Originally published on Technavio: Industrial Adhesives Market Analysis 2023-2027: Growth Drivers, Trends, and Regional Insights

 

Overview:

The Industrial Adhesives Market is anticipated to witness substantial growth, with an estimated increase of USD 20.56 billion and a Compound Annual Growth Rate (CAGR) of 6.26% between 2022 and 2027. The market's growth hinges on factors such as the escalating replacement of mechanical fasteners, the surge in demand for lightweight and low-carbon emission vehicles, and the increasing need for packaged food and beverages.

 

Market Dynamics:

The Industrial Adhesives market size, expected to grow significantly during the forecast period, is poised to reach USD 20.56 billion, driven by key factors such as the escalating replacement of mechanical fasteners, the increasing demand for lightweight and low-carbon emission vehicles, and the growing requirement for packaged food and beverages. This analysis encompasses various facets of market dynamics, including growth drivers, trends, and potential challenges. A comprehensive understanding of these dynamics will empower companies to fine-tune their marketing strategies for a competitive edge.

 

Market Segmentation:

The market share growth within the building and woodworking segment is projected to be noteworthy during the forecast period. This segment is anticipated to witness maximum growth due to its diverse applications in flooring, waterproofing, tiling, carpeting, insulation, wall coverings, and roofing within the construction industry. The sustained growth in this segment, with a market share reaching USD 15.52 billion in 2017 and continued expansion until 2021, is fueled by rapid developments in the construction sector, especially in emerging economies like China and India. Increased investments in infrastructure and construction projects globally are expected to create opportunities for the market in the foreseeable future.

 

Market Dynamics:

The replacement of mechanical fasteners with industrial adhesives is a crucial driver of market growth. Industrial adhesives have become integral in various industrial applications, replacing conventional methods such as mechanical fastening, welding, and other joining techniques. This shift is driven by the advanced materials and intricate manufacturing requirements, making industrial adhesives preferable due to their superior performance and operational efficiency. The advantages of adhesive bonding, such as better-finished appearance, stress distribution, and enhanced strength performance, further contribute to the increased adoption of industrial adhesives across various industries, including construction, consumer durables, electronics, aerospace, and packaging.

 

Trends:

Continuous product development is a prominent trend contributing to market growth. Companies are consistently introducing innovative products, encouraging competitors to follow suit. For instance, Solvay SA launched AeroPaste 1009, 1006, and 1100 adhesive pastes and BR 179 non-chromate primer for aerospace manufacturers in June 2021. Similarly, H.B. Fuller introduced the Full-Care 5885 adhesive solution for disposable hygiene product manufacturing in November 2020. Such ongoing innovations provide end-users with a range of options based on their specific requirements.

 

Challenges:

A major challenge for the market is the rise in the price of industrial adhesives. The market faces hurdles due to the high cost of industrial adhesives, particularly in price-sensitive markets such as developing economies. The raw materials, derived from crude oil and petrochemicals, contribute to the cost. Fluctuations in crude oil prices can impact the prices of raw materials, affecting the profitability of market participants. The anticipated rise in prices may lead to reduced usage in developing economies, where end-users are price-conscious, significantly impacting market growth.

 

Customer Landscape:

The market trends and analysis report include the adoption lifecycle, covering innovators' stages to laggards' stages. It focuses on adoption rates in different regions based on penetration, providing key purchase criteria and drivers of price sensitivity. This information helps companies assess and formulate growth strategies based on customer behavior.

 

Key Companies:

Companies are employing various strategies such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches to strengthen their market presence.

 

Key Offering - 3M Co.: The company offers industrial adhesives such as 3M Scotch Weld Flexible Acrylic Adhesive 8600 Series, 3M Scotch Weld Low Odor Acrylic Adhesive 8700 Series, 3M Scotch Weld Nylon Bonder Structural Adhesive DP8910NS.

 

Competitive Landscape:

The report includes detailed analyses of 15 market companies, including 3M Co., Applied Products Inc., Arkema Group, and Avery Dennison Corp. Qualitative and quantitative analyses have been conducted to help clients understand the business environment and the strengths and weaknesses of key market players, categorizing them as pure play, category-focused, industry-focused, or diversified. Companies are further categorized based on their dominance, leadership, strength, tenacity, or weakness in the market.

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Asia-Pacific (APAC) is anticipated to contribute 47% to global market growth during the forecast period. Analysts have elucidated regional trends and drivers shaping the market during the forecast period. Increased demand for industrial adhesives from key countries like China, Japan, India, and Australia is fueling market growth. The rise in commercial and residential construction sectors, coupled with infrastructure development investments, is expected to drive demand in the region. For example, as of January 2020, 25 supertall buildings were under construction in China, set for completion in 2021, reflecting substantial growth potential for industrial adhesives.

The market is experiencing steady growth, fueled by businesses seeking cost-effective solutions amidst fluctuating raw material prices. Major participants like 3M Company and Henkel AG & Co cater to diverse end-use industries, including packaging, automotive, and electrical & electronics. The market's wide composition range, from epoxy to hot-melt adhesives, offers high versatility and good spreadability. In developing regions.

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