The industrial adhesive market size was USD 53.02 billion in 2019 and expected to reach USD 74.80 billion by 2027; this converts into a compound annual growth rate (CAGR) of 4.40% for the forecast period.
Based on geography, the market is segmented as below:
An adhesive used, to bond two surfaces together, generally in industrial applications are known as industrial adhesives. The commonly used raw materials for the production of these adhesives are natural rubber, starch, synthetic polymer, neoprene, etc. Various additives are mixed with these materials to produce an adhesive with a specific composition.
The growing demand for adhesives across various industries such as automotive, construction, packaging, electronics, footwear, and more coupled with its increasing applications will fuel the adhesive market. Additionally, the development of bio-based adhesives will bolster the market growth. Stringent environmental regulations may pose a threat to the expansion of the market.
The industrial adhesive market is expected to witness substantial growth through the automotive sector. A decrease in sales in this sector will, therefore, hamper the growth of the market. Moreover, any fluctuation in demand from the end-user industries may further cause a deceleration in the augmentation of the market.
Epoxy adhesives offer numerous benefits such as low shrinkage during and after cure, high mechanical strength, chemical and heat resistance, and more. These advantages are widening the application base of adhesive within the construction industry. Growing demand for autonomous vehicles or advancement in V2I, V2V, active safety, and similar technologies will drive up the use of industrial adhesives in the electronics as well as the automotive industry. Furthermore, the need for lightweight packaging is paving the way for the development of newer adhesives. All of these factors will provide a plethora of opportunities for the market to flourish.
Segmented on the basis of technology, the water-based segment accounted for over 40% of the industrial adhesive market in 2019, on account of its superior properties and environment friendly characteristic. Nevertheless, the hotmelt segment is estimated to expand significantly, since it is witnessing a high demand, due to its fast-processing time.
High-fracture resistance and the ability to bond different materials has made the polyurethane or PU segment the fastest growth within the product type category. The segment is projected to register an approximate 8% CAGR during the forecast years. However, as of 2019, the acrylics segment dominated the market.
Industrial adhesives are extremely popular among the packaging industry. As a result, the segment held close to 35% of the market in 2019. The high demand for electric vehicles, need to assemble various non-metallic components and the steady growth of the automotive industry, is anticipated to lead to the segment’s high growth rate between 2020 and 2027.
The Middle East & African industrial adhesive market is predicted to display a 9% CAGR, the fastest among other regions due to the rising infrastructure sector and high demand from the HVAC industry. The expansion of the automotive sector will boost the European market, while the construction industry in accordance with the auto sector, will contribute to the growth of the Latin American market. North America is largely influenced by the packaging industry. Asia-Pacific, on the other hand, owes its dominance to supportive government regulations, inexpensive labor and surge in demand due to the growing population.
A few key players include, but not limited to: Flamemaster, Permatex, Master Bond Inc., Solvay, Beacon Adhesives, Huntsman Corporation, Ashland, Lord Corporation, Franklin Adhesives and Polymers, Kleiberit Adhesives, Dow, Jowat.
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