Adhesives Market

Adhesives Market Overview (2022-2032)

Global market demand for adhesives reached US$ 60 Billion in FY 2021, and is poised to register a Y-o-Y expansion rate worth 5% in 2022, reaching US$ 63 Billion. During the forecast period ranging from 2022 to 2032, the market is poised to register a CAGR worth 5% to be valued at US$ 102.6 Billion.

Report Attributes	Details
Anticipated Base Year Value (2021)	US$ 60 Billion
Expected Market Value (2022)	US$ 63 Billion
Projected Forecast Value (2032)	US$ 102.6 Billion
Global Growth Rate (2022-2032)	5%
Expected Market Value of the North America Market (2032)	5.5%
Anticipated Growth Rate of historical period (2016-2021)	4.8%
Major Adhesives Providers	3M Arkema S.A. Henkel Corporation Ashland Inc. Avery Dennison BASF SE Evonik Industries H.B. Fuller Company PPG Industries RPM International Inc. Sika AG Wacker Chemie AG

The use of high-performance adhesives in automotive applications for interior and exterior purposes is driving the market growth. Adhesives are finding more applications in the construction industry, which is helping to drive market growth. From 2016 to 2021, the industrial adhesives market grew at a CAGR of 4.8%.

2015-2021 Revenue Analysis of Adhesives vs. Future Outlook 2022-2032

Growth in the packaging, construction & woodworking, and transportation end-use industries, as well as technological advancements, have all contributed to the expansion of the industrial adhesives market over the years. The industrial adhesives market grew at a CAGR of 4.8% between 2015 and 2021.

Due to strict environmental policies, bio-based alternatives are being developed. Soybean-derived polyols, vegetable oil-based polyamides, polyisoprenes, and epoxies are the major bio-based adhesives that will see increased sales and production during the forecast period. Over the forecast period, the market is expected to grow at a CAGR of 5%. (2022-2032).

Prominent Growth Drivers Influencing Adhesives Deployment

Growing Demand from Developing Regions to Drive the Market

Asia-Pacific is attracting investments for localized production and R&D activities in order to meet customer demands more quickly and efficiently while maintaining long-term competitiveness in this market. Because of the increasing number of construction activities, this region has the largest market share. The construction sealants market in the United States is primarily influenced by rising per-capita income, rapid urbanization, expanding housing sectors, and favorable government policies that have increased demand for advanced architecture and home décor.

In addition, rising demand from the residential and non-residential sectors, as well as government investment in existing and new infrastructure projects, are driving growth in the North American construction market. The growing demand for electronics devices such as electronics components, laptops, smartphones, and others is expected to drive market growth in the European region.

The emergence of non-hazardous and sustainable adhesives is fueling market demand

On the contrary, increased regulations and public awareness have prompted key manufacturers to develop non-hazardous, green, and sustainable adhesives and sealants. Henkel AG & Co. KGAA, for example, provides sustainable polyurethane adhesives with no added formaldehyde for bonding applications in building products.

Furthermore, in order to comply with global sustainability trends, Sika AG, a leading manufacturer of structural adhesives, is researching sustainable options for its adhesive products.

Furthermore, according to an article published by a project procurement community called B2B Purchase in 2019, buyers are aware of the importance of using environmentally friendly materials. As a result, the emergence of non-hazardous and sustainable adhesives and sealants is expected to provide lucrative opportunities for the market in the near future.

Factors likely to Impede Market Growth of Adhesives

The use of these products produces a large number of chemical gases that may prove to be a major Hindrance

The use of these products produces a large number of chemical gases, which are considered harmful and hazardous when inhaled. As a result, the rules governing their use are becoming more stringent. Furthermore, rising consumer awareness about health and the environment has emerged as a major concern for manufacturers. "The regulatory landscape is creating significant challenges for the industry," says Emerald Performance Materials' Vice President. Environmental protection agencies, such as the United States Environmental Protection Agency, are taking various measures, putting additional hurdles and restrictions on manufacturers.

Regional Insights

How Will Asia-Pacific Provide Growth Opportunities for Adhesives Providers?

The Asia-Pacific region dominated the global market, accounting for more than 41% of the total. Due to rising demand from the building and construction, packaging, and automotive industries, Asia Pacific is expected to hold the majority of the market share during the forecast period. Factors such as rising population and increased industrial expenditure drive the market in this region. The growing population increases demand for vehicles, resulting in high product demand in the automotive industry. In addition, the rapidly expanding building and construction activities in Asia-Pacific are increasing product demand. The Asia-Pacific region is the largest consumer of these materials, with China having the largest share.

The key countries contributing to the growth of this regional market are China, Japan, and India. Furthermore, Japanese adhesive companies such as 3M Japan Limited, Alteco Inc., Sika Ltd., and others are constantly investing in R&D and have made significant contributions to this market. Several manufacturing plants with increased production capacities are being built in India and China.

How will the Adhesives Industry Grow in North America?

During the forecast period, the North American adhesives and sealants market is expected to grow at a CAGR of more than 5.5%. The growing demand for composites joints and construction projects under development in the region are the major factors driving the market studied.

However, strict regulations on the use of VOC-free contents are expected to stymie the market's growth. The development of renewable resources as a replacement for petroleum-derived chemicals is expected to be a future opportunity.

The United States is expected to dominate the adhesives market, with consumption driven primarily by sectors such as construction, automotive, and electronics. The country has the region's largest packaging market and is expected to reach a market value of USD 500 billion by 2032.

How will the Adhesives Industry Grow in Europe?

During the forecast period, the European adhesives and sealants market is expected to grow at a CAGR of more than 3.2%. The growing application in the packaging industry, as well as the growing demand from the construction industry, are driving the demand for adhesives. The market in Europe is expected to grow significantly. The top companies in this region and major contributors to the global market are Henkel, Arkema, and Wacker Chemie AG.

Environmental regulations in Europe, as well as an increase in demand for green adhesives, would provide manufacturers with lucrative opportunities. Germany leads the region in adhesives and sealants consumption, owing to the country's prominent automotive production, rising construction activities, and growth in the packaging industry.

Category-Wise Insights

Which Application area Accounts for Bulk of Adhesives Market Revenue?

The building and construction segment dominates the market, accounting for 19.5% of total market revenue. The building and construction industry is on an upward trend, with significant revenue gains being reported on a regular basis. As a result, demand for building elements is increasing, increasing the demand for sealants and fueling the market growth.

These are used in a variety of applications, including flooring, glazing, walls, ceilings, and windows, and the market will grow as the building and construction industry expands. Automotive and transportation, consumer, and other major applications are also important. The automotive and transportation segment of Adhesives market is expected to grow rapidly, owing to an increase in demand for lightweight, efficient, and eco-friendly vehicles.

Why are Water-based Adhesives Surging in Popularity?

The water-based segment accounts for a sizable market share. These materials are either supplied as a pre-mixed solution or as a dry powder that producers and distributors mix with water to obtain adhesive properties.

Because the polymer in water-based products is water-soluble, the bond formed between them is more susceptible to moisture and water. Water-based adhesives are more flexible, cost-effective, and come in a wider range of colors than other adhesives, making them useful in a variety of industries such as packaging, paper, plastic, and fabric. Water-based adhesives will hold a high market share over the upcoming decades.

Competitive Landscape

The global adhesives market is a cutthroat one. The market is being driven by a shift in preference from traditional methods to high-performance adhesives. This has also resulted in the entry of numerous startups into the global market, increasing its competitiveness. Leading players are increasingly focusing on research and development in order to meet the needs of end-use industries with adhesives suitable for all applications.

• GE Sealants & Adhesives introduced a new nine-product line of Siliconized Acrylic Latex caulks and sealants in January 2020 to protect painting projects of inside and outside home renovation, including painting & sealing, bath & kitchen, and doors & windows.
• Bostik, an adhesive specialist for consumer, construction, and industrial markets launched a modified and innovative silicone sealant for back bedding applications in September 2019.
• Huntsman Corporation completed the acquisition of Gabriel Performance Products (Gabriel) from Audax Private Equity in January 2021. Gabriel is a North American specialty chemical manufacturer of specialty additives and epoxy curing agents for the coatings, adhesives, sealants, and composite end markets.

Key Segments Covered in the Adhesives Market Study

• Adhesives by Type :

  • Water Based Adhesives
  • Solvent Based Adhesives
  • Hot Melt Adhesives
  • Reactive Adhesives
  • Pressure Sensitive Adhesives (PSA)
  • Other Adhesive Types

• Adhesives by Application :

  • Adhesives for Packaging
  • Adhesives for Building/Construction
  • Adhesives for Transportation
  • Adhesives for Footwear & Leather Goods
  • Adhesives for Product Assembly
  • Adhesives for Consumer/DIY Applications
  • Adhesives for Other Applications

• Adhesives by Product :

  • Acrylics-based Adhesives
  • Epoxy-based Adhesives
  • Polyvinyl Acetate (PVA)-based Adhesives
  • Polyurethane (PU)-based Adhesives
  • Styrenic Blook-based Adhesives
  • Other Adhesive Products

• Adhesives by Region :

  • North America Adhesives Market
  • Europe Adhesives Market
  • Asia Pacific Adhesives Market
  • Latin America Adhesives Market
  • Middle East & Africa Adhesives Market