SPECIALTY ADHESIVES MARKET ANALYSIS

The global specialty adhesives market size was valued at US$ 3.73 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 5.94% from 2023 to 2030. The key drivers for specialty adhesives market are rise in medical facilities and growing demand from emerging economies. The demand for specialty adhesives is growing, especially in the medical industry, because of the increasing number of surgical procedures and the rising number of road accidents. They are also used in the packaging industry to pack numerous food products and drinks.

Global Specialty Adhesives Market: Regional Insights

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

North America is expected to dominate the global specialty adhesives market over the forecast period owing to the increase in real estate development and automotive production in the region. The region is expected to grow at a significant rate over the forecast period due to the increasing number of infrastructure projects in the region.

Europe is estimated to be the second-largest market for specialty adhesives owing to the increased adoption of adhesives in the automotive industry. The market is also projected to grow at a higher rate because of the growing adoption of adhesives in the building and construction industries.

Asia Pacific is projected to exhibit a healthy growth rate over the forecast period owing to the rising construction activities and increasing investment in infrastructure. The major driving factors for the regional market growth are the growing construction projects, rising exports of processed food, and increasing demand for electronic components.

Figure 1. Global Specialty Adhesives Market, By Region 2022

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Global Specialty Adhesives Market Drivers:

Increasing demand from medical sector augment market growth

Specialty adhesives are widely gaining adoption across medical industry due to their strong mechanical bond strength. These adhesives are used in tapes, robes, and other medical devices to reduce weight and improve their versatility. According to India Brand Equity Foundation, the healthcare market in India is expected to reach US$ 372 billion by year 2022, due to the rise in incomes, greater health awareness, lifestyle diseases, and increasing access to insurance. The hospital industry is expected to grow at a CAGR of around 16-17% to reach US$ 132.84 billion by year 2022 from US$ 61.79 billion in year 2017.

Growing use of adhesive bonding for composite materials in aerospace sector to foster market growth

They are widely gaining acceptance in aerospace sector for bonding composite materials owing to their excellent properties, such as ability to distribute the load over a wider surface, increase fatigue, greater design flexibility, minimize stress concentrations, and corrosion resistance of bonded joints. Key players are focusing on introducing innovative product especially for aerospace application. For instance, in June 2019, Henkel AG & Company opened a new production facility for aerospace applications in Spain. Henkel aims to serve the constantly rising demand for high-performance solutions from the global aerospace industry by supporting the key trends, such as, fuel efficiency, light weight and automation.

Global Specialty Adhesives Market Opportunities:

Increasing adoption of In-line manufacturing of adhesives is expected to provide significant growth opportunities for key players in terms of reducing environmental impact. In-line manufacturing of adhesives is a great option for coating/converting operations that want to save on energy costs. In-line manufacture can significantly reduce the amount of adhesive that is needed for a given application, resulting in lower overall costs. This is because it takes less energy to melt the adhesive, to transport it from a manufacturer to the user, and to manufacture, package and dispose of the adhesive packaging.

Specialty adhesive are cost-effective and are expected to gain strong demand in the near future as well. This is expected to hold bright market opportunities. Adhesives are also a cost-effective way to bond two products together. This can be useful for a wide variety of purposes, such as creating a bond for an air-tight seal in a packaging container or forming a waterproof and chemically resistant barrier in an automotive body.

Global Specialty Adhesives Market Trends:

Structural adhesives are gaining attention

Structural adhesives are a great option for manufacturing products that have to withstand heavy loads and vibration. They can eliminate the need for welding, bolts, screws and other fasteners and allow manufacturer to design more efficiently and with more freedom of movement. These systems are also easy to apply and cure, so they are perfect for production assembly. They can be applied directly to the part without the need for any tools and don't require any drying time or mess.

Significant development in consumer appliances industry

Specialty adhesive are also used in the fabricating consumer electronics due to their ability to bond two surfaces permanently. Currently the market witnessing strong growth due to growing trend of digitalization. Moreover, increased adoption of adhesives in the automotive industry and growing penetration of electric vehicle will further favor the market growth.

Global Specialty Adhesives Market Restraints:

Declining automobile production to hamper market growth

According to Society of Indian Automobile Manufacturers (SIAM), automotive sales in India witnessed its sharpest decline in July, 2019 dropping by 18.71%. Passenger vehicles and two- wheelers stood at 18, 25,148 units in July, 2019, decreased from 22, 45,223 units in July 2018. This gradual decrease is due to liquidity crunch faced by non-bank vehicle financiers, prompting major auto makers to cut production. Hence, declining automobile sector is hindering specialty adhesive market growth.

Low stability at high temperatures to restrict market growth

Low stability at high temperatures, difficulty in bonding large objects with a small bonding surface area, and in separating objects during testing process are key factor restricting market growth. However, ongoing research &development activities for developing product with improved properties is expected to positively impact the market growth.            

Figure 2. Global Specialty Adhesives Market, By Resin Type 2022

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Global Specialty Adhesives Market Segmentation:

The global specialty adhesives market report is segmented into Resin Type, End user Industry, and Geography

Based on Resin Type, the market is segmented into Polyurethane, Epoxy, Radiation- Curable, Cyanoacrylate, and Anaerobic. Out of which, Polyurethane is expected to dominate the global market over the forecast period and this is attributed to the growing demand from automotive, aerospace,  packaging, and healthcare applications

Epoxy segment is also expected to witness significant growth in the near future and this is owing to their high peel strength, low cost, solvent free, cure at room temperature, and high durability property.

Based on End user Industry, the market is segmented into Aerospace, Automotive, Building & Construction, Healthcare, Packaging, Industrial Assembly, and Others (Energy, Electronics, Under Water Bonding, Cosmetics, and Military). Out of which, Aerospace is expected to dominate the global market over the forecast period and this is attributed to the growing use of specialty adhesive in bonding aircraft structures such as composite fairings,  control surfaces in wing flaps and tips, fuselage, empennage components,  landing gear doors, cargo liners, and floors.

Automotive segment is also expected to witness significant growth in the near future and this is owing to the use of adhesive in making body components and structures in automotive OEM.  

Global Specialty Adhesives Market: Key Developments

In October 2018, Arkema acquired Afinitica. This company is specialized in instant adhesives, also known as cyanoacrylates. This acquisition is expected to help Bostik to hold a strong position in adhesives used in the market.

In May 2019, HB Fuller expanded its business in Japan by establishing HB Fuller Japan G.K. H.B. Fuller Japan is expected to strengthen its Engineering Adhesive businesses in Japan, by focusing on high-performance adhesives.

Global Specialty Adhesives Market: Key Companies Insights

The global specialty 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 specialty adhesives market are 3M, Arkema Group (Bostik SA), H.B. Fuller Company, Henkel AG & Co. KGaA, Master Bond Inc., Nexus Adhesives, Permabond LLC, Pidilite Industries Ltd, Sika AG, and Threebond International Inc.

*Definition: Specialty adhesives are used in a wide range of industrial applications and industries. They are highly effective in sealing, insulating, and protecting various products. They have a rapid cure time and are highly transparent. They can be used in a variety of end use industries including automotive, marine, building & construction, medical and others.