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The industrial adhesives market size is forecast to increase by USD 22.17 billion at a CAGR of 6.38% between 2023 and 2028. The Industrial Adhesives Market experiences significant growth, driven by several key factors. These include the rising adoption of mechanical fastener replacements in the automotive sector, fueled by the demand for lighter and eco-friendly vehicles. Furthermore, the expanding need for packaged food and beverages propels market expansion. Innovation continues to shape trends, with the ongoing development of new adhesive products significantly bolstering market growth throughout the forecast period. Keywords: Industrial Adhesives Market, market growth, automotive sector, eco-friendly vehicles, packaged food and beverages, ongoing innovation, new adhesive products.
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In the automobile industry, the imperative for weight reduction to enhance fuel economy drives the demand for advanced adhesives, including ethyl vinyl acetate, polyurethane, epoxy, and polyvinyl acetate types. These adhesives find applications beyond automotive, extending to electronics, construction, and aerospace sectors, where they ensure high-quality adhesion and cohesion between substrates. However, challenges such as oil prices, lack of awareness, and environmental concerns restrain market growth. Nevertheless, the emergence of bio-based industrial adhesives addresses eco-friendliness and VOC emissions, catering to the market's demand for sustainable solutions. Market segmentation indicates diverse applications, from furniture to cartons manufacturing, indicating the widespread utility of these adhesive technologies. Increasing replacement of mechanical fasteners notably drives the market growth, although factors such as a rise in the price of industrial adhesives are expected to hinder the market growth.
The Industrial Adhesives Market encompasses a wide range of products used in various industries, including restaurants, medical devices, electronics and electrical industries, aerospace, and the cartons manufacturing sector. These adhesives come in different types, such as ethyl vinyl acetate (EVA), polyurethane, epoxy, polyvinyl acetate (PVA), and acrylic. Each type offers unique benefits, with EVA adhesives known for their flexibility, polyurethane for their high strength, epoxy for their resistance to chemicals and temperature, PVA for their water resistance, and acrylic for their fast curing properties. The use of industrial adhesives extends beyond manufacturing processes. In the medical devices industry, they ensure the bonding of critical components, while in the electronics and electrical industries, they provide reliable connections. In the aerospace industry, lightweight vehicles rely on industrial adhesives for their structural integrity. However, the production and use of industrial adhesives come with environmental concerns. Manufacturers are increasingly focusing on developing eco-friendly alternatives to address these issues. The market for industrial adhesives is expected to grow significantly due to their versatility and the increasing demand from various industries. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the market is the increasing replacement of mechanical fasteners with industrial adhesives. Adhesives have become an integral part of various industrial applications. Mechanical or thermal fastening methods have been used for bonding applications in industries before the introduction of advanced adhesives. The advanced materials and complex manufacturing requirements have led to a rise in preference for industrial adhesives over conventional methods. Industrial adhesives are widely replacing conventional methods such as mechanical fastening, welding, and other joining methods.
There is a rise in the replacement of mechanical fasteners in various end-user industries such as construction, consumer durables, electronics, aerospace, packaging, and other heavy industries. Manufacturers are using adhesives in industrial applications, owing to their superior product performance and better operation when compared with conventional methods. Moreover, adhesive bonding is also an effective alternative to welding, which offers a better-finished appearance, stress distribution, and better strength performance. Such advantages are likely to increase their market demand during the forecast period.
Continuous development of new products is another factor supporting market growth and trends in the forecast period. The continuous development of new products by companies is one of the main trends in the market. Product developments by some of the companies will also encourage other companies to come up with innovative products to remain competitive in the market.
For instance, in June 2021, Solvay SA launched its new adhesive range for aerospace manufacturers. The company launched AeroPaste 1009, 1006, and 1100 adhesive pastes and BR 179 non-chromate primer. Similarly, in November 2020, H.B. Fuller launched a Full-Care 5885 adhesive solution, which is used in the manufacture of disposable hygiene products. With such innovations and new product launches, end-users will have various options to choose from as per their requirements.
The rise in the price will be a major challenge for the market during the forecast period. The market is facing challenges due to the high price of industrial adhesives, especially in price-sensitive markets, such as developing economies. The raw materials used to manufacture industrial adhesives are sourced from crude oil and petrochemicals. The major raw materials include silicone, polyurethane, polyvinyl acetate and ethyl Vinyl Acetate, and others. The volatility in the price of crude oil is likely to affect the prices of raw materials, which, in turn, might affect the profitability of participants.
Therefore, the rise in the prices could lead to a reduction in the use of industrial adhesives in developing economies where end-users are price-conscious. This is likely to have a major impact on the growth of the market during the forecast period. This market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
In both the automobile and aerospace industries, the emphasis on the weight of vehicles is driving the adoption of advanced adhesive technologies for improved cohesion between substrates. These adhesives, including polyurethane, epoxy, vinyl, and acrylic types, offer superior adhesion properties compared to traditional methods like welding and rivets. Additionally, the use of water-based adhesives presents environmental advantages over solvent-based counterparts. Beyond transportation, these adhesives find application in various sectors such as furniture, non-woven fabrics, and carton manufacturing, where they provide efficient bonding for diverse substrates. Overall, the versatility and effectiveness of these adhesives contribute to enhanced fuel economy, structural integrity, and manufacturing efficiency across industries.
The market share growth by the building and woodworking segment will be significant during the forecast period. The building and woodworking segment is expected to have the maximum growth during the forecast period due to the wide range of applications in flooring, waterproofing, tiling, carpeting, insulation, wall coverings, and roofing. Industrial adhesives are also used in the construction industry for bonding, maintenance, renovation, and repair in residential, commercial, and civil constructions.
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The building and woodworking segment showed a gradual increase in the market share of USD 16.27 billion in 2018. The rapid growth in the construction industry, especially in developing economies such as China and India, is expected to create growth opportunities for the market during the forecast period. There is an increase in investments in infrastructure development and construction projects across the globe. Such a rise in investments is expected to eventually lead to the construction of new buildings, which, in turn, is expected to increase the need, as they are used for various applications during construction activities.
APAC is estimated to contribute 48% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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Increased demand for industrial adhesives from various key countries is contributing to the growth of the market in the region. The countries in focus include China, Japan, India, and Australia. The rise in the commercial and residential construction sector, coupled with the increasing investments in infrastructure development in the region, is likely to fuel the demand. For example, as of January 2020, 25 supertall buildings are under construction in China, which will be completed in 2021. Hence, such new infrastructure development is likely to fuel the demand, as they are used for various applications in construction.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
3M Co., Applied Products Inc., Arkema Group, Avery Dennison Corp., BASF SE, Beacon Adhesives Inc., Covestro AG, DuPont de Nemours Inc., H.B. Fuller Co., Henkel AG and Co. KGaA, Hernon Manufacturing Inc., Hexcel Corp., Hitachi Ltd., Huntsman International LLC, Jowat SE, Permabond LLC, Pidilite Industries Ltd, Sika AG, Solvay SA, and Wacker Chemie AG
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market experiences steady growth driven by businesses seeking cost-effective solutions amid fluctuating raw material prices. The market is influenced by factors such as manufacturing expense, product dependence, and operating life. Growth in this sector is driven by increasing demand from the automotive industry and other key end-use industries like healthcare and textiles. Major industry participants such as Arkema S, Parker Hannifin Corp, and Pidilite Industries Limited play a significant role in shaping market dynamics. However, challenges such as those posed by the global pandemic and disruptions in supply chain networks are also noteworthy.
The market is experiencing robust growth across sectors such as electronics and electrical, construction industries, automotive industries, and aerospace. Key drivers include the demand for adhesives facilitating weight reduction of vehicles in the automotive and aerospace industries, thereby addressing concerns related to fuel consumption. Adhesives like ethyl vinyl acetate, polyurethane, and epoxy types are gaining traction due to their versatility and effectiveness in bonding outer bodies components of aircraft and other structural elements. Manufacturers are also focusing on meeting stringent restrictions while enhancing strength and durability, aligning with the evolving needs of various industries and raw material suppliers.
Different segments, including water-based adhesives, cater to various applications like glass bonding and structural fiber-reinforced plastic bonding in industries such as electronics, footwear, and construction. With a consumer base spanning the Asia-Pacific and LAMEA regions, major participants like 3M Company and Henkel AG & Co cater to diverse end-use industries, including packaging, automotive, and electronics and electrical. The market boasts a wide composition range from epoxy to hot-melt adhesives, offering high versatility and good spreadability. While the acrylic segment dominates in volume, water-based adhesives gain traction for their ease of use and cost-effectiveness. In developing regions, rapid urbanization fuels demand, especially in the packaging industry segment and the burgeoning e-commerce sector. Key players like Avery Dennison Corporation and Hitachi Chemical Company Ltd contribute significantly to the value chain, ensuring efficient adhesion solutions for various applications.
Industrial Adhesives Market Scope |
|
Report Coverage |
Details |
Page number |
194 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.38% |
Market growth 2024-2028 |
USD 22.17 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.89 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 48% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
3M Co., Applied Products Inc., Arkema Group, Avery Dennison Corp., BASF SE, Beacon Adhesives Inc., Covestro AG, DuPont de Nemours Inc., H.B. Fuller Co., Henkel AG and Co. KGaA, Hernon Manufacturing Inc., Hexcel Corp., Hitachi Ltd., Huntsman International LLC, Jowat SE, Permabond LLC, Pidilite Industries Ltd, Sika AG, Solvay SA, and Wacker Chemie AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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