Industrial Adhesives Market

Sustainability Trends Aid Market Prospects

According to The Adhesive and Sealant Council, the automotive industry alone makes use of up to 40 kg of industrial adhesives for every vehicle. Consequently, the residue, and improper application techniques pose environmental and health risks.

With efforts in keeping up with the requirements of the modern consumers industrial adhesive manufacturers are seeking methods to minimize the environmental impact of their product offerings. Investments into research and development to develop alternatives to conventional chemical industry adhesives market are important.

On the other hand, cost and performance standards of industrial adhesives are also of high importance for users. Consequently, manufacturers have been pushing for the incorporation of the better technologies towards this end. For instance, electron beam processing has found a role as a substitute for ultraviolet curing or oven drying, which has shown promise in minimizing emissions of volatile organic compounds.

Ani-Microbial Products Gain Traction with Covid-19

The uncertainty over the duration and severity of the coronavirus pandemic has resulted in consumers and end user industries pushing for the development of offerings with anti-microbial offerings. Demand is expected to rise for applications in healthcare device production to minimize the spread of anti-biotic resistant microbes and hospital acquired infections.

Demand in the recent past was relatively lower owing to cost and durability issues. However, health and economic changes have helped in the justification of adopting these materials. Industrial adhesive manufacturers can potentially take up repurposing and rebranding strategies for their offerings. Materials such as liquid metal, biocides, organo-silane nano-coatings, and specialized peptide coatings.

However overall, the pandemic has been projected to adversely affect the industrial adhesives sector, with a slump in demand and sales during 2020, as manufacturing sectors, and industrial facilities around the world have witnessed a slump in productivity to comply with lockdown and pandemic control initiatives. 

Key Challenges

Despite a largely positive trajectory for the industrial adhesives market between 2020 and 2030, the industry is expected to face a number of challenges. First, the frequent volatility of crude oil prices and associated derivatives affects production costs and pricing.

Also, strict regulations by governments towards the production and use of industrial adhesives to minimize health and environment risks could potentially slow the application of these products in the near future.

The highly competitive nature of the industry, coupled with the trend of globalization hurts long term prospects bolstering mergers and acquisitions, which have affected participants across the value chain.

Region-wise Analysis

East Asia Industrial Adhesives Market

East Asian countries, led by China accounts for more than a third of the global industrial adhesives market share. Rapid growth of the regional electronics sector and the presence of major end user industry bases including automotive, construction, and consumer electronics are key factors supporting adoption and sales here.

Key automotive OEMs have moved their facilities to countries such as China and South Korea owing to relaxed regulations and low costs of labor. In addition, large consumer bases in the region account for greater demand of industrial adhesives in the packaging and consumer goods sector.

The demand for epoxy, polyurethane, and silicone adhesive account for substantial market share. Henkel AG is a major player in the region, developing the largest industrial adhesive plant in Shanghai. In addition, investments into regional players has also contributed to the industry here.

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Europe Industrial Adhesives Market

 The European industrial adhesives market is projected to account for substantial market share, supported largely by the regional automotive industry. Strong production of motor vehicles prior to the coronavirus pandemic was a major demand driver for industrial adhesives in the region.

The European industry is likely to witness a steady recovery towards 2021 as the automotive industry continues to transition towards electric vehicles, creating strong demand for associated adhesives. Also, the packaging and construction sector has driven the demand for vinyl adhesive offerings particularly in terms of hot melts and water-borne adhesives.

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North America Industrial Adhesives Market

The North America industrial adhesives market is expected to gain from applications in the packaging industry. Growth of the ecommerce sector, transition in consumer bias towards ease in portability, and long shelf life of commodities generates strong demand for industrial adhesives.

Led by the United States, North America is expected to generate demand for industrial adhesives owing to rising demand in the construction and automotive sectors, for electric vehicle sales, and the development of smart, energy efficient buildings.

This market is largely consolidated, with innovations towards renewable alternatives to petroleum raw materials is gaining priority. On the other hand, strict regulations towards VOCs in industrial adhesive formulations potentially restrain the sector here.

Category-wise Insights

Acrylic Adhesives are Highly Sought-after

Industrial adhesives are available in numerous variants. These include acrylic, epoxy-based, EVA, Polyurethane, and PVA, among others. Of these options, acrylic adhesives are highly sought after in multiple end use industries.

The demand for acrylic industrial adhesives market can be attributed to properties of solvent resistance, fast curing, and acid resistance, in addition to superior aesthetics in bonding for metal substrates. Consequently, the material finds extensive use in packaging and medical device production.

Water-based Adhesive Formulations Remain Dominant

In terms of bonding technology, industrial adhesives are available in hot-melt, UV-cure, pressure-sensitive, solvent-based and water-based adhesive formulations. Water-based adhesive formulations are expected to stay dominant through the forecast period.

These products provide superior stability, initial bonding strength, and long shelf life in addition to resistance to aging and humidity. Also, these products are safer in terms of environment impact and minimal risk of allergy.

Packaging Sector Emerges as Leading End-User

Industrial adhesives find use in the paper, packaging, healthcare & hygiene, glass making, furniture & metalwork, footwear, electronics, consumer goods, construction, and automotive & aerospace sectors. Demand from the packaging sector is a major contributor to the market, driven by commodities and in the food and beverage sector. Solvent-free options are expected to gain traction in the industry for the short term.

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Competitive Landscape

Industrial adhesive manufacturers around the world are employing a multi-pronged strategy including product development, collaborations towards bolstering distribution networks, and capacity and geographic expansion endeavors.

The coronavirus is expected to create short term hurdles for industrial adhesives. However, the overall prospects of the sector are positive through 2030, even as some businesses are pushed towards operational and workforce cuts during this period.

Henkel AG & Co KgaA has opened up the Dragon Plant in Shanghai for the production of the company’s hotmelt adhesive brands including. Technomelt, Loctite, and Teroson. The company has also invested 400 crore rupees in India for its eighth industrial adhesive plant in the country in the state of Maharashtra. The company has also partnered with Asian Paints to bolster its distribution network for adhesives in India.

The Dow Company on the other hand has announced the introduction of a new cast curing, silicon-based industrial adhesive, named DOWSIL EA-3838, which is a primer-less adhesive for curing in room temperature, eliminating the need for oven heating, potentially bolstering productivity for end use sectors.

Further, Arkema S.A., under the label of its Bostik subsidiary, has announced the introduction of a new international-scale plant for industrial adhesives in Nara, Japan, for the production of adhesives for non-woven substrates, such as diapers, aiming to make the company a specialty materials market player.  

In addition to these players, some other prominent industrial adhesive manufacturers include:

• 3M Company
• Sika AG
• H.B. Fuller Company
• Huntsman Corporation
• Teraoka Seishakusho Co. Ltd
• Pidilite Industries Ltd.
• FORBO Holding
• Covestro AG
• Organik Kimya
• Panacol-Elosol GmbH
• Cargill Inc.
• Master Bond Inc.
• Glue Dots International
• ASTRAL Adhesives
• Superglue Corporation
• Yamato Co. Ltd.
• DELO Adhesives
• Tonsan Hongshu Adhesive Products Industrial Co. Ltd.
• Great Eastern Resins Industrial Co. Ltd.
• Vulkaflex Industrial
• Chemlok

This list is only indicative – The full list of industrial adhesives players is available on request.

Industrial Adhesives Industry Report: Scope

Key Questions Answered by the Report

• What is the size of industrial adhesive s market?

  The global industrial adhesives market has an estimated valuation of over US$ 50 billion in 2020. The market is estimated to rise at a ~ 4.4% CAGR between 2020 and 2030.

• Which is the largest market for industrial adhesives?

  East Asia is currently the leading regional market for industrial adhesives. The presence of major manufacturing facilities in countries across this region aid market development.

• Which are the top companies in industrial adhesives market?

  Some of the top companies operating in the market are 3M, The Dow Company, Henkel AG & Co. KGaA, Arkema SA, Pidilite Industries Ltd., Cargill Inc., H.B. Fuller Company, Master Bond Inc., and Glue Dots International among others.

• What are the applications of industrial adhesives?

  Industrial adhesives find use in a vast range of industrial and manufacturing settings, ranging from footwear, and consumer goods, to construction, healthcare, and automotive and aerospace.

• In what types are industrial adhesives available?

  Industrial adhesives are available in five major types, Acrylic, Epoxy, PVA, PUR, and EVA. Of these acrylic industrial adhesives are most sought after. Properties of high shear strength, peel strength, and tensile strength, aid adoption.

• What is the outlook on industrial adhesive s market?

  Industrial adhesives manufacturers are pushing for applications in the electronics and automotive sectors, owing to the development of electronics grade products.

• Will South Asia and Pacific exhibit higher demand?

  Countries in South Asia and Pacific are projecting strong growth rates, which can be accounted for by demand from the regional electronics industry, and niche applications in construction and packaging.

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• Is this research conducted by Future Market Insights?

  Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst.

• What research methodology is followed by FMI?

  FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions.

• Who are the respondents for primary research?

  FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.

• What are the sources of secondary research?

  FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request. 

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Key Segments

Product Type

• Acrylic
• Epoxy
• PVA
• PUR
• EVA
• Others

Technology

• UV Cure
• Pressure Sensitive
• Water-based
• Solvent-based
• Hot Melt
• Others

End Use

• Automotive & Aerospace
• Healthcare & Hygiene
• Consumer Goods
• Packaging
• Construction
• Electronics
• Furniture & Metalwork
• Glass
• Footwear
• Paper

Regional Outlook

• North America (U.S., Canada)
• Europe (Germany, Italy, France, U.K., Spain, BENELUX, Russia, Rest of Europe)
• Latin America (Brazil, Mexico, Rest of LATAM)
• South Asia and Pacific (India, ASEAN, Oceania, Rest of South Asia and Pacific)
• East Asia (China, Japan, South Korea)
• Middle East & Africa (GCC Countries, Turkey, South Africa, Northern Africa, Rest of MEA)