TAGS: UV/EB Cure Adhesives Acrylic Adhesives
Future Market Insights (FMI) anticipates that the global UV tapes market size is estimated to be valued at around US$ 512.3 Mn in 2022 and is anticipated to progress at a healthy CAGR of 8.6% from 2022 to 2032. The UV tapes market is likely to reach US$ 1,168.9 Mn by 2032.
Growing demand for UV tapes that are mainly used in the electrical and electronics industry, as well as in the semiconductor process, is expected to drive the global UV tapes market. The global UV tapes market is anticipated to account for around 7-10% of the overall adhesives tapes market.
Rising Use of Static Layers By Manufacturers
The market for UV tapes is anticipated to benefit from the growing preference for propylene oxide (PO) and polyethylene terephthalate (PET) as carriers over PVC owing to their reduced environmental effect. Additionally, PO and PET meet the stringent environmental standards revolving around the production of integrated circuits and are easily recyclable, as compared to PVC (ICs). The market is also predicted to grow as a result of increasing demand for acrylic adhesive products due to their exceptional adhesive strength.
Moreover, the UV Tapes market is expected to develop at a rapid pace as a result of rising use of static layers by manufacturers since they eliminate negative charges and safeguard wafers from harm. Since wafer materials are becoming increasingly sensitive due to lower thickness, these types of tapes are widely used throughout dicing and back-grinding applications, which is boosting the global market.
Demand For Semiconductor Chips to Push Sales Of UV Tapes
Demand for UV tapes grew at 9.0% CAGR between 2017 and 2021. Considering the industries served, consumption of UV tapes is uneven depending on the demand from electrical and electronics, as well as building and construction sectors.
Demand for UV tapes Market is expected to rise over the assessment period and is set to exhibit a CAGR of 8.6% between 2022 and 2032. Rapid inclination towards work from home is projected to drive the demand for electronics devices worldwide. It is anticipated to further generate a high demand for semiconductor chips, thereby pushing sales of UV tapes.
Top 2 Trends Pushing Sales of UV Tapes in the Global Market
Rapid Expansion of the Semiconductor Industry
According to the World Semiconductor Trade Statistics (WTSS), the global semiconductor demand is anticipated to witness a 13.9% surge in 2022. UV tapes play a major role in the semiconductor industry owing to their increasing utilization as a semiconductor manufacturing adhesive tape. These tapes are ideal to hold the semiconductor wafer with a ring frame during the dicing process. They can also be used to protect the surface of the semiconductor wafer during the backgrinding process.
The internet of things (IoT) is expected to be another significant development area for semiconductors during the forecast period. Increasing demand for vehicles equipped with airbags, powertrain, telematics, and infotainment systems would also push sales of UV tapes Market. Besides, ongoing development of mobile telecommunication, including the 5G network, is likely to expand the field of semiconductors, thereby driving the global UV tapes market.
Increasing Use in Building and Construction Sector
High demand for bigger homes with top-notch facilities owing to increasing inclination of consumers towards luxury living is anticipated to drive the need for electronics. Flashing tape producers are paying more attention to UV-cured acrylic adhesives as they provide better all-around performance and longer lifespans than synthetic rubber and rubberized asphalt adhesives.
UV tapes can endure prolonged outdoor exposure. They can also provide a watertight seal and have great conformability. These can further protect painted metal roofing, building panels, aluminum extrusions, vinyl, and aluminum windows & frames, glass for windows & doors, garage door panels, and vinyl & painted metal windows & frames. The blue tint of UV tapes allows for visual inspection and they can cling to metal, plastic, and glass surfaces. Consequently, it is anticipated that the building and construction sector will push the demand for UV tapes.
Polyvinyl chloride is the foundation of UV tapes. Lead, phthalates, cadmium, and organotin are some of the toxic substances found in polyvinyl chloride. High levels of polyvinyl chloride exposure have been linked to an increased risk of lymphoma and liver cancer, as well as lung, brain, and leukemia. Plastic made of polyvinyl chloride is poisonous and harmful to the environment. Thus, use of polyvinyl chloride for the production of UV tapes may inhibit market expansion due to its various health and environmental impacts.
UV Tapes Market Country-wise Insights
Chinese Electronics Suppliers are Increasingly Using UV Resistant Tapes
China is the leading producer of consumer electronics in the world, particularly in the brown goods product group. It has one of the largest electronics manufacturing ecosystems and supply chains in the whole world, with over 150 million manufacturing employees and more than five times as many electronics suppliers as Japan.
UV tapes offer an advantage over solution-based adhesives as solution-based adhesives can trap solvents, moisture, tackifiers, or monomers, which will release gases when electronic devices heat up. UV adhesive tapes can be convincingly applied to conductive inks, printed circuits, membrane switches, or flexible circuit sandwiches by electronic manufacturers and converters. They can also be used for device sealing and assembly, spacer tapes, electroluminescence, and hard-drive gasketing.
With the advantages offered by UV tapes in the electrical industry, China is anticipated to create multiple opportunities in the market. Increasing adoption of semiconductors in the automobile industry is also expected to boost UV tape consumption in China. Thus, the country is expected to witness a significant CAGR of 10.5% in the UV tapes market during the forecast period.
UV Resistant Clear Tapes to Gain Traction among U.S.-based Semiconductor Chip Producers
The automotive sector is anticipated to be a key driver of economic growth in the U.S. Original equipment manufacturers (OEMs) have expanded their manufacturing processes in the country to focus on the most profitable and popular techniques that require UV cassettes in the semiconductor chip.
Increasing usage of semiconductor chips in air conditioning systems, as well as radio touchscreen infotainment has gained traction, which would propel the demand for UV tapes. The U.S. is expected to thus remain one of the leading countries in North America and is set to hold nearly 13.9% of value share in the UV tapes market.
UV Tapes Market Category-wise Insights
UV Protection Tapes Made of Polyolefin to Exhibit High Demand
In 2021, the UV tapes market was dominated by polyolefin (PO), accounting for a significant share in the global market. Acrylic foam tape is used to coat polyolefin UV tapes. In comparison to other options like polyvinyl chloride, polyolefins perform better in terms of flexibility, toughness, and durability. Adhesive strength of polyolefin UV tapes is greater and they offer exceptional durability under unfavorable atmospheric conditions.
Key applications of polyolefin UV tapes are the protection of circuit board cutting, touch screen protection, and the supply of optical materials. Therefore, polyolefin UV tapes are necessary for wafer dicing as the demand for semiconductor components is growing at a fast pace. The Semiconductor Industry Association (SIA) reports that as of 2021, the Americas (33.5%), Europe (32.3%), Japan (24.5%), and China (24.0%) exhibited a rise in terms of semiconductor sales year over year.
Manufacturers to Use UV Blocking Tapes for Wafer Dicing
One of the greatest challenges the semiconductor wafer fabrication industry encounters is the production of thin wafers. Generally, silicon wafers are as thin as 40 microns and ultra-thin silicon wafers are 20 microns. UV tapes contribute significantly during the back-grinding process, which is a part of the manufacturing process of ultra-thin silicon.
As a result, UV tape application for this process is gaining considerable preference across the wafer fabrication industry. Ultra-thin wafers contribute significantly to producing energy-efficient end-use devices without incurring higher switching costs. This, in turn, is leading to a shift in demand from thin silicon wafers to ultra-thin silicon wafers.
Competitive Landscape
Key players in the UV tapes market are focusing on adopting alternative distribution channels such as online platforms to strengthen their presence across various regions worldwide. The majority of the key players are focusing on sustainability, whereas some of the other companies are aiming to expand their existing manufacturing sites to meet the high demand from the semiconductor industry.
Some of the key industry developments are:
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In May 2022, to secure a steady supply of tape for semiconductor processes, Furukawa Electric Co., Ltd. announced its plans to invest approximately JPY 7.0 Billion to boost the manufacturing capacity at the Mie Works. Operations are scheduled to begin in April 2025.
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In June 2021, Henkel declared that it is increasing its production capabilities and UV acrylic hotmelt pressure-sensitive adhesives product line (PSA). The decision is consistent with the company's strategic focus on sustainability and would help in resolving capacity issues that it had previously encountered along with rising demand for UV-curable PSAs.
Source: Future Market Insights