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UV Tapes Market Overview
UV Tapes Market size
is expected to reach a value of US$876 million by 2027 after growing at a CAGR
of 6.8% during the forecast period 2022-2027. UV (Ultraviolet) tape is the
adhesive tape that is ideal for the semiconductor process. It is suitable to
protect the surface of a semiconductor wafer during the back grinding and
dicing process. The increased demand for UV tapes such as polyester tape,
acrylic foam tape, polyolefin acid-proof lining in the electronics
industry is used for wafer dicing, back grinding, PCB grinding, and glass
dicing applications. Rubber adhesives are ideal in various medical
applications. UV tapes can withstand direct sunlight and large temperature
fluctuations without losing their adhesive properties which are particularly
suitable for outdoor building conditions. Thus, the growing electronics
and semiconductor industries are expected to drive the UV tapes industry growth
during the forecast period. UV tapes have exceptional
strength, protection from weather and direct sunlight, adhesion
properties which make them ideal for sealing radon membranes in buildings.
This is one of the major factors that create an opportunity for building &
construction of the UV tapes.
COVID-19 impact
During 2020-Q2 of 2021, the
Covid-19 pandemic was at a peak, the production in the electronics industry was
dropped which highly affected the market scenario which is hampering the UV
tapes industry growth. UV tapes are widely used to prevent wafers from
scratching and damaging surfaces during the fabrication, storage, and shipping
of semiconductor wafers. However, the stopped production is hampering the market
growth. According to the China Academy of Information and
Communications Technology (CAICT), smartphone market sales dropped 10% in May
2020 to 32.6 million, and 16% in June 2020 to 27.7 million. Thus, the
global UV tapes demand was hugely affected in terms of consumption due to the
less production of electrical components which is limiting the market growth.
Report Coverage
The “UV Tapes Market Report–
Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of
the following segments of the UV Tapes Industry.
By Product Type: Polyolefin, Polyvinyl Chloride, Polyethylene Terephthalate, and Others
By Type: Single-Sided and Double-Sided
By Application: Electrical & Electronics (Integrated Circuits, Inductors, Sensors, Semiconductors, Others), Building & Construction (Windows and Frames, Door Panels, Metal Roofing, Others), Agricultural Bagging, Automotive Applications, Masking, and Others
Key Takeaways
- Asia Pacific held the largest share in the UV tapes market owing to the growing demand from various end-use industries such as electrical & electronics and the building & construction sector.
- According to the Semiconductor Industry Association (SIA), as of 2021, year-to-year sales of semiconductors are increased by 27.2% in Asia-Pacific.
- Increasing adoption of polyolefins tape as it recyclable and have superior properties than polyvinyl chloride which is estimated to boost the consumption of polyolefins for UV tapes.Figure: Asia Pacific UV Tapes Market, 2021-2027 (US$ Million)
UV Tapes Market Analysis – By Product Type
Polyolefin held the largest share of more than 35% in the UV tapes market in 2021. Polyolefin UV tapes are coated with acrylic foam tape. Polyolefins have superior performance such as superior flexibility, toughness, and long-lasting as compared to other alternatives such as polyvinylchloride. Polyolefin UV tapes are readily recyclable, have stronger adhesive strength, and have excellent durability in adverse atmospheric environments. Polyolefin UV tapes are mainly used for cellphone, LCDs, iPad, circuit board cutting protection, touch screen protection, and optical material delivery. Thus, the growing semiconductor components are also required polyolefins UV tapes for wafer dicing. According to the Semiconductor Industry Association (SIA), as of 2021, year-to-year the semiconductor's sales increased in the Americas (33.5%), Europe (32.3%), Japan (24.5%), and China (24.0%). This will further drive the UV tapes industry.
UV Tapes Market Analysis – By Type
The double-sided tape held
the largest share of more than 50% in the UV tapes market in 2021. UV
double-sided tapes are designed for processing wafer grinding, cutting of small
parts, fine electronic components. Double-sided tape such as polyester
tape provides high tensile strength and resistance to aging & temperature. Acrylic
foam tape is also double-sided tape that provides various properties such as
good heat resistance & chemical resistance and is excellent for
die-cutting. UV tape such as acrylic foam tape has a high load-bearing
ability, maintains a seal in high movement joints, has excellent thermal
insulation properties, performs at a temperature between -40°F to 200°F which
makes them ideal for fixing industrial & electronic components. Thus,
the growing sales of electrical components are also growing the demand for
double-sided UV tapes. According to the Semiconductor Industry Association
(SIA), the worldwide sales of semiconductors reached $39.0 billion in October
2020, an increase of 6.0 % compared to the October 2019 total of $36.8 billion
and 3.1 % more than the September 2020 total of $37.9
billion. This will further create growth for the UV tapes
industry.
UV Tapes Market Analysis – By Application
Electrical &
Electronics held the largest share of more than 30% in the UV tapes market in
the year 2021. UV tapes such as polyester tape, polyolefin tape, and
polyphenylene terephthalate tape are used to manufacture integrated
circuits which are used in smartphones, LEDs, LCDs, and other electronic
devices. UV acrylic foam tape has excellent adhesive strength which is further
anticipated to fuel the demand for UV tapes in the electrical & electronics
industry. According to India Cellular and Electronics Association (ICEA),
India is expected to reach a value of US$ 100 billion to manufacture laptops
and tablets by 2025. UV tapes such as PVC tapes are used in air
conditioners for pipe wrapping which provides such kind of protection as
surface & moisture and has electrical insulation properties which increase
demand for UV tapes in air conditioners. According to the International
Energy Agency, in Europe, households that have an air conditioner were 115
million units in 2020, which is estimated to grow 167 million units by 2030 and
220 million units by 2040. Uv tapes are also used in electrical components
for cable wrapping. Thus, companies are focusing on developing high-performance
consumer goods which are also increasing the growth of electrical components,
in turn, is anticipated to grow the demand for UV tapes. In 2020, Samsung launched its new Galaxy Tab Active3. In
September 2020, Apple Inc. launched Apple Watch Series 6 (blood oxygen sensor)
and Apple Watch SE, two iPad models, iPhone. Hence, the growing
electronics industry is expected to propel the UV tapes industry growth.
UV Tapes Market Analysis – By Geography
Asia Pacific region held the largest share of more than 35% in the UV tapes market size in the year 2021, due to the increasing demand from various end-use industries such as electrical & electronics in Asian countries such as India and China are estimated to grow the demand for UV tapes. According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA) and consulting firm, the consumer electronics industry is expected to grow at a 9.5 % CAGR in 2021. According to the Electrical & Electronics Manufacturers Association, the Indian domestic electrical equipment market is expected to grow at an annual rate of 12% to reach US$72 billion by 2025. In India, 600 mobile units are produced every minute; thus, the electronics manufacturing industry has committed to reaching US$ 300 billion in revenue by 2025-2026. According to the International Energy Agency, in China, households that have an air conditioner were 730 million units in 2020, which is estimated to grow 1128 million units by 2030 and 1338 million units by 2040. Hence, these are hugely creating an opportunity for the UV tapes industry growth in the region.
UV Tapes Market Drivers
The growing Semiconductor Industry is anticipated to grow the demand for UV Tapes
The semiconductor wafers are laminated with UV tapes to prevent them from exposure to grinding fluids. UV tapes are based on polyester tape which is used during the dicing process, as it helps minimize chipping; thus, UV Tape is suitable to protect the surface of a semiconductor wafer during the back grinding process and to hold a semiconductor wafer with a ring frame during the dicing process. Hence, the increasing semiconductor industry is growing the demand for UV tapes. According to Indi-Asian News Service (IANS), the global Internet of Things semiconductor component market will grow at a compound annual growth rate of 19% from US$33 billion in 2020 to US$80 billion in 2025. According to National Investment Promotion and Facilitation Agency (NIPF), India’s share in global electronics manufacturing is anticipated to reach US$400 billion by 2025. According to the Semiconductor Industry Association (SIA) data, the worldwide sales of semiconductors touched US$41.8 billion in April 2021, an increase of 1.9% from the March 2021 total of US$41.0 21.7% more than the April 2020 total of $34.4 billion. World Semiconductor Trade Statistics (WSTS) forecast projects that the annual global sales will increase 19.7% in 2021 and 8.8% in 2022. Hence, all such factors are expected to drive the growth of the semiconductors market, which is further expected to increase the demand for the UV tapes market.
Robust Growth in Building and Construction Industry
UV tapes can withstand a long time in outdoor exposure and allow
blue color for visual inspection & adhere to metals, plastics, and glass
surfaces. UV tapes have excellent conformability and maintain a watertight
seal. Additionally, UV tapes protect aluminum and vinyl windows and frames,
window and door glass, garage door panels, painted metal roofing, and building
panels, and aluminum extrusions. Thus, growth in the building industry is
expected to augment the demand for UV tapes (based on acrylic foam tape and
polyester tape). According to the National Bureau of Statistics, China's real
estate market investment jumped from 15.7% in 2019 to 38.3% in January-February
2021. According to the U.S. Census Bureau, building permits in the United
States increased 0.3 percent to an adjusted annual rate of 1.76 million in
April 2021 from 1.75 million in March 2021. According to the India Brand Equity
Foundation (IBEF), the real estate sector of India will grow US$1 trillion
by 2030 and Rs. 65,000 crore (US$ 9.30 billion) by 2040. In April
2021, The U.S. Census Bureau and the U.S. Department of Housing and Urban
Development announced the construction of 1.6 million houses, out of which 1.4
houses have been built. According to the Statics of South Africa, GDP from
construction in South Africa increased to ZAR 82,047.74 million (US$5,018.95
million) in the fourth quarter of 2020 from ZAR 79,899.25 million (US$4,887.51
million) in the third quarter of 2020. According
to the Saudi Contractors Authority (SCA), the construction market revenue in
Saudi Arab anticipated to grow approximately 4% annually between
2020-2024. Hence, the globally increased building
& construction industry is estimated to boost the demand for UV tapes.
UV Tapes Market Challenges
Polyvinyl Chloride Membrane Posses Health and Environmental Risk
UV tapes are based on polyvinyl chloride. Polyvinyl
Chloride contains dangerous chemical additives including phthalates,
lead, cadmium, and/or organotins which are hazardous chemicals for
health. High exposure to polyvinyl chloride has increased the risk
of liver cancer as well as brain and lung cancers, lymphoma, and
leukemia. Polyvinyl chloride is toxic plastic that is dangerous to the
environment. Hence, due to various health and environmental effects, the
consumption of polyvinyl chloride for UV tapes may hamper the market growth.
UV Tapes Industry Outlook
Technology launches,
acquisitions, and R&D activities are key strategies adopted by players in
this market. UV Tapes top 10 companies include:
- BASF SE
- Henkel AG & Company
- The Furukawa Electric Co. Ltd
- Mitsui Chemicals Group
- Nitto Denko Corporation
- Lintec Corporation
- Sumitomo Bakelite Co. Ltd.
- AI Technology Inc.
- Denka Company Limited
- Ultron Systens Inc., and more.
Recent Developments
- In July 2019, Henkel Corporation has announced to invest up to US$ 45 million to expand its operations in the Salisbury facility, including a new state-of-the-art production area for UV Acrylic Adhesives used in tapes and labels within the packaging and consumer goods industry.
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