GLOBAL COMPOSITE ADHESIVE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

The global composite adhesive market size is valued at US$ 3.58 Billion in 2024 and is expected to grow at a CAGR of 6.6% during the forecast period. Composite adhesives are bonding agents used to join composite materials together. There are various types of composite adhesives available, depending on the substrate material and application.

Global Composite Adhesive Market Regional Insights:

• Asia Pacific region has emerged as the fastest-growing market for composite adhesives in recent years. Expanding manufacturing activity, along with the rising export focus of industries like aerospace, is a key factor. Countries like China, Japan, and India are global manufacturing hubs with a significant presence of automotive, industrial equipment, and electronics sectors that utilize composite parts. Substantial foreign investments by leading aircraft and automobile brands have led to the establishment of new production plants. For instance, several automakers have set up local facilities to cater to the large domestic market in China. This is increasing the in-country consumption of composites and adhesives. Rising composite exports from the region are another growth accelerator. Chinese composite manufacturers are major exporters of wind turbine blades to Europe and boat hulls to North America. The export momentum is encouraging adhesive suppliers to establish local production and supply chains to minimize transportation costs and ensure just-in-time deliveries.
• North America has been the dominant regional market for composite adhesives globally. The region is home to well-established and technologically advanced aerospace, transportation, and industrial manufacturing industries that are major end-users of composite materials. Composite parts are increasingly being used in aircraft components like empennage, wings, and fuselage to reduce weight. Leading commercial aircraft OEMs like Boeing and Airbus have major production facilities in the U.S. and Canada, which drives the demand for adhesives. Further, automotive manufacturers are incorporating composite body panels, bumpers, and roofs to reduce vehicle weight and meet stringent fuel efficiency norms.
• The Middle East and Africa is expected to drive demand mainly from the growing construction and infrastructure industries over the forecast period. The growth of the construction sector in the region is largely attributed to continuous investments in infrastructure projects, rapid urbanization, population growth, and government initiatives toward infrastructure development. For instance, 100% of foreign direct investment in the construction industry under automatic routes is permitted in malls and shopping complexes. The reintroduced Innovative Materials for America’s Growth and Infrastructure Newly Expanded is also propelling the incorporation of composites in construction applications. Composite adhesives are used in construction applications as they provide strong adhesion for meeting the requirements of these expanding construction projects.

Figure 1. Composite adhesives Market Share (%), by Region, 2023

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Global Composite adhesives Market Analyst Viewpoint:

The composite adhesive market is poised to grow steadily, driven by increasing demand from the aerospace and wind energy industries. The lightweight and high strength properties of composites are fueling their rising usage in aircraft components and wind turbine blades. This will accelerate the need for advanced adhesives that can bind composites in harsh conditions. The automotive industry is also expected to boost market growth as carmakers design composite-intensive vehicles for better mileage.

However, high raw material costs remain a major challenge, restricting wider applications of composites. Volatility in the prices of polymers and resins can negatively impact adhesive suppliers. Stringent environmental regulations around VOC emissions pose another restraint.

On the positive side, development of bio-based and recyclable adhesive formulations present lucrative opportunities. Ongoing Research & Deveopment towards adhesive technologies specialized for composite repair and maintenance will support aftermarket sales. Growing composite usage in marine and infrastructure also opens new avenues.

Among regions, North America currently dominates, led by the aero-defense and wind sectors. However, Asia Pacific is poised to emerge as the fastest-growing regional market in the coming years. This can be attributed to expanding composite manufacturing capacity and rapidly increasing wind installations in China and India. In addition, the presence of major airplane OEMs is enhancing the Asia Pacific position.

Global Composite Adhesive Market Drivers:

• The growing demand from various end-use: Industries such as transportation, building and construction, marine, wind energy, and others is a major driver boosting growth of the composite adhesive market. Composite materials are increasingly being used across various applications due to advantages such as high mechanical strength, durability, and corrosion resistance, along with their lightweight nature. Adhesives help bond composite materials effectively and provide assembly convenience. With rapid infrastructure development and the ongoing construction of new projects globally, the building and construction industry continues to thrive. This has driven the need for lightweight and durable construction materials such as fiber reinforced plastics and composites, which contribute to the growth of Composite adhesives market.
• Escalating demand from aerospace and defense industry: Manufacturers in the aerospace sector are focusing on reducing the weight of aircraft to improve their fuel efficiency. This has boosted the adoption of composite materials in aircraft manufacturing. Composite adhesives are critical in the production of advanced aircraft made from composites. They help adhere different materials, such as carbon fiber, to aluminum, resulting in aircraft assemblies. They also facilitate the repair and maintenance activities of aircraft fleets. The commercial aviation industry has been growing steadily, which is positively impacting the demand for new aircrafts and their maintenance, repair, and overhaul services. This continually drives the need for high-performance composite adhesives within the aerospace industry. With rising geopolitical tensions globally, the defense budgets of countries are also on the rise, augmenting the procurement of advanced military aircraft and vessels that employ composites and composite adhesives.

Global Composite Adhesive Market Opportunity:

New product innovations in Composite Adhesive Market

Innovations can provide tremendous opportunities for growth in the global composite adhesive market. Composite materials that use adhesives are being used in a wider range of applications, such as in automotive, aerospace, and construction industries. This is driven by the need for lighter and stronger materials that composite adhesives can provide. As composite materials grow in popularity due to their performance benefits over traditional materials, the demand for advanced adhesive technologies to bond these new composites will also increase substantially.

Research and development of adhesive formulations that can withstand higher temperatures, pressures, impacts, and varying environmental conditions will unlock new applications. For instance, the automotive industry is constantly seeking new ways to reduce weight and improve fuel efficiency, and composite adhesives that can withstand higher temperatures, pressures, and impacts are essential for achieving these goals. Research and development efforts have led to the introduction of high-performance adhesives that can withstand extreme conditions, such as high-temperature silicone adhesive formulations for attaching lightweight ceramic insulations to rigid substrates and the development of new adhesive formulations that can withstand varying environmental conditions is expected to unlock new applications in the construction and infrastructure industry, where durable and reliable adhesives are required to meet the demands of expanding construction projects. Therefore, the research and development of advanced adhesive formulations that can withstand extreme conditions is crucial for unlocking new applications in various industries, including the global composite adhesive market.

Emerging applications in the marine and wind energy industries

Marine and wind energy industries present a promising opportunity for growth in the global composite adhesive market. As concerns over climate change intensify, renewable energy technologies are gaining more attention and investment globally. This trend is expected to drive significant demand for composite adhesives that can be used in the construction of marine vessels and wind turbines utilized in clean energy generation.

Composite materials offer various advantages over traditional metals like steel or aluminum, such as a higher strength to weight ratio, greater corrosion resistance, and lower maintenance. This makes them an attractive choice for building structures and components that will be exposed to corrosive marine environments or the stresses of offshore wind farms. Composite adhesives are critical to bonding different composite components together and providing joints that can withstand heavy loads and harsh operating conditions over long lifetimes. As the marine and offshore renewable energy sectors expand, supported by government incentives and policies, there will be a growing need for high-performance adhesive technologies.

Global Composite Adhesive Market Trends

Automation in composite parts manufacturing: The rising use of automation technologies in composite parts manufacturing is having a significant impact on the global composite adhesive market. As automated production lines increasingly take over repetitive manufacturing tasks, the demand for adhesives optimized for machine dispensing and application is growing. Robotics enable much higher precision and consistency in adhesive application compared to manual methods. This is driving adhesive manufacturers to develop new formulations with precise flow properties and open times tailored for robotics. Adhesives requiring minimal specialized surface preparation or curing are especially attractive for automated composite fabrication.

The shift to automated manufacturing allows composite parts to be produced faster, cheaper, and with less variability compared to manual manufacturing. This expands the viable uses of composites into more cost-sensitive applications, such as automotive interior panels or wind turbine blades. As composite materials displace traditional materials in these growing markets, it greatly increases the addressable demand for composite adhesives. For instance, automakers in particular have strong incentives to use lightweight composite materials for vehicle weight reduction and are actively adopting new automated composite manufacturing technologies.

Rising Research & Development activities: by leading composite adhesive manufacturers is significantly impacting the global composite adhesive market. With continuous innovation and the development of new product varieties, companies are able to expand their portfolio and address the changing requirements of diverse end-use industries. Composite adhesive producers are focusing on developing adhesive solutions with improved bonding strength, heat resistance, longevity, and compatibility with various composite materials, such as carbon fibers, aramid fibers, and glass fibers. For instance, Henkel recently launched a new structural bonding adhesive under its Loctite brand for composite bonding applications in transportation industry. This adhesive has been engineered to deliver high strength and durable bonds for composite components exposed to demanding temperatures up to 180 degree sCelsius. Similarly, Sika has come up with an epoxy-based adhesive for wind turbine blade fabrication. According to company studies, this adhesive results in reduced curing time and higher production output for blade manufacturers compared to conventional polyurethane adhesives.

Global Composite Adhesive Market Restraints:

• Volatility in raw material: Raw Material prices the fluctuating prices of raw materials used in manufacturing composite adhesives is significantly hampering the growth of the global composite adhesive market. Composite adhesives are primarily derived from petroleum feedstock and rely heavily on basic raw materials like epoxy and polyurethane resins. However, the prices of crude oil and naphtha, which are the base components for producing these resins, have exhibited high volatility in recent years. For instance, the fluctuating prices of raw materials used in manufacturing composite adhesives, such as crude oil and naphtha, which are the base components for producing resins like epoxy and polyurethane, significantly hamper the growth of the global composite adhesive market. The prices of these raw materials have exhibited high volatility in recent years, which can negatively impact the profitability of composite adhesive manufacturers.
• Stringent environmental regulations: Regulations by various governments across the globe are putting constraints on the growth of the global composite adhesive market. Several nations have legislated strict restrictions on the use and production of volatile organic compounds (VOCs) due to their harmful effects on the environment and human health. Since most composite adhesives traditionally contain VOCs as one of the key ingredients, these regulations have created compliance challenges for adhesive manufacturers.

VOC emissions from composite adhesives are linked to increased air pollution and the formation of ground-level ozone, both of which contribute to climate change. Many developed economies, like those in the European Union and North America, have implemented some of the most rigorous VOC controls through their environmental protection agencies. For instance, the US Environmental Protection Agency has classified certain VOCs as hazardous air pollutants and imposed low concentration limits for their use under the Clean Air Act. In the EU, the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) regulation has put a cap on VOC emissions from adhesives and sealants used in various applications.

The tightening of VOC norms has encouraged composite adhesive producers to invest heavily in research and development of more environment-friendly adhesive formulations. Water-based adhesive systems have gained prominence as a viable low-VOC alternative for wood working and automotive composite applications. However, transitioning to new technologies has increased production costs for the industry.

Recent Developments:

• Pidilite Lanka Pvt limited, a subsidiary of Pidilite industry limited and a recognized manufacturer of adhesives, construction chemicals, and sealant, has introduced Araldite and epoxy glue line to the Shri Lankan Market in November 2021. Araldite epoxy adhesives are the prepared choice for a wide range of industries and applications.
• In October 2021, Scott Bader, a well-known chemical company, purchased a manufacturing facility in Mocksville, Texas in order to meet the growing local and global demand for composite adhesives.

Figure 2. Global Composite Adhesive Market Share (%), by Product, 2023

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Top Companies in the Composite Adhesive Market:

• Henkel AG & Co. KGaA,
• SIKA AG,
• Master Bond Inc,
• The Dow Chemical Company,
• Huntsman Corporation,
• LORD Corporation,
• Illinois Tool Works Incorporation-Plexus.
• Hernon Manufacturing, Inc.
• Scott Bader Company Ltd.

Definition: Composite adhesive is a type of adhesive used for bonding composite materials. Composite materials are defined as materials made from two or more constituent materials with significantly different physical or chemical properties that, when combined, produce a material with characteristics different from the individual components.