According to a new report published by Allied Market Research titled, “Industrial Adhesives Market by Composition, Type, and End-use Industry: Opportunity Analysis and Industry Forecast, 2020–2027,”
The global industrial adhesives market was valued at $39.0 billion in 2019, and is projected to reach $54.9 billion by 2027, growing at a CAGR of 6.3% from 2020 to 2027.
Industrial adhesives help the manufacturing process for best results. They improve the quality of the assembly and reduce the manufacturing expense. The demand for industrial adhesives has increased, owing to fast penetration of e-commerce in developing economies and rising demand from the medical sector. However, availability of alternatives and volatility in prices of raw material are some of the factors expected to hinder the market growth during the forecast period.
The industrial adhesives market is segmented into composition, type, end-use industry, and region. On the basis of composition, the industrial adhesives market is divided into polyurethane, epoxy, vinyl, acrylic, and others. Depending on type, the market is classified into water-based adhesives, solvent-based adhesives, hot-melt adhesives, and others. Various end-use industries of industrial adhesives studied in the market include packaging industry, construction industry, automotive industry, electrical & electronics, and others. By region, the industrial adhesives market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The industrial adhesives market share is analyzed across all important regions.
On the basis of composition, the acrylic segment garnered 33.6% in terms of volume in 2019. This is attributed to high bond strength, superior levels of initial tack, and generation of less volatile organic compounds (VOCs).
Based on type, solvent-based adhesives segment garnered 9.1%, in terms of volume, in 2019. This is attributed to its adoption in various applications as it is high temperature resistance and can be applied to a variety of substrates.
On the basis of end-use industry, the packaging industry segment garnered 27.5% in terms of revenue in 2019, and is expected to grow at a CAGR of 6.6% during the forecast period. This is attributed to change in consumer trends, brand owner trends, spending on consumer goods, and others.
Region-wise, Asia-Pacific is expected to grow at a CAGR of 7.2%, in terms of revenue, during the forecast period. This is attributed to factors such as rising end-use industries, including aerospace, construction, electronics, and others.
The industrial adhesives market analysis covers in-depth information of the major industry participants. The key players operating and profiled in the market include 3M Company, Arkema S.A., Avery Dennison Corporation, H.B. Fuller, Henkel AG & Co. KGaA, Parker Hannifin Corp, Jowat SE, Pidilite Industries Limited, Wacker Chemie AG, and Delo.
Other players in the value chain of the industrial adhesives market include Hitachi Chemical Company Ltd., Bayer Material Science, Toyo Polymer Co. Ltd., Bemis, Ashland Inc, Royal Adhesives & Sealants, Cytec Industries Inc, Adhesive Films Inc., Forbo Holding, Cargill Inc., Vulkaflex Industrial, and others.
Key findings of the study
- The report outlines the current market trends and future scenario of the industrial adhesives market from 2019 to 2027 to understand the prevailing opportunities and potential investment pockets.
- The industrial adhesives market size is provided in terms of volume and revenue.
- On the basis of composition, the acrylic segment is expected to grow at a CAGR of 4.7%, in terms of volume during the forecast period.
- On the basis of type, the hot-melt adhesives segment gained 12.7% share in 2019 in terms of revenue.
- On the basis of end-use industry, the electrical & electronics segment garnered a share 6.3% in 2019 in terms of revenue.
- On the basis of region, North America garnered a share of 20.1% in 2019 in terms of revenue.
Impact of COVID-19 on the industrial adhesives market
- Manufacturing as well as supply regions or countries witnessed economic slowdown, owing to the lockdown implemented across several countries. The downstream section of the value chain, which is the end-use industry, has witnessed less demand. This impacted the growth of the industrial adhesives market.
- For instance, the automotive sector has been witnessing slowdown, owing to decreased automobile sales that resulted in decreased demand for raw materials. Therefore, this factor consequently impacted the demand for industrial adhesives.