Post on 11-Mar-2020
Hyun-Joong Kim
Technical Advisor/Director
Korea Adhesive Industry Association
Adhesive Market and Trend in Korea
The 6th Conference of Asia Regional Adhesive Council (ARAC)
The Longemont Hotel Shanghai, Shanghai, China
The 15th ARAC EXCO Meeting (09:30~10:30, September 17, 2018)
Contents
1. Adhesive Market Analysis in Korea
2. Key Fields Analysis 1: Automotive Sector
3. Key Sector Analysis 2: Electric And Electronic Sector
4. Conclusion Remark
Adhesive Market Analysis in Korea
Korea Adhesive Industry Association
GENERAL INFORMATION ON SOUTH KOREA
• Trade scale [2017] 9th
• Export [2017] 6th
• Communication equipment [2017] 4th
• Semiconductor transistor [2016] 3rd
• Semiconductor memory - [2017] 1st
• White Goods No.1/2 Company [2017]
• Automotive [2017] 6th
• Ship [2018 current] 1st
Korea Adhesive Industry Association
GENERAL INFORMATION ON SOUTH KOREA
• Shipbuilding : World #1 with
42.2% share of global market
(2018 current)
• Automotive : Successfully
increasing global market
share (2017, 4.11 M)
• White Goods: World #1,2
company (Samsung, LG)
• DRAM : World #1 with 46% market
share (Q2’18) Samsung
Electronics, World #2 with 28.7%
market share (Q2’18) SK Hynix.
• Smart phone : World #1 with 23.4%
market share (Q2’18) ) Samsung
Electronics
• 2nd Battery : Entered the market late
but growing fast. Soon to catch up
Japan. LG Chem. is world #1 in
polarizer market.
Korea Adhesive Industry Association
Adhesives Market Overview in Korea
Production Quantity: 679,198 MT (4.7% ↑ vs. 2016)
Sales Amount: 2,080 Mio. US$ (4.2% ↑ vs. 2016 )
Export : 50,196 MT (6.5% ↑ vs. 2016 )
432 Mio. US$ (5.2% ↑ vs. 2016 )
Import : 27,167 MT (4.2% ↑ vs. 2016 )
305 Mio. US$ (2.2% ↑ vs. 2016 )
The Overview of Adhesives Market in 2017
Korea Adhesive Industry Association
Adhesives Market Share by Product’s Type
Type2015
(MT)
2016
(MT)
2017
(MT)G.R.%
Formaldeh
yde Base202,726 222,061 226,273 6.4
Solvent
Base27,229 25,749 26,870 4.4
Water Base 227,270 234,313 244,636 4.2
Hot Melt 25,047 26,652 30,411 14.1
Reactive 36,843 38,337 40,547 5.7
Pressure
Sensitive59,901 63,538 71,162 12.0
Others 37,478 37,902 39,299 3.7
Total 616,494 648,552 679,198 4.7
Formaldehyde Base33.5%
Solvent Base4%
Water Base36.2%
Hot Melt4.5%
Reactive6.0%
Pressure Sensitive
10.5%Others5.3%
Korea Adhesive Industry Association
Adhesives Market Share in Application
Type2015
(MT)
2016
(MT)
2017
(MT)
G.R.
%
Plywood 135,656 143,485 150,946 5.2
Wood Work. 85,817 88,992 92,552 4.0
Civil & Const. 121,923 124,533 127,646 2.5
Packaging 41,667 46,741 50,480 8.0
Paper, Book 29,306 30,423 31,498 3.5
Textiles 43,832 45,737 47,795 4.5
Transport. 53,606 57,399 61,130 6.5
Shoes.
Leather 16,735 17,929 18,915 5.5
Elec &
Electronic29,365 31,731 34,745 9.5
DIY 23,272 24,892 26,012 4.5
Other Ind. 35,304 36,690 37,479 2.2
Total 616,494 648,552 679,198 4.7
Plywood22.2%
Wood Work.13.6%
Civil & Const.18.8%
Packaging7.4%
Paper, Book 4.6%
Textiles7.0%
Transport.9.0%
Shoes. Leather
2.8%
Elec & Elec5.2%
DIY3.8%
Other Ind.5.6%
Korea Adhesive Industry Association
Adhesives Production Trends in Korea (I)
ITEMS 2015(MT) 2016(MT) 2017(MT) Share(%) Inc.(%)
Formalde-
hyde
Urea 134,282 144,592 141,713
Melamine 35,585 37,539 39,244
Phenol 35,859 41,930 45,316
Subtotal 202,726 222,061 226,273 33.5 6.4
Solvent
Based
Vinyl acetate 7,878 8,199 8,711
Other resins 11,874 10,548 11,074
Chloroprene Rubber 4,683 4,442 4,645
Synthesized Rubber 1,110 1,150 1,160
Natural Rubber 1,684 1,410 1,280
Subtotal 27,229 25,749 26,870 4.0 4.4
Water
Based
Vinyl acetate 34,323 37,950 39,620
Vinyl acetate copolymer11,757 12,122 12,607
EVA Emulsion 21,869 22,971 23,890
Acryl Emulsion 137,905 140,078 146,382
Other Emulsion 8,138 8,600 9,052
Isocyanate 1,790 1,952 2,020
Synthesized Rubber 3,786 3,834 3,987
Others 6,702 6,806 7,078
Subtotal 227,270 234,313 244,636 36.2 4.2
Korea Adhesive Industry Association
Adhesives Production Trends in Korea (II)
ITEMS 2015(MT) 2016(MT) 2017(MT) Share(%) Inc.(%)
Hot Melt
EVA 9,163 10,808 12,321
Rubber 11,331 11,179 12,073
Others 4,553 4,665 6,017
Subtotal 25,047 26,652 30,411 4.5 14.1
Reactive
Epoxy 12,692 13,683 14,462
Cyanoacrylate 240 340 357
Polyurethane 19,666 20,417 21,581
Modified Acryl 2,771 2,531 2,657
Others 1,474 1,366 1,490
Subtotal 36,843 38,337 40,547 6.0 5.7
PSA
Acryl 51,906 56,222 62,968
Rubber 5,011 5,850 6,318
Others 2,984 1,466 1,876
Subtotal 59,901 63,538 71,162 10.5 12.0
Miscellaneous 37,478 37,902 39,299 5.3 3.7
Total 616,494 648,552 679,198 100 4.7
Korea Adhesive Industry Association
Applications Trends Of Adhesives in Korea
Application fields 2015(MT) 2016(MT) 2017(MT) Share(%) Inc.(%)
Plywood 135,656 143,485 150,946 22.2 5.82
Woodworking 85,817 88,992 92,552 13.6 4.0
Construction 121,923 124,533 127,646 18.8 2.5
Packaging / Lamination 41,667 46,741 50,480 7.4 8.0
Paper Tubing 9,223 9,436 9,672 1.4 2.5
Bookbinding 20,073 20,987 21,826 3.2 4.0
Textiles 43,832 45,737 47,795 7.0 4.5
Vehicles 53,606 57,399 61,130 9.0 6.5
Footwear / Rubbers 16,735 17,929 18,915 2.8 5.5
Electronics 29,365 31,731 34,745 5.2 9.5
Household Uses 23,272 24,892 26,012 3.8 4.5
Other 35,304 36,690 37,479 5.6 2.2
Total 616,494 648,552 679,198 100 4.7
Key Fields Analysis 1 - Automotive Sector -
Korea Adhesive Industry Association
Growth of Automotive Sector
Vehicle Area Growth (CARG 6.5%)
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2013 2014 2015 2016 2017
Vehicles (Unit Tonnes)
Korea Adhesive Industry Association
Growth of Automotive Sector
• Expansion of usage through expansion of automation technology an
d improvement of adhesive use process
Innovation in the production process
• Demand for new assembly process technology due to changes in ve
hicle material
Expansion of lightweight car issues
• Increased use of adhesive materials as new structures and plastic
materials
Increased interest in electric vehicles
Major Reasons for Increasing the Use of Automotive Adhesive Materials
Korea Adhesive Industry Association
Structural Adhesives For Automobiles
There are 6 types of automotive structural adhesive materials
BPR, Hemming, Mastic sealer, Structural adhesive, etc.
Improved safety and user friendliness of the body (reinforcement of stiffness,
corrosion prevention, vibration, noise prevention)
Steel plate joint Impact reinforcement Anti-chipping
Reinforcement of rigidity Steel plate support Rustproof
BPR Sealer Mastic Sealer Body sealer
Under Body CoatHem Sealer Structural Adhesive
Korea Adhesive Industry Association
Structural Adhesives For Automobiles
• Changes in materials to lighten the structure are progressing in various ways.
• Aluminum, HSS (High Strength Steel) and CFRP (Carbon Fiber Reinforced Plastic) are
driving this lightweight technology.
• The lightweight market is expected to grow steadily from $ 70 billion to $ 300 billion from
2010 to 2030
• Among lightweight materials, the growth rate of CFRP is very fast, and it is becoming
more important as a next-generation lightweight material.
<McKinsey>
Carbon Fiber
Korea Adhesive Industry Association
Structural Adhesives For Automobiles
The use of CFRP is steadily increasing.
Especially in automobile and aeronautical applications, the trend is increasing rapidly.
Because safety is the biggest issue in both of these areas, the importance of bonding
technology is more visible.
<Lux Research, 2016>
Korea Adhesive Industry Association
Interest In Environmentally Friendly Vehicles
Environmental Issues Environment regulations strengthening amid global warming,
shortage of fossil fuels, and worsening air pollution.
→ Developing eco-cars are necessary for higher competitiveness and survival
1) Eco-Cars (HEV, EV, FCEV)
Government-led supporting plans to boost Eco-car sales : Gov.-led supporting plans to boost Eco-car sales
- Tax incentives and subsidy scheme allowed for Eco-car purchases
2) Vehicle Emissions regulations
Strengthening regulations for exhaust emissions and CO2 regulations
- Diesel cars: WLTP to be fully implemented in 2019
- CO2: Average CO2 emissions target for new PC to reach 97 g/km in 2020
<Korea Automobile Manufacturers Association, 2017>
HEV (Hybrid Electric Vehicle) < PHEV (Plug-in Hybrid Electric Vehicle) < EV(electric vehicle)
Korea Adhesive Industry Association
Interest In Environmentally Friendly Vehicles
Eco Car Sales Trend in Korea
Eco-car sales marked all-time high in 2016 due to sales increase in HEV and EV.
- More choices of HEV and EV models released in market led to boost in sales of eco car as a whole
<Korea Automobile Manufacturers Association, 2017>
Korea Adhesive Industry Association
Automotive Adhesive Material Development Issues
Key words in R&D
The main keywords of adhesive research used in the automotive field are light weight and
electric cars.
Light Weight
New Design
Light weight materials
Electric Vehicle
Battery
Electric System
New Materials
Korea Adhesive Industry Association
Automotive Adhesive Material Development Issues
Light weighting of Automobile
- Since 2000, lightweight automobiles have led to major changes in materials used in automobiles.
- The use of light metals and plastics has increased significantly.
Korea Adhesive Industry Association
Automotive Adhesive Material Development Issues
Light Weighting of Automobile
Super Light weight Project (SLC) BIW: 180 kg
• Trying to apply the new material to lighten the weight : During the promotion of 'SLC
Project (AL, Mg, FRP application)' of GM and Ford 'F-150' Development
• Rapid increase in use of structural adhesives: GM's Cadillac CTS and ATS models more
than five times more structural adhesive use
Korea Adhesive Industry Association
Structural Adhesive Development Keywords
Surface Treatment Technology
- Increasing the importance of surface treatment technology as the use of hard bonding materials increases
- High strength system required to improve bonding durability against different materials
• Need to obtain applicable surface treatment techniques in the field
• Manufacturing and process costs should be minimized.
• It should not have a significant impact on the performance of substrate itself.
• Adequate surface conditions for adhesives.
Korea Adhesive Industry Association
PSA Technology for Automobiles
Semi Structural PSAs
- Technologies that can replace existing liquid base bonding processes
- Utilizes tape for fast and easy processing
Body Coating Exterior Interior
Mastic sealer
Weld-Bond
Sport weld sealer
Panel Reinforce
Masking Tape
Body sealer
Panel Reinforce
Antivibration sheet
Glass Adhesive
Dual Side Tape
Acrylic PSA
Side Molder tape
Leather Adhesive
Dual Side Tape
Acrylic PSA
Release PSA
Key Sector Analysis 2 - Electric And Electronic Sector -
Korea Adhesive Industry Association
Growth of Electronic/Electrical Sector
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2013 2014 2015 2016 2017
Electronics (Unit Tonnes)
Electronic Area Growth (CARG 9.5%)
Korea Adhesive Industry Association
Growth of Electronic/Electrical Sector
• Securing excellent market share of domestic mobile manufacturing companies
centering on Samsung Electronics
Global strength of Korean mobile manufacturing companies
• Accelerating growth in the global next-generation display market, led by
Samsung Electronics, Samsung Display, and LG Display
Driving the next generation display market
• Market growth in line with global memory market boom
Stronger semiconductor market
Reasons for increasing use of adhesive materials for electrical and electronic
applications
Korea Adhesive Industry Association
Market of Display Area
Samsung Electronics' share of the global mobile market is declining, and the
company is pursuing new growth based on the flexible market.
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2017 2018 2019 2020 2021 2022 2023
Flexible OLED Market Forecast (Unit: $ M)
<IHS 2017>
Korea Adhesive Industry Association
Market of Display Area
Although direct exports are declining, global market share remains
Provides new structure and high performance display performance
Challenges to create new markets
Korea Adhesive Industry Association
Market of Display Area
LG Display, Samsung Display and other companies are leading the related patent
applications
- The number of patent applications related to foldable display that can be folded and unfolded has been
276 during the last 6 years (2012 ~ 2017).
- In particular, the number of patent applications in the past three years (2015 to 2017) has increased
about 3.2 times compared to the last three years.
LG Display 9434%
Samsung Display 8029%
Samsung Electronics 23
8%
LG Electronics 176%
LG chem 114%
LG Innotek 10%
Unviersity & Research Institute 5
2%
Foreign Company 114%
Small Business 156%
Individual 197%
기타
19%
Others
Korea Adhesive Industry Association
Market of Display Area
Samsung Electronics' R & D investment last year, the 'top three' companies in the
Top 500
- Global R & D investment Top 500 invested costs increased by 6% over the previous year
- As technology progresses rapidly, product cycles are shortened, and consumer demand is rapidly changing,
companies are forced to expand their investment.
0
2
4
6
8
10
12
14
16
18
Expenditure (Unit : $ Billion)
<EY, 2018>
Korea Adhesive Industry Association
Technology Innovation In The Mobile Industry
High capacity
battery• Pouch-type battery
technology
• Battery sealing technology
Lightweight product• Material change technology
• Unbreakable materialization
technology
High brightness
display• High-yield OLED
technology
• Maximizing optical
efficiency
High Speed Internet• Chipset integration
technology
• Communication
interference
minimization technology
Large area design• Display manufacturing
efficiency maximization
technology
Life safety• Waterproof / Dustproof
Technology
• Impact design
technology
Korea Adhesive Industry Association
PSA used in Mobile Phone Manufacturing
Embo Tape- easy bonding
- overcome thickness
difference
Light Blocking Tape- Light block LED Back side
Shock Absorber- Defense external impact
- Protect glass and OLED
Thermal Tape- Heat Dissipation
- Complex Design
Easy Removable
Tape- Reworkable
- High Strength
Dual Side Tape- Increased
productivity
- Low cost
High Bonding
Tape- Semi Structural
Concept
Ultra Thin Tape- Under 10um
- No effect on
system thickness
Glass Sealer- Shock absorption
- Waterproof
property
Window
Bonder- TSP coupling
- Low cost
Electrical
ConductiveTape- High adhesion
- Low resistance
EMI Shield
Tape- System Defense
Battery Tape
A wide variety of tapes are used in mobile phone manufacturing
Korea Adhesive Industry Association
Adhesives used in Mobile Phone Manufacturing
Home Office School
White goods
To bathroom and kitchen
Vivid user experience
Infiltrate into daily life at home
Simple and direct working environment
Work efficiency improvement
Concise uses
Dynamic contents
Intuitive handling
OCA, OCR
Korea Adhesive Industry Association
Adhesives used in Mobile Phone Manufacturing
Satake, M. Development of pressure sensitive adhesive for optical film in LCD.
Nitto Denko Company Newsletter Pressure Sensitive Technology Special. 90(47): 56-60 (2009)
- Dexerials Corporation. 2014. "Optical elasticity resin for small-to-medium sized FPDs
Technical data from http://www.dexerials.jp/en/products/b3/svr1120.html.
OCA, OCR
Korea Adhesive Industry Association
Adhesives used in Mobile Phone Manufacturing
OCA, OCR
Korea Adhesive Industry Association
Market of Semiconductor Area
Worldwide Online Server Replacement Season
Encryption Money (Electronic Coin) Market Growth
<Reuters, 2017>
The fastest growing memory market worldwide since 2017
Korea Adhesive Industry Association
Market of Semiconductor Area
Continued memory market boom expected
Domestic semiconductor related materials market is expected to continue to boom
Samsung Electronics and SK Hynix are growing strongly.
<Reuters, 2017>
Korea Adhesive Industry Association
Adhesives used in Semiconductor Process
As a core material for system packaging, it is becoming a multi-functional product
incorporating heat dissipation technology.
DAF
Conclusion Remark
Korea Adhesive Industry Association
0102
03 0405
Industry growthIncrease the use of common adhesive materials.
Core industry growthIncreased importance of functional adhesives.
Expansion of technology
infrastructureSecuring source technology to enhance competitiveness.
Securing world class fieldContinuous challenge to improve the world's
number one.
FutureCreating new markets and
expanding opportunities
Conclusion Remark
Korea Adhesive Industry Association
Thank you for
Attention
Korea Adhesive Industry Association (KAIA)