Market-Research-507205

Report Price: $ 5900 (Single User License)

Optically Clear Adhesive Market Segment Analysis – By Application

The mobile phones segment held the largest share in the optically clear adhesive market in 2021. In mobile phones, optically clear adhesive provides mechanical, optical, and electrical performance benefits. It is used to bond liquid crystal displays, touch screen sensors, panels, and other components for all active-matrix organic light-emitting diode (AMOLED) and organic light-emitting diode (OLED) type of mobile phone displays. In recent years, the rising demand and production of mobile phones has also driven the optically clear adhesive market growth. For instance, according to Indian Brand Equity Foundation (IBEF), in 2020 the production value of mobile devices reached US$ 30 billion from US$ 3 billion in 2015.

Optically Clear Adhesive Market Segment Analysis – By End-Use Industry

The electrical and electronics segment held the largest share in the optically clear adhesive market after growing at a CAGR of 6.2%. The electrical and electronics industry uses optically clear adhesive due to its properties such as high temperature, UV, and humidity resistance, high cohesive, peel strength, and high transmittance. Optically clear adhesive is used in the manufacturing of mobile phones, tablets, monitors, televisions, outdoor signage, and other electrical and electronics devices. According to Indian Brand Equity Foundation (IBEF), the Indian electronics manufacturing industry is projected to reach US$ 520 billion by 2025. Thus, increasing electrical and electronics production will require more optically clear adhesive, which will drive the optically clear adhesive market growth during the forecast period.  

Optically Clear Adhesive Market Segment Analysis – By Geography

Asia-Pacific region dominated the optically clear adhesive market with a share of 39% in the year 2021. The Asia Pacific region is predicted to continue its dominance in the market during the forecast period due to the increasing requirement for optically clear adhesive in developing countries such as China, Japan, India, and South Korea. China is expected to continue its dominance in the optically clear adhesive market during the forecast period. This is due to the growth of the automotive and energy industries in the country. For instance, according to the International Trade Administration, over 25 million vehicles were sold in 2020, based on the data from the Ministry of Industry and Information Technology, with domestic manufacturing estimated to reach 35 million vehicles by 2025. Optically clear adhesives are used in an automobile in rear-view mirrors, seat-back, and other applications. Optically clear adhesive can bond surfaces such as polyethylene terephthalate (PET), polymethyl methacrylate (PMMA), polycarbonate, and other surfaces. India and Taiwan are also predicted to grow their optically clear adhesive market during the forecast period, with rising production and growth in aerospace & defense, automotive, and other end-use industry. For instance, according to the International Trade Administration, in Taiwan the total local production of aircrafts and jets was estimated to reach US$3,740 million in 2021 from US$2,670 million in 2020. Thus, the increasing investment and growth in various end-use industries will drive the optically clear adhesive market growth in the forecast period.

Optically Clear Adhesive Market Drivers

Surging Demand for Optically Clear Adhesive in Automotive Industry

Optically clear adhesive in the automotive industry is used for bonding a protective clear cover screen to an underlying liquid crystal displays panel. Optically clear adhesives remove the air gap between the two layers, and provide clear screen visibility. These adhesives are used in an automobile in navigation screens, flip-down video screens, and other applications. The increasing production of automotive have elevated the growth of the industry. For instance, according to Organisation Internationale des Constructeurs d’Automobiles (OICA), in Austria, total motor vehicle production increased by 7% and in Russia by 21% in 2021 from 2020. Additionally, the total motor vehicle production increased by 10% in USA, in 2021 from 2020. Thus, with the increasing production of motor vehicles it is estimated that in the upcoming years the requirement for optically clear adhesive in the automotive industry will rise, which will boost the growth of the market.

Rising Growth of the Aerospace and Defense Industry will Drive the Market Growth

In the aerospace & defense industry, optically clear adhesive is utilized in touch panels and display devices to bond the cover lens and plastic to the primary sensor unit, in order to enhance durability and optical properties. These adhesives in aerospace & defense industry provides high performance even in harsh environments, range from dispensable to moldable solutions, and allow design flexibility for displays. The need for optically clear adhesive is increasing rapidly in developing and emerging economies, with the rising investment by the government in the aerospace & defense industry. For instance, in 2021, the Government of Quebec and the Government of Canada, invested US$2 billion in the aerospace industry to drive the recovery of the sector. Thus, with the increasing investment in the aerospace & defense industry, the market for optically clear adhesive will further rise over the forecast period.

Direct Purchase @ https://www.industryarc.com/purchasereport.php?id=507205

Optically Clear Adhesive Market Challenges

The Difficult Application Process of Optically Clear Adhesive Will Hamper the Market Growth

The difficult application process of optically clear adhesive such as epoxy is its major disadvantage. Optically clear adhesive cannot be applied to unprepared, contaminated, or damaged surfaces. The surface must be cleansed in order to ensure the long life of the optical coating. Additionally, in display assembly, bonding a display panel to a three-dimensional cover glass by using optically clear adhesive is also challenging. Thus, due to difficulty in the application process, the growth of the optically clear adhesive market will be hindered in the forecast period.

Optically Clear Adhesive Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies players adopt in this market. Optically Clear Adhesive top 10 companies include:

Henkel AG & Company

3M Company

Tesa SE

 Dow Corning

Nitto Denko Corporation

Lintec Corporation

Saint-Gobain SA

Dymax Corporation

Hitachi chemical

DELO Industrial Adhesives LLC and others

Key Takeaways

The Asia Pacific dominates the optically clear adhesive market owing to the rising growth and increasing investments in the electrical and electronics industry. For instance, according to Invest India, domestic production of electronics hardware reached US$76 bn in 2019-20, with a CAGR of around 23%, and production linked incentives of INR 40,951 crores (US$5544 million) is funded for over a period of 5 years.

Rapidly rising need for optically clear adhesive in the automotive industry for screens, rear-view mirrors and other applications has driven the growth of the optically clear adhesive market.

The increasing demand for optically clear adhesive in aerospace & defense sector due to its usage in the design flexibility for display devices and touch panels, will also remain a critical factor driving the growth of the optically clear adhesive market in the upcoming years.

However, difficulty in the application process of optically clear adhesive can hinder the growth of the market in the projected timeframe.

Relevant Reports

Industrial Adhesives Market

https://www.industryarc.com/Report/16490/industrial-adhesives-market.html

For more Chemical and Materials related reports, please click here

About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.

Media Contact
Company Name: IndustryARC
Contact Person: Mr. Venkat Reddy
Email: Send Email
Phone: (+1) 970-236-3677
Address:Madhapur
City: Hyderabad
Country: India
Website: https://www.industryarc.com/