TAGS: Acrylic Adhesives Polyurethane Adhesives Waterborne Adhesives Solvent borne Adhesives Hot-melt Adhesives
Grand view research (GVR) anticipates that global high-performance adhesives market size is anticipated to reach USD 40.7 billion by 2027 at 3.5 percent CAGR, during the forecast period. Rising private and government spending in healthcare and building and construction sector across the globe is the crucial factor supporting the growth of the market for high performance adhesives.
Future Demand to be Triggered by Healthcare Sector due to COVID-19
However, the outbreak of COVID-19 across the globe has directly impacted the construction sector, manufacturing sector, and other industries in the first quarter of 2020. The key end-use sectors of the high-performance adhesives industry including construction sector are likely to observe negative trend in the FY 2020.
The future demand across the globe is most likely to be triggered by increasing investments in the healthcare sector. For instance, healthcare and biotechnology sectors have showed strong resilience compared to other industries owing to their participation in the hunt for COVID-19 treatments. The global governments are anticipated to prepare extensively to prevent adverse shortages of medical resources in case of the next pandemic. These preparations are likely to cause a surge in the product demand.
Furthermore, technological advancements in high performance adhesives are expected to play a major role in driving the industry over the coming years. Rapid progress is being achieved through new macromolecular chemistries, additives, and raw materials. This coupled with availability of highly sophisticated manufacturing equipment has allowed for custom bonding solutions that are strongly outperforming conventional soldering and fastening solutions.
Acrylic Adhesive – Widely Used in Packaging Application
Acrylic adhesive segment dominated the market in 2019 with a volume share of 36.4 percent in 2019. This dominant share in the market is attributable to superior properties exhibited by the product such as strong environmental resistance, immediate tack, significant strength, and capacity to bond on various substrates. It is widely used in packaging applications and is also witnessing rapid momentum in the medical sector.
Polyurethane high performance adhesives have excellent chemical, temperature, and wear resistance and are thus ideal for construction materials such as hardwood flooring, stoning, concrete, marble, stone, slate, masonry, cement based products, lead, fiberglass, ceramic, and drywall. The product is also witnessing increasing penetration in the automotive and transportation sector.
The demand for silicone high performance adhesives is driven by their ability to provide adhesion to silicon and other difficult to adhere substrates. Extreme weather resistance and longer durability of silicones when compared to acrylics is attracting consumers to silicone. Silicone products are primarily based on solvent based technology and therefore the segment growth is impeded by significantly high cost and numerous government regulations.
Other products such as cyanoacrylate and hybrid MS polymer high performance adhesives are likely to experience accelerating growth in near future. The flexibility offered by MS polymers along with exceptional environmental resistance is the primary factor supporting its growth. These products are witnessing rapid growth in the building and construction sector.
Water-based – Fastest Growing Adhesive Technology
The water-based adhesive technology segment held the largest market share of 34.4 percent in terms of revenue and is expected to witness the fastest revenue-based CAGR of 4.1 percent from 2020 to 2027. High performance adhesives based on this technology provide excellent adhesion to polar substrates and provide high resistance to extreme environmental conditions. The principal end-uses of this technology includes packaging and construction industries.
Solvent based adhesive products are poised to exhibit the lowest revenue based CAGR in the high-performance adhesives market from 2020 to 2027. Stringent government regulations regarding VOC emissions imposed by several regulating bodies such as Regulation, Evaluation and Authorization of Chemicals (REACH) and Occupational Safety and Health Administration (OSHA), and Environmental Protection Agency (EPA) are likely to retrain segment growth over the coming years.
Hot melts are 100 percent solids and are set as soon as the heat dissipates. Hot-melt adhesives such as hot melt polyurethanes are widely utilized in numerous applications including packaging owing to their excellent intrinsic characteristics such as immediate bonding. Unlike solvent based and water-based adhesives, automotive manufacturers using hot melts can keep the production lines faster as they don’t have to wait for water or solvents to evaporate.
Construction – Highest Application of High-performance Adhesives
Construction dominated the market with a volume share of more than 39.0 percent in 2019. Rising infrastructure investments and increasing urbanization across the globe are the factors significantly propelling segment growth. Although the segment is likely to take a hit in fiscal year 2020 due to outbreak of COVID-19, it is likely to regain its momentum from 2021. Packaging is the second largest application of high-performance adhesives. Increasing consumer disposable income and fast paced lifestyle has led to increasing demand for ready-to-eat packaged food products. This is likely to provide lucrative opportunity for segment growth in the market for high performance adhesives over the coming years.
The medical segment is projected to witness the fastest revenue based CAGR of 4.9 percent in the market for high performance adhesives from 2020 to 2027. Growing ageing population, rise in cardiovascular diseases due to unhealthy lifestyle, and possibility of another novel infectious disease pandemic like COVID-19 is expected to accelerate substantial investments by global governments and international institutions in healthcare sectors, there by bolstering segment growth over the coming years.
Highest Growth in Asia Pacific Region due to COVID-19
Asia Pacific held the largest market revenue share of more than 43.0 percent in 2019. This can be attributed to vast construction, packaging, and transportation industry in the region. Economies like China, India, Vietnam, and Indonesia are witnessing rapid economic growth and therefore there is rising demand for high performance adhesives in the region. Asia Pacific has also delivered relatively stronger performance in containing the COVID-19 epidemic as compared to Europe and North America.
In North America, the market for high performance adhesives grew at a substantial rate until 2019. It is likely to take a major hit due to the coronavirus pandemic in 2020. However, steps taken by the federal government to unleash massive amounts of fiscal stimulus such as the USD 2.0 trillion package is predicted to slowly restore the U.S. economy and foster regional growth.
Europe was the second-largest revenue-generating region in the market for high performance adhesives in 2019. There is huge significance given to environment sustainability in Europe. For instance, builders and architects are becoming increasingly aware of high-performance construction adhesive tapes owing to their superior advantages over other sealants and flashing materials. Europe is the second worst COVID-19 affected region in the globe and is poised to witness restrained growth in 2020.
Middle East and Africa has the least penetration of the product. Therefore, the consumption of the product has been witnessing a rapid growth since the past few years. The rapid growth of sub-Saharan African countries in the region represents an attractive opportunity in the region. For instance, the urbanization rate of the sub-Saharan African region is estimated to be 3.6 percent in 2017, faster than that of any other region in the world.
Source: Grand View Research