The global industrial adhesives market size to cross USD 68 billion, growing at a CAGR of 4.5% during the forecast period. The rising demand from the construction and packaging industries is boosting the application of industrial adhesives. Changing construction practices and the increasing use of innovative building materials are key factors, which are likely to increase the demand for epoxy adhesives and their related formulations. Epoxy resins are durable and can be used with various raw materials such as wood, metal, glass, or tiles. The growth of the global furniture industry, which hit around $554 billion in 2019, is expected to boost the industrial adhesives market. The labeling and other packaging types hold over a 30% share in the industrial adhesives market.
- The growth of the smart vehicles industry is expected to develop a relatively large demand for automotive adhesives
- The number of electric vehicle manufacturers is consistently growing. The application of electrically conductive adhesives is also going to witness a surge during the forecast period.
- The packaging industrial adhesives market is expected to witness an incremental growth of $4 billion during the forecast period
- APAC is likely to observe an incremental growth of over $5.5 billion by 2025 due to significant growth in the automotive and construction sectors
INDUSTRIAL ADHESIVES MARKET SEGMENTATION
This research report includes a detailed segmentation by
INSIGHTS BY TECHNOLOGY
The Asia Pacific is leading the industrial water-based adhesives market, followed by North America and Europe. The growing awareness of the “green economy” is likely to create more opportunities for water-based industrial products. Although the industry is growing, the limited usage in high-end applications is inhibiting growth.
Automatic water-based dispensers increase the productivity and safety of packaging goods. Manufacturers use these dispensers in advanced packaging technology. The demand for high-quality flexible packaging and labeling machinery with inbuilt dispensers is the highest in Asia and Africa. The development in packaging technology is a major key driver for increasing the consumption of water-based products across the globe.
The automotive and footwear adhesives market is the major contributor to the growth of solvent adhesives. The Asia Pacific dominates this segment on account of the growth of the automotive sector in China and India. The demand for solvent-based products is growing rapidly. The stringent environmental regulations for VOC emissions are likely to hamper growth during the forecast period.
INSIGHTS BY PRODUCTS
The acrylic segment is expected to have high demand across several industries. The cost-efficiency of acrylic adhesives and high growth in APAC is expected to drive the segment growth. Acrylic ones have replaced epoxy types on account of their high strength and remarkable toughness. Factors such as cost-effectiveness and high resistance are the driving factor for their usage in the manufacturing and fabricating industry.
Polyvinyl alcohol (PVA) is manufactured using polyvinyl acetate and is characterized by low cost and widespread applications. The application of PVA is growing in substrates such as cork, leather, paper, and cardboard. Packaging, paper, construction, and wood processing industries are dependent on water-based and hot melt adhesives. This industry extensively uses PVA in various applications. The demand for PVA is expected to be high in the Asia Pacific region, as many industries utilizing the adhesive are currently in high growth mode.
The growth of the PU segment is growing on account of characteristics such as first-rate adhesion, abrasion resistance, and low-temperature resistance. PU adhesives are highly sturdy and tough due to their cohesive potency and flexibility. The segment is likely to observe an incremental growth of over $2.50 billion during the forecast period.
INSIGHTS BY END-USERS
With advances in machinery and materials, the packaging industry is catering to diverse needs such as increasing the shelf life of products, brand promotion, and regulatory conformation. The demand for general pressure-sensitive labels with emulsion-based adhesives is the highest. Emulsion-based and solvent/solution pressure-sensitive labels have higher demand as hot melt-based PSLs are relatively high cost. UV-based adhesives have many advantages. However, solvent-based and emulsion-based offer far superior performance at a low cost. Hence, they are expected to continue dominating the global pressure-sensitive labels market during the forecast period.
With globalization, several foreign players are scaling up their operations and expanding their footprint in several countries to benefit from favorable FDI and other corporate-friendly policies. Europe and North America are facing increased competition from APAC-based vehicle manufacturers. The decrease in the demand for new vehicles in the last few years has reduced the growth of epoxy industrial adhesives.
Furniture adhesives are used for waterproofing and improve the quality of doors and windows. The furniture industry is expected to grow by over 6% during the period 2018–2023. Rapid urbanization and an increase in disposable incomes are the factors that boost the furniture industry in the APAC region. Adhesive technologies used in woodworking are generally EVA and PU hot-melts, and dispersions.
INSIGHTS BY GEOGRAPHY
Several countries are witnessing a boom in the industrial adhesives market. The capital investment from lenders and private equity groups is abundantly fueling the growth of small and medium-sized players. In recent years, major end-users have been construction, automotive, packaging, and electronics.
The construction industry investor confidence has increased in the US, Australia, Japan, and Europe. The YOY growth has increased in more than a hundred countries with respect to the construction market. Over the years, emerging economies such as South Africa, Brazil, and China have provided a major impetus to the market. North America and European region are rapidly evolving with the adoption of new building technology, including sustainability practices.
The geographical proximity of India with Europe and the Middle East automotive market has provided better opportunities to the automotive manufacturing sector. The automotive industry in Asia Pacific is growing in consumption and purchase. The developed industry in Europe and North America is still lagging behind the developing market.
North America and Europe hold major shares in the global packaging market. In 2018, the two regions accounted for a share of more than 55% on account of the growing consumer packaging industry. Countries such as Australia, Japan, China, Germany, France, the US, and Canada are the major packaging markets with high spending on F&B and pharmaceutical segments.
INSIGHTS BY VENDORS
The global industrial adhesives market is highly competitive with the presence of global, regional, and local players. A majority of the market share is captured by global companies such as Arkema, Henkel Ag, and HB Fuller. Vendors are focusing on developing innovative products and increasing their product portfolio by making huge investments in R&D. The key competitive factors in the industrial adhesives market include:
The industrial adhesives market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($billion) from 2019 to 2025 for the following segments:
Market Segmentation by Technology
- Styrenic Block
- North America
- South Korea
- Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa