3M Converter Connection

TRENDS
Industry Trends
Electronics Automotive Appliances

© 3M 2018. All Rights Reserved. 2

 INDUSTRY TRENDS

Electronics

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Electronic
Megatrends

Smartphones Virtual Reality Smart TV Sets

Speakers

IoT Drones Service Robots Connected

Cars

Source: IHS.com

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 TREND

OLED display technology

Hello, flexible. The future of displays is in OLED technology.
People love its superb contrast, color and resolution from all
viewing angles, combined with form-factor flexibility, larger
screen sizes and improved resolution.

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OLED DISPLAY TECHNOLO G Y

OLED technology trend forecast

What does it 120%

100%

mean for you? 80%

60%

40%
More projects. Higher demands on 20%

engineering, mechanical 0%
2017 2018 2019 2020 2021 2022 2023
performance and adhesive
Flat Bendable Curved Foldable Rollable
reliability. OLED technology
Curved screens are expected to gain popularity in the next 5 years.
enables smartphones and other
screens to be bendable, creating
both design challenges and Bonding needs:
opportunities for those in the know.

Bezel-free designs Flexible screens need OLED’s sensitivity to moisture and

require anti-lifting high-impact, tough chemicals requires adhesives
adhesives adhesives robust to extreme environments

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 TREND

Thinner devices with

larger displays
Consumers prefer larger displays on electronic devices,
such as TVs and smartphones, because they offer greater
viewing pleasure. Compared to traditional 16:9 aspect ratio
displays, 18:9 provides a larger display area on a mobile
device of the same size. A slim bezel design and thin profile
also offer a unique and attractive appearance while taking
up less space.

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THINNER DEVICES WITH LARGER DISPLAYS

A bezel-free design creates a larger display area

What does it
mean for you? 18:9 format

Need for thinner, high-performance 84%

adhesives that prevent costly rework. 5.8" display body-to-screen ratio
Staying on top of this trend will help
you enable your customers to design
high-demand smartphones, tablets,
TVs and more. Source: displaydaily.com

Bonding needs:

Bezel-free designs Thinner attachment Easy-to-use, reworkable

require anti-lifting systems with high adhesives will save on
adhesives mechanical manufacturing costs
performance

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 TREND

Wearable technology
Virtual and augmented reality wearable displays are growing
in popularity. Devices range from smart clothing to
healthcare gadgets to entertainment products. This vibrant
market is expected to grow in value to almost $17 billion by
2021. By 2020, smart eyewear will account for 40% of total
revenue of the wearables market.

(Sources: i-scoop, 2016; wearable technologies, 2017)

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WEARABLE TECHNOLO G Y

Shipments of new device types since 2015

What does it 250000

200000

mean for you? 150000

100000

Expertise in reliable bonding 50000

solutions for hard-to-bond
0
materials will mean more 2015 2016 2017 2018 2019 2020

opportunities for new products. Virtual Reality Headset Drones Service Robots Wireless Speakers Wearable

High demand for thin, high- Source: IHS.com

performance adhesives that are

waterproof and resistant to lotions, Bonding needs:
perfumes and sweat.

Ability to bond to Thinner attachment Reliable adhesives

difficult surfaces systems with high robust to extreme
(such as new mechanical environments
plastics) performance

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 TREND

Automotive electronics
Two major industries — automotive and electronics — are
working together to provide breakthrough experiences for
drivers. From one-touch phone calls to advanced navigation
systems to cars that parallel park themselves, vehicles are
becoming as smart as the people who drive them.

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AUTOMO T I VE ELECTRONICS

Evolution of center console displays

What does it 2016 2018 2020

mean for you?

Multi-model screen with Single-function controls, Control knob turns Touchscreen direct Touchscreen direct
GUI indirect control via calls, seat/drive position through, selects modes manipulation of GUI manipulation of GUI
knobs & switches and operates the GUI

Growing demand for FPC bonding

and low-VOC materials. A need for
high-impact adhesives that can
resist the vibrations of the road.
Navigation/display
audio screen
Tablet-like control panel Tablet-like control panel Giant regular shape touch-
enabled screen
Curved/free from touch-
enabled no-touch displays

Opportunities are growing for

those who know how to Source: IHS.com

successfully attach sensors, Bonding needs:

displays, cameras and batteries
within vehicles.
Low-VOC, low- High-impact, tough High mechanical
odor adhesives adhesives that resist performance to
for passenger vibration attach sensors,
comfort displays and more

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 INDUSTRY TRENDS

Automotive

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Automotive
Megatrends

Weight Passenger Automotive Powertrain

Reduction Comfort Electrification/ Innovation
Electronics

Quality and Process Personalization NVH Design

Improvement and Styling Reduction Flexibility

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 TREND

Weight reduction
Lighter cars mean consumers use less fuel for cleaner air
and reduced dependence on fossil fuels. Fuel efficiency
and CO2 GHG regulations are challenging OEMs to design
vehicles using lightweight materials, such as polypropylene
(PP), thermoplastic polyolefin (TPO), carbon fiber and new
epoxy resins.

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WEIGHT REDUCTION
CAFÉ Standards
Miles per gallon – equivalent (mpg-e)

What does it 60

mean for you?

50

40

30
Lightweight materials can be
challenging to bond and can cause 20

unwanted noise. The need to 10

attach difficult-to-bond materials
0
and reduce noise while reducing 2012 2016 2025
weight will continue to grow.
Bonding needs:

Buzz, squeak, rattle Ability to bond to Ability to bond

noise reduction difficult surfaces lightweight materials
(such as new
plastics)

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 TREND

Passenger comfort:
low VOC, low odor, low noise
An enjoyable driving experience means that providing
odorless interiors and quiet, smooth rides are top priorities.
However, VOCs are inherently present in newly produced
components for auto interiors, which are made of rubber,
plastic, foam and leather. Increasing government regulations
and VDA278 and JAMA industry standards have resulted in
more stringent OEM regulations. Low-VOC and low-odor
interiors continue to grow in popularity, as well as finding
ways to eliminate buzz, squeak and rattle noise.

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PASSENGER COMFORT

Vehicle interior emissions and their sources

What does it Organic sources

Average commuting

mean for you?

HEADLINER SEAT I-PANEL time in the U.S.:

329
• Aldehyde • Aldehyde • Aldehyde (leather)
• Toluene • Toluene • Isoalkane
• Phthalate (PVC)
Identifying technologies and DOOR PANEL CARPET hours/year
incorporating low-VOC, low-odor • Aldehyde • Aldehyde
• Butadiene • Org. acid
and low-noise materials and ways • Toluene • Toluene Source: Organization for Economic
Cooperation and Development report
to attach them is crucial. Common
applications include headliner,
door panel, seating and instrument
panel. Leading manufacturers are Bonding needs:
responding to new demands in
design and low VOC requirements
with interiors made from a Low-VOC, low-odor, Adhesives designed Low-fogging
low-noise adhesives to bond to new, low- adhesives
continually expanding range of surface-energy
materials
new materials.

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 TREND

Automotive electronics
Electronics technology leaders have moved into the
automotive electrification market. Driver information
systems are digital, including instrument cluster and driver
heads up displays. Smart sensing functions are getting
more sophisticated, with parking sensors, collision sensors
and even window dimming sensors becoming standard
features. In the near future: adoption of system capabilities
enabling autonomous driving.

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IMPLICATIO NS
AUTOMO T I VE ELECTRONICS

Electronics and software as percent of total car cost

What does it 60

50

mean for you? 40

30
Seamless integration of electronics 20
into vehicle interiors is important 10
for OEMs. Understanding the best
0
ways to bond new materials to 1950 1960 1970 1980 1990 2000 2010 2020 2030
create breakthrough designs will Source: Statista/Lux Research

lead to more opportunities.

Bonding needs:

Adhesives designed High-impact, tough High mechanical

to bond to new, low- adhesives that resist performance flexible
surface-energy vibration printed circuit bonding
materials to attach sensors,
displays and more

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 TREND

Powertrain innovation: EV
Electric Vehicles (EV) pave the road for emission-free
mobility combined with driving enjoyment. Plug-In Electric
Vehicle, Extended Range Electric Vehicle and Battery
Electric Vehicle Powertrain Systems integrate powertrain
components, internal combustion engine and transmission
with new electric components.

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IMPLICATIO NS
POWERTRA I N INNOVA TI O N: EV

New registrations of electric vehicles

What does it 400

350

mean for you?

300
250
200
150
100
50
The new eMobility marks a major 0
shift in powertrain technology. EV 2014 2015 2016 2014 2015 2016 2014 2015 2016
China Europe United States
manufacturers want adhesive and
BEV PHEV
sealant solutions that are proven to
work: They need to be electrically Worldwide sales of pure battery EVs (excluding hybrids) grew by 45% in 2016.
Source: mckinsey.com
insulating or conductive, self-
extinguishing and temperature
resistant. Along with the design of Bonding needs:
the vehicles and batteries are the
charging stations, so the need for
ways to successfully meet these Innovative Adhesives that Adhesives that are
EV battery bonding enable new electrically insulating
challenges will continue to grow. lightweight designs or conductive, self-
extinguishing and
temperature resistant

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 INDUSTRY TRENDS

Appliances

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Appliance
Megatrends

Emphasis on Matte Smudge-Proof Time-Saving

Aesthetics Stainless Finishes Features
Steel

Noise IoT-Connected Smart Smart

Reduction HVAC Systems Connectivity Monitoring

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 TREND

Emphasis on aesthetics
Matte finishes for refrigerators, dishwashers, ranges and
hoods are growing in popularity. A modern slate finish
creates a sleek look and a matte surface to avoid
fingerprints. Another hot trend is using glass in smart touch
panel design instead of mechanical switches, which
intuitively guides use and is durable and easy to clean.

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IMPLICATIO NS
EMPHASIS ON AESTHET ICS 90%
of homeowners replace all
25%
of new appliances have high-tech
or some appliances during features like color-touchscreen
kitchen renovations. controls or built-in speakers.

What does it Other

Trash compactor

mean for you?

Warming drawer
Washer/Dryer
Wine refrigerator
Wall oven(s)

Increased opportunities for those Cooktop(s)

Range hood
who understand how to turn design Range

concepts into reality. Microwave

Dishwasher(s)
Manufacturing aesthetically Refrigerator/Freezer

pleasing appliances presents 0% 10% 20% 30% 40% 50% 60%

PERCENTAGE OF APPLIANCES REPLACED
70% 80% 90% 100%

numerous challenges in assembly, Source: houzz.com

mounting, fastening and Bonding needs:

sealing. There is a growing need for
high-performance adhesives
resistant to extreme temperatures, Ability to bond to Reworkable Reliable adhesives
difficult substrates adhesives to save robust to extreme
chemicals and liquids. (such as glass to metal) manufacturing costs environments

© 3M 2018. All Rights Reserved. 26

 TREND

Low-cost materials
Many mid/low-end appliance manufacturers are using
plastics like polypropylene for light weighting and cost
saving. This allows quality mass production at a low price to
make more options available to more people.

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LOW-COST MATERIALS

Global use of plastics has grown steadily since 1950.

What does it 350,000,000

300,000,000

mean for you?

Millions of Tons
250,000,000

200,000,000

Many appliance manufacturers are 150,000,000

turning to bonding for easier 100,000,000

assembly, reworkability, vibration 50,000,000

damping and the ability to join -
dissimilar substrates and sensitive 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2014

materials with a continuous joint. Source: World Economic Forum: The New Plastics Economy —

Choosing the right adhesive can Bonding needs: Rethinking the Future of Plastics, Jan. 2016

mean increased durability, strength

and cost savings.
Ability to bond to Reworkable Reliable adhesives
difficult surfaces adhesives to save robust to extreme
(such as plastics) manufacturing costs environments

© 3M 2018. All Rights Reserved. 28

 TREND

Smart connectivity
Living in a smart home is not a dream anymore. A new wave
of smart technologies makes domestic life more efficient,
productive and entertaining. Imagine ovens that let you
know when dinner is ready, refrigerators that can order
groceries and dishwashers that can be operated remotely.

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IMPLICATIO NS
SMART CONNECTIVI T Y
Smart connected appliances may reach
200M units by 2020

What does it Share by 8 Key Markets Share by Major Appliance Type

mean for you? US

France Washine Machines

Germany Refrigerators/Freezers

Smart appliances are forcing UK Room Air Conditioners

China
engineers to rethink age-old India
Large Cooking Appliances

product designs — and how to build Japan Dishwashers

S. Korea Clothes Dryers

them. There will be more bonding Rest of world

opportunities for accessories with

connectivity and appliances like air
conditioners, coffee makers,
washing machines, refrigerators and Bonding needs:
more. Knowing how to bring smart
products to market will give you a
competitive advantage. Ability to bond to High mechanical Reliable adhesives
difficult surfaces performance flexible robust to extreme
(such as plastics) printed circuit bonding environments
to attach sensors,
displays and more

© 3M 2018. All Rights Reserved. 30

 TREND

Noise reduction
Some of the noisiest products are some of the most
essential — including food processors, washing machines,
vacuum cleaners and extractor fans. Noise reduction is even
more important for consumers in China, since washers are
typically located in kitchen or living areas.

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IMPLICATIO NS
NOISE REDUCTION Top 10 loudest household appliances
Anything over 85 decibels can harm your hearing, but household appliances in the 50-decibel
range can be harmful over time. It’s time to take the buzz out of your morning coffee buzz.

What does it 1. Blender: 80-90 db 6. Hair dryer: 60-95 db

mean for you? 2.

3.
Food processor: 80-90 db
Juicer: 80-90 db
7.
8.
Vacuum cleaner: 60-85 db
Washing machine: 50-75 db
4. Coffee grinder: 70-80 db 9. Dishwasher: 55-75 db
The need for new noise-damping 5. TV: 70 db 10. Coffee percolator: 55 db
solutions, including foil tape, damping
Source: quiethomelab.com
pads and more from a capable provider
will continue to grow. Understanding
the design challenges of appliances
will be essential.

Bonding needs:

Adhesives that Ability to bond foam Adhesives that bond

reduce buzz, squeak for noise damping 3M™ Thinsulate Insulation
and rattle for noise reduction

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