INDUSTRIAL ADHESIVES MARKET ANALYSIS

The global industrial adhesives market size was valued at US$ 39.44 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 6.6% from 2023 to 2030. Growing demand for industrial adhesives from packaging industry and automotive sector is expected to drive market growth over the forecast period. Rapid industrialization in developing regions along with increasing manufacturing sector & fast economic growth is again expected to fuel market growth. Moreover, rising consumer goods, furniture, non-woven fabrics and cartons manufacturing sector are further bolstering industrial adhesives market growth.

Global Industrial Adhesives Market: Regional Insights

Based on geography, the global industrial adhesives market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Asia Pacific is expected to dominate the global industrial adhesives market over the forecast period due to growth in the construction sector. In addition, the demand for automotive adhesives is expected to increase owing to a surge in the sale of passenger cars. Moreover, growing demand from packaging, furniture, automotive, and a variety of other end use applications is further anticipated to augment regional market growth.

North America is analyzed across the U.S. and Canada. The U.S. garnered dominant share of 65.2% in the North America industrial adhesives market. This is attributed to the established industrial sector. Also, ongoing technological advancements due to heavy investment in R&D is again fueling regional market growth.

Figure 1. Global Industrial Adhesives Market, By Region 2023

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Global Industrial Adhesives Market Drivers:

Growing demand from packaging industry to propel market growth

Industrial adhesives are a type of bonding materials used to join two or more substrates together. They are produced from natural and synthetic polymeric materials. These substances can be used either wet or dry and are available in a range of textures, viscosities, and strengths. They are widely used in packaging industry as they are highly effective and provide excellent performance characteristics.

Growing demand for sustainable and durable products to augment market growth

Rising demand for sustainable and durable products is a significant factor that is projected to drive the market growth in the near future. This is due to the increasing construction of residential and commercial buildings in emerging countries. The rapid development of e-commerce sector is another factor that is projected to fuel the growth of this market. The market is also boosted by rising middle-class household income in developing countries.

Global Industrial Adhesives Market Opportunities:

Industrial adhesives market is expected to witness lucrative growth opportunities in the future due to rapid urbanization, increasing population, growing new construction and infrastructure development activities. Increasing demand for construction materials that offer high adherence, improved performance and simpler application methods are further drive the market for industrial adhesives.

Growing demand for water-based adhesives due to rising environmental concerns is expected to offer additional market opportunities. Water-based adhesives are manufacture from water, polymers and a choice of additives. They cure by the evaporation of the water and are often used in gluing porous or semi-porous materials such as cardboard, paper, and wood.

Global Industrial Adhesives Market Trends:

Shift towards a greener technologies

A shift toward greener and sustainable technologies is projected to boost the demand for bio-based industrial adhesives in the near future. Key manufacturers are investing heavily in the research and development of eco-friendly alternatives to petrochemical-based products. Moreover, adhesives based on natural products are a fast-growing segment of the market because they offer excellent strength, durability and performance at a lower cost.

Growing trend of lightweight vehicles

Increasing trend toward lightweight vehicles is expected to fuel market growth. Several manufacturers are focusing on manufacturing vehicles with reduced weight that can reduce CO2 emissions and comply with stringent environmental standards. Industrial adhesives can help in reducing vehicle weight by eradicating the use of rivets and welds. This is a major benefit offered by industrial adhesives that is driving the demand in the automotive sector.

Global Industrial Adhesives Market Restraints:

Fluctuating price of raw materials to hinder market growth

Petrochemicals, solvents, and tackifiers are key raw materials used in the production of industrial adhesives. These chemicals are derived from crude oil and as a result, their prices are dependent on the price of oil. Moreover, the depletion of oil resources is also affecting their supply and increasing the raw material costs. This is a major challenge faced by the industrial adhesives market and is expected to hinder its growth in the coming years.

Strict regulations regarding the VOC emissions

Some of the organizations of various countries that make regulations for volatile organic emissions are Environmental Protection Agency (the U.S.), Environmental Protection Department (the UK), the Central Pollution Control Board of India, and others. The Environmental Protection Agency regulates VOC emissions at Federal level in 40 CFR 59, which is the volatile organic compound emission standard for commercial and consumer products.                                             

Figure 2. Global Industrial Adhesives Market, By Composition, 2023

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Global Industrial Adhesives Market Segmentation:

The global industrial adhesives market report is segmented into composition, type, end use industry, and region

Based on composition, the market is segmented into Polyurethane, Epoxy, Vinyl, Acrylic, and Others. Out of which, Polyurethane is expected to dominate the global market over the forecast period and this is attributed to the fact that they flexible, durable, and offer excellent impact resistant

Epoxy segment is also expected to witness significant growth in the near future. Epoxy adhesives are a copolymer that is formed from two different chemicals: a resin and a hardener. The resin provides the structural integrity of the glue while the hardener forms the chemical bonds. Typically, an epoxy is used in applications that require a high degree of environmental resistance and/or a long-lasting bond.

Based on type, the market is segmented into Water based Adhesives, Solvent based Adhesives, Hot melt Adhesives, and Others. Out of which, the water-based segment has a major share in the global industrial adhesives market and is expected to continue growing at a rapid pace. It is made from non-toxic ingredients and is eco-friendly, thus resulting in increased adoption in packaging and food applications.

Hot melt Adhesives segment is also expected to witness significant growth in the near future. Hot-melt adhesives come in cartridge, pen, powder, granulate or mesh form and melt at high temperatures. They are often applied with a glue gun and can be sprayed or dispensed onto the surface to be bonded. They are solvent free, with no mixing required. 

Based on end use industry, the market is segmented into Packaging Industry, Construction Industry, Automotive Industry, Electrical & Electronics, and Others. Out of which, Automotive Industry is expected to dominate the global market over the forecast period and this is attributed to the growing manufacturing passenger car

Construction Industry segment is also expected to witness significant growth in the near future and this is owing to the rapid urbanization and industrialization.

Global Industrial Adhesives Market: Key Developments

In February 2020, Henkel AG expanded its adhesives business in India by investing $55.4 million. It launched its eighth plant and first multi-technology unit in Pune (Maharashtra, India) at an investment of $55.4 million. It is also Henkel’s largest adhesive manufacturing unit in India.

In June 2019, Arkema’s subsidiary Bostik acquired Prochimir. Prochimir is a France-based company involved in high performance of thermo bonding adhesive films. This acquisition has reinforced Bostik’s presence in the adhesive industry.

In November  2022 Bostik, a global adhesive specialist for industrial, construction and consumer markets, has launched two new innovative products for the tape and label market in India.The first is Bostik HM2060, a single solution for high-speed label conversion in the Fast Moving Consumer Goods (FMCG), pharmaceutical and logistics industries.

Global Industrial Adhesives Market: Key Companies Insights

The global industrial adhesives market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global industrial adhesives market are Henkel, 3M, Bostik, Avery Dennision, H.B. Fuller, Jowat, and Pidilite Industries Limited

*Definition: Industrial adhesives are a great choice for bonding metals, plastics, and other surfaces that are exposed to chemicals or extreme heat.