TAGS: Sustainability / Natural Adhesives Epoxy Adhesives
Markets and Markets (M&M) anticipates that epoxy adhesives market which was valued at USD 9.2 billion in 2022 and is projected to reach USD 11.7 billion by 2027, growing at a cagr 5.0% from 2022 to 2027. Two-component epoxy adhesives, by type segment in the Asia Pacific region, is expecting a boom in the forecasted period and will lead to an increase in the demand for the market.
Drivers: Growing Demand for Low-carbon Emitting Vehicles
The automotive industry is one of the major end users of epoxy adhesives. Adhesives play an important role in enhancing the aesthetics and performance of automobiles. Weight reduction of vehicles is the key to improving fuel efficiency and limiting emission of pollutants. Historically, adhesives were used for laminating, bonding, and assembling automotive interior components.
Modern-day adhesives are playing a decisive role in supporting original equipment manufacturers in automobile weight reduction strategies and complying with stringent environmental regulations by keeping carbon emissions at the minimum. This has presented a new growth opportunity for adhesives manufacturers.
Restraints: Stringent Environmental Regulations
Europe and North America are strictly regulated by environmental laws regarding the production of chemical and petro-based products. Agencies such as the Epoxy Resin Committee (ERC) and the European Commission (EC) govern the manufacturing of solvent-based products in these regions.
This is affecting the production capacities of manufacturers in Europe and North America. The stringent environmental regulations are compelling manufacturers to focus on producing eco-friendly adhesives.
Increasing Demand for Non-Hazardous, Green and Sustainable Adhesives
Owing to the rising demand for eco-friendly or green products in various applications, the demand for green adhesives or those with low VOC is increasing. Stringent regulations by the USEPA (United States Environmental Protection Association), Europe’s REACH (Registration, Evaluation, Authorization, and Restrictions of Chemicals), Leadership in Energy and Environmental Design (LEED), and other regional regulatory authorities have forced manufacturers to make eco-friendly adhesives with low VOC levels.
In light of this regulatory policies, there is a growing trend in the global epoxy adhesives market for environment-friendly or green buildings, which provides an opportunity for the development of green and sustainable adhesive solutions. Such green adhesive solutions are made from renewable, recycled, remanufactured, or biodegradable materials which are health- and environment-friendly.
Challenges: Limited Opportunities in Developed Countries
Developed countries such as the US, Germany, the UK, Japan, and other Western European countries have well-established infrastructure for public, commercial, and transport sectors. The developed infrastructure in these countries signifies low prospects for new construction activities as civil structures are built to last a lifetime.
Hence, there is lesser scope for high demand of epoxy adhesives as renovations and maintenance can only be expected from the developed nations in the short term. Manufacturers need to come up with innovative products to capture newer markets such as medical, agriculture, and healthcare. Hence, sustaining and expanding business is a major challenge for manufacturers in the matured markets.
Two-component is the largest segment of epoxy adhesives. It start to react under ambient conditions once these adhesives are mixed together. These are often termed room-temperature (RT) curing adhesives. Complete cure times at ambient temperatures for two-component systems range from approximately 10 minutes to several days. While, the one-component epoxy adhesives are more efficient and easier to control than the two-component epoxy adhesives. This is because the curing time for one-component epoxy adhesives is very less compared to that of two-component epoxy adhesives.
Highest Growth in Asia Pacific Region
Asia Pacific remains the highest growing region, with key large adhesive producers establishing their manufacturing bases here. The production of manufactured goods is increasing to meet the increasing demand driven by improving living standards, especially in the consumer product and disposable markets, which use large volumes of commodity adhesives. Many new production facilities— export-oriented and for domestic markets—use the latest manufacturing processes designed for using adhesives instead of the older mechanical fastening equipment that manufacturers first used in developed regions.
Henkel AG & Co. KGaA (Germany), Sika Group (Switzerland), 3M (US), H.B. Fuller Company (US), DuPont (US) are the key players in the global epoxy adhesives market.
Henkel AG & Co. KGaA operates with a well-balanced and diversified portfolio globally. It manufactures and distributes and adhesive products, cosmetics, homecare, and laundry. The company operates through four main business segments: Adhesive Technologies, Laundry & Home Care, Beauty Care, and Corporate. Epoxy adhesives are produced under the adhesive technologies segment. Adhesive technologies cater to the needs of different business areas such as packaging & consumer goods, construction & professional, electronics & industrial, and craftsmen businesses.
In July 2018, Henkel AG & Co. KGaA has acquired Aislantes Nacionales S.A., a private company manufacturing and marketing of products used in building materials. This acquisition will strengthen the product portfolio by adding attractive Chilean building materials market. It will also strengthen the position in Latin America.
Source: Markets and Markets (M&M)