TAGS: Epoxy Adhesives Sealants Sustainability / Natural Adhesives
Prescient & Strategic Intelligence (PSI) anticipates that the global epoxy adhesive market stood at $8,217.9 million in 2021, and it is expected to reach $13,483.9 million by 2030, demonstrating a CAGR of 5.7% during 2021–2030. This is ascribed to the surging demand for these adhesives from the cement, construction, automotive, manufacturing, woodwork, plastic, and marine industries.
Development of Biobased Adhesives and Sealants
Due to the rising environmental concerns, companies are developing bio-based adhesives and sealants to replace chemical-based adhesives. Also, in order to enhance sustainability efforts without compromising performance, the companies are developing advanced technologies for these bio-based products. For example, The Dow Chemical Company has developed RENUVA technology for adhesives and sealants, which offers benefits that cover various applications in the adhesives and sealants marketplace, including improved water resistance, high flexibility, and good adhesion on a variety of substrates.
Hence, this factor is expected to create ample opportunities for players operating in the epoxy adhesive market in the coming years.
Building & Construction End User Dominates the Market
In order to cater to the rising demand for adhesives, market players are establishing their manufacturing plants in different parts of the world. They are also increasing their production capacities to fulfill the requirements. For example: In November 2020, Sika AG expanded its production capacity in the U.A.E., with the commissioning of a new manufacturing facility in Dubai. In February 2020, Henkel AG & Co. KGaA opened its new adhesive production facility in Kurkumbh, Maharashtra, India.
The building & construction sector is the largest end user of epoxy adhesives in the market. Thus, the category generated the highest revenue, of around $2.3 billion, in 2021. This is attributed to the versatility of the adhesives in building and construction applications. These adhesives can be used for filling gaps, surface repairing, and laminating, and are also usable on various surfaces including bricks, cellular PVC, ceramics & porcelain, fiberglass, gypsum & drywall, medium-density fiberboard, metal, plywood, stainless steel, and wood and water-resistant tile. Further, the rise in maintenance and construction activities around the globe has intensified the use of these structural adhesives.
Demand for Epoxy Adhesives in Automotive & Transportation Sector
The surging demand for these adhesives in the automotive & transportation industry for structural bonding applications is responsible for the significant market growth in this category, advancing at a CAGR of around 6%, during 2021–2030.
Auto manufacturers are inclined toward these adhesives due to their heat- and weather-resistant properties and rigid bonding feature, which aids in enhancing the structural integrity of vehicles. Hence, with the increasing demand for vehicles, the need for epoxy-based adhesives is also expected to rise in the coming years.
The one-component category dominated the epoxy adhesive market, due to its superior properties such as quick-curing time and solvent-free composition. Moreover, one-component adhesives are ideal for use on assembly lines because, unlike two-component adhesives, no mixing is required, making the manufacturing process easier and more streamlined. However, two component-based epoxy adhesives are expected to witness high demand from building and construction applications in the coming years.
The offline distribution channel offers great flexibility in choosing different products and quality assessments. Furthermore, the construction and automotive industries source their required volume directly from dealers and suppliers and prefer wholesale shopping. Based on the industry analysis, the category is projected to hold more than 75% revenue share in the market in 2030.
APAC Accounts for the Largest Market Share
Due to its massive construction, automotive, electrical & electronics, and semiconductor industries, APAC holds the largest market share. Moreover, epoxy adhesives are widely used in manufacturing and construction activities, which lead the regional market to maintain its dominant position in the coming years as well.
China accounted for the largest revenue share in the APAC market in 2021. In the region, it is an emerging economy and is the largest country in terms of purchasing power parity, the second-largest economy in terms of nominal GDP, and one of the largest exporters of adhesives and sealants. Additionally, almost all major global adhesives and sealants manufacturing companies have their manufacturing plants in China. These aforementioned factors are responsible for its largest share in the regional market.
Other emerging countries in the region, including India, are witnessing a substantial increase in usage of adhesives and sealants, owing to the growing automotive industry and the increasing consumer population in these countries. Furthermore, low manufacturing and labor costs in these emerging economies attract new automotive players to invest in fast-growing markets and expand their business in the region.
Additionally, owing to the rising purchasing power of people, rapid urbanization, and government efforts to provide affordable housing, heavy investments in the construction of hotels, apartments, offices, retail centers, and civic infrastructure are being poured. For instance, in July 2021, the Government of India allocated around $22 million for the construction of roads. Additionally, the changing lifestyle of people has resulted in the increasing demand for housing, which has further fueled the demand for adhesives.
Europe held the second position in the revenue generation in the epoxy adhesive market in 2021, as the demand for adhesives from the automotive and aerospace sectors is high in the region.
In 2021, Germany was the leader in the European market. As of 2020, the country accounted for approximately one-third of all passenger cars manufactured within the European region, and also it has the largest concentration of OEMs of automobiles, owing to the existence of sophisticated automotive technologies. Due to the large concentration of automotive manufacturers and high exports of German-built automobiles to Asian and Eastern European countries, the consumption of automotive adhesives and sealants in Germany is expected to rise over the forecast period.
In North America, the U.S. held the majority of the market share in 2021. The construction industry is a significant contributor to the U.S. economy. The significant growth in the construction industry is responsible for the rise in demand for epoxy adhesives in the country. Furthermore, the surging demand for automobiles will significantly add to the growth of the market. For instance:
The U.S. auto sales increased by around 70%, from approximately 10 million in 2009 to 18 million in 2018. The projected sales of cars will reach around 18 million by 2025.
In 2020, auto production in North America reached more than 15 million units, which represented over an 18% share of the global production.
Source: Prescient & Strategic Intelligence