Adhesive Market and Trend in Korea · 2018-12-14 · Korea Adhesive Industry Association Adhesives...

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


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


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.


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


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%


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%


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


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


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 -


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)


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


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



• 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



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>


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)


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>


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



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.



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


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.


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 -


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%)


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


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>



Although direct exports are declining, global market share remains

Provides new structure and high performance display performance

Challenges to create new markets



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



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>


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


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


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



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



OCA, OCR


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


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>


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


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


Thank you for

Attention

Korea Adhesive Industry Association (KAIA)

Adhesive Market and Trend in Korea · 2018-12-14 · Korea Adhesive Industry Association Adhesives...

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